Hardware Retailing May 2019

Serving Hardware, Home Center & Building Material Retailers

Building Your Niche Boost Business With Unique Categories 54

How the 2019 Top Guns Take on Pricing 76

VOLUME 216 • ISSUE 5 • MAY 2019 • HARDWARERETAILING.COM

What’s in Stock in Your Plumbing Department? 122

WEBSITE

JOIN MAILING LIST

FACEB

Everything We Need Orgill’s Product Selection Was Exactly What We Were Looking For!

“Orgill is absolutely the best fit for us. They provide us with the product selection and level of stock fulfillment we need.”

Philip Chapman, Kate Borroni and Stu Chapman l Woodson Lumber, Caldwell, Texas An Orgill customer since 2014

Why We Like Working With Orgill: • Programs that keep us on top of our product selection • Dealer Markets highlighting new products and vendors

• Services to help us reset and update various categories • Exceptional customer service that’s quick and efficient

Building Your Nich

Boost Business With Unique Catego

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

4/9/19 9:37 AM

“For me, the hardest task is reaching new customers.

Pointy has helped massively with this—now when someone does a simple Google search for a product we stock, they’re directed to our store.”

Michelle Leopold | Standard 5&10 Ace | San Fransisco

Increase In-Store Sales Pointy is designed for retailers looking to drive online traffic directly to their stores. This easy-to-use device connects between your barcode scanner and POS system. Simply scan products and Pointy uploads them, giving retailers the ability to promote in-store products on Google. It’s hassle-free and can increase your store’s foot traffic. Retailers can now purchase Pointy at a special introductory rate of $399 (regularly $699) through NRHA.

VISIT POINTY.COM/NRHA, CALL 646-693-7224, OR EMAIL NEIL@POINTY.COM

Pointy-houseads-2019.indd 177

VOLUME 216 • ISSUE 5 • MAY 2019 • HARDWARERETAILING.COM

Visit us in person at the National Hardware Show® Booth #2842

4/12/19 10:40 AM

Cover_0519.indd 1

BOOK

ADVERTISE

CONTACT US

Serving Hardware, Home Center & Building Material Retailers

14'

STANDOUT *

Standout Strong.

he

With 14 feet of standout and the ability to survive a 100-foot drop, Shockforce is a game-changer ready to dominate every jobsite. A diamond coated 360-degree end hook delivers 50% more gripping power and big, bold markings make it even better. And for superior performance in any light condition, the Shockforce Nite Eye offers a green-on-black high visibility blade. Shockforce … it’s the new standard for trade professionals.

ories 54

*14 foot standout based on maximum performance.

See the entire line of Crescent brand products now at www.crescenttool.com.

© 2019 Apex Tool Group, LLC | ATG-4721

Compare your business to the rest of the industry.

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

AD #4 Median Sales Per Customer $120

Typical

Key Business Indicators

High-Profit

50%

Typical

High-Profit

$105 $100

$91

40%

$96

32.3%

$80

$60

$45

HARDWARE STORES

$40

How the 2019 Top Guns Take on Pricing 76

$20

$49

$41

$42

2013

2014

$43

12

What’s in Stock in Your Plumbing Department? 122

2018 Cost of Doing Business Study

10%

6.3%

$36

2015

3.1%

2016

2017

• The home centers responding to this year’s study saw gross margins (after rebate) increase over last year by 230 basis points, and this year’s group also reported sales that were 7.4% higher than last year’s.

Home centers are a hybrid mix of a hardware store and a lumberyard. Home centers carry full assortments of hardlines shelf goods as well as commodity lumber and building materials in a minimum of 10,000 square feet of selling space.

16.7% 17.4%

20%

$51

Key Performance Differences At-A-Glance

Home Centers

30.8%

30%

• Higher sales numbers didn’t necessarily translate to higher expenses, though, as home centers held payroll to 16.7% of sales, which are the lowest levels we have seen since 2005.

• Home centers have also kept a tighter grip on accounts payable, keeping that number to 6.7%, the lowest on record for the group.

• All of this translated to profit before taxes of 3.1% for average home center operators in our study versus 6.3% for the high-performance retailers in the upper quartile.

By most measures, home centers fared well last year compared to their historic averages when it came to productivity. Although top-line sales can fluctuate dramatically based on the group of operators we have responding to the survey, when you look at the productivity percentages, they tell a positive story.

0%

Gross Margin After Rebate

Total Payroll

Profit Before Taxes

The average home centers in our study saw their bottom lines increase last year by 40 basis points from 2.7% to finish at 3.1%, which is the second-highest return they have seen since 1994.

This increase was primarily driven by Cost Of Goods Sold being down 140 basis points and rebates being up 90 basis points over the prior year.

When we take a look at the best-in-class home center performers, we find much the same story we see in other store classes. Those garnering the greatest net profits are also doing the best job of expense control, inventory and employee productivity.

In addition to a lower payroll expense percentage, high-profit home centers also showed lower occupancy expenses than the average store, with occupancy of high-profit operations at 2.5% of sales versus typical stores at 4.4%, and lower other operating costs, with high-profit home centers’ costs at 6.7% of sales versus typical home centers at 8.7%.

It is worth noting that while high-profit home centers had a lower average gross margin (30.8% versus 32.3%) than their average counterparts in our most recent study, this statistic is typically indicative of them selling larger projects involving commodity items with historically lower margin opportunities.

North American Retail Hardware Association

13

“Comparing the industry average ratios to our store helps when we’re having conversations about a new store location because it gives us real numbers to look at.”

Neal Aissa | Tarzian Hardware FOR MORE INFORMATION, GO TO NRHA.ORG/CODB

CODB-houseads.indd 165

4/18/19 2:45 PM

4/9/19 10:21 AM

MAY SPONSOR The Premier Retail Management Program Designed to Help You...

Grow Top-Line Sales

Create Great Customer Experiences

Reduce Staff Turnover Increase Bottom-Line Profits

Empower and Train Your Managers Develop More Effective Retail Sales Space

Produce More Effective Customer Communication

Now Enrolling for Fall NRHA offers the only immersive and comprehensive retail management training program in the industry that can teach your key people how to increase top-line sales and bottom-line profits. This six-month program gives retail employees flexibility while providing an in-depth learning experience with topics and assignments that can immediately have a positive impact on your business. Apply by June 1 to save on tuition.

COASTPORTLAND.COM

FOR PROGRAM DETAILS OR TO APPLY, GO TO NRHARMCP.COM

RMCP_House Ads-2019.indd 167

BOOTH# 5636 4/9/19 1:59 PM

Serving Hardware, Home Center & Building Material Retailers

Building Your Niche Boost Business With Unique Categories 54

I NEW storm proof EMERGENCY AREA LIGHTS

How the 2019 Top Guns Take on Pricing 76

VOLUME 216 • ISSUE 5 • MAY 2019 • HARDWARERETAILING.COM

What’s in Stock in Your Plumbing Department? 122

MAY SPONSOR The Premier Retail Management Program Designed to Help You...

Grow Top-Line Sales

Create Great Customer Experiences

Reduce Staff Turnover Increase Bottom-Line Profits

Empower and Train Your Managers

Produce More Effective Customer Communication

Develop More Effective Retail Sales Space

Now Enrolling for Fall NRHA offers the only immersive and comprehensive retail management training program in the industry that can teach your key people how to increase top-line sales and bottom-line profits. This six-month program gives retail employees flexibility while providing an in-depth learning experience with topics and assignments that can immediately have a positive impact on your business. Apply by June 1 to save on tuition.

FOR PROGRAM DETAILS OR TO APPLY, GO TO NRHARMCP.COM

RMCP_House Ads-2019.indd 167

4/9/19 1:59 PM

Serving Hardware, Home Center & Building Material Retailers

Building Your Niche Boost Business With Unique Categories 54

How the 2019 Top Guns Take on Pricing 76

VOLUME 216 • ISSUE 5 • MAY 2019 • HARDWARERETAILING.COM

What’s in Stock in Your Plumbing Department? 122

14'

STANDOUT *

Standout Strong.

With 14 feet of standout and the ability to survive a 100-foot drop, Shockforce is a game-changer ready to dominate every jobsite. A diamond coated 360-degree end hook delivers 50% more gripping power and big, bold markings make it even better. And for superior performance in any light condition, the Shockforce Nite Eye offers a green-on-black high visibility blade. Shockforce … it’s the new standard for trade professionals. *14 foot standout based on maximum performance.

© 2019 Apex Tool Group, LLC | ATG-4721

See the entire line of Crescent brand products now at www.crescenttool.com.

Headquarters Staff

COMING IN JUNE

PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF MARKETING AND 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

FEATURES EDITOR Melanie Moul ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

@NorthAmericanRetailHardwareAssociation PRODUCTION SERVICES

@nrha_official North American Retail Hardware Association @nrha_official HEADQUARTERS STAFF PRESIDENT AND CEO Bob Cutter VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan EXECUTIVE COORDINATOR Marci Taschler

PRODUCTION MANAGER Nancy A. Vondersaar

Distribution America

Strength in Numbers In June, Hardware Retailing’s distributor profile series continues. Learn how Distribution America and its six member distributors are working as one to help customers excel.

SALES AND PRODUCTION ASSISTANT Freda Creech

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

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

MEMBER SERVICES TRAINING MANAGER AND EDITOR Jesse Carleton, 317-275-9418, jcarleton@nrha.org RETAIL OUTREACH COORDINATOR Renee Changnon, 317-275-9442, rchangnon@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

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

NRHA CANADA NRHA CANADA Michael McLarney, 330 Bay Street, Suite 1400, Toronto, Ontario, Canada M5H 2S8; +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

SALES/NRHA VENDOR PARTNER 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 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 BUSINESS DEVELOPMENT MANAGER Brad Lyons, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, blyons@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

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

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 TJ Comstock, Northwest Hardware LLC, Billings, Montana EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS 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 David Dishke, Grand River Home Hardware, Caledonia, Ontario

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year.

(Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

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

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

All editorial contents copyrighted 2019 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.

2

HARDWARE RETAILING | May 2019

SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas

Electrical Fires Can Be Prevented.

YOUR CUSTOMERS DESERVE THE BEST PROTECTION Help your customers safeguard what matters most to them – their family and home. Leviton AFCI outlets help protect against electrical fires by using the most advanced technology for enhanced safety and functionality.

Our AFCI outlets are tamper-resistant for child safety and meet or exceed National Electrical Code®, UL and CSA standards, a plus for customer confidence and peace of mind.

Leviton. The brand you trust for the protection you need.

Learn more at leviton.com/afci

Contents MAY 2019 | VOLUME 216 | ISSUE 5

66 INDUSTRY EVENTS

A Guide to the Conference Take a ride out to Las Vegas to join the North American Retail Hardware Association (NRHA) for its annual conference, held in conjunction with the National Hardware Show®.

Get a preview of the highlights here, and we’ll see you in the NRHA Village, right outside the show floor.

90 VENDOR PARTNER

Supporting Independents The NRHA Vendor Partner Program helps manufacturers show their support for the independent channel by giving back through the association.

94 OPERATIONS

54

CATEGORY

Your Next Niche

Niche categories can add excitement to your business, and most retailers are always on the lookout for a new category to explore. Be inspired by three retailers whose unique product mixes have earned their operations must-see reputations.

76

Come to the Front of the Class What are you doing to appeal to the next generation of home improvement shoppers? Find out how the management team at Everson’s Hardware Hank learned what local high school students want from their local retailer.

INDUSTRY EVENTS

Meet the 2019 Top Guns

This year’s group of Top Gun honorees represent innovative multistore hardware store owners and lumberyard operators from the West Coast of the U.S. to the easternmost point of Canada.

Learn more about these retail high achievers to spark your own successes.

102 RESEARCH

Charlie Gillman Gillman Home Center

4

HARDWARE RETAILING | May 2019

Christine Hand Handyman Home Hardware

Mark Schulein Crown Ace Hardware

Home Depot 360 As Home Depot marks 40 years of operation, take a look at its dramatic early years. See an overview of the company’s financial information, a SWOT analysis and discover what’s next for the world’s most profitable big-box home improvement retailer.

From the makers of Big Stretch® and Lexel®

Introducing

The First Ever Active Enzyme Caulk for Kitchen & Bath No mold. No mildew. No scrubbing needed!

Another Sashco Product That Works Contact your Sashco Territory Manager or Customer Service at 800.767.5656 to learn more.

Contents

142

CATEGORY

Open to the Public

Maintaining public gardens requires care and knowledge from trained professionals. Learn about the daily operations at two of these gardens in the U.S. and find out how your business can help them continue their craft through various types of support.

150 INDUSTRY NEWS

Independent We Travel NRHA recently embarked on the Independent We Stand Red, White & Q Road Trip. Travel along to the independent stores they visited and see the value local businesses offer.

158 PROFILE

Retail Extremes Discover how a retailer on the Alaska coastline and a lumberyard operator in sunlit Florida overcome supply chain challenges to serve their customers.

164 MERCHANDISING

Get Your Aisles in Order Clean and neat rows of merchandising are critical to create a memorable shopping experience. Make sure your aisles don’t fall out of line.

122 CATEGORY

Departments

Don’t Let Your Department Plummet Hardware Retailing spoke to leaders in the plumbing category to learn how retailers can cater to plumbers on the move with merchandising, inventory and pricing strategies that work.

08 . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . Independent Thinking 12 . . . . . . . .Taking Care of Business 16 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . Spring Product Preview 46 . . . . . . . . . . . . . . . . . . Checkouts 168 . . . . . . . . . . . . . . . Newsmakers 174 . . . . . . . . . . . . . . . . . Last Word

130 PROFILE

Do What You Know Many retailers come from diverse career paths, and their previous endeavors make them better at their jobs. Learn how experience outside the industry could help your business.

138 MARKETING

Lost, Then Found Learn more about the simple steps you can take to ensure your website is among your customers’ top search results by utilizing a free, powerful resource like SEO. 6

HARDWARE RETAILING | May 2019

148 INDUSTRY NEWS

Buying Local Means Business Independent We Stand co-founder Bill Brunelle explores the root of the buy-local movement and shares the many ways it can help boost the local spirit in your hometown.

On the Cover Meg Thoreson boosts sales with unique niches at Solon Springs Mercantile, her store in Solon Springs, Wisconsin .

NRHA photo by Kelsey Truex

IMPROVING LIFE ON LAND

For generations Tarter Farm and Ranch Equipment have been providing Americanmade, high quality equipment for your farm or ranch. From Cattle Equipment to Kennels for your pets. Tarter has been improving life on your land since 1945.

COME TO VEGAS AND VISIT OUR BOOTH , SEE HOW TARTER CAN HELP YOU. BOOTH #11 762

On the Web

CATEGORY

Finding Your Niche Using creative merchandising is crucial for boosting sales of niche inventory.

See how retailers are finding success at TheRedT.com/2019-niches.

OPERATIONS

Instant Inspiration You can find great merchandising ideas and new product suggestions by following influential Instagram accounts.

See five great accounts to follow today at TheRedT.com/instagram-tips.

CATEGORY

Plumbing Prowess Need tips on helping customers solve common water heater problems?

A professional plumber from PipeMaster’s Plumbing spoke to Hardware Retailing to help retailers troubleshoot customers’ plumbing issues. Visit TheRedT.com/plumbing-video for more information.

Customer Service Tips From the Top The 2019 Top Guns represent some of the industry’s most innovative business operators. Read some of their customer service tips in this month’s Trainer’s Toolbox lesson.

search...

8

MARKETING

RESEARCH

SEO Myths Debunked As you update your website to follow SEO best practices, avoid mistakes that could potentially do more harm than good. Learn about SEO pitfalls by visiting TheRedT.com/seo-myths.

Write Home About It Bob Andelman wrote the book on Home Depot in “Built From Scratch,” published in 1999. Discover Andelman’s lasting impressions of the company at TheRedT.com/hd-author.

HARDWARE RETAILING | May 2019

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is made for all employees. Visit nrha.org/trainers-toolbox to download this month’s lesson, listed below.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

A DIFFERENT BRAND OF GRILL. A DIFFERENT KIND OF COMPANY. A BETTER WAY TO GROW YOUR BUSINESS.

So why are thousands of consumers excited? That’s easy...they’ve made the smart choice when purchasing a high quality performance grill. We know this because they are talking about it. Just read the reviews! (broilkingbbq.com/reviews) Hundreds of independent and specialty retailers have realized how much of a game changer these grills have become.

They have increased sales and profit with Broil King® in their stores. So, let’s talk. We’re excited to show you why Broil King® grills are the right choice for your store. broilkingbbq.com/become-a-partner

Please contact Geoff Kelly gkelly@omcbbq.com for more details on becoming a successful Broil King® dealer.

Independent Thinking

Membership Gives You Access

W

“If you operate

an independent home improvement business in the U.S. or Canada, you are a member of the North American Retail Hardware Association.

”

e are just coming off our whirlwind travel season, during which North American Retail Hardware Association (NRHA) staff attends various wholesaler spring markets. Something that always amazes me at these events is the appreciation retailers show for our presence in the industry.

At a recent spring market, a retailer who is new to the industry stopped by our booth.

After hearing about our programs and services, the retailer commented, “Wow, I had no idea. You guys do a lot.” Another longtime retailer said, “Yes, they do a ton, and it helps the independent retailer compete, regardless of who their wholesaler is.”

It’s always great to hear those sentiments as NRHA always has a lot going on, and communicating everything we do is a complex task. Heck, I work here, and it’s hard to keep up.

It’s important to remember that if you operate an independent home improvement business in the U.S. or Canada, you are a member of NRHA. A major credit card company once used the slogan, “Membership has its privileges.”

This idea certainly applies to NRHA, but because I don’t want to be sued by one of the biggest brands in the world, I’ll say, “Membership gives you access.”

As an NRHA member, there are dozens of programs and services you can access completely free, such as our innovative Train the Trainer Guide, which helps you set up a training program, and the Trainer’s Toolbox, which provides everything you need to lead a short training session. You receive Hardware Retailing magazine, which is the No. 1 home improvement industry publication, access to our brand new retailer forum and the opportunity to participate in our numerous live events, such as the NRHA All-Industry Conference (see Page 66).

You can elevate your membership by becoming an NRHA Training Member, which includes nine in-depth online courses with 247 modules covering product knowledge, merchandising, inventory management, selling skills, accounting, loss prevention, project knowledge and “Our Three Pennies of Profit.”

But wait, there’s more! NRHA’s Retail Leadership Institute has a number of programs to grow and improve your business. The NRHA Foundations of Leadership Program is designed for emerging retail leaders, and NRHA’s Retail Management Certification Program is a college-level course for key employees looking to improve their skills in strategic planning, decision-making and leadership. We also host roundtables in financial affairs, human resources, IT, marketing, merchandising and women’s leadership.

We’ve also partnered with STIHL to create the NRHA STIHL Foundations of Leadership Conference for current participants or graduates of these programs (see Page 18).

And yet, even more! NRHA has partnered with expert organizations to help retailers with numerous business services, including health insurance, credit card processing, workers’ compensation and liability insurance and human resources management.

And last but not least, we publish a number of studies, including the annual benchmark Cost of Doing Business Study, which is currently in the data collection phase and is also our oldest-running study. Retailers who participate in the survey will join more than 1,000 stores submitting their data and will receive a free copy of the final study (a $499 value), a personalized financial analysis with composite financial statements, as well as business ratios, a strategic profit model and a what-if scenario generator.

Membership does give you access! To learn more about how NRHA can serve your operation, contact Renee Changnon at rchangnon@nrha.org.

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

10

HARDWARE RETAILING | May 2019

YOUR BOTTOM LINE IS OUR TOP PRIORITY.

We’ve made substantial investments that keep our retailers competitive– without spending their money. We replaced wasteful advertising with hyper-local digital marketing, because digital not only gives you better profits, it’s more relevant to your market. We are investing $150 million to modernize our supply chain including a brand new distribution center.

We’ve expanded our field sales team, so you get help when you need it–regardless of whose flag you fly.

OVER 300 RETAILERS JOINED US IN 2018.

WILL YOU BE NEXT? CALL 1-888-291-7229 OR VISIT TRUEVALUECOMPANY.COM ©2019 True Value Company LLC. TV-RD-15308

Taking Care of Business

An Event Like No Other

I

“There is no other

event in the industry that welcomes retailers of all affiliations, as well as wholesalers and manufacturers from around the world to come together in one place.

”

t was nearly 23 years ago when this wide-eyed editor walked through the doors at Chicago’s McCormick Place and onto the show floor of my first National Hardware Show®.

The experience was really unlike anything I was prepared to take in. I knew very little about the industry, but I had pictured an event where men in business suits were trying to sell hammers to men in golf shirts.

The reality was quite different. The first booth I saw—and heard—was pumping music from concert speakers as monitors flashed frenetically with images of their new products. A few booths down, models were “showering” in working bathrooms to demonstrate how their company’s new-era fixtures worked (and garner some attention in the process).

There was excitement in the air, and the entire experience fell somewhere between trade show and rock concert (just a little less funny smelling smoke in the air).

Welcome to the hardware industry!

Over my next several trips to the show, I began to see more of the substance that lay beneath all the shimmer at the show.

Sure there were glitzy booths and pumping music, but more importantly, thousands of people came together every year to the National Hardware Show to share ideas, learn about industry trends, buy products and build relationships.

This month, I will pack my suitcase and head out once again to the National Hardware Show. And while so much in our industry has changed in the 23 years since I first attended the show, I would argue that the event is more important today than it ever has been.

Why? Well, for starters, there is no other event in the industry that welcomes retailers of all affiliations, as well as wholesalers and manufacturers from around the world to come together in one place.

If you aren’t attending the National Hardware Show, you will never get to see what’s beyond the horizon of your immediate market, your immediate suppliers or your immediate circle of friends. With as fast as things move in today’s market, this kind of shortsightedness can be disastrous for even a small, family business.

It might be true that our channel has changed and the industry has seen considerable consolidation over the last two decades, but these realities make it even more important for an event like the National Hardware Show to exist.

It’s an event where all the industry’s movers and shakers can gather to interact and expose themselves to products, people and ideas that are outside their normal frame of reference.

The National Hardware Show also serves as a stark reminder that our industry and our lives are no longer defined by geographic boundaries. Suppliers from all over the planet attend the show, and retailers, associations and international groups will be in Las Vegas to engage with other attendees.

For all of these reasons, I hope to see you in Las Vegas this month. I encourage you to stop by the NRHA All-Industry Conference, which takes place in the Central Lobby of the Las Vegas Convention Center (see the overview on Page 66).

Come visit with us, sit in on a seminar or two and spend a few minutes taking in all the excitement that is happening in the industry today.

Dan M. Tratensek, Publisher

dant@nrha.org

12

HARDWARE RETAILING | May 2019

FINISH STRONG

WITH A LONG-LASTING, MOLD-RESISTANT SEAL. 1

Whatever your kitchen or bath project may be, either GE Silicone 1* Tub & Tile sealant or Silicone 2*+ Kitchen & Bath sealant is your solution to getting the job done right the first time. With a 100% waterproof seal, mold resistance and excellent flexibility, these sealants offer the exceptional performance you need to Finish Strong.

Before purchasing or using any Momentive products, please visit www.momentive.com/salesdisclaimer to view our full product and sales disclaimer. For additional performance and warranty information, see product packaging or visit www.GEsealants.com.

1

Cured sealant is resistant to stain-causing mold and mildew. Regular cleaning of the cured sealant is required however, as soap or other residue can cause secondary mold and mildew growth.

GE is a registered trademark of General Electric Company and is used under license by Momentive Performance Materials Inc. * Silicone 1 and Silicone 2 are trademarks of Momentive Performance Materials Inc. Copyright 2019 Momentive Performance Materials Inc. All rights reserved.

BATTERY POWER. MADE BY STIHL. ONE BATTERY. MULTIPLE TOOLS. REAL BENEFITS.

Increase your sales per square foot by offering your customers what they want: the legendary performance of STIHL in an easy-to-use battery package. One battery.

Multiple products. And the power to boost your bottom line.

CHARGE UP YOUR BUSINESS TODAY: STIHLUSA.COM/DEALERS

NRHA News

NRHA Honors 2019 Young Retailers of the Year

T

he North American Retail Hardware Association (NRHA) is proud to announce its 2019 Young Retailer of the Year honorees. Selected from a diverse field of inspiring applicants, these seven retailers exemplify the power and potential of the independent channel.

These retailers will be recognized on May 6 prior to the NRHA All-Industry Conference, which takes place May 7-9 in conjunction with the National Hardware Show® in Las Vegas.

Jacob Hagan Director of Store Operations, Hagan Ace Hardware Orange Park, Florida Throughout his career, Hagan has risen to meet new challenges. After nearly 15 years of industry experience, he is now the director of store operations. He is also a member of multiple advisory boards and organizes an annual golf tournament as a community fundraiser.

Under $2M in Annual Sales

Samantha Post Marketing and HR Manager, T & M Hardware & Rental Bellevue, Pennsylvania Post has pioneered digital search tactics to help her business reach new customers. Under her leadership at the Bellevue location, store sales increased 14 percent in 2018. She regularly participates in roundtables and training initiatives to sharpen her skills and connect with progressive retailers.

Franklin Cloninger General Manager, Triangle True Value Hardware and Rental Greenwood, South Carolina In his role, Cloninger has prioritized employee training to deliver value to customers. He oversaw a store remodel in 2014 and has helped raise sales in the years since. He also serves as the assistant chief of the local volunteer firefighter unit.

Morgan Godfrey Part Owner, Retail Manager, Select Source Kimberly, Idaho Godfrey opened Select Source with his father in the midst of the Great Recession. Since then, the business has seen double-digit sales increases almost every year. He and his father also oversee a training center for local contractors to develop their skills.

Over $2M in Annual Sales Trey Hamilton Owner-operator, Arab Lumber & Supply Arab, Alabama

Trey learned from his grandfather what it takes to operate a successful home improvement business. After overseeing a 9,000-square-foot addition, he introduced new products to attract contractors, DIYers and outdoor enthusiasts.

Kevin Harris Store Manager, Harris Home Hardware London, Ontario, Canada In his six years as store manager, Harris doubled sales. A skilled merchandiser, he recently oversaw a complete overhaul of his salesfloor to update his business. He also supports local sports teams and the Tree Canada green initiative.

Multiple Stores TJ Colson Director of Store Operations, Wilco Mt. Angel, Oregon Colson has overseen the opening of two new Wilco locations, including the operation’s 20th store. He broke new ground by overseeing Wilco’s pet grooming services department, which now accounts for more than $3 million in annual sales.

16

HARDWARE RETAILING | May 2019

Diana Newton, 2018 Young Retailer of the Year Honoree

NRHA News

NRHA Announces 2 Events at IGC and IHIS

N

RHA will be hosting two major events at the Independent Garden Center Show (IGC) and the Independent Home Improvement Show (IHIS), which will take place Aug. 13-15 in Chicago.

The 2019 NRHA STIHL Foundations of Leadership Conference and the 2019 State of Independents Midyear Review will take place during the first two days of IGC. “Our organization is dedicated to helping independent home improvement retailers run better operations, so when we had the opportunity to align our events alongside these shows that are specifically designed for independent retailers, it made perfect sense to us,” says Bob Cutter, NRHA president and CEO. The NRHA STIHL Foundations of Leadership Conference is designed to expose graduates of NRHA’s Retail Leadership Institute to workshops and presentations that center on the principles of effective leadership. Also open to graduates’ mentors and sponsors, the dynamic event creates firsthand connections between retailers, course instructors and channel supporters.

“There are opportunities at the NRHA STIHL Foundations of Leadership Conference for longtime retailers and industry

newcomers to gain new insights into managing, motivating and leading their team members,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute.

The 2019 State of Independents Midyear Review is an extension of the NRHA State of Independents Conference, which is sponsored by the National Hardware Show® and takes place in December.

“We thought it would be beneficial to hold a conference midyear to provide an update on how independent retailers are faring, address topics of concern to independent home improvement retailers and share best practices with attendees,” says Dan Tratensek, NRHA’s executive vice president and publisher of Hardware Retailing.

The events are completely free for retailers to attend and expand their network while discovering some of the latest outdoor living products.

Visit nrha.org/events for more information about the NRHA events. Details about IHIS can be found at nationalhardwareshow.com/IHIS and more information about IGC is available at igcshow.com.

No NMP, No Methylene Chloride!

AVAILABLE AT PARTICIPATING ACE & TRUE VALUE STORES

Scan Here To Learn More About Safenol™

BLUE BEAR PAINT STRIPPER With Safenol™ • Removes Multiple Layers of Coatings in ONE Application • Low Odor Formula • Non-Caustic & Eco-Friendly www.franmar.com

18

HARDWARE RETAILING | May 2019

1-800-538-5069

The 2019 Independent Garden Center Show will feature several co-located events, including the Independent Home Improvement Show and two NRHA events: the NRHA STIHL Foundations of Leadership Conference and the State of Independents Midyear Review.

See Us at Booth #11307

May 2019 | HARDWARE RETAILING

19

Trends Targeting Generations With Events Retail events are attracting shoppers from across generations, but younger shoppers are the biggest fans.

Nearly 50 percent of all U.S. consumers attended an in-store event in 2018, according to research from the National Retail Federation (NRF).

More shoppers from younger generations showed up for product demos, exclusive sales and other events than did members of Gen X and baby boomers, NRF reports.

Of the people who attended the events, 82 percent say they are interested in similar store experiences in the future, the research shows.

Applied to Retail Your customers are likely looking for memorable experiences at retail stores, in line with national trends.

If you’re having trouble attracting younger generations to your business, then consider whether you’re hosting the types of events that appeal to them.

The most popular retail events provide early or exclusive access to products or a sale, according to NRF. Poll your younger employees about which products they think would attract their friends to a special event, then plan an in-store party the next time you introduce a new product line or hot items from a major brand.

Attracting Younger Crowds The percentage of each generation who attended at least one retail or brand event in the past year

HARDWA

66 percent of millennials

53 percent

47 percent 26 percent

of gen Zers

of gen Xers

of baby boomers

EVENT TONIGHT!

The Most Popular Retailer Events in 2018 Respondents could select more than one answer

50%

Early or Exclusive Sales 20

HARDWARE RETAILING | May May 2019 2019

40%

Product Demo or Tutorial

32%

Popup Shops Source: Consumer View Winter 2019, National Retail Federation

f o d e r Ti s g u b seeing r u o y in ? d e e s bird

®

How many times do you throw away product or spend endless hours cleaning your store shelves due to a bad insect infestation? All that money and time wasted for nothing!

Now fighting the bug war is a thing of the past.

HARVEST FRESH LOCK™ TO THE RESCUE!

This unique packing system allows us to prevent insect infestations for 18 - 24 months! Gone are the days of moths and weevils chasing your customers away and eating into your profits!

NO ADDED CHEMICALS NO ADDED PESTICIDES

NO MORE BUGS!

®

NUTBERRY SUET BLEND™

Attract seed, fruit & insect loving songbirds to your feeder with this unique mix of premium fruits, preferred nuts, nutritious Suet Kibbles, and whole kernel sunflower meats.

This is the ultimate trail mix for your wild birds!

No Waste, No Mess!

INGREDIENTS: Sunflower Meats, Raw Peanuts, Pecans, Cranberries, Currants, Apple Slices, Insect Suet Kibbles

GUARANTEED ANALYSIS: Crude Protein Min. 15% Crude Fat Min. 40% Crude Fiber Max. 10% Moisture Max. 12%

P.O. Box 2227, Kennesaw, GA 30156 • www.coleswildbird.com

1-877-426-8882 • coleswildbird.com

Spring Product Preview 2019 W hat are you looking for in 2019?

As an independent retailer, there can be any number of projects you’ve already implemented at your business in order to make the most of the coming months. All winter you’ve likely been planning for the coming spring buying season, and now it’s time to make the most of it.

Hardware Retailing is bringing some of the latest product updates to independent retailers in the annual Spring Product Preview. This section will offer examples of

24

HARDWARE RETAILING | May 2019

this year’s latest offerings from trusted manufacturers across the home improvement industry. From hardline categories to outdoor living and entertaining, these products can give businesses the boost they need to make this lucrative season the best it can be for your business.

Many of these manufacturers will be exhibitors at the National Hardware Show® May 7-9 in Las Vegas.

For more information about the show and how it can help independent retailers prepare for the coming year, visit nationalhardwareshow.com.

Spring Product Preview

1

2

1. Concrete Repair Mix SikaQuick® Patch is a mix-in-the-bag, fast-curing patch for repairing holes and spalls in concrete. It sets in 10 to 20 minutes and is open to traffic in one hour.

This two-part, preproportioned cementitious mix can be used to repair concrete basement floors, driveways, patios and more.

Sika Corp.

800-933-7452 or retail.usa.sika.com/en

2. Utility Pump The Superior Pump 91012 12-volt utility pump can be used for power outages, camping, hunting, adventure, backyard, fishing, marine, farm, cabins, basements or general water transfer. The available 12-volt battery allows the pump to be used in remote locations. It features solid copper motor windings, heavy-duty stainless steel jacketed shaft seals, double O-ring seals on the motor plate and electronically controlled split capacitors.

The pump will move up to 1,380 gallons per hour.

11063 PO Box 70 · Albia, IA 52531 800 247 5062 · kness.com · 19-0328

26

HARDWARE RETAILING | May 2019

Superior Pump 800-495-9278 or superiorpump.com

3

4

3. Woven Ground Cover The Sunbelt Woven Ground Cover consists of 3.2-ounce polypropylene, which resists tearing, puncturing and weed penetration. Sunbelt is ideal for greenhouses, outdoor displays and as a weed barrier for plantings without topical coverings where a weed-free environment is a must. DeWitt Sunbelt is striped every 12 inches to aid in plant alignment and is UV-stabilized to last even in direct sunlight.

DeWitt 800-888-9669 or dewittcompany.com

4. Wall Repair Tool The HYDE® Better Finish™ Nail Hole Filler leaves a better finish than spackle products because it’s made of the same joint compound that’s used to tape and finish walls when they’re installed. It has a three-year shelf life, will not dry out, spreads more easily than spackle and comes with a built-in spreading tool.

Hyde Tools 800-872-4933 or hydetools.com

May 2019 | HARDWARE RETAILING

27

Spring Product Preview

• The ultimate broadleaf weed killer • Works in spring temperatures down to 45˚ • Visible results in just 24 hours Pr PProven coolweather e cool ool-w we • Even kills creeping charlie and perform f pperform performance other hard-to-kill weeds

5

6

5. Portable Generators Cat® Portable Generators range from 2 to 12 kilowatt hours and are designed and engineered by Caterpillar.

Extensive research and product testing ensure an industry benchmark in quality, while Cat’s brand awareness for the outdoor power equipment category draws in customers. These generators are priced to compete with leading consumer outdoor power equipment brands.

Caterpillar 844-797-6387 or cat.com

6. Shower Head/Hand Shower The Delta® In2ition® Two-in-One Shower features a detachable hand shower which can be used separately from or simultaneously with the shower head. This integrated dual-functionality gives you maximum flexibility without sacrificing warmth, as you can choose to have water streaming from the shower head only, the hand shower only or both the shower head and hand shower at once.

Delta Faucet 800-345-3358 or deltafaucet.com

28

HARDWARE RETAILING | May 2019

7

8

7. Shovels and Rakes Built for ultimate durability, Fiskars® Pro Shovels and Rakes reduce negative impacts on the user’s body for daily, quality performance under all conditions. The simple, heavy-duty construction of these tools includes features such as extruded aluminum handles, double-bolted connections, extended shanks, multiple grip positions and more.

Fiskars 866-348-5661 or fiskars.com/trades

8. Outdoor Tools The versatile STIHL AK Battery Series provides quality equipment in value-packed bundle including product, battery and charger. With multiple products powered by the same 36-volt lithium ion battery platform, this series is ideal for homeowners. Customers can choose from a wide range of AK Series products, including chain saws, string trimmer, hedge trimmer, blower and lawn mower.

STIHL 800-467-8445 or stihlusa.com

Bear Tough Carts Retailers nationwide are helping their communities with solutions to the human-bear conflict with Toter Bear Tough Carts. With a bear-tight lock, double-walled lid and steelreinforced rim, Toter Bear Tough Carts are strong enough to prevent the toughest bears from getting inside. Made with Advanced Rotational Molding™, Toter Bear Tough Carts withstand clawing and chewing. So, you can tell the toughest bears to grin and bear it.

To learn more, visit try.toter.com/beartoughcarts

May 2019 | HARDWARE RETAILING

29

Spring Product Preview

9

10

9. Rechargeable Flashlight

10. Concrete Resurfacer

The Polysteel 400R combines a tough stainless steel core with a grip-textured, poly-nylon exterior to build strength into a rechargeable flashlight. The flashlight is equipped with Coast’s Dual Power system that enables the light to run on either a rechargeable lithium ion battery or standard alkaline batteries.

The Polysteel 400R is waterproof, drop proof, and crush proof while possessing Coast’s Pure Beam Optics System.

QUIKRETE® Re-Cap Concrete Resurfacer has a bond to concrete that is four times stronger than the concrete itself. This bond allows it to repair and renew old, worn out concrete with a surface that can withstand foot, vehicle and other heavy traffic. In addition, QUIKRETE Re-Cap Concrete Resurfacer has a short drying time.

Coast Products 800-426-5858 or coastportland.com

The Quikrete Companies 404-634-9100 or quikrete.com

CELEBRATING OUR 95TH ANNIVERSARY

Carry-Home Coverall ®

®

The Original Consumer Plastic Sheeting

PLEASE VISIT US MAY 7–9, 2019 National Hardware Show Booth 7217 — Central Hall

(800) 621-3345 ext. 222 • www.warpbros.com 30

HARDWARE RETAILING | May 2019

11

12

11. Magnetic Assist Arm

12. Concrete Mix

The 4-in-1 Magnetic Holding Arm by Master Magnetics is a flexible arm that features a rubber-coated, nonscratch magnetic base and smaller magnetic base or interchangeable mounting tools. Attachments include a spring clip, suction cup and clamp to hold notepads, phones, flashlights and more. A metal plate with removable tape, four screws and four nonskid bumpers with adhesive is included for mounting on flat nonferrous surfaces.

Sakrete’s Fast Setting Concrete Mix is a preblended, fast-setting mixture that gives users a rapid set without compromising strength. It is made of special cementitious materials, coarse aggregate and sand and sets in less than an hour. The rapid set makes Sakrete’s Fast Setting Concrete Mix ideal for projects such as setting fence posts, patios, walkways, curbs and stairs, allowing for same day use.

Master Magnetics 800-525-3536 or magnetsource.com

Sakrete 866-725-7383 or sakrete.com

FrogTape® performance now priced for the pro

NEW! FrogTape® Pro Grade: The only blue tape good enough to be FrogTape®

Visit FrogTape.com/Contractors ©ShurTech Brands, LLC 2019/78903

May 2019 | HARDWARE RETAILING

31

Spring Product Preview

13

15

14

16

13. Electrical Outlets

15. Panel Gripper

Leviton Arc-Fault Circuit Interrupter (AFCI) Outlets are designed to identify potentially dangerous arc-faults and respond by interrupting power to help prevent an electrical fire. For more complete protection, AFCI/GFCI Dual Function Outlets offer arc- and ground-fault protection in one device. If either is detected, the device quickly interrupts power to help avoid a potential fire or shock occurrence for safer living.

BuildMan™ Grade products are built to endure rugged job site environments. The new BuildMan JawClaw™ Panel Gripper allows users to load two sheets at the same time with one hand, easing strain on their back. The JawClaw can be used to lift and carry all kinds of panels, including plywood, gypsum and more.

Leviton Manufacturing 800-824-3005 or leviton.com/protection

14. Hybrid Electric Water Heater Reliance® 50-Gallon Hybrid Electric Heat Pump Water Heaters move heat from the surrounding air and transfer it to heat water while dehumidifying and cooling the surrounding air. This model can save up to 73 percent in energy costs compared to standard electric water heaters, providing payback in a few years. Reliance offers 66-gallon and 80-gallon nominal capacities for larger hot water demands.

Reliance Water Heater Co. 800-807-7014 or reliancewaterheaters.com

32

HARDWARE RETAILING | May 2019

Metaltech-Omega 450-681-6440 or metaltech.co

16. Razor Blade Dispenser The SEB100AD Single Edge Blade Dispenser provides quick and convenient blade access with a unique spring mechanism.

The clear blade case enables users to remove one blade at a time while seeing how many blades remain. Blades are not wrapped in paper, so they can be used immediately.

The dispenser holds a total of 100 high-quality, No. 9 single-edge razor blades. Users can also safely dispose of used blades in the built-in compartment.

Allway Tools 718-792-3636 or allwaytools.com

Convenience Accessability Product Selection

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

US Made & Profitable For Over 80 Years

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

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

Spring Product Preview

17 17. Digital Key Phone App KeyHero™ is a free mobile app for iOS and Android that allows users to save and store their home and office keys digitally. The app gives users the ability to create digital copies of their keys using a KeyHero™ ready key machine.

They can cut duplicate physical keys from saved digital keys at any KeyHero™ ready key machine.

They can also share digital keys with friends and family using the KeyHero™ app. KeyHero™ uses military-grade encryption technology and never asks for an address or credit and debit card information.

Hillman Group 800-242-9937 or mykeyhero.com

EB400 Sports Earbuds

© 2019 STILLWATER DESIGNS

EB300 Sports Earbuds

KICKER Performance Audio since 1973 Specializing in portable audio products made for people who love outdoor living!

Contact your KICKER Sales Representative about KICKER Lifestyle audio products at 405-624-8510, or email at rvenable@kicker.com.

34

HARDWARE RETAILING | May 2019

18 18. Bear-Proof Garbage Can Toter® Bear Tough Carts have a bear-tight lock, double-walled lid and steel-reinforced rim to protect against a bear’s attempts to open the container. The carts are strong enough to prevent clawing and chewing as well. Manufactured with Advanced Rotational Molding™, Toter Bear Tough carts are available in 64- and 96-gallon sizes.

Toter 800-424-0422 or toter.com

Spring Product Preview

19

20

19. Hose Assemblies

20. Multitool Blade

The XtremeFlex Premium Rubber Air Hose Assemblies provide an ultra-light hose ideal for workshops, construction and other demanding applications. With an all-rubber construction, this hose provides high durability at 40 percent the weight while also maintaining usability and flexibility in extreme temperatures. The ozone-resistant cover protects the hose from extreme conditions, abrasions and kinks.

Imperial Blades™ 4-in-1 Drywall Blade combines four features that simplify and speed up the most common drywall cuts for pros and DIYers. Depth gauges and notches on the edge of the blade also provide more accuracy when cutting through a specific thickness of drywall. In addition, the notches smooth out cuts by running up and down the rough edge of the drywall cut. Imperial Blades’ One-Fit™ anchor is compatible with most non-Starlock or SuperCut oscillating multitools.

Apache 800-459-8423 or apache-inc.com

Imperial Blades 800-743-9844 or imperialblades.com

For over a century, we have insured the lumber and building material industries.

A long time has passed since we first started insuring the unique risks of wood-based businesses in 1895, but our core values remain the same – we are committed to bringing our policyholders the most comprehensive and current coverages along with sophisticated risk management practices to keep their businesses safe and prosperous.

Put our time in the building material industry on your side. Contact us or your broker for a competitive quote.

It’s about time you moved your insurance to PLM.

800.752.1895 | www.plmins.com 36

HARDWARE RETAILING | May 2019

AMERICA’S OLDEST AND LARGEST MUTUAL INSURANCE COMPANY DEDICATED TO THE WOOD PRODUCTS AND BUILDING MATERIAL INDUSTRIES. WE INSURE HARDWARE STORES, HOME CENTERS AND BUILDING MATERIAL DEALERS.

21

22

21. Fabric Garden Hose

22. Adhesive System

Flexon’s H2Zero® is a fabric lawn and garden hose that’s lightweight, compact and durable. H2Zero is 30 perecent lighter than a standard hose, making it ideal for most applications. Constructed of woven fibers for maximum flexibility, H2Zero’s construction increases durability and longevity. The hose is rated at 750 PSI and will not burst under extreme pressure. H2Zero is available in 50- and 100-foot lengths.

The RapidFix Dual Instant Adhesive System is a dual-component adhesive system comprised of an instant bonding adhesive and welding powder. The adhesive can be used alone or combined with the welding powder to fill cracks, holes and gaps.

The powder is formulated to harden instantly as it encounters the adhesive. The repair can be drilled, filed, sanded or ground to any shape and the dried combination can be painted and stained.

Flexon Industries 800-327-4673 or flexonhose.com

Lighthouse for the Blind 800-542-3697 or rapidfix.com

What’s more dependable ® than products?

D-L Brake Winches

Fuel Tank Filers

Ag-Industrial Jacks

Fence Stretchers

...Our commitment to helping you increase profits!

For outstanding value and performance, dependable D-L products can’t be beat. We don’t stop here.

Dutton-Lainson Company has sales and merchandising programs to increase profits – including competitive pricing, attractive margins, smart packaging and more.

®

DUTTON-LAINSON COMPANY SINCE 1886

Hastings, NE 68902 • Tel: 402-462-4141 • Fax: 402-460-4612 E-mail: dlsales@dutton-lainson.com • www. dutton-lainson.com

Contact us today for your FREE catalog!

©2010

Dependable Products for Over a Century May 2019 | HARDWARE RETAILING

37

Spring Product Preview

23

25

24

26

23. Tape Measure

25. Trigger-Release Fuel Can

The Crescent Lufkin® Shockforce™ and Shockforce Nite Eye™ tape measures offer 14 feet of standout based on maximum performance plus the ability to survive a 100-foot drop. The tape has a simulated diamond-coated 360-degree end hook with 50 percent more gripping power and a two-sided blade with vertical markings. Shockforce Nite Eye tapes also feature a high-visibility, no-glare matte black blade with high-contrast green markings for improved legibility in all light conditions.

The SureCan uses a design that features the spout on the bottom of the can to allow for one-handed use. The flexible spout rotates down more than 180 degrees and fits into any machine’s fill location while the thumb release trigger on top controls the flow.

Apex Tool Group 410-773-7800 or apextoolgroup.com

26. Carpenter Bee and Ant Killer

24. Cord Protectors The redesigned Twist and Seal Cord Protect combines features of the original model with improvements. The new Cord Protect has a 25 percent larger internal cavity to accommodate a wider range of plug heads. It also comes in four colors, including camouflage. The Cord Protect is designed to protect outdoor cord connections at home, in the yard and around the pool.

Twist and Seal 888-945-4545 or twistandseal.com

38

HARDWARE RETAILING | May 2019

SureCan 801-827-0500 or surecanusa.com

Carpenter Bee and Ant Killer eliminates carpenter bees, carpenter ants, wasps, hornets and ground nesting yellow jackets. A foaming jet spray reaches up to 25 feet and uses a synthetic pyrethroid to trap pests for a knockdown and kill. The spray will not stain most home siding and asphalt shingles, and when used as directed, it is safe to use on ornamental plants and shrubs.

Bengal Products 800-367-0394 or bengal.com

Spring Product Preview

27

28

Professional Grade Grease Guns A Grease Gun Designed to Suit Every Application!

27. Plastic Sheeting Merchandiser The CHA3 is an exclusive wire-rack merchandiser that displays popular 4-mil, 12-roll product assortments of Carry-Home Coverall consumer plastic sheeting. The product line is made in the U.S. Warp Bros.

800-621-3345 or warpbros.com

28. Bird Feeder Guard The Tough Bird Feeder Guard® fits poles up to 1 inch in diameter and stops squirrels and raccoons from climbing a feeder pole. When an animal climbs past the Tough Bird Feeder Guard, the guard puts out a static electric pulse powered by a single 9-volt battery. Though effective, it’s harmless to the animals.

They quickly learn not to climb the pole.

The pole and feeder are safe for humans and birds to touch at all times.

WORLD’S BEST Quick Release Grease Couplers

Lumax.com 40

HARDWARE RETAILING | May 2019

Cole’s Wild Bird Products 877-426-8882 or coleswildbird.com

Info@Lumax.com

844.660.6876

29 29. Mini Paint Rollers Wooster has added eight new 10-packs of Jumbo-Koter minirollers that come packaged in resealable clamshells. Jumbo-Koter minirollers utilize the same fabrics found on Wooster’s full-size rollers. Also, all Jumbo-Koter frames work with both 4 ½- and 6 ½-inch Jumbo-Koter minirollers.

The Wooster Brush Co. 800-392-7246 or woosterbrush.com

MULTI-TOOL METAL BLADE

DESIGNED FOR UP TO

*Up to 30X more cuts than standard Imperial bi-metal blades

Spring Product Preview

30

31

30. Large Capacity Outdoor Cooker

31. Duct Tape

The Big Green Egg 2XL measures 29 inches in diameter for a total of 672 square inches of cooking area. This surface area accommodates a newly designed dual-zone metal/ceramic convEGGtor for indirect cooking. The cooker meets UL and NSF standards for commercial use, and the rEGGulator Vent Cap features an insulated adjustment tab for more comfortable cooking.

Extreme Weather DUCTape™ is a water-resistant duct tape for use in a wide temperature range. Fan & Vent Tape is a UL181 Listed, mold-, mildew- and heat-resistant foil tape used to better seal a dryer vent. This tape prevents air leakage and odors. The 10-yard roll of IPG’s premium duct tape, Iron Grip, provides easy dispensing from the roll and is used for a variety of heavy-duty demanding applications requiring high strength and adhesion.

Big Green Egg 800-793-2292 or biggreenegg.com

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

Premium

Features: • Revives old leather and helps protect new leather • Reduces scratches and helps preserve leather • Rejuvenates leather surfaces • Protects leather from future decay • Restores dry leather back to its soft, natural condition • Prolongs the life of leather furniture, purses, boots, bags, hats, shoes, gloves, apparel, autos, tack, and saddles • Safe to use on all types and colors of smooth leather • No artificial dyes or chemicals • A little goes a long way • Made in the USA

COME SEE US MAY 7-9

BOOTH #5519 For Pricing and Information Call Howard Products, Inc. 800.266.9545 Or Visit Our Website www.HowardProducts.com

42

HARDWARE RETAILING | May 2019

32

33

32. All-Purpose Dolly

33. Lubrication Accessory Kit

The Rhino Cart is an all-terrain moving cart with eight heavy-duty urethane wheels. It is built with specialized aluminum alloy and a reinforced polyresin deck allowing it to carry 1,100 pounds. The telescoping frame expands to 48 inches to accommodate large items and pallets, while the sides can be removed for oversized items.

Lumax has a new Lubrication Accessory Kit that contains 11 of Lumax’s most popular lube accessories. The kit allows users to organize and store lubrication accessories in a convenient storage case. The lubrication accessories are compatible with all standard grease guns, grease pumps and dispensing devices.

Rhino Cart 888-945-4545 or rhinocart.com

Lumax 704-940-6993 or lumax.com

Sika...TRUSTED BY THE PROs

SEALANTS • ADHESIVES • GROUTS • ADMIXTURES • FLOORING LEVELERS • CONCRETE PATCHERS • POST SETTING

VISIT US AT THE NATIONAL HARDWARE SHOW

BOOTH# 4721 USA.SIKA.COM/RETAIL

FIRST CHOICE. BEST CHOICE.

BEST OF BOTH WORLDS Some think of Do it Best as the industry leader in hardware distribution and retailing expertise. Others know Do it Best as the co-op that serves the largest and most successful lumber dealers in the country. The fact is, both are correct. Do it Best is the only co-op that serves as a single-source provider while leading the industry in both hardware and LBM. Why do we work so hard to maintain relationships, deliver proven programs and support members with dedicated expertise on both sides of the industry?

Because we want to give all members a simpler, streamlined ordering process, backed by strategic purchasing power and sophisticated business strategies. As a result, we offer incredible opportunities for growth, regardless of the types of customers our members serve. It’s an approach that has proven to be just as successful for single-location retailers as it is for large, multi-location businesses. From LBM to Hardware, Do it Best is focused on being the first and best choice in everything we do.

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

“At Do it Best, we want to help growth-minded entrepreneurs serve their customers with outstanding service and unbeatable selection.”

— Nick Talarico Vice President of Sales & Business Development

Checkouts MERCHANDISING

Displays Help DIY Designers

A

dding millwork to a room is an easy way to upgrade its appearance. It’s an easy DIY project, too, but a lot of homeowners have a difficult time knowing how to find the millwork styles that work best for their homes.

How do you match up baseboards, chair rails and crown molding of the same style?

When they remodeled their store in Bellevue, Washington, a couple of years ago, Dunn Lumber added some striking visual aids to help fill that knowledge gap.

“We noticed a lot of confusion in the molding category,” says Luke Partridge, training manager for the company, which has nine locations in northwestern Washington state.

“A lot of people want to trim their house and follow a particular architectural style. But when they’re in the store, they just go for a basic molding profile because they don’t really know how to put the different trim pieces together to create the style they’re going for. We worked with our millwork vendor Metrie to develop this display that will help educate shoppers.”

The display area features six rooms in popular architectural styles, such as Victorian, Tudor and bungalow. Each room is fully trimmed in its respective style, from the baseboards to the crown molding. Millwork samples with correlating SKUs are available in each room so customers can find the correct item they need in the lumber racks behind the display.

The rooms come complete with doors, windows and exterior siding that shows all the options Dunn Lumber has to offer.

The rooms allow customers to visualize the finished product and even inspire them to see what’s possible.

For example, if a style of trim tends to make a room look smaller, customers can see that before they put it in their home. With the new displays boosting millwork sales, particularly among DIYers, Dunn Lumber plans to try them in some of their other locations in the future.

A showroom featuring rooms trimmed in specific architechtural styles at Dunn Lumber in Bellevue, Washington, helps customers choose the molding pieces that go together. The exterior of the rooms shows the types of siding the store offers.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here.

Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.

46

HARDWARE RETAILING | May 2019

Checkouts

MERCHANDISING

Cedar Adds Personality to Texas Retailer

S

hortly after Keith and Marsha Crow purchased their store, Camp Wood Hardware and Lumber in Camp Wood, Texas, in 2012, they started a complete remodel. Their to-do list included updating assortments and cleaning up the interior—fairly typical for anyone remodeling a building. The finishing touch was the creative ways Marsha and their general manager, Dan Cox, dressed up the store.

Using carpentry skills, Dan and Marsha began brainstorming ideas for using cedar wood to add personality to the store.

Their first project was a display for a local vendor selling their pottery items in the store. Then the pair redesigned the outdoor garden area with cedar fencing and a large arbor.

Soon, they had created custom department signage, endcaps, a service counter and an extensive bird feeder display.

In a town known for the abundance of cedar in the area and the industry that sprung up around it, the cedar motif throughout the store is a nod to local history.

“We wanted to make a place where people would be comfortable shopping,” Keith says. “Dan and Marsha have been a strong team to helped create a personality for the store, making it a more attractive place to shop.”

A custom cabinet holds pottery from a local vendor. To see more photos from the store, visit TheRedT.com/camp-wood-hardware.

STOP • SWAP • SPRAY

The Clean Tank Spraying System SEE VIDEO & EXPLORE THE ENTIRE MIXES ON EXIT™ LINE OF SPRAYERS AND ACCESSORIES AT CHAPINMFG.COM © 2019 Chapin International, Inc.

48

HARDWARE RETAILING | May 2019

MODEL 97561 25 GAL MIXES ON EXIT SPRAYER MODEL 6-8061 2 GAL CONCENTRATE TANK

1-800-950-4458

chapinmfg.com

Checkouts

TEAMWORK

Unexpected Guest Requires Fast Action

T

he staff at Brad’s True Value in Mount Vernon, Missouri, is normally happy to accommodate any customer who walks through the doors.

Coming in through the ceiling, though, is another matter.

And this patron wasn’t going to make a purchase anyway.

Last winter, security cameras at Brad’s True Value picked up a squirrel making its way down to the store’s shelves through the ceiling tiles. Eventually the furry visitor was spotted by a customer, and a crew of employees was rounded up to corral the trespasser and safely get it out of the store.

“It obviously wasn’t too happy to be in the store, maybe unhappier than we were to have it there,” says manager Alisa Hayward. “It knocked a few things off of shelves, but for the most part it was just lost and looking for a way out.”

For about 45 minutes, the squirrel led employees Triston Eden and Courtney Duncan on a merry chase around the store. Eden and Duncan came armed with brooms

50

HARDWARE RETAILING | May 2019

Two employees at Brad’s True Value in Mount Vernon, Missouri, worked together to help a squirrel find its way out of the store.

and shopping baskets in an attempt to capture the critter.

Eventually the duo cornered the squirrel long enough to get the basket on top of it, slide some cardboard underneath and take the squirrel outside to freedom.

A video of Eden and Duncan’s chase can be found on the store’s Facebook page, showing how the intruder made its way inside and how Brad’s True Value was able to send it off safely.

“The squirrel never slowed down the entire time, and a bird is more likely to get the hint that they should head for the door,” Hayward says. “We had to be a bit more proactive with the squirrel. We’re a very critter-friendly store, but it’s best to get some animals back to their home outside.”

NH BO S O #6 TH 25 1

YOUR SINGLE SOURCE SUPPLIER 1 Point of Contact 1 Purchase Order 1 Bill of Lading 1 Invoice

MAXIMIZE YOUR SELLING SPACE

· Air Hose & Accessories · Hydraulic Hose, Adapters, · Baler Belting & Accessories · Fuel & Accessories · Pressure Washer Hose & · Hose & Tubing Accessories

apache-inc.com/retail

800.459.8423

“Expanding the aisle of Midwest Fastener products has been very helpful in servicing our customers. Our customers are extremely pleased with the selection in our new Bolthouse area!”

- Carol and John Bolthouse Owners Hastings Ace Hardware, Hastings, MI

Exceeding Expectations. One Fastener Destination at a Time!

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

800.444.7313

fastenerconnection.com

By Jesse Carleton, jcarleton@nrha.org

Niche Artists How 3 Retailers Find and Sell Unique Categories

G

ourmet foods, local gifts, unique home goods, custom cabinets, firearms, live bait, microbrew beer, even frozen pizzas— there’s no shortage of variety alongside the core hardware categories at Solon Springs Mercantile.

Owners Meg and Ken Thoreson have built up a diverse mixture of successful niches alongside their hardlines offerings at their store in Solon Springs, Wisconsin.

Those niches give their customers more reasons to stay in town to shop and make up nearly 50 percent of the Thoreson’s annual sales.

Niche categories can improve your margins and increase your average transaction size. Rather than detracting from your core sales, offering unique products outside of traditional hardware lines can add excitement to your business and diversify your customer base. As you will see on the following pages, the possibilities are endless.

But managing a niche category successfully is part artful intuition, part retail science. You don’t always follow the same rules you do with the rest of your inventory.

Hardware Retailing spoke with three retailers who have built up diverse niche categories and gathered years of wisdom on what it takes to make them successful.

Let their insights guide and inspire you as you look for something new for your own operation. For more photos from these stores, visit TheRedT.com/2019-niches.

54

HARDWARE RETAILING | May 2019

May 2019 | HARDWARE RETAILING

55

A Local Experience Solon Springs Mercantile

S

olon Springs Mercantile sits in the vast Northwoods region that stretches across the upper Midwest and into Canada.

The area provides a haven for outdoor enthusiasts and seasonal residents who seek an escape from city life at their lake homes and cabins. As owners of the only hardware store in town, the Thoresons enjoy a mix of customers who are looking for home necessities along with those “want” items.

But getting to where they are today with an operation that has something for everyone has been a system of trial and error. It started on an early morning in June 2004 with a call no retailer wants to get. Their small hardware store in downtown Solon Springs, which they had purchased only a couple of years prior, was on fire. The fire was devastating, a complete loss.

Local wines and beers anchor the liquor room at Solon Springs Mercantile.

All cashiers took a short online course to get a server’s license.

56

HARDWARE RETAILING | May 2019

Thanks to a detailed business plan and a comprehensive insurance policy, the couple was able to rebuild, which they did west of downtown on the main highway. Having operated in a small space in the years prior to the fire, now was the time to build their dream store. The new building would be three times the size of the previous space with plenty of room to experiment with new categories beyond hardware. They started by taking a three-day road trip to retailers in the Northwoods area.

“We made a list of everything we liked about the stores we visited and began looking at what we could do with our own,” says Ken. “We knew from the beginning we wanted to get into sporting goods, so that became our first new category.”

It remains a profitable one, too. A Northwoods outdoor lifestyle theme dominates the store.

With 18,000 square feet inside and ample land around them, they had the luxury of space they would use to experiment. Some of those experiments worked, some of them didn’t, admits Ken, but he never regrets at least giving something new a try.

For example, there is a small room just off the main salesfloor, perfect for a store-within-a-store concept. The Thoresons tried a few ideas there, including a working display kitchen suitable for cooking demonstrations and a coffee shop.

Those ideas may have worked well for other retailers, but they just never caught on in Solon Springs.

Today, that area houses the St. Croix Room, a variety of gourmet foods, unique gifts, home goods and clothing, all with a local flavor that appeals to the outdoor enthusiast. Meg brought in furniture pieces from their own home as merchandisers to create a unique area within the store.

“What we put in that room changed a number of times, but we finally found something that is working really well,” says Ken. Another popular section is 1,000 square feet of wine and spirits. On the shelves are local wines and a 40-foot run of beer coolers featuring microbrews from Wisconsin.

“We were looking for a high-traffic item, and we didn’t want to get into perishable goods,” Ken says.

“We have a larger selection than a convenience store or grocery. The margins are low, but the turns are a dozen times more than anything else in the store. It pulls in more gross sales than most other categories.”

America’s

Favorite Home Improvement Retailer*

$712 MILLION IN DIVIDENDS RETURNED TO ACE OWNERS

LOWEST COST OF GOODS WE CAN PROVE IT

myace.com • 630-990-6900 myace@acehardware.com TXT

*2018 Market Force Study.

329 STORES CONVERTED IN THE LAST 5 YEARS

Meg Thoreson looks for unique items with a regional flavor to stock in the St. Croix Room. She’s most interested in products that aren’t yet being offered at major retailers.

With some niches, vendors can do the bulk of the work, saving Ken space on the salesfloor.

For example, no retailers around Solon Springs sell custom kitchen cabinetry. Ken works with a company that provides design services for customers wanting cabinetry for their home or cabin. He only needs a small amount of floor space, enough for a table to discuss the plans and a few cabinet samples. After cabinetry is ordered, he can make recommendations for local installers.

“With the cabinets, we don’t have a lot of money tied up in inventory,” he says. “Cabinets come in the backroom and go right back out to the customer.”

Portable buildings have been another rewarding niche that don’t require much inventory. Buildings are prebuilt at the manufacturer then delivered to the customer. Ken has 15 buildings on-site as samples supplied by the company, but the options are virtually endless, ranging in size from sheds to small bunk houses.

With nearly one-third of the salesfloor dedicated to niche categories, searching out the next niche has become as critical to the success of Solon Springs Mercantile as managing the core categories. For the Thoresons, that means they’re willing to try something new, even if it doesn’t work out. It’s important to keep trying.

“There are really no bad ideas,” says Ken. “There are so many possibilities. Don’t be afraid to try something different and see what happens.”

58

HARDWARE RETAILING | May 2019

Finding Your Niche Be First In, First Out The Thoresons try to be the first in their market to sell a unique product, then move on when it goes mainstream. “If we see mass merchants start to sell a niche product we’re selling, we actually might decide to get out of it,” says Meg. “The item’s velocity also gives us an idea of when it’s time to get out.”

1

Double Your Money Niche products may not carry the same price sensitivity as other items you sell. “We’re looking for those items where we think we can double the cost,” says Meg. “If we don’t think we can do that, we might not try selling it at all. That means having a good idea about what your market will support.”

2

Minimize SKUs The Thoresons look for niches with a low SKU investment, without a large matrix of sizes. Fewer choices are better. “A lot of sizes and colors tend not to work well for us because there are so many choices for the consumer and there might be several of those SKUs we can’t sell,” says Ken.

3

Tourist Destination Hall’s Hardware & Lumber

A large selection of wind chimes, including high-end, handtuned models, get a strong response from customers at Hall’s Hardware & Lumber, in Milton, Florida, especially during the Christmas shopping season.

O

ne of the prized possessions found at Hall’s Hardware & Lumber in Milton, Florida, is a U.S. map with pins showing the many places their customers call home. There are thousands of pins on the map, dotting every state. In addition, the store claims visitors from more than 15 countries worldwide.

Many of those guests are tourists, visiting the Florida panhandle for recreation or to visit family working at the naval air station located in Milton.

The store has as much appeal to the wandering tourist as it does to locals working on a project around their home. Customers love the old-fashioned general store atmosphere. Co-owner Wade Allen counts more than 25 different areas he would classify as niche among the aisles of plumbing and electrical, hardware and fasteners. There is something sure to appeal to anyone, whether it’s vintage clothing, handtuned wind chimes or military-style backpacks.

60

HARDWARE RETAILING | May 2019

“When someone new comes to town, their friends or neighbors tell them all the places they need to visit. They always say, ‘Make sure you get over to Hall’s Hardware,’” says Allen, who along with his brother Brad, runs the business. “We average about 40 first-time visitors every week. They’re easy to identify, too. They usually are in awe and maybe overwhelmed at all of the different types of products we have. We want people to have fun here.”

Hall’s Hardware & Lumber has been in business since 1960, but it wasn’t until about 10 years ago that Allen became more intentional about creating a distinct brand. He hired a full-time marketing specialist who maintains the store’s social media, writes a quarterly customer newsletter, organizes the knife club, runs the rewards program and coordinates a new mover’s program. First-time guests to the store get a gift bag with a welcome letter, a koozie, Hall’s Hardware coupons and a coupon for a free vintage soda from the store.

One of the popular areas is in the outdoor living department where Allen’s wife manages a large collection of wind chimes. Rather than just the standard assortment of chimes someone might hang on their front porch, customers shopping Hall’s can find more than 100 different varieties of all sizes, colors, styles and price levels. Allen says they sell more than 1,000 wind chimes a year, including hundreds of the handtuned chimes, which usually cost the most. Christmas is the category’s biggest season, when many sales come from the store’s popular Christmas Open House events.

Military supplies have also been a popular niche.

Being home to Naval Air Station Whiting Field, Milton has a strong military presence, so military gear appeals to many customers who already shop at Hall’s. That niche has changed significantly over the years in response to changing customer needs, but Allen says it has helped open opportunities for new customers.

“I’ve sold everything from night-vision goggles to military-style bags and belts. At first, I sold a lot of clothing and combat gear to law enforcement and correctional facilities,” he says.

When clothing sales slowed down because those facilities began issuing their own clothing, Allen replaced clothing with other law enforcement gear.

Students often want the military-style bags for everyday use and some of the clothing and tactical equipment is popular with hunters and survivalists.

Customers who shop the military supplies section usually stop by Hall’s extensive knife collection, too. Allen has a deep selection, ranging from collectibles to military-grade knives.

He focuses on two major brands popular with collectors. Brand usually plays a key role in any sale, so he makes that a major part of his marketing. There is something for everyone’s level of interest, and the popular knife club encourages customers to be repeat visitors. Anyone can join the knife club, and once they’re on the list, they get invited to have a first look at new knives Allen brings in and get a first chance at discounts.

Another popular niche is in the houseware’s department where customers will find high-end cookware, kitchen gadgets, gourmet foods and outdoor cookware. They will also find gifts, a wide selection of pet supplies and 100 linear feet of dollar items. Those wanting to step back in time can find vintage toys, sodas, candies, clothing and handbags. For Allen, those niches have grown out of the particular interests of himself and his staff.

“Get out of the hardware mindset for a moment and look for something to make the store fun and keep customers there a little longer. You don’t want them to just grab what they need and leave.”

While many retailers stock housewares, Hall’s Hardware adds its own flavor to the category with gourmet foods and other specialty items.

Finding Your Niche Watch Trends Unlike ordering hardlines, which operate off order points, many niche items revolve around trends and need to be managed on a case-by-case basis. “The computer doesn’t tell you when to order niches,” says Allen. “When managing niches, you can’t just bring something in and leave it.” Some products have a short shelf life. In the giftware department, for example, the manager will typically reorder a particular product once and then close it out.

1

Upscale Your Merchandising When selling niche items, dump the standard shelving.

“We try to have things displayed on glass or wood shelves, as it has to be displayed well,” Allen says. “Fifty percent of my business in many of those niche categories is with women, and if they’ve visited other stores where merchandise is displayed nicely, they’re going to expect it here.” He is fortunate to have a store manager gifted with visualizing and creating effective merchandising.

2

Learn from Others Allen attends many specialty shows each year, including many focused on gifts. He goes to scope out new items, particularly ahead of Christmas. He learns a lot by talking with other retailers, too, asking them what products are working well for them. In addition to attending wholesaler shows, look for specialty shows that correspond to the niche you’re selling. You’re likely to see vendors that can help you in your desired category.

3

May 2019 | HARDWARE RETAILING

61

Furnishing the Home Reeves Ace Hardware

T

here are not too many towns where a bride-to-be makes a beeline for the local hardware store to register for wedding gifts.

That’s what happens at Reeves Ace Hardware in Clayton, Georgia, where you can do more than just fix your home; you can furnish it as well. The store’s furniture department has been a part of the business for 30 years, and once they’ve picked out a new table or chair, shoppers can look for window treatments, housewares and table settings. Outdoor enthusiasts in town for a fishing trip will find all manner of sporting goods, including a fly-fishing shop. Other customers may be artists looking to put the scenery to canvas. For them, Reeves has several aisles stocked with artist paints, canvas and accessories.

Throughout the rest of the store are toys, locally made food items, a large selection of guns and knives and major brand name outdoor wear.

A fourth-generation operation started in 1928, Reeves Hardware Co. has five locations: four in

northern Georgia and a fifth in North Carolina.

Each has its own unique product mix, and some include a farm and feed store and a building supply outlet. Meredith Thompson is the manager of the home furnishings department at the Clayton location, where the quaint store covers half a block.

Clayton is nestled in the Blue Ridge mountains, so many of the customers are tending to their cabin retreat. Thompson tailors her furniture purchases accordingly, tending toward unique, upscale pieces.

“These are not items you can pick up at your local department store,” she says. “We buy as much Made in America pieces as possible, even though it’s difficult to find American furniture anymore.

While some of that may be more expensive, it’s also a higher quality and will last longer. Our selection is curated to focus on the mountain retreat feel and the second home market.”

Not just another furniture store, the home furnishings department at Reeves Ace Hardware has high-end furniture with an emphasis on made in the U.S. products.

62

HARDWARE RETAILING | May 2019

™

SOLUTION PRODUCTS FOR EVERY PROJECT

QUALITY PRODUCTS FOR EVERY CUSTOMER. Sakrete’s expertise and product availability, along with the best technical and customer support, make it easy for you to provide the right product for your customer’s project. Let Sakrete help you increase your business today with our full range of industry-leading concrete installation, repair and specialty products.

LEARN MORE. SAKRETE.COM/SOLUTIONS

© COPYRIGHT 2019. ALL RIGHTS RESERVED.

If she’s selling a bed, Thompson can sell a mattress too. She offers a line of made-to-order mattresses manufactured in Greenville, South Carolina.

Like the furniture, she feels offering a higher quality product that is made in the U.S. plays well with her customers. But she doesn’t take her place in the market for granted. For many years, her main customer was the older generation.

Today, she’s using Instagram to reach out to the younger generation, who may not be used to spending a little more to furnish their home.

She emphasizes the quality of the furniture she carries in hopes of winning a new customer.

Because the store has so many diverse offerings, Thompson says their bridal registry stays busy spring through fall. The store offers something for both bride and groom, whether it’s a new set of table linens or a chainsaw, a fishing pole or a set of tableware. But where many stores with a bridal registry simply publish the couple’s wish list, Reeves sees an opportunity for some creative merchandising. Each couple gets their own table in the store. In addition to the published list, the table holds some of the highlighted items the couple has chosen.

“What those brides pick out is on that table,” says Thompson. “It helps people see the options of what they can buy for the couple and really shows their personality. There are times in the summer when we’ll have 10 to 12 tables at one time.”

And as long as they have the happy couple in the store, why not rent the groom his tuxedo? Last year, Reeves started offering tuxedo rental. Since the store is in a small town, anyone wanting to be fitted for a tux would need to drive an hour to the nearest shop.

Now, Reeves can take the measurements and have the suit and shoes delivered in a few days.

“We get a lot of business during prom season,” says Thompson. “The tuxedos give us a good margin and there’s not a lot of inventory, just a few samples so customers can see the quality of the tux and the shoes.”

Whether they’re selling home furnishings, artist supplies, fishing lures or a can of chili from a local celebrity chef, Reeves focuses on diversity.

“We have a huge inventory because we’re trying to offer something to everyone,” says Thompson.

“We want to make sure we’re not segregated to one particular type of homeowner, price point or style.

We try to be very diverse.”

Finding Your Niche Clear It Out To keep niches fresh, twice a year, Reeves has a sale to discount all of the odd sizes, out-of-season styles or other inventory they can’t sell. “It’s better to get a little bit of cash than have it taking up space,” says Thompson.

“It’s important to keep the inventory moving so our categories don’t get stale.”

1

Do Your Homework Do a little research before buying from a new vendor. “You might see something that looks good in a catalog, but it doesn’t look so great when it shows up in your store,” she says. “We’ve learned to ask a lot of questions.” Ask for referrals from other retailers who have sold the product.

2

Treat Employees Well As with the rest of the business, enthusiasm goes a long way when selling niches. Thompson says employee attitude is a big contributor to the success of their business. “If you treat your employees well and build a good team, they will work well for you and treat the customers well,” she says.

3

Each couple completing a bridal registry gets their own table display to show off the unique items on their list.

64

HARDWARE RETAILING | May 2019

Aidant Brands®

Prevent Rust • Lubricate • Penetrate

One Can To Do It All. Compared to the Competition:

25 cans of WD-40® = 1 can of Rust Patrol®

19 cans of Sprayon® = 1 can of Rust Patrol®

15 cans of Blaster® = 1 can of Rust Patrol®

5 cans of CRC 3-36® = 1 can of Rust Patrol®

Based on the cost of covering 100 sq. ft. per year,

Rust Patrol® • Prevents and stops rust

• Gunk-free!

• Frees stuck parts

• Works on a variety of metals

• Lasts 4 times longer

• Ready within 5 minutes

• Easy to use For information, call (803) 396-8400

NRHA All-Industry Conference

By Melanie Moul, mmoul@nrha.org

Industry in Evolution Discover How You Can Adapt for Success in a Changing Industry

C

ompetition in the home improvement industry is rapidly becoming more diverse and more challenging to get ahead of. And those competitors are bigger than just big boxes and e-commerce retailers. With shrinking big-box footprints, countless discount retailers and consumers who are accustomed to fast, connected service, the independent home improvement channel needs to reassess how it can compete.

The 2019 North American Retail Hardware Association (NRHA) All-Industry Conference starts that conversation and includes voices from all corners of the channel.

The event takes place May 7-9, in conjunction with the National Hardware Show® in Las Vegas.

66

HARDWARE RETAILING | May 2019

The National Hardware Show is one of the home improvement industry’s largest events, and NRHA provides all of the educational programming for the show. On the following pages, get a preview of the presentations and panels that will address the current state of the channel, according to the conference theme, Industry in Evolution.

Industry executives, high-performing retailers and channel partners who are helping retailers innovate will share their insights into how the industry can thrive through transition.

In addition, see a preview of everything that’s happening on the show floor at the National Hardware Show.

For more information about the conference, go to nrhaconference.com.

At the National Hardware Show®, you'll find everything you need to move your business forward including new buying opportunities, insightful education sessions, merchandising ideas and solutions, money-saving deals, and face-to-face networking opportunities.

The future of home improvement is here.

REGISTRATION IS

OPEN

REGISTER AT

nationalhardwareshow.com

MAY 7 - MAY 9, 2019

Las Vegas Convention Center Las Vegas, NV

Stay connected:

#NHShow

Proudly supported by

This Year’s Speakers

KEYNOTE John Hartmann

Phillip Helms

President and CEO, True Value Co.

Regional Vice President, Central Network Retail Group

Hartmann has 20 years of corporate experience, with 16 years in the home improvement sector.

He joined True Value in 2013 and has since led the company through the creation and implementation of a strategic plan, including a transition in 2018 to a new ownership structure.

In his role, Helms is responsible for two of CNRG’s highest performing brands: Elliott’s Hardware in Dallas and Town & Country Hardware in Raleigh-Durham, North Carolina.

As a former hardware store owner, Helms appreciates what it takes to be successful in this industry.

Tasha Hilderman and Sarah Rurka Home Hardware Building Centre— Lloydminster Home Hardware Building Centre in Lloydminster, Alberta, Canada, is celebrating 20 years in business this year. Hilderman and Rurka oversee the company’s marketing, community building and popular social media channels.

Gary Petz

Jim Robisch

Matt Woods

Co-Founder, Discovery Retail Group

Senior Partner, The Farnsworth Group

President and CEO, Woods Hardware

The Farnsworth Group specializes in market research and strategy consulting for the home improvement industry. In his role, Robisch directs all retailer and wholesale service activities, including customer intelligence, brand positioning, advertising, market expansion and more.

Woods joined his family’s hardware operation Woods Hardware after first spending 10 years as a financial adviser. He now serves as the president and CEO of the Cincinnati-based business, which has grown rapidly in recent years, thanks to Woods’ understanding of the evolving industry.

Petz is a partner and co-founder of Discovery Retail Group, a consulting company that helps retailers facilitate and communicate profit-focused differentiation. Having served at both retail and wholesale hardware and lumber operations, Petz has developed a unique perspective that allows him to help retailers focus on the customer experience.

68

KEYNOTE

HARDWARE RETAILING | May 2019

SPEED MEETS ITS MATCH Get ready to meet the new SpeedGrip™ Pliers by CHANNELLOCK ®: a new take on our classic

CHANNELLOCK ® Tongue & Groove Pliers for a new era. Locked and loaded with new innovations and features, your customers are going to want to get their hands on them.

Available in select stores beginning in June

™

BUILT STRONG. WORKS HARD. WON’T QUIT.

©2019 CHANNELLOCK, Inc. Meadville, PA, U.S.A.

National Hardware Show® Take It to the Show Floor The NRHA All-Industry Conference co-locates with the National Hardware Show® to give independent retailers a comprehensive experience of educational programming and product research.

Exhibitors from across more than a dozen core and niche categories fill 600,000 square feet inside and outside the Las Vegas Convention Center. From traditional categories like hardware and paint to those that may help set an operation apart, such as pet products and emergency preparedness, there is something to explore in every corner of the show floor.

“There is great value in having the National Hardware Show just steps away from the NRHA All-Industry Conference,” says Dan Tratensek, NRHA executive vice president and Hardware Retailing publisher. “The scale and breadth of the exhibitors are remarkable, and we encourage conference attendees to explore the show floor to find that special line or item that will make a difference for their operations.”

Awards From a New Angle One of the highlights of the National Hardware Show each year for attendees and exhibitors alike is the NHS Awards program. This year, the program has been redesigned to recognize achievements in innovation, uniqueness and value in categories throughout the show floor.

There will be first, second and third place winners in each of the following categories: homewares (including smart home); hardware and tools; Lawn, Garden & Outdoor Living and Tailgate, Backyard & BBQ; paint and accessories; and plumbing and electrical. There will also be awards for products in the New Product Launch, Made in USA and Inventors Spotlight featured areas.

The awards will be presented on Wednesday, May 8, on the NRHA Village Stage as part of a reception hosted by the National Hardware Show. Winning products will be on display in the Featured Product Gallery following the presentation.

More Spots to See This year’s show puts a microscope on the tiny living lifestyle. Tiny Living @ NHS is designed for professionals within the industry to find specialists in products and services for the tiny home, modular and manufacturing industries.

In addition to having a special area at the show, the Small Build & Construction Technology Conference will be held in conjunction with the National Hardware Show.

The event will offer attendees the opportunity to learn about tiny homes and related trends during two days of seminars and interactive panels.

Other can’t-miss areas at the show include the Interactive Smart Home and the Backyard Marketplace, located outside in Tailgate, Backyard & BBQ.

70

HARDWARE RETAILING | May 2019

Tools to Plan Your Path The National Hardware Show covers a large space, and it’s important to be prepared to hit every area on the show floor. Here are some tools you can use leading up to the event to be ready to explore.

• NHS Mobile App. Download the NHS Mobile app to find your way from booth to booth and communicate with exhibitors and other attendees in the moment.

• My Tool. Whether you log in online or access it through the NHS Mobile app, My Tool allows users to explore exhibitors prior to arriving at the event.

Users can search exhibitors and products and receive personalized recommendations ahead of the show by specifying their interests.

IPG®’s full line of masking tapes provides value and performance for both the contractor and consumer alike! Whether on the job at a new construction site or giving your home a fresh coat of paint, IPG has the solution for you!

PRODUCTS FEATURED • PRO•MASK Blue® with Bloc-It® • PRO•MASK Blue® Designer • Production Painters Tape • PG5 Masking Tape • PG29 Masking Tape

888 - 898 -7834

w w w.itape.com | info@itape.com

Presentation Schedule TUESDAY, MAY 7 8:45 a.m.

NRHA Village Stage Opening

1:00 p.m. - 1:45 p.m.

PANEL: Leading With Culture Moderator: Scott Wright, Executive Director, Retail Leadership Institute, NRHA

9:00 a.m. - 9:45 a.m.

KEYNOTE: Unlocking True Value Presenter: John Hartmann, President and CEO, True Value Co.

2:00 p.m. - 2:45 p.m.

Making E-Commerce a Reality Presenter: Matt Woods, President and CEO, Woods Hardware

In 2018, True Value returned its members’ equity after 70 percent of their ownership was sold to ACON Investments. In his presentation, Hartmann will highlight how that strategy has offered retailers the opportunity to invest in their businesses as they know best. He’ll also discuss how a new company structure has enabled True Value to accelerate strategic investments without cutting into retailers’ profits.

In 2018, Woods won the Reimagine Retail program, presented by the National Hardware Show®.

The award enabled Woods to implement an innovative virtual reality e-commerce addition to his Cincinnati business, Woods Hardware, that embraced its brick-and-mortar roots.

10:00 a.m. - 10:45 a.m.

Facing Forward: How a Hardware Retailer Caught Facebook’s Eye Presenters: Tasha Hilderman, Vice President of Human Resources & Marketing and Sarah Rurka, Vice President of Marketing, Home Hardware Building Centre—Lloydminster

Sisters Hilderman and Rurka of Home Hardware Building Centre—Lloydminster recently visited Facebook headquarters to talk about how they use the social media platform to build connections with their community members. In this presentation, they will share what they learned from the unique meeting and the insights they gained from other attendees. Additionally, they will share how a focus on community building can you grow your business, online and off.

11:00 a.m. - 11:45 a.m.

Communicating With the Changing Consumer Presenter: Jim Robisch, Senior Partner, The Farnsworth Group 12:00 p.m. - 12:45 p.m.

Leaders Who Coach Win: Developing Inspired, Motivated Employees Presented in partnership with the National Association of Home Builders and the NAHB International Builders’ Show

72

HARDWARE RETAILING | May 2019

3:00 p.m. - 3:45 p.m.

PANEL: The Changing Channel Moderator: Dan Tratensek, Executive Vice President and Publisher, NRHA 4:00 p.m. - 4:45 p.m.

PANEL: The Steps to Increase Your Digital Footprint Moderator: Matt Dockrell, Director of Partnerships at Pointy

This panel will comprise three hardware store owners who will discuss how they have driven foot traffic to their stores. A member of the Google Shopping team will advise attendees on how to use Google’s services and features to drive in-store sales.

5:00 p.m. - 6:30 p.m.

NRHA Independent Retailer Reception (Invitation Only)

WEDNESDAY, MAY 8

THURSDAY, MAY 9

9:00 a.m. - 9:45 a.m.

PANEL: Independent Innovations: How Retailers Are Differentiating Moderator: Dan Tratensek, Executive Vice President and Publisher, NRHA

9:00 a.m. - 9:45 a.m.

PANEL: Last Chance Look From the Show Floor

10:00 a.m. - 10:45 a.m.

KEYNOTE: A Changing Approach to Retail Presenter: Phillip Helms, Regional Vice President, Central Network Retail Group (CNRG)

Helms will share how Elliott’s Hardware and Town & Country Hardware have evolved to meet the changing needs of their unique and rapidly growing markets. He will also discuss the role CNRG has played in this process and how the organization serves as an idea laboratory for all of its brands and for Orgill dealers nationwide.

10:00 a.m. - 10:45 a.m.

How NRHA and Hardware Retailing Can Help Your Business Presenter: Renee Changnon, Retail Outreach Coordinator, NRHA

As the retail outreach coordinator for NRHA, Changnon sees many different types of independent businesses. In this presentation, she will talk about the various services and resources NRHA provides retailers in an effort to fulfill its mission—to help independent home improvement retailers run better, more profitable businesses.

1:00 p.m.

National Hardware Show Closes 11:00 a.m. - 11:45 a.m.

Increasing the Productivity and Profitability of Your Retail Space Presenter: Gary Petz, Co-Founder, Discovery Retail Group 12:00 p.m. - 12:45 p.m.

If You Really Want To Increase Sales, Stop Selling and Start “Making Customers” Presented in partnership with the National Association of Home Builders and the NAHB International Builders’ Show 1:00 p.m. - 1:45 p.m.

PANEL: NRHA Top Gun Awards Moderator: Melanie Moul, Features Editor, NRHA

The Social Connection Be sure to follow NRHA on social media for in-themoment updates throughout the conference and to follow along with the association to see how it serves the independent channel after the conference is over.

@nrha_official @nrha_official This panel brings together the voices of the industry’s highest achievers. Hear them reflect on their careers to this point and what the future of the industry holds. Before you see them on stage, read more about each person on Page 76.

@NorthAmericanRetailHardwareAssociation

Thank You to Our Sponsors!

2:00 p.m. - 2:15 p.m.

PDRA Scholarship Presentation Presented by the Paint and Decorating Retailers Association 2:30 p.m. - 4:30 p.m.

NHS Awards and Reception 5:00 p.m. - 6:30 p.m.

NRHA Retailers’ Choice Awards (Invitation Only) May 2019 | HARDWARE RETAILING

73

CAT PORTABLE GENERATORS ®

FOR HOME, WORK, AND PLAY.

PROFESSIONAL QUALITY. REAL-WORLD DESIGN. When you carry Cat® products, you offer your customers an opportunity to buy high quality, durable equipment backed by best-in-class Caterpillar support throughout the life of the machine.

SUPERIOR QUALITY MATERIALS & CONSTRUCTION – AT AN AFFORDABLE PRICE

WHY BUY THE

» Engines guaranteed for 1000 hours » Solid steel construction » 2-stage fuel filtration

CAT BRAND?

®

PROFESSIONAL FEATURES: » Extra-large fuel capacity » Snap-fit outlet covers » GFCI protection

PREMIUM USABILITY FEATURES: » Single-side, easy-to-use control panel » Weight-balanced design » Stable, double-hinged handle

INTERESTED IN CARRYING CAT PORTABLE GENERATORS? ®

VISIT: CAT.COM/JOINTHETEAM © 2019 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

2019

TOP GUNS CHARLIE GILLMAN CHRISTINE HAND MARK SCHULEIN 76

HARDWARE RETAILING | May 2019

Reaching the Summit Follow the Paths These Retailers Took to Become the 2019 Top Guns

T

he independent home improvement industry has changed significantly over the last decade or more, and some retailers have taken the challenge of continuing to grow through those changes head on.

Since 2007, the North American Retail Hardware Association (NRHA) has honored retailers who are proactive in finding innovative solutions to go up against competitors in their hometowns or online and are discovering ways to engage many generations of home improvement shoppers who all want something different.

Whether it’s through adding new locations or differentiating with niches and services, these retailers are examples of what it takes to find peak success. They are the independent home improvement industry’s Top Guns.

This year’s honorees represent leaders of diverse, multistore operations that span from the west in southern California to the east in Canada, with dozens of points in between.

Get another opportunity to hear even more from the Top Guns is during their panel at the NRHA All-Industry Conference, May 7-9 in Las Vegas at the National Hardware Show®.

Learn more about the conference and the show on Page 66 and at nrhaconference.com.

Charlie Gillman, Gillman Home Center Charlie followed his father and uncle into a career as a general contractor and spent many years as a homebuilder. He transitioned into home improvement retail in the late 1980s, building the first Gillman Home Center himself. The business has since grown to 12 locations in the Midwest.

Christine Hand, Handyman Home Hardware Christine purchased Handyman Home Hardware in Newfoundland, Canada, nearly 30 years ago from her father after initially working in software development.

She has served on the Home Hardware Ltd. board of directors since 2003 and is currently in her seventh term as board chair.

Mark Schulein, Crown Ace Hardware Mark spent several years outside the industry before joining his father at Crown Ace Hardware in Orange County, California. Since that time, Mark has helped grow the business to more than 16 locations in three states through a deliberate growth plan.

Read the following pages to learn how the 2019 Top Guns are driving their operations to success, and check out the extended conversations at TheRedT.com/top-guns-qas.

May 2019 | HARDWARE RETAILING

77

2019

78

HARDWARE RETAILING | May 2019

CHARLIE GILLMAN Hardware Retailing (HR): What’s the history of Gillman Home Center, and how did you get involved?

Was this your first career choice?

Charlie Gillman (CG): This was not my first career choice.

In high school, I dreamt of being an architect and a contractor. After high school, I went to a two-year technical school and got an associates degree in architectural technology in 1976.

At the time, my father was a general contractor, and so I came back from college to work with him.

I purchased the business from him in 1987 when I was 31 years old.

To supply his business, my father operated a small lumberyard. I attended a hardware convention in 1992, which led me to realize that there was more of an opportunity to serve the general public in the retail sector. In 1993, I built my first store from the ground up.

Since then, we have built eight additional locations, and we acquired three more for a current total of 12 stores.

HR: What unique challenges do independent retailers face in today’s market?

CG: While there is increasing pressure with competition from online retailers, we have also seen a nationwide movement toward supporting local businesses. We have to exploit that and also understand that it isn’t a freebee opportunity. There is that growing community support sentiment, but also increased pressure to add more value through service and knowledge. If we provide something Amazon cannot, we can thrive.

Something we do well that big boxes have a hard time doing is building relationships. It’s about price for big boxes. We will let those customers know, apples to apples, that we can take them on. If we get professionals to come in and sit down to review the estimate, we beat big boxes almost every time.

When I used to be a homebuilder, the first thing I had to do was sell myself, and I use that same strategy now. When you get the customer to sit down and meet with you, after a few meetings, they’ve built that relationship with you. Nine times out of 10, you’ll be able to close the sale.

Title: Owner and President Business: Gillman Home Center Location: Indiana and Ohio Number of Stores: 12+

HR: What are some key opportunities independent retailers will have in the short term?

CG: What we can do right now is react so much faster by making our own decisions. We don’t have to deal with the corporate world. There are a lot of people who want to deal locally. They want to deal with people at locally owned stores. Big boxes don’t offer that.

We have 12 locations, and we’re looking at our 13th, which might happen this year. We have each store manager make the location their own. They have the freedom to stock and sell whatever products they want. Big boxes don’t have that freedom.

In our stores, each department head can choose what they want to buy and so does the store manager.

We give them the freedom to do that. Each store varies a little bit depending on the strengths of the town and of the employees.

For example, in one of our stores, we sell a lot of feed.

One of the employees had his own feed store, and he brought that with him when he joined our team.

We have one incredible lumber and building materials buyer who buys for all 12 locations. We also have a central office with about 16 of us.

HR: What advice would you give to someone considering getting started in the independent industry?

CG: The first thing to do is to start working in the business as early as possible in life and then work in as many different roles in the operation as you can. If your goal is to become a manager or owner, seek a business education.

It’s not necessarily about the degree, but there are certain skills you need.

I got a two-year degree, and if I was doing it over again, I would have gotten a bachelor’s degree. A lot of people who come into this industry have to learn finance and accounting on the job. Unless they have that experience in high school, they should pursue at least a two-year degree in business.

My other suggestion is to listen more than you talk, and understand that people in any role or walk of life can offer perspectives that are very valuable.

May 2019 | HARDWARE RETAILING

79

HR: What do you think the industry will look in five to 10 years?

CG: That’s a very good question. I still feel there will be the same opportunities there are now for the independent retailer. The big boxes have stopped adding locations. The strong contractors will continue to want to deal with locally owned, independent lumberyards, and I do not see that opportunity going away.

Contractors value their time and the best retailers understand the value of that time. That is where

independents can always have the edge. We save contractors time with the services we offer, whether that be delivery, takeoff service, even little things like blueprint copies, anything that saves them a stop.

HR: How do you attract new contractors?

CG: Word of mouth. We get a lot of people who are referred to us. People say, “Gillman’s is the place to be, the place to buy from.” That reputation comes from our ability to build relationships with our customers.

We also have an outside sales manager who observes a lot driving around town. Be observant and keep your eyes open. I talked to a contractor recently who told me he was digging a basement in town, so I went back to my sales guy, and I asked him if we had him on our list. It helps to know what’s going on in your area.

HR: Where do you see your business in the next five years to 10 years?

CG: In the past 12 months, we have gone from eight to 12 locations. In five years, we’ll probably add a few more locations, and within 10 years, our goal is to have 20 locations.

I see the company continuing to become more cost efficient. Of course, this is all speculation. We don’t want to seize on opportunities that are not right for us when they come up. The most important thing will always be to make our current locations more successful and help our team members grow and meet their potential in their careers.

Independent home improvement retailers who help contractors save time by providing extra services will earn their business, says Gillman Home Center owner Charlie Gillman (left). That is something big boxes typically cannot do.

80

HARDWARE RETAILING | May 2019

HR: What’s the value in furthering your education and networking with other independent retailers?

CG: There is nothing better than networking with other independent retailers because there is unlimited knowledge and value in it. I belong to a roundtable with my co-op that has 18 members.

It’s also important to talk about your business with bankers, insurance agents, accountants, attorneys and other advisers.

It’s so important to further your education with thorough product research, which is a tough one. We work closely with our vendors on that. All of our stores are within 90 minutes of my co-op market, which is an advantage we have. We pay for any employee who wants to walk the market to see all the products.

One of the problems with pricing is educating consumers on the difference in product quality, especially in the lumber business. We get asked to price-match a lot. We are glad to do it when we are comparing apples to apples, but it usually isn’t. If you can educate the customers and your team on the price of quality and the cost of poor quality, then the price war is half over.

I made a tool for the employees, a graph that lists lumber prices per quantity for when they answer the phone. If someone calls and says, “How much is a 2x4x8?” the employees know not to give them the price, but to ask how many they want. If the customer says they want 624 of them, we know they aren’t doing something small, and that employee needs to send the customer on to a sales associate.

“The primary job of store owners and managers is

to take care of employees. Take care of them better than another employer would, and they will serve customers the same way.

”

HR: You’re an avid reader. What kinds of things do you read?

CG: I probably read a book a week. I have employees come and ask me, “Charlie, what book are you reading now?” We went on vacation for two weeks, and I read eight to 10 books in that time. I read books while waiting in line at the airport. I hate downtime because it’s important to make use of all your time.

We publish a monthly company newsletter, and every month, I’ll feature a book I’ve read, mainly nonfiction. I’ve read books on accounting, selling skills, personal motivation and other business-related topics. My human resources manager maintains a company library, which probably has 300 to 400 books. Any employee who is interested can come borrow a book or we’ll order a new one for them. They can read it and give it back or they can keep it.

HR: What’s the biggest challenge you have with pricing and how do you manage it?

CG: The biggest challenge with pricing is perception and letting the public know we can compete.

As independent retailers, the biggest thing I think we fight is perception. Big boxes are perceived to be cheaper. And of course, there is the unknown factor with Amazon and how it’s going to affect us long term.

The next step when it comes to pricing is service.

Once you know what they want and how many, the next question is, “Can I set them out for you?”

When you approach it that way, you’re asking that customer in an indirect way if they’re going to buy.

It makes it so they need to answer your question and make a decision right then if they’re going to buy from you.

HR: What are three things you tell your employees about how to provide great customer service?

CG: There are a few simple things we tell people.

No. 1 is to treat people how you want to be treated.

Another is to underpromise and overdeliver.

For example, if a special order is due in four or five days, tell the customer it will take a week.

Finally, there’s great value in using the customer’s name, calling them back, keeping them in the loop and trying to make every situation a win-win.

The real part of customer service though is having happy employees.

The primary job of store owners and managers is to take care of employees. Take care of them better than another employer would, and they will serve customers the same way.

May 2019 | HARDWARE RETAILING

81

2019

82

HARDWARE RETAILING | May 2019

CHRISTINE HAND Hardware Retailing (HR): What’s the history of Handyman Home Hardware? How did you get involved?

Christine Hand (CH): My father is a real estate developer.

Back in 1988, he was expanding a newly built strip mall and was looking for an anchor tenant. He approached the Home Hardware retailer across the street to entice him to move. The retailer was not interested, but instead he offered to sell my dad the business. My dad bought the store with no retail experience or real desire to be in retail.

At the time, this was not even on my radar as a career choice.

I was on maternity leave from a business analyst job at a computer services company. We had just written and installed an inventory control system for an auto parts distributor, and I had done the analysis work and training, so I was familiar with the inventory control lingo. I volunteered to go into my dad’s new store for a couple of months to get things set up for him on their existing POS system. Long story short, I quit my job before my maternity leave was over, and I have never looked back.

Four years later, on Dec. 1, 1992, my husband and I bought the store from my father. What intrigued me in those first couple of months was the challenge of learning something new and the interaction and problem-solving aspect every day with each new customer. I also remember enjoying the flexibility of working on my own schedule, which was usually much longer than the job I left and sometimes at weird hours late into the night. I was also much closer to home—literally across the street—and it felt great not to have to commute and to be able to run home whenever I needed to.

HR: What unique challenges do independent retailers face in today’s market?

CH: Independent retailers have always had to fight the big-box volume, selection and price image. The difference today is that the competition no longer has to be in your backyard—it can be anywhere in the world.

As independents, we have to be able to meet customer expectations about selection, delivery, pricing and return policies. Our competition is no longer the traditional hardware and LBM retailer because now everyone wants a piece of our pie. For example, many grocery stores have been entering the

Title: Owner Business: Handyman Home Hardware Location: Newfoundland, Canada Number of Stores: 2

home improvement space in recent years, not to mention online retailers.

Another challenge we face is competition for staff. We are expected to give expert service, and that knowledge costs money. We have to offer competitive salaries and costly benefit packages. While I have some amazing young people working with me, I don’t expect them to stay with me for 20 years as I would have in the past. Today’s labor force is more transient than ever.

HR: What are some key opportunities independent retailers have in the short term?

CH: Our customers are time starved. We are typically conveniently located with ample parking and accessible staff, so we can help our customers save time. That’s important to them.

As independent retailers, we can take advantage of niche markets in our communities and fill a void that chain stores typically aren’t flexible enough to fill. We can also support local vendors and build sales in that sector.

Through our wholesale affiliations, we have access to tens of thousands of items that we do not need to stock. We need to promote that fact more in store and become top of mind when a customer is looking for something.

We have been offering a ship-to-store option for decades, we’ve just never promoted it as such. It’s a huge opportunity.

We have always said, “If it’s not here, we can get it for you in less than week.” We’ve always been in the special-order business, we just haven’t been calling it a specific name.

Now it’s called e-commerce ship-to-home or buy online, pickup in store (BOPIS), and it’s a service people expect.

Because I’m located on an island, one- or two-day free shipping is not generally expected. If a customer needs something overnight, they are willing to pay for it.

We recognize as a company that we’ve got to figure this kind of service out and do something about it.

It’s a huge opportunity.

For example, there are four affiliated stores in our metro area. If we could check the inventory among ourselves and fill a special order locally, we could have it ready the same day or the next day without incurring the shipping costs.

May 2019 | HARDWARE RETAILING

83

HR: What advice would you give to someone getting started in the independent industry?

CH: This industry has given me and my family

HR: What do you think the industry will look like in five to 10 years?

CH: I wish I had a crystal ball. I’m sure there will

a way of life I could not have imagined. In fact, I would classify being an independent retailer as a lifestyle, as it does become a family affair.

The industry is about building relationships with your customers, your staff and your community.

Many of the things that make a successful retailer are common sense—have a clean, bright, organized store with friendly, knowledgeable staff. It’s simple, but it takes hard work and the right attitude. Complacency is something you have to be keenly aware of.

To combat complacency, you have to keep it top of mind. Walk into your store as though it’s your first time. Be vigilant about looking at your operation with fresh eyes. I get that experience from checking out other stores, going to markets and visiting my competitors to see what they’re doing. I take my observations home to see how we could do better.

It’s important to compare your operation to others to get new ideas and know what’s happening out there.

always be a need for our expertise in helping people solve their problems. I believe small to medium neighborhood stores, as opposed to huge big boxes, will be a benefit. As the population moves from rural to urban areas, we will need to be there, too.

I think we will streamline our in-store assortment to core items and rely more heavily on technology and an efficient supply chain to be able to access noncore items for customers in a day or two and deliver them to the customer’s door.

HR: Where do you see your business in the next five to 10 years?

CH: Something I like to say is, “Whatever’s new, that’s what we do.” There is a need to continuously reinvest in your business to remain relevant. In the next five to 10 years, I expect to remerchandise the store and to tweak it according to our customers’ demands.

Handyman Home Hardware owner Christine Hand says attending wholesaler markets presents a vital opportunity to network with other independent retailers and learn something new to take back to her operation.

84

HARDWARE RETAILING | May 2019

We will also keep up with technology and modernize as possible, like we have done over the past 30 years.

We recently implemented the new POS system our wholesaler offers. I didn’t need to change, but it’s a new system that’s going to allow me better control of my inventory. Additionally, as Home Hardware pilots projects in the future, they will likely use the most recent version of their software to do that.

We also set up a power aisle in our store to give the low price impression that is associated with large piles of merchandise. It’s also important to have the right quantity of price buster items.

What customers don’t understand is that if they buy a basket of goods here, they’re going to be very close on overall price with the same basket of goods at a competitor.

“Since day one, I have taken advantage of opportunities to learn and network. Even after being in the business for 30 years, I can still take something away from a store visit or from chatting with another retailer.

”

About two years ago, we remerchandised the store for the umpteenth time. We turned aisles and utilized our wholesaler’s Power Aisle Merchandising Program. I think we were the first store in our area to put a corral at the checkout as opposed to the traditional layout. We saw that being the trend at other retail stores and saw it as an opportunity to grow impulse sales. We just keep changing.

HR: What’s the value of networking with other independent retailers?

CH: Since day one, I have taken advantage of opportunities to learn and network. Even after being in the business for 30 years, I can still take something away from a store visit or from chatting with another retailer on the market floor.

We also continue to take advantage of webinars and e-learning opportunities knowing that expert staff is one of our differentiators.

You have to be continuously changing and evolving your business and be personally open to learning or business will pass you by.

HR: What’s the biggest challenge you have with pricing and how do you deal with it?

CH: I would like to have a dime for every time a customer says to me, “I don’t mind paying a bit more because of the great service I get here.” Somehow consumers believe we are more expensive because we are independently owned. Of course, now things are more complicated because consumers have global pricing available in the palm of their hand.

Our wholesaler has been working to change that price perception through an aggressive approach in our flyers and using a price match guarantee.

Of course, private-label brands are a great way to build margin and provide good value to customers while making it difficult to price compare.

HR: What are three things you tell your employees about customer service?

CH: Acknowledge every customer who comes into their line of sight. I learned a concept from another retailer called the 10-4 rule: If you are within 10 feet of a customer you acknowledge them, and if you are within 4 feet, you speak to them.

We talk about interacting with a customer as you would a guest in your home. We don’t ask them, “Can I help you?” but we ask open-ended questions, like what they’re working on, what brings them in today, what can we help them find.

We also tell our staff to pretend they are on the other side of the counter. What do you need to say to wow the customer, especially when it comes to returns.

For returns, it’s all about attitude. When someone walks up to the counter with something to return, they’re already anticipating a “no.” They may already be agitated because the product they purchased didn’t work or wasn’t what they needed.

For us, it’s about being empathetic and not just quoting the return policy chapter and verse.

We explain that we want to help them figure out how to help, but we need to take certain steps first. For example, we can’t accept a lawn mower with gasoline in it, so we suggest they take it to a mechanic to be fixed instead.

We also look at returns as an opportunity to sell something else. We try to focus on finding out what they’re working on in order to suggest something that would work better.

May 2019 | HARDWARE RETAILING

85

2019

86

HARDWARE RETAILING | May 2019

MARK SCHULEIN Hardware Retailing (HR): What’s the history of Crown Ace Hardware, and how did you get involved?

Was this your first career choice?

Mark Schulein (MS): This year marks the 70th anniversary of Crown Ace Hardware, which started in 1949 as a single independent store in coastal Corona Del Mar, California.

There is a long, cool “American dream” entrepreneurial backstory that led my dad to be in the position to buy that store when I was a kid in the mid 1970s.

My story is a little different from my dad’s. I had the opportunity to follow my passions to college and came out with two degrees that have nothing to do with running hardware stores. However, I grew up working in retail outside the industry before spending some time in my areas of study.

Some people say, “If you love what you do, you’ll never work a day in your life.” That wasn’t true for me. Turning a passion into a job took the love out of it for me. That realization pushed me to rethink my path and ultimately led me to go into the business with my dad a couple of years after college. Today we have 16 locations in three states: California, Arizona and Hawaii with a couple more on the way.

When I was first considering the family business as an option, I received some really valuable advice from two successful businessmen who I greatly looked up to at the time. They both essentially told me that most people in business have a goal of owning their own company and that I had a chance most people do not have. They both said, “If you try it and it doesn’t work, so be it, but if you don’t try it, you are missing out on a potentially great opportunity.”

It took some time to find my footing in the business.

Family business can be tough. I believe that one of my significant accomplishments in business is navigating the process of successfully—but not without its lumps—working closely with my dad for 20 years. It was hard, but it was a special opportunity that I learned an incredible amount from.

HR: How were you able to expand into such diverse areas?

MS: Our hub was all in Orange County, California, until about 12 years ago. All of our stores were within 40 miles of each other, which made the operation relatively simple. But our growth opportunities in this trade area were limited so we became more

Title: President Business: Crown Ace Hardware Location: California, Arizona and Hawaii Number of Stores: 16+

opportunistic and looked wider and further. We purchased a four-store chain east of us in inland California and in Lake Havasu, Arizona. We knew how to operate multiple locations, so we just needed to figure out how to do so from a distance and assimilate those stores into our stable.

I went to college in San Diego, so we saw opportunities there. It was a logical next expansion area, but a single store in a new trade area is inefficient, so we looked to build a small hub. Now we have three stores in San Diego.

Our operation in Hawaii is on the island of Kauai, and it has served the north shore there for over 30 years.

Island Hardware is a great little store, and it’s a passionate and important part of the community. We worked closely with the previous owner to make sure it was the right fit.

It’s been a great location for us; it’s a great work destination. We have learned a lot from that store when it comes to logistics, freight and staffing. It’s in a small-town environment, which we don’t have in our other stores because they are in such densely populated areas. It’s really wonderful to be such a core part of the community. We’ve been able to do some cool things there.

We are currently in the process of acquiring a two-store operation in another trade area in California where we see more growth opportunity, which will bring our store count to 18.

HR: What’s your approach for introducing yourselves to a new team when you buy a new store?

MS: My full intent from the very beginning is to be in lockstep with the seller. The previous owner is the one who has the relationships and has been known in the community likely for a very long time. It’s super important to me that the seller can genuinely tell their team, “Crown is the company I’ve chosen to pass the torch to,” and be able to tell them the reasons why.

If a team hears that from the seller, then that’s a huge leg up.

One of the things I always have in the back of my mind when we go into acquiring and assimilating a team is that the industry benchmark says that somewhere in the ballpark of 40 percent of employees will leave during a merger.

Change is good, but it’s not always easy. When we go into new operations, we are hyper-focused on ensuring a smooth transition for the benefit of the team and the community.

May 2019 | HARDWARE RETAILING

87

People are going to be concerned about what this change means for them, so we strive to mitigate any concerns right out of the gate. We talk about what we stand for, our core values, and we really try to be conscientious about what a team member will be concerned about in a positive way. We try to share the why, the how and that we’re here to do no harm.

At the same time, we provide new opportunities for growth, for relocations, if desired, for new ideas and for fun. We are big believers that work must be fun and rewarding.

As a result, we have very little turnover during these transitions, and our overall retention is above industry averages. We are proud of this and believe it reinforces our approach and our culture.

HR: How do you identify a store as an opportunity that may be a good fit for your operation?

MS: The old adage of location, location, location is never more true than today. Our growth strategy is focused more on acquisition than ground ups.

We’re looking for stores that are proven winners where we can see how we can tweak it and improve it.

HR: What unique challenges do independent retailers face in today’s market?

MS: This is no surprise to anyone here, but all traditional brick-and-mortar retailers—independents, franchises, etc.—all face the new normal of online competition, which moves at incredible speed, uses disruptive technologies and is backed by vast amounts of capital and is built to take market share. These companies are creative, well funded and nimble, and they’ve helped usher in new expectations in the retail marketplace.

“Fast is the new helpful” is one of the biggest shifts that affects independent retailers. In an industry where many of us have built our reputations on having great products and outstanding service, the ability to now find much of what we carry online, at all hours, and with almost immediate delivery, while being “easy” is a huge challenge we all must overcome.

Another is the shift in the DIY mentality.

Do it For Me (DIFM) and pros are becoming more important in the aging and millennial groups, and we have to be in a position to play an active and central role in this shift.

“There is a revitalization of the ‘shop local’ mentality.

If community retailers can embrace that, we can provide real value for our neighbors.

”

We’re looking to buy successful stores and then to find ways to make them even better. We look at the culture, operations, merchandising, marketing and how we compare overall. We complete a GAP analysis across every aspect of the business.

We ask, “What are they doing well that we want to continue and embellish or even steal and implement in our existing stores?”

We also think about how the operation may be underperforming and where we need to laser-focus to bring about meaningful change.

We do extensive listen and learn campaigns, and we partner with the store teams to ensure we’re focused in the right places and that we have alignment with them. The final outcome of this process is a store that has great staffing and a great culture, which is paramount to our business.

Our philosophy is that if we are a great place to work, then we’ll be a great place to shop, and we leverage our scale and experience to bring about shifts that drive value.

88

HARDWARE RETAILING | May 2019

One of our approaches to these shifts is to try to attract and educate young demographics in our stores.

We know we cater to homeowners, baby boomers and those who need advice and service, so we’ve started marketing to younger people using specific brands, especially in the outdoor living category, and pushing hard into new marketing technologies to help them understand how we can help them too.

We’re working with an app startup that provides services for installed sales, repair and replacement and general handyman services. It’s a tool that will connect our customers with vetted contractors.

We’re trying to provide the next step in the process, not just sell the product, by focusing on trying to serve our business customers and to develop strategies to attract more professionals.

HR: What are some key opportunities independent retailers have in the short term?

MS: There is a revitalization of the “shop local” mentality. If community retailers can embrace that, we can provide real value for our neighbors.

The team at Crown Ace Hardware regularly gives back to the communities where it operates. In addition to raising money for wildfire relief in California last year, the company works closely with the Children’s Miracle Network.

This is a direct correlation to the fact that consumers want to know what we stand for and how we support our communities. Many of us are active and engaged locally, and we need to leverage that in compelling ways to help people think of us first.

I strongly believe we need to reinvent and reinvest in our stores to best represent our communities.

If people desire a higher-end shopping experience, we better provide it. If people want cool niches, we should find them and present them well.

We must always provide world-class service and an environment to make our customers share their experiences by word of mouth and online to reinforce our reputation in the omnichannel marketplace. We need to stay top of mind.

HR: What do you think the industry will look in five to 10 years?

MS: I believe our industry will look very different in some ways, but the core tenets will remain.

The speed at which new ideas are being tested and pursued in our industry, and our communities, will only get faster. Big tech companies know more about our customers than we do, and they will continue to leverage that information. We need to be focused on what has and will continue to be our areas of strength and value, yet we need to get faster and more seamless. This is imperative, and it’s going to take partnerships with our technology providers, our vendors and our distributors.

It also comes down to our willingness to similarly test, bob and weave, fail fast and exploit opportunities to stay relevant. There will absolutely be many successful hardware stores in five to 10 years, but the status quo is very much at risk. We have to take action, up our game, improve our systems, innovate and simplify or someone else is going to in our place.

HR: What’s the biggest challenge you have with pricing and how do you deal with it?

MS: Pricing is one of the most timely and challenging topics we can address here. With the incredible volume of price increases we’re experiencing currently, we have been taking smart but aggressive measures not to just hold margin, but to increase it.

Doing the bulk of our business in California with the cost of wages and occupancy rising, and being some of the highest costs of doing business in the country, we cannot afford margin erosion. We have a clear strategy of what we need to do, and our team has been very creative in determining where our opportunities lie. We have to be very savvy in monitoring not just the big-box competition, but also online and that’s not easy. We are very lucky to have a team member who is very knowledgeable and skilled in that area. It’s just changing the paradigm.

We are seeing price changes across all categories, which is something we haven’t seen it in a long time. We can’t not increase. It’s an interesting and important dance right now for sure.

May 2019 | HARDWARE RETAILING

89

Your Partners in the Channel Manufacturers Give Back Through the NRHA Vendor Partner Program

T

he North American Retail Hardware Association (NRHA) helps make connections between retailers, wholesalers and channel supporters in a variety of ways.

Whether it’s through industry events, like the NRHA All-Industry Conference (see Page 66) or in the pages of Hardware Retailing magazine, the association serves as an advocate for independent retailers to communicate with the whole spectrum of channel partners.

One of the opportunities NRHA creates for manufacturers and vendors that support the independent channel is the Vendor Partner Program. Members of this program support the association through advertising in Hardware Retailing and other methods. The resources gained through this program then make it possible for NRHA to produce vital programs and services for retailers.

90

HARDWARE RETAILING | May 2019

“The independent channel of the home improvement industry is the segment of the industry with the most buying power,” says Nick O’Connor, NRHA director of vendor programs. “Our vendor partners have consistently shown they recognize and appreciate that power through their support of Hardware Retailing and many NRHA programs and services.”

On the following pages, discover how the Vendor Partner Program impacts many segments of NRHA offerings, from industry-specific training programs to exclusive research. See the companies that are part of the NRHA Vendor Partner Program represented on Page 92 and be sure to thank them for their support of the independent channel.

If you are a manufacturer or vendor interested in joining the NRHA Vendor Partner Program, contact O’Connor at 317-275-9409 or noconnor@nrha.org.

More than a decade ago, NRHA established its Vendor Partner Program. In addition to advertising in the pages of Hardware Retailing, the resources garnered through the program are distributed throughout many programs that NRHA makes available to retailers.

These offerings listed here represent just a fraction of the valuable ways NRHA Vendor Partners give back to the industry through supporting the association.

To learn more about NRHA programs, contact retail outreach coordinator Renee Changnon at rchangnon@nrha.org.

Median Sales Per Customer

Key Business Indicators

Serving Hardware, Home Center & Building Material Retailers

$120

Typical

High-Profit

50%

Typical

High-Profit

$105 $100

40%

$91 $96

32.3%

$80

30.8%

30%

Serving Hardware, & Building MaterialHome Center Retailers

$60

20%

DISTRIBUTOR PROFILE SERIES

$49

16.7% 17.4%

$51

$45

Choosing Change

$40

HARDWARE STORES

$41

True Value Executives Share What Retailers Can Expect in the Future 35

What Does It Mean To Be Green?

$43

$42

0%

2013

2014

2015

2016

2017

Key Performance Differences At-A-Glance • The home centers responding to this year’s study saw gross margins (after rebate) increase over last year by 230 basis points, and this year’s group also reported sales that were 7.4% higher than last year’s.

Home Centers Home centers are a hybrid mix of a hardware store and a lumberyard. Home centers carry full assortments of hardlines shelf goods as well as commodity lumber and building materials in a minimum of 10,000 square feet of selling space.

54

Is It Time for a Store Makeover?

62

12

6.3% 3.1%

$20

Time is Ticking: How to Fit Everything Your Day 48 Giving Your in Customers Earth-F riendly Options in Lawn Get Crafty in the and Kitchen Garden 40 With Housewares Tools 56

Pay Attention to Payroll: NRHA’s 2017 Employ ee Compensation Report

10%

$36

• Higher sales numbers didn’t necessarily translate to higher expenses, though, as home centers held payroll to 16.7% of sales, which are the lowest levels we have seen since 2005.

• Home centers have also kept a tighter grip on accounts payable, keeping that number to 6.7%, the lowest on record for the group.

• All of this translated to profit before taxes of 3.1% for average home center operators in our study versus 6.3% for the high-performance retailers in the upper quartile.

By most measures, home centers fared well last year compared to their historic averages when it came to productivity. Although top-line sales can fluctuate dramatically based on the group of operators we have responding to the survey, when you look at the productivity percentages, they tell a positive story.

2018 Cost of Doing Business Study

Gross Margin After Rebate

Total Payroll

Profit Before Taxes

The average home centers in our study saw their bottom lines increase last year by 40 basis points from 2.7% to finish at 3.1%, which is the second-highest return they have seen since 1994.

This increase was primarily driven by Cost Of Goods Sold being down 140 basis points and rebates being up 90 basis points over the prior year.

When we take a look at the best-in-class home center performers, we find much the same story we see in other store classes. Those garnering the greatest net profits are also doing the best job of expense control, inventory and employee productivity.

In addition to a lower payroll expense percentage, high-profit home centers also showed lower occupancy expenses than the average store, with occupancy of high-profit operations at 2.5% of sales versus typical stores at 4.4%, and lower other operating costs, with high-profit home centers’ costs at 6.7% of sales versus typical home centers at 8.7%.

It is worth noting that while high-profit home centers had a lower average gross margin (30.8% versus 32.3%) than their average counterparts in our most recent study, this statistic is typically indicative of them selling larger projects involving commodity items with historically lower margin opportunities.

North American Retail Hardware Association

Hardware Retailing Magazine

Industry-Specific Research

The leading industry magazine is distributed to more than 35,000 readers every month, including retailers, wholesalers and manufacturers. Because of vendor support, retailers learn operations best practices, research new products and get ahead on the latest trends in print, digital and online formats.

NRHA surveys retailers, consumers and other groups to gain insight into trends, operations metrics and other data relevant to independent operators. NRHA has produced its benchmark tool, the Cost of Doing Business Study, for more than 100 years thanks in part to vendor support. Learn more at nrha.org/codb.

State of Independents Conference

Training Programs

This end-of-year event highlights industry trends, forecasts the future of the industry and puts retailers, wholesalers and manufacturers in one space for honest discussions about how everyone in the channel can push for innovation in the name of growth.

Visit nrha.org/soic to learn more.

Whether it’s free downloadable resources, comprehensive online skills development or college-level management training, NRHA has training resources available to retailers at every level of their careers. Learn more about the opportunities at nrha.org/training.

13

May 2019 | HARDWARE RETAILING

91

Do you want to see your company listed here in next year’s Vendor Partner roundup? Contact Nick O’Connor, director of vendor programs, at 317-275-9409 or noconnor@nrha.org for more information on how you can show your support for the independent home improvement retail channel.

92

HARDWARE RETAILING | May 2019

Vendor Partner

TM

SEWER SKEWER

¨

PATENTED 10,024,477

May 2019 | HARDWARE RETAILING

93

By Jesse Carleton, jcarleton@nrha.org

Back to School Class Project Reshapes Retailer’s Marketing Strategy

H

ow can home improvement stores appeal to the next generation of shoppers? That was the topic of discussion at Everson’s Hardware Hank, in Waconia, Minnesota, on a Monday morning in February. Five students from Waconia High School had spent the past few weeks studying multiple aspects of the business and coming up with their own recommendations for how to answer that question.

Now it was time to share the results with the company’s marketing manager, Deborah Everson.

Everson was participating in a group project with an entrepreneurship class where students were asked to help her learn more about what the teenage

94

HARDWARE RETAILING | May 2019

demographic wanted out of a home improvement store. It was educational for all involved. Students learned about running a business and the principles of leadership, while Everson found some insights into how she could reach out to the next generation of home improvement shoppers.

To hear those recommendations firsthand, Hardware Retailing traveled to Everson’s Hardware to see the students’ presentation and then hear what Everson learned from the exercise. Building connections with your local high school can not only offer an avenue for giving back to your community, but also it can give you insights into an increasingly important customer segment.

N E W I NSPI R AT IONS

MALIBU GRAY

BEACH HOUSE

AGED BOURBON

BABY GRAND

VINTAGE MODERN

MOROCCAN RED

Give your customers the look they deserve with new colors and new packaging from ZAR.®

INSPIRED BY LUXURY Visit us at www.UGL.com or call 1-800-845-5227 to see how we can partner with you to create a successful UGL dealer program.

BLUE MOON

The Project Finding the Next Generation Like many retailers who want to be involved in their local communities, Everson is a member of her local Chamber of Commerce. That’s where she met a consultant working at Waconia High School and learned about the project. The class, “Start Your Own Business,” is designed to help students learn about entrepreneurship. Some students who take the class are exploring business as a future career. Some of the students had already taken other business classes, so they were building on past knowledge.

This year, instead of merely teaching from a book, class instructors wanted students to gain hands-on experience. The class was divided into seven groups and assigned to different independent businesses around town. Each of those businesses’ owners wanted help conducting market research.

For example, the local grocery store operator wanted to know what grab-and-go food items to add to their deli. The performing arts center staff wanted to know what events people in the community would find appealing and at what price point.

“We wanted to know what products, services or events would appeal to 16- to 25-year-olds,” says Everson. Typical of most retailers, Everson’s customers are mostly between 30 and 60, the age range most likely to be shopping at a home improvement store. But the younger age group will be future customers, so Everson wants to have a role in influencing their shopping patterns.

For the five students assigned to her store, Everson was able to act as a business mentor as she gave them a close-up look at how her business operated. The students came to the store several times throughout the course to discuss the project and get direction from Everson. She was also a guest speaker for the class, sharing her thoughts on what it takes to be a business leader.

At the heart of the project was a five-question survey the students sent via Google Forms to their fellow classmates to see what products, services or events might encourage them to shop at their local hardware store. When the results were in, the students were tasked with coming up with their own recommendations for Everson’s.

Everson’s Hardware Hank Profile: Community Builders Incorporating high school students into the store culture won’t be a stretch for Everson’s Hardware Hank. The store has already gained a reputation for being family friendly.

In 2017, Deborah Everson and her husband Tracy, president of the business, led a major remodel of the building to create more space for customers to browse and foster a sense of community. Tracy’s parents, Ron and Mary Ann, founded the store in 1966. When Deborah came to work for the business shortly after marrying Tracy, the interior of the building was starting to show its age with a dated layout. Customers rarely added impulse items to their shopping cart and many weren’t even aware of the wide range of products the store offered.

The Eversons worked with their wholesaler to reset the store and find new product lines. They also relocated destination departments and added an area at the front of the store to display gift items, which have increased impulse sales.

Events are also a part of the store culture. Deborah has held a “You Can Fix It” class where she covers basic home maintenance projects and has regular Kids Craft Saturdays where she helps children complete a simple craft. A child recently asked if she could have her birthday party at the store, which Everson sees as an indication the store is taking hold as a place people come not just to shop, but to connect with their community.

96

HARDWARE RETAILING | May 2019

After a remodel to the building, (left to right) Ron, Mary Ann, Deborah and Tracy Everson have seen an increase in sales.

The Results Hosting How-To Seminars Classes or special events that demonstrated how to do a particular project were the focus of the students’ recommendation to Everson.

This was their proposal: “Create a set of handmade product classes where people will come in and make a project from the materials provided by Hardware Hank and be taught how to create the project for an affordable price.”

While some product categories, such as sporting goods, got the students interested in shopping at Everson’s, a good strategy for attracting the younger generation was hosting “make-and-take” project classes.

Everson’s Hardware Hank already offers project classes, but none target the 16- to 25-year-old age group. The students suggested the store could charge a fee to attend the class ($40 on average was their suggestion, based on the average cost of materials and profit for the store).

“Any money I have to pay would be worth the education,” says Griffen Jensen, a student who was in charge of communication for the group.

“I would be learning a lot about the items we would be using, then I get to take the project home. I’m getting a lot more than just buying something off the shelf.”

Examples of projects the students cited included a lamp made out of black iron pipe or a simple toolbox. The students also noted that the big-box home improvement stores in the area offered only limited project classes, with little variety in the products offered, and none of them targeted their age group. To market the how-to seminars, the students recommended putting short videos on Instagram—the social media platform most of them already used.

The Next Steps Communicating More While the students’ work on the project may be finished, Everson is ready to try some of their ideas.

“It was fun to hear what they learned about our store through the survey results,” she says.

“I’m anticipating implementing some of the recommendations they had for the classes.

I think there are ways we can gear our business to appeal more to the 16-year-old-and-up age group.”

Make-and-Take Classes One of the biggest takeaways from the students’ project was that project classes, or make-and-take classes, could have potential for drawing in the younger generation. Classes are already a part of the store’s culture. Everson runs Kids Craft Saturdays, a popular series of events targeted at children.

Students Sam Schmidt (center) and Ryan Hagedorn (right) were part of the class that researched how Everson’s could appeal to their age group.

She’s also held classes for adults, showing how to make common home improvement repairs.

But the missing piece so far has been an event for high school and college-age young adults.

Everson says she’s already been looking at Pinterest to gather project ideas. But the value in the classes isn’t just about bringing students into the store; it will also be about bringing friends and families together. Students expressed interest in classes that could involve their friends or parents.

“A big goal is to facilitate ways to get kids and their parents engaged together,” she says. “If we can find ways to bring families together, that’s what will set us apart as independents and create that family atmosphere in our store.”

Encouraging students to engage in simple projects will also give them more confidence in their DIY abilities. The younger generation too often makes big-box retailers their first choice, she observes, but she hopes that by attracting them to her store early, she can change that mindset.

May 2019 | HARDWARE RETAILING

97

“When these teenagers grow up and purchase their first home, I want them to first think of their local hardware store instead of going to the big-box store,” she says. “It’s important we think about how we can influence the younger generation and help them have positive experiences in our store. That is what will help us as an industry thrive into the future.”

Instagram Everson also had the opportunity to listen to the other student groups working with businesses around town. The common thread through all of the group discussions was the need for businesses to use Instagram as their preferred social media to communicate with the younger generation.

While Everson’s has a Facebook page, few of the students in the group knew about it. They all have Facebook accounts, but they rarely use them. Instead, Instagram was the teens’ preferred social media platform. It’s a good place to share project ideas. But if you’re going to post a video, make sure they are short, more like a time-lapse video, just long enough for the viewer to see how a project goes together. Teens use YouTube to watch longer, in-depth project videos.

98

HARDWARE RETAILING | May 2019

In fact, Everson’s makes a few posts on Instagram, but none of the students were aware of the account.

They made some suggestions for ways to change that. For example, there is a local vocal artist who does a lot of work with the high school’s music program. Many students follow her Instagram page. Students suggested Everson incorporate that vocalist, or a similar local figure, into the store’s marketing strategy. They would be more likely to see the store’s post if it was connected with the celebrity’s post. Also, using hashtags with the city or school name in it is an effective way of getting followers on Instagram.

Connect With Schools Retailers who want to connect with high school students don’t necessarily have to be a mentor for a business class. There are many avenues for creating connections with students and their families, says Everson. “For me, it started with being involved in the Chamber of Commerce, where I made a connection with someone from the school,” she says.

You can also go directly to the school and communicate your desire to help where you can.

There are many ways to engage students through

groups such as robotics clubs, science groups, theater, industrial arts classes, trap shooting teams or business classes, just to name a few.

“These groups target specific groups of students who may use items we sell, which is an opportunity to help us build positive working relationships with them,” Everson says. “It’s the relationships we build with students that will help us attract the next generation to shop at their local independent hardware stores.”

The exercise with the group of five students has already yielded progress toward Everson’s goal.

They said they were starting to see the attraction of independent retailers such as Everson’s.

“When I go to Home Depot, for example, I don’t see someone unless I need help, and then I have to find someone,” says Sam Schmidt, another student in the class. “At Hardware Hank, I can get the help right away and am not stranded not knowing what to do. I think before, we saw this store just as a place to come in, get what we needed and get out. Now, I’m seeing people come in, say hi, grab a cup of coffee then go get their product. A lot of people seem to know everyone at this store pretty well. I’m seeing people come in for more of an experience.”

A redesigned paint counter at the front of Everson’s Hardware Hank includes coloring pages for children to keep them occupied while the parents shop.

Red Lion® University Free Online Training Now, every employee can be a pump aisle expert. Red Lion® University is your instant, online access to selling tips, product information, and industry best practices designed to increase your pump revenue. It only takes 2 hours to become an e-certified pump expert. Sign up today!

university.redlionproducts.com

May 2019 | HARDWARE RETAILING

99

0 i Co., S i l c , ic

si

,

• 00

co c i

360 VIEW

102

HARDWARE RETAILING | May 2019

Home Depot H

ome Depot is a formidable competitor in the home improvement industry.

By sales volume and number of store locations, the company is the largest retailer in the home improvement sector. Despite being known for its 104,000-square-foot stores, Home Depot has, in recent times, contradicted big-box stereotypes.

Those stereotypes include poor customer service, high employee turnover, untrained workers, limited career paths and top-level executives who don’t know what it’s like to work in the stores. Unlike other big boxes, Home Depot has made an effort to hire employees who can serve as product category experts in departments such as plumbing. The company has also promoted from within—Ann-Marie Campbell, a former cashier, is now executive vice president of U.S. stores—and has invested in employee training and benefits packages that are enviable in retail.

At the same time, the company has worked hard at adapting to changes in the retail industry and invested on a multibillion-dollar scale that only a giant corporation can afford.

In recent years, Home Depot has played for consistency instead of glitz. That focus has resulted in nine years of sales growth, an impressive feat, considering the burden the economic downturn in 2008 placed on many home improvement companies.

Read on to learn about Home Depot’s beginning, its successes and struggles over the past four decades, current initiatives and what the company looks like now.

What We’ll Cover 104 The History of Home Depot 106 A Snapshot of Home Depot 108 Home Depot Today 112 SWOT Analysis 114 The Financials 116 In Home Depot’s Words

The information in this 360-degree overview was gathered

by Hardware Retailing staff from a variety of sources that are attributed throughout.

May 2019 | HARDWARE RETAILING

103

360

The History of Home Depot

Home Depot was born in the shadow of an unexpected firing.

In the 1970s, Bernie Marcus and Arthur Blank held executive positions with Handy Dan Home Improvement Centers. In 1978, they were summoned to a meeting to discuss company initiatives, but were instead fired in unison.1 After the firing, Marcus and Blank imagined their ideal home improvement store: 75,000 square feet or more, stocked with products bought directly from manufacturers so savings could be passed to customers.2 They would cut product margins and count on sales volume for profitability.

Above all, Marcus believed the cornerstone of the business would be highly trained salespeople who could guide DIYers through every home improvement project.2 The partners enlisted investment banker Ken Langone to secure funds to make the business plan a reality and connected with Patrick Farrah, a California lumber market merchandiser.2 By the end of the 1970s, Home Depot had three stores in Atlanta, 200 employees and average weekly sales of $81,700.2

To fund expansion in the 1980s, Home Depot released its initial public offering in 19812 and opened more stores. In 1984, it acquired the nine-store chain Bowater Home Center and converted them into Home Depots.2 By 1989, the company had 100 locations.2 The 1990s proved to be an experimental time.

In 1991, Home Depot opened its first EXPO Design Center store, launching a home decor chain that would grow to 34 locations before Home Depot deemed it unsuccessful and closed it in 2009.3 In 1994, Home Depot bought a 75 percent stake in Aikenhead’s Home Improvement Warehouse, a Canadian company. The investment enabled Home Depot to gain territory outside the U.S.4 In 1997, Home Depot purchased Maintenance Warehouse, which became The Home Depot Supply in 2004.5 In 1999, the company tried its hand with a small-format store called Villager’s Hardware to compete with neighborhood hardware businesses.6

New Millennium, New Changes Prior to 2000, Home Depot’s company culture erred on flexibility, with store managers getting so

Timeline: From 1979 to the Present

1979

1981

1991

1994

Blank and Marcus, with help from Ken Langone and Patrick Farrah, open the first Home Depot stores.

Home Depot starts trading on the Nasdaq Stock Market.

The public stock offering raises nearly $4.1 million.

The EXPO Design Center debuts. When Home Depot shutters the venture in 2009, EXPO has 34 locations.

The company enters Canada by purchasing Aikenhead’s stores and rebranding them as Home Depot locations.

Sources: HomeDepot.com and public filings from the company

104

HARDWARE RETAILING | May 2019

much freedom that they could ignore instructions from the corporate office if they disagreed and were encouraged to spend so much time with shoppers that back-office work often fell to the wayside.7 The company then hired Robert Nardelli, a former General Electric Co. executive, in 2000 to establish more discipline.8 Nardelli reduced store staff and cut employee benefits, leaving employees feeling unhappy and the stores short-staffed. The company gained a reputation for underserving customers.8 Under Nardelli, the company began adding new U.S. stores at a fast clip, opening 1,211 locations from 2000 to 2007 while he was CEO.3 The company also bought 12 stores in China in 20063—a venture Home Depot abandoned in 2012 due to lack of success.9 Total sales grew with the added U.S. and Canadian stores,3 but same-store sales and stock values weren’t growing well in comparison to Lowe’s, despite the prerecession housing boom.8 Also, Nardelli’s rigid personality caused him to butt heads with shareholders and the company’s board of directors.10 “Earnings were adequate, but they were riding on the back of cost-cutting, not sales improvements,” Forbes reports.8

Home Depot developed a reputation for having workers who weren’t helpful.8 Sales fell in 2006.3 The company replaced Nardelli with a very different leader in Frank Blake, who became chairman and CEO in 2007.8 Blake ended Nardelli’s pattern of rapid-fire store openings, beefed up employee benefits9 and emphasized customer service11 instead of cutting costs by eliminating store-level jobs.

His efforts set Home Depot on a more stable trajectory for expansion, with measured growth in sales, well-performing stocks and a refreshed focus on meeting customers’ home improvement needs.

1

Fortune.com, Feb. 26, 2011 “Built From Scratch,” Bernie Marcus and Arthur Blank 3 Home Depot public filings 4 The New York Times, Feb. 9, 1994 5 hdsupplysolutions.com 6 The Wall Street Journal, May 23, 2002 7 Harvard Business Review, April 2006 8 Forbes.com, Aug. 21, 2013 9 Fortune.com, Oct. 26, 2012 10 nbcnews.com, Jan. 9, 2007 11 Fortune.com, July 9, 2014 2

2000

2001

2014

2018

Home Depot starts selling online for the first time, testing its e-commerce site in Las Vegas.

The retailer enters the Mexico market by purchasing the Mexican company Total Home.

A data breach exposes payment card information of more than 50 million Home Depot customers.

Home Depot commits to investing $11.1 billion in internal upgrades, including supply chain improvements.

May 2019 | HARDWARE RETAILING

105

360

A Snapshot of Home Depot

The company began offering same-day express delivery in 2018 in

Home Depot’s mascot is a cartoon character named Homer D. Poe.

35 U.S. markets.

Source: corporate.homedepot.com

Source: corporate.homedepot.com

25,000 is the approximate number of notes former Home Depot CEO Frank Blake handwrote to store employees from 2007 to 2014.

Source: Inc.com, Nov. 10, 2017

Home Depot operates 2,287 stores in the U.S., Canada and Mexico.

Indoor garden and appliances are Home Depot’s top-selling product categories.

Canada: 182 United States: 1,981

Mexico: 124 Source: Home Depot 2018 annual report

106

HARDWARE RETAILING | May 2019

Source: Home Depot 2018 annual report

A typical Home Depot location stocks 30,000 to 40,000 products.

E-commerce contributed

7.9 percent of Home Depot’s sales in 2018.

Source: Home Depot 2018 annual report

Source: Home Depot 2018 annual report

Home Depot Fuel convenience stores were an initiative that started in 2006, but the company ended up opening only six locations and then sold them.

Source: cspdailynews.com, Feb. 2, 2017

Home Depot is the largest home improvement retailer, even though its 1978 start was years after rivals Lowe’s and Menards launched. Lowe’s opened in 1946 and Menards incorporated in 1962.

In 2015, Home Depot committed to cutting its energy use by 20 percent before 2020.

Source: Company reports

Source: Home Depot 2018 annual report

May 2019 | HARDWARE RETAILING

107

360

Home Depot Today

Home Depot isn’t flashy.

The Atlanta-based company isn’t sending 3D printers into space like Lowe’s did, introducing an array of virtual reality experiences to customers in stores, testing new store formats or racing to build dozens of additional locations.

Recent growth has primarily come by improving operational efficiencies, increasing the productivity of existing stores and expanding online sales, according to the company’s public filings. As of early 2019, Home Depot operated 2,287 stores in the U.S., its territories, Canada and Mexico and employed about 413,000 people.

The average store is 104,000 square feet and has 24,000 square feet of outdoor garden selling space.

Leading up to 2006, Home Depot’s growth wasn’t so moderate. At minimum, the company was adding 140 new stores per year in the U.S. By 2005, it had grown net sales to more than five times higher than in 1995. The company was also busy with acquisitions and operating retail locations under a variety of brands, such as HD Supply and EXPO Design Center.

Tumultuous Times The 2007 recession markedly changed the home improvement industry, and Home Depot didn’t escape the financial tumult. From 2000 to 2005, the company had opened more than 700 U.S. stores and saw large sales increases due to new store growth.

However, the company started cutting back on store openings in 2006 and saw net sales decline for the first time after more than 20 years of steady growth. Sales ended up falling for four straight years.

When the economy tanked in 2008, Home Depot cut its new U.S. store openings down to 41 locations.

In 2009, the company began a streak of years with few or no store openings at all.

Home Depot continued to grow modestly in Canada and Mexico, adding 46 stores from 2009 to 2018. During the same 10 years, the company opened a total of 20 new U.S. stores, including relocations of existing stores. The company’s net store increase during those years in the U.S. was only five locations.

And from 2006 to 2009, total net sales dipped more than 16 percent overall for the company.

Frank Blake, Home Depot’s chairman and CEO from 2007 to 2014, was new to the top executive role when the economic crisis hit. He carried the weight of leading the company back to health during years of financial hardship that hurt pro customers’ businesses and forced myriad homeowners to postpone home improvement projects indefinitely.

Under Blake’s leadership, Home Depot stopped the rapid store openings, assessed the value of its smaller businesses and closed, sold or consolidated what wasn’t core to the company, Fortune magazine reported in 2014.

Founders Marcus and Blank envisioned a large-scale home improvement operation when they planned Home Depot.

At the average location, customers browse up to 40,000 products in more than 120,000 square feet of selling space.

108

HARDWARE RETAILING | May 2019

NEW! Nail Hole Filler and Wall Repair Kit

Better than spackle.

HYDE® Better Finish™ Nail Hole Filler promotes a better finish than spackle products, because it’s the same joint compound that’s used to tape and finish walls when they’re installed.

It has a three-year shelf-life, spreads more easily than spackle, comes with a built-in spreading tool and leaves a better finish!

Learn more at hydetools.com.

800.872.4933 09914

09915

©2019 Hyde Tools, Inc. All rights reserved.

custrelations@hydetools.com

360

Home Depot Today

Lumber is one of Home Depot’s top categories, accounting for 7.8 percent of the company’s 2018 net sales.

For example, Home Depot had purchased a home improvement operation with 12 stores in China, according to the company’s public filings.

Home Depot ended up shedding the Chinese stores and other businesses, including its large U.S. professional supply chain, HD Supply.

Former chairman and CEO Blake wanted to change the company culture. He revived the founders’ inverted pyramid model of leadership, establishing the CEO’s role as the peak of a pyramid turned upside down, with customers and store associates outranking the CEO in importance.

Blake’s job was to serve the rest of the company by empowering employees to excel in their work, he said. He handwrote thousands of letters to store-level employees, thanking them for their efforts.

Blake was about to retire when a data breach in 2014 exposed payment information of more than 50 million customers.

He took the lead in apologizing to consumers and offering immediate credit monitoring, according to Fortune magazine.

110

HARDWARE RETAILING | May 2019

As a result, the breach didn’t alienate shoppers enough to cause sales declines, Fortune reports.

By the time Blake retired at the end of 2014, he had led the company to stability and growth again. Home Depot’s retail sales had increased for five consecutive years and were more than 25 percent higher than in 2009, the company’s lowest point during the recession.

Blake’s replacement, Craig Menear, is Home Depot’s current chairman, president and CEO. Menear has kept the retailer’s growth streak going for nine straight years, with retail sales hitting $108.2 billion in 2018—or an increase of nearly 65 percent since 2009.

That sales growth has come with the addition of only five more U.S. stores and 48 new locations in Canada and Mexico in 10 years.

Under Menear, Home Depot has also grown by buying other operations, allowing the company to expand its pro business and bolster some of its product categories, such as soft goods.

Two recent acquisitions have been aimed at improving how the company serves professionals.

The company’s purchase of Interline Brands in 2015 was an especially large investment, ringing in at $1.6 billion. Interline is a national distributor and direct marketer of maintenance, repair and operations (MRO) products.

“Addressing the needs of our pro customers is a top priority for The Home Depot,” Menear said in a 2015 statement. “Interline is a well-run company that has achieved impressive financial results over the last few years. With their seasoned leadership team, we will enhance our ability to serve the pro—both in the store and at any desired location outside the store.”

In 2017, Home Depot made another investment in serving professionals by buying Compact Power Equipment, a national company that provides equipment rental and maintenance.

“The acquisition allows us to further improve the customer experience—in particular for pros—through enhanced equipment and tool rental offerings. It also allows us to grow Compact Power’s best-in-class building services capabilities,” Menear said after Home Depot confirmed the $265 million deal.

The same year, the retailer announced its acquisition of The Company Store’s e-commerce operation, which sells bedding, bath and decor products online.

The goal of buying The Company Store was to help Home Depot gain “product development and sourcing capabilities to help us expand our online decor business into broader categories across the entire home,” Menear said in a statement from the company.

Internal Investment Another major announcement in 2017 revealed Home Depot’s growth priorities for the next several years—internal improvements, technology and a bigger distribution network to serve a growing e-commerce business and expanding product delivery needs. E-commerce now accounts for 7.9 percent of company sales.

“Customers are looking for a smooth, omnichannel shopping experience that integrates online and in-store interactions,” Menear said during a 2017 shareholder conference call.

“We will invest in our physical stores, our associates, product and innovation, our professional customers, our services business and our supply chain,” he says. “And underlying all of these investments is our continued investment in IT to create the seamless One Home Depot interconnected experience.”

The company’s planned investment is $11.1 billion, including $1.2 billion in supply chain upgrades that will allow for same-day and next-day product delivery to most of the U.S. Adding 170 warehouses and distribution centers is among the planned improvements, which will help Home Depot speed up delivery.

Home Depot also planned to hire 1,000 IT professionals in 2018 to support the technology needed to manage a complex supply chain with direct fulfillment centers for online orders and a variety of other initiatives, such as the company’s mobile app, consumer e-commerce site and a website for professional customers.

“We will remain laser focused on driving productivity,” Menear said during the conference call. “Our approach to technology development will drive productivity and speed. Our focus on the elimination of waste across the value chain, improved processes, enabling those processes through simplified systems, will support the virtuous productivity cycle.”

Sources: Home Depot’s annual reports and Hardware Retailing calculations, unless otherwise noted.

Though brick-and-mortar stores are still Home Depot’s dominant selling platform, the company’s online sales are growing. E-commerce sales increased 26.2 percent in fiscal 2018, according to the Home Depot 2018 annual report.

May 2019 | HARDWARE RETAILING

111

360

SWOT Analysis

Strengths

Weaknesses

• Being the Biggest. Home Depot has big buying power, strategic alliances with manufacturing companies, economies of scale, an extensive supply chain, powerful brand recognition, robust e-commerce platforms and 2,287 retail locations.

• Large and Bulky. Being a massive company has its benefits, but a large size can also be a limiting factor. A big corporation cannot adapt quickly to meet customer demands or test new trends as efficiently or inexpensively as a small operation.

• Consistent Sales Growth. Cutting costs, selling side ventures, focusing on its primary home improvement business and growing same-store sales have made the company’s existing stores more productive.

• Reporting to Shareholders. Home Depot’s allegiance is divided because it has to focus both on improving as a retailer and on giving shareholders the return on investment they want. Shareholders expect growing dividends.

• Eco-Friendly Goals. Increasing energy efficiency and using alternative energy sources have grown Home Depot’s reputation as a socially responsible company.

• An Impersonal Reputation. Home Depot’s stores often have a reputation for being massive warehouses with unhelpful employees. The company has worked to change that impression for customers, but gets lumped with other large retailers in generalities about big-box stores.

• Price Image. Even when it doesn’t beat independent stores on price, the company has the big-box reputation of being less expensive than smaller operations.

• Extensive Assortment. Large warehouses that carry tens of thousands of products appeal to customers who prefer a one-stop shop.

• Internal Investment. A commitment to investing about $11 billion in internal improvements means the executive leadership team sees where the company can do better and can adapt accordingly.

• Solid Hold on Pros. Home Depot has had a strong professional customer base for years, but buying distributor Interline Brands in 2015 exemplified its commitment to serving pros.

112

HARDWARE RETAILING | May 2019

• Seasonality of Business. Like independent home improvement businesses, Home Depot’s operation is impacted by the weather. Snow storms and natural disasters help sales; warm winters and soggy summers do not.

• Reliance on Construction. Home Depot’s dependence on professional customers— many of whom work in home construction— was a weakness during the most recent economic downturn, when the housing market collapsed. During tough economic times, new home construction and house renovations are often postponed. This reliance on home construction and renovations could be a vulnerability if there’s another recession.

Opportunities

Threats

• Appliance Sales. Appliances are a top-selling category for Home Depot, but the marketplace has room for more growth. The decline of Sears and J.C. Penney’s recent move away from appliance sales reduce the number of competitors in a category Home Depot does well.

• Major Competitors. Lowe’s and Menards are Home Depot’s most direct competitors in big-box home improvement retailing, but Amazon has changed customers’ shopping and delivery expectations. Simultaneously, Lowe’s and Menards are working hard to meet changing consumer demands, adding new locations and working on improving the omnichannel shopping experiences they offer.

• Faster Delivery. Home Depot is working to catch up with Amazon’s popular same-day and two-day product deliveries. The company has committed to investing in supply chain efficiencies and constructing more warehouses to fulfill orders. It has also partnered with same-day and next-day delivery companies.

• Employees With Expertise. Since big-box retailers tend to have reputations for poor customer service, Home Depot has the opportunity to stand out by defying the norm. Careful hiring and being sure to staff departments such as paint, plumbing and electrical with employees who have experience in the categories could help the retailer’s customer service reputation.

• E-Commerce. Online sales grew 26.2 percent in 2018, increasing to 7.9 percent of overall sales.

The company has positioned itself for even greater online expansion by speeding up product delivery and offering in-store order pickup.

• Acquisitions. Buying companies has been a Home Depot growth strategy for years, but looking for more opportunities to cement itself in new markets or expand into new countries could help the company to continue growing.

• Cyber Risks. Future data breaches, like the one that exposed millions of shoppers’ payment card information in 2014, could be expensive and erode customers’ trust in Home Depot’s ability to guard their privacy.

• The Independent Sector. Independent home improvement retailers have the ability to offer many benefits Home Depot cannot, such as highly personalized customer service, unique niches and hyper-local product mixes. As smaller businesses, they can be more nimble and can adapt to customer demands quickly.

• Shop-Local Trends. Shop-local initiatives deter customers from spending at big boxes and draw them to the local competitors that are independently owned.

• Increasing Costs. When raw material and manufacturing costs go up, large corporations experience the price increases on a large scale.

For example, new and proposed tariffs on imported lumber, steel and aluminum could cut into Home Depot’s bottom line.

May 2019 | HARDWARE RETAILING

113

360

The Financials

Net Sales for Home Depot (dollars in millions) Home Depot didn’t separate its U.S. and international sales in 2014’s annual report.

2015

2016

Total Net Sales

$83,176

$88,519

$94,595

$100,904 $108,203

30.1%

U.S. Net Sales

—

$80,550

$86,615

$92,413

$99,386

23.4%

International Net Sales

—

$7,969

$7,980

$8,491

$8,817

10.6%

Home Depot Store Count

2017

2018

Percent Growth (2014/2015 - 2018)

2014

Percent Growth (2014 - 2018) 0.2%

U.S. Stores

4.8%

International Stores 1,977

1,977

2014

301

297

292

2015

1,981

1,980

1,977

2016

304 2017

306

2018

Home Depot Sales, by Category* Building Materials . . . . . . . . . . . . . . . . . . . .36 .9% Decor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 .5% Hardlines . . . . . . . . . . . . . . . . . . . . . . . . . . .29 .6%

*Home Depot breaks out sales by three broad categories: building materials, which include lighting and lumber; decor, which includes appliances and paint; and hardlines, which include hardware and garden.

Sources: Home Depot annual reports

114

HARDWARE RETAILING | May 2019

Visit us at booth #7212 National Hardware Show in Las Vegas

Multi-Material

Developed to outperform and replace standard wood, sheet metal, and masonry screws with a single, innovative, engineered fastener design.

Eliminate the confusion when trying to decide which screw to use.

Simplify your toolbox with ONE ® screw.

The THE

Screw You’ll Ever Need!

ADVANTAGE COUNTER SINK BLADES

PRO-STIK ™ STAR DRIVE

SPIRAL FLUTES

HI-LO SERRATED THREADS

PYRAMID POINT

Clean Finish!

No Stripping!

Increases Strength!

Fast Driving!

No Pre-Drilling!*

*In wood, drywall, plastic & metal up to 20 gauge.

Pre-drilling required for masonry projects.

Delivering Simple Solutions to a Complex World™ www.hillmangroup.com • 1-800-800-4900

360

In Home Depot’s Words

Understanding where Home Depot is headed in the years ahead may be best answered by reviewing its own podcast, “Give Me an H.” The podcast launched in December 2017, and since then, has included interviews with an array of Home Depot executives, shining light on the different initiatives the company values and the culture it cherishes. Each episode is hosted by Arlette Guthrie, vice president of human resources, and aims to “explore the culture of Home Depot through the eyes and experiences of our associates, who live it every day.”

Review some of the latest episodes here to discover insightful quotes from Home Depot executives and key takeaways you can apply to your own business immediately.

Hardware Retailing recently launched two podcasts to help retailers learn new ways to succeed and meet the people powering the independent channel.

Subscribe and download new episodes today by visiting TheRedT.com/pod.

The Evolution of Sustainability Guest: Ron Jarvis, vice president of environmental innovation and social environmental responsibility

In 2000, more than 600 environmental protests erupted around Home Depot locations. By 2017, Jarvis says the company had reduced its carbon emissions in the U.S. by 6 million metric tons.

“We approach sustainability like we approach customer service—with a passion,” Jarvis says.

How You Can Use It: Explore ways your store can reduce its energy consumption to become a credible eco-friendly ally for customers looking to embrace green living. For more information on the steps you can take to establish an in-store recycling program to help customers safely dispose of their used home improvement goods, visit TheRedT.com/start-recycling.

Supply Chain Speed Guest: Mark Hollifield, executive vice president of supply chain and product development

Home Depot’s supply chain workforce has grown from 2,000 associates to 15,000 associates in the last decade.

“In 2006, we were very focused just on how we can get product to the Home Depot store. Customers ... want products delivered, so we need to be able to deliver to customers when, how and where they want,” he says.

116

HARDWARE RETAILING | May 2019

How You Can Use It: Explore opportunities to deliver products to customers within your immediate service area. DIYers and pro customers alike are increasingly relying on delivery to save time on their projects. Discover how offering a delivery service can strengthen your relationships with local contractors by visiting TheRedT.com/delivery.

SEE THE LATEST LAWN, GARDEN AND STORAGE PRODUCT SOLUTIONS!

FIND US AT THE NEXT NATIONAL HARDWARE SHOW May 7th-9th, 2019 • Las Vegas, Nevada • Booth #10847 CONTACT US: Sales Rep. Brad Biddulph • bbiddulph@lifetime.com

360

In Home Depot’s Words

Technology and Retail Guest: Matt Carey, executive vice president and chief information officer

Carey oversaw the development of Home Depot’s app and is now overseeing its new tech initiative called The Orange Method, a 12-week program that takes people looking for a second career or recently out of the armed forces and teaches them the basics of coding.

He says the program will soon aim to recruit current store associates to combine their knowledge of the company with newfound tech skills.

“It doesn’t matter what path you take, once you get in, you have unlimited opportunity,” Carey says.

How You Can Use It: Consider offering a summer internship program at your store for local computer science college students. Collaborate with the interns to create an app for your company that gives information on your products and services. Through the program, interns will gain real-life skills, and your business can reach customers and boost sales all at once. Discover how Matt Woods, president and CEO of Woods Hardware in Cincinnati, is using technology to bring new e-commerce opportunities to his business by visiting TheRedT.com/woods-tech.

expert Weed control With the red dragon torch lineup

and mor e

• Most Complete

Torch Line Available

• Made Kansas • CSA Certified • Est. 1959 Visit us at Booth 10147 North Hall to learn more about our specials and new projects.

1.800.255.2469 www.RedDragonTorch.com 118

HARDWARE RETAILING | May 2019

Investing in Trades Training Guest: Stacey Tank, vice president of corporate communications and external affairs

Tank leads The Home Depot Foundation, which focuses on supporting veterans and helping fill the skilled labor shortage.

“There are a lot of folks who do not want to sit at a desk every day in front of a computer. They want to be out creating things, working with people, starting their own businesses and doing something with their hands. These are honorable professions. I hope over the next decade we will see a shift in how the trades are perceived in the U.S.,” Tank says.

How You Can Use It: Connect with local trade programs in your community to help support the home improvement industry’s future workers. Consider giving discounts to local companies that offer apprenticeships to tradespeople to encourage more companies to support students interested in filling the skilled labor gap.

By positioning your operation as a hub for skilled local tradespeople and interested students, you can strengthen not only your business, but also the community and the entire industry.

HOLDS

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

Holds more 700 loop pounds with a single loop of tape.

T-RexTape.com Extreme real-world test; tape not weight-rated for towing applications.

T-RexTape.com ©ShurTech Brands, LLC 2019/78677

All Rights Reserved.

Extreme real-world test; tape not weight-rated for towing applications. ©ShurTech Brands, LLC 2019/78477

All Rights Reserved.

CUSTOMER SUCCESS STORY

Zink Building Center Switch to RockSolid MAX Brings Big Time Savings and Productivity Gains When Zink Building Center switched to RockSolid MAX® from Epicor® to run the business, the benefits started showing up pretty much from day one. The monthly fee for RockSolid MAX POS software, reports manager Logan Zink, is $300 less than what they had been paying with Epicor which has freed up financial resources to boost the bottom line and grow the business.

Affordable POS software designed for hardware stores and building centers frees up capital Logan also avoided a hefty $10,000 bill he would have otherwise been facing to replace the company’s existing Epicor server. Instead, he was able to take that money and use it to purchase new computer hardware, cash registers, and scanners that helped stregthen Zink’s technology resources overall.

Even though the hard dollars and cents savings made a compelling case for switching from Epicor to RockSolid MAX just by themselves, Logan and his team soon discovered plenty of other good reasons for the move.

Windows-based RockSolid MAX proves an easy to learn and easy to use time-saving solution RockSolid MAX’s status as a Windows-based program meant that anyone with a basic knowledge of Microsoft Office® found it easy to use and navigate.

Further easing the transition, an extensive library of online training support provided the Zink team with everything they needed to work through the initial learning curve.

“Working with Epicor was never easy,” Logan recalls.

“The system itself was difficult to work with and basic routines like running statements and printing invoices were time consuming and a lot more complex than

they needed to be. With RockSolid MAX, I can literally do things like running invoices or placing orders in seconds that took me five minutes or more in Epicor.

While that doesn’t sound like much, eventually it all adds up to make a big difference.”

The changes are just as positive on the customer service and support front “With Epicor, any time you had any questions or issues with the program, it seemed like it would take you at least four people and 25 minutes on the phone before you got to somebody who knew enough to actually help you,” Logan says. “When we switched to RockSolid MAX, they assigned us two dedicated customer service people and any time we needed help—which wasn’t very often—they were always very accessible and able to come up with the answer.”

“Whenever you take on something new—particularly with technology—it’s going to be rocky in the beginning, but RockSolid MAX did a great job of getting us where we needed to be,” Logan says. “My co-workers and I felt we knew more about RockSolid after a month-and-a-half of their training than we learned about Epicor in more than ten years!”

In addition to the online videos that new users can watch on their own schedule, RockSolid MAX’s preconversion training for the Zink team also included live video sessions with program experts who were able to answer any questions not covered by the videos.

As Logan points out, once he switched to RockSolid MAX for hardware stores and building centers, he found an approach to customer support that was very different from what he had been used to with Epicor. “The service we get from RockSolid MAX is just as good as the service we aim to give our own customers,” he says.

This smart hardware and building center business software comes with smart people As an example, Logan tells the story of what happened one Saturday afternoon in the early days of the conversion: “We were in the start-up phase and had a question that needed answering in a hurry,” he recalls. “We called our tech support guy on his cell phone—he had given us his number and told him to call any time—and he sat in his car in a grocery parking lot for about 30 minutes and talked us through the system until we got our question answered. He knew the program like the back of his hand. But what was really impressive was how easy he was to get hold of and how willing he was to do whatever it took to help us out, no matter what the time or day.”

Logan also gives kudos to the team at RockSolid MAX for the efforts they make to reach out to their customers and get their feedback. “If there’s something you don’t like about the program, there’s an area on the website where you can submit ideas and requests and suggestions,” he says. “It’s very clear the folks at RockSolid MAX really want to make the program better for the people who use it every day and they want the customers to be the ones driving that process. We never had anything like that with Epicor.”

Like most LBMH owners and operators, Logan and his team have more than enough to keep busy without having to spend a lot of time on their technology. With RockSolid MAX, that just wasn’t an issue.

Time-consuming IT tasks are now taken care of by ECi through the cloud “I don’t have any computer background myself beyond a couple of standard college classes but once we were live, I felt comfortable with the program after the first week,” he reports. And as a cloud-based program, RockSolid MAX made it possible for time previously spent on backups, software upgrades, data security, and server maintenance to be focused on other, far more productive areas.

May 17–20, Stop by BOOTH F029 at the Do It Best Spring Market in Indianapolis and ENTER TO WIN a Google Home Hub! Learn more at www2.ecisolutions.com/rocksolidmax/DIB

GET ADVANCED TECHNOLOGY WITHOUT BREAKING THE BANK! RockSolid MAX® cloud-based software for hardware stores and home centers can transform your business without a huge upfront investment. Get cutting-edge technology at an affordable, fixed monthly price—no servers or special equipment needed.

UPGRADE YOUR BUSINESS. SIMPLIFY YOUR BILL. www.ecisolutions.com/rocksolidmax

rocksolidmaxinfo@ecisolutions.com

800.588.5128

© 2019 ECi, the ECi Red Box and ECi RockSolid MAX are trademarks or registered trademarks of ECi Software Solutions, Inc. All rights reserved.

By Chad Husted, chusted@nrha.org

The Depths of Plumbing Sink Into Inventory and Services to Attract Professional Plumbers

I

ndependent retailers put great emphasis on providing fantastic customer service. When done correctly, this focus on making every customer feel welcome can yield great dividends across the spectrum of DIYers and pro customers.

There’s a reason we all crave that special treatment.

The little extras might not even come at a high cost, but being placed among the most valued patrons of any business promotes a sense of loyalty that is tough to replicate.

For professional plumbers, this MVP treatment is often seen in the form of streamlined services, helpful merchandising and expert sales staff that can allow them to get what they need and get back on their rounds. Plumbers, like any professional tradesperson, are always on the clock. Given their busy schedules, earning their loyalty can be just as much a matter of being the convenient location as it is having the right prices.

Hardware Retailing spoke to two retailers who put an emphasis on their plumbing department with the focus on streamlining the purchasing process for busy professionals.

Retailers can learn how pricing strategies can position a store as the go-to location for plumbing supplies,

122

HARDWARE RETAILING | May 2019

how inventory management is factored into buying decisions and what merchandising tactics work best for pros.

In Greencastle, Indiana, Headley Hardware has built a reputation for having inventory numbers that rival area wholesalers and for pricing so competitive that plumbers from counties all across the western part of the state travel to access great deals. This combination allows the store to garner a following with contractors and plumbers.

Solenberger’s True Value Hardware in Winchester, Virginia, has staffed its plumbing department with a pro team of employees who can serve as an expert sounding board for plumbers on the move. On top of supplying everything a plumbing professional may need on the job site, the knowledge available during a visit to Solenberger’s adds value few big-box retailers can match.

What a Pro Wants Professional tradespeople have job requirements that set them apart from average customers. Most retailers who see a significant portion of their sales from pros know how to manage their accounts, keep their shelves supplied and merchandise their stores so busy contractors can get what they need and get back on the job site.

Randall Jones (right), owner of Headley Hardware, has made serving professional plumbers like Jeremy Hunsicker (left) a priority.

May 2019 | HARDWARE RETAILING

123

Headley Hardware owner Randall Jones (right) says his use of house accounts and pricing strategies allows his business to thrive with tradespeople. In plumbing, Jones strives to make the buying process as easy as possible for pros.

“We’re never going to lose out on a sale because we don’t have what they need or enough of it to get them back on the job.

”

—Randall Jones, Headley Hardware Professional plumbers can be a bit different than other tradespeople. Because they handle so many different products, from pipe fittings to electric water heaters, they require a diverse set of products, tools and supplies on a daily basis.

They also handle designer products like faucets and shower heads, which require the ability to be technical with their skills while also preserving the aesthetic quality their customers want in a finished product.

In order to best serve professional plumbers, Headley Hardware owner Randall Jones has focused his plumbing department on not only having almost every kind of plumbing supply his professionals might need, but having enough of it that a plumber will never be forced to walk out of his store without every tool, pipe and fitting they require.

124

HARDWARE RETAILING | May 2019

From having large quantities of inventory stocked within the plumbing department to extra pipe lengths stored out of sight to most customers, Headley Hardware has plumbing supplies that Jones says can rival most plumbing supply warehouses.

This focus on plumbing has made the department one of the most important for Headley Hardware, with the 15,000-square-foot store ringing in about $75,000 in sales each month in plumbing products and supplies.

“We’re never going to lose out on a sale because we don’t have what they need or enough of it to get them back on the job,” Jones says. “We had a fire in 2000 that led to us rely on our contractor customers and area businesses to reshape the business and restock items they needed. We still use their feedback as a guide for how we need to build inventory and bring in products.”

Depth of inventory is also crucial for Solenberger’s True Value Hardware, says owner Patti Solenberger. After the recession of 2008, much of the building market in western Virginia transitioned to national building chains as their source for building supplies.

To counter that trend, Solenberger’s Hardware treats its plumbing business like a wholesaler would and has enough supplies on hand to cater to any plumber or tradesperson needing plumbing supplies.

Solenberger’s True Value Hardware emphasizes the knowledge of its employees like Kenny Whitacre (left), Scott Glover (center) and Phil Dehaven.

“We have great plumbing professionals in our department who do our ordering and can talk even seasoned plumbers through different jobs and tasks,” Solenberger says. “Our challenge is to source products that can handle both large and small jobs. We look to have enough product selection and inventory so a contractor looking to buy mass inventory will look to us, but we also want the exact item a homeowner wants to fix their bathroom sink.”

Headley Hardware’s local building market doesn’t have enough building and plumbing professionals to support its inventory, but that’s why the business looks to attract professionals from well beyond the county line, Jones says.

Having been involved in the Greencastle community since 1954, the business has gained a healthy word-of-mouth reputation from customers.

Regarding Retail Looking to attract pro plumbers?

Busy tradespeople need supplies on hand when they’re at a job site, so running out of the critical plumbing products they need isn’t an option. This might require adding additional inventory in this category.

Our magnets attract customers and profits.

You can rely on over 40 years of experience and 250 products to support your continued success.

Let us show you how the retail power of magnetic attraction can work for you.

Call 888.293.9190 or visit magnetsource.com/retailsupport Booth #7219

magnetsource.com 126

HARDWARE RETAILING | May 2019

While stocking product boxes on top of gondolas isn’t a standard merchandising practice, Jones at Headley Hardware says his pro customers like the setup because it’s easy for them to grab a large quantity of the products they need.

The North American Retail Hardware Association (NRHA) has multiple training resources available that can assist with merchandising and product knowledge in the plumbing category. Visit nrha.org/trainers-toolbox to access these resources.

“We treat our

professionals like what they are: People who know what they’re doing and what they need.

” —Randall Jones,

Plumbers know that Headley Hardware in Greencastle, Indiana, will have not only the fittings and pipe lengths they need, but enough in stock to supply their latest job site.

Headley Hardware

Headley Hardware employees are trained to look at the relationship with professional tradespeople, like plumbers, as a symbiotic one. The pros are often familiar enough with the store and its offerings that they can track down products in the quantities they need even when sales associates are busy with other customers. Fostering this kind of in-it-together atmosphere is what earns repeat business, Jones says.

Jones says allowing plumbers full access to his store, from the salesfloor to receiving areas where overstock items can be found, helps foster a customer base that feels like Headley Hardware is home base. Since the pros have such open access and can take matters into their own hands— like collecting the pipes they need themselves instead of an employee being tasked to retrieve them from a storage area—they feel the store is actively helping them complete their jobs.

“We treat our professionals like what they are: People who know what they’re doing and what they need,” Jones says. “We’re great with DIYers who might have questions we can help them with, but most plumbers are coming into the store with a list and details already set. They know what they want, so we make it available and try to do our best to get them on their way.”

Visit us at the National Hardware Show Las Vegas - Booth #2624

May 2019 | HARDWARE RETAILING

127

“We consistently hear that

we are the reliable place for supplies and we know how to sell plumbing products.

—Randall Jones, Headley Hardware

”

Price It Right

Both width and depth of inventory is key. Headley Hardware (top) and Solenberger’s True Value Hardware (bottom) diversify their plumbing selections.

128

HARDWARE RETAILING | May 2019

Investing in plumbing inventory allows you to sell a diverse set of supplies, and luckily, professional customers are reliable buyers.

Headley Hardware keeps its prices low in categories favored by tradespeople and local businesses to encourage customer loyalty.

The business has access to this pricing strategy through its distributor. These prices have been proven to be most successful in the plumbing, electrical and paint departments and allow Headley Hardware to lower prices while increasing margins on products that can be bought in bulk.

“Our ‘cost-plus’ pricing on commercial and professional accounts lets us compete for plumbers’ business with wholesalers in larger communities in our immediate area,” Jones says. “We’re very aware of how we price these items and how we treat our professional customers. By pricing items this way, we take the word ‘discount’ off the salesfloor.

Pros know they’re getting the best price.”

Jones says over 65 percent of Headley Hardware’s total sales come from house accounts with area tradespeople. By supplying professionals with discounts and credit lines, Headley Hardware’s team can rely on these businesses continuing to choose their store for their plumbing purchases.

The pricing strategy used for pro-centric departments plays into an overall philosophy Jones uses for certain departments, including plumbing. As a result, Headley Hardware has seen leading sales across multiple departments in recent years, with plumbing and paint being two of the top departments.

Jones says his philosophy has made his business a go-to option across a wide range of products and services.

“Any products that contractors and our local factories have a need for, we treat like a commodity,” Jones says. “By that, I mean we price those products at a point that sells itself to the customer while also allowing us to make a necessary margin. When you combine that with the depth of our inventory, it makes for an attractive package.”

A strategy Solenberger’s Hardware has used to retain plumbing professionals is its plumbing

Service, knowledge and a staff willing to work with busy tradespeople like plumbers is important for any retailer hoping to earn consistent business from professionals. Pricing strategies available from distributors can also help.

sourcing strategy. In addition to its regular orders, Solenberger’s Hardware sources about 10 percent of its plumbing inventory from another independent distributor and uses drop-shipping extensively.

As a result, the business continues to diversify its product selection and has products on hand that other retailers and wholesalers might have to special order.

“We keep a very tight rein on our inventory numbers, particularly in plumbing. It’s such a key part of our business that we want to know exactly what we have and how we can get it to a customer,” says Phil Dehaven, plumbing sales associate and buyer for Solenberger’s. “Having multiple sources for these products, and working closely with vendors through drop-ships, means it’s not an issue to reorder a rare piece of equipment or get a requested item.”

Making the effort to enhance your inventory beyond the expected product mix can have long-lasting benefits for your reputation and future sales. For Solenberger’s, their extensive plumbing selection and history of stocking hard-to-find items mean many of their sales come from customers who have already visited a big box.

“Some of our best referrals come from chain big-box stores,” says Scott Glover, a plumbing sales associate for Solenberger’s. “Our assortment of products goes well beyond theirs.”

Having a well-stocked and deliberately merchandised store can be a boost for customers’

productivity. Given how often plumbers are looking to get what they need and get back on the job, catering to their needs is often about treating them like the busy tradespeople they are.

“We consistently hear that we are the reliable place for supplies and we know how to sell plumbing products,” Jones says. “You need a box or several of a product? We know how many come in each box and we have them on the shelf or in the back ready to go in your truck. And you’re going to look at the price and see we’re not trying to con you. We want you to come back next time you have an emergency, and we’re going to be just as helpful.”

Regarding Retail Talk to your distributor’s sales representative to develop your pricing strategy and take advantage of bulk pricing opportunities to pass on to your professional customers.

Want some more info that can help your customers conquer their plumbing problems?

We asked a plumbing pro to share his tips on diagnosing common issues with a water heater. Visit TheRedT.com/plumbing-video for more on the category.

May 2019 | HARDWARE RETAILING

129

By Chad Husted, chusted@nrha.org

Outside Perspective What Do a Therapist and a Mortgage Banker Have in Common? A Love for Retail

A

s an entrepreneur, how many hats can you wear?

You may only have so much real estate up top, but it can seem like it takes a whole collection of headwear just to get through the day.

Accountant, human resources professional, psychologist, security guard; those are just a few of the many roles a retailer has to be familiar with to make a business successful.

Many retailers grow up working in hardware stores and lumberyards, learning on the job from an early age and eventually taking on more tasks as they progress.

However, some retailers come from entirely different backgrounds and have unique perspectives that drive their business sense. Coming from a nonhardware career path might not automatically set a retailer up for success, but it does let these career-switchers see their businesses through a different lens that could be an asset for any business owner or manager.

For Malinda Milam of M Kay Supply in Benton, Missouri, hardware and farm supply was a calling she enjoyed after first serving her community as an occupational therapist.

130

HARDWARE RETAILING | May 2019

Helping people recover from injuries or learn to adjust their lives to fit their abilities had instilled a sense that her skills could strengthen the people around her, something she took with her into retail hardware when she and her husband opened their business.

Larry Myers took over River Ridge Hardware in Spokane, Washington, after a long career as a mortgage banker and loan officer. That career path meant Myers was already able to handle multiple roles in underwriting mortgages, handling financial document filing and even marketing his business. Already an avid DIYer and part-time home renovator, Myers knew his way around his community and its local hardware store. When the previous owner decided to retire, Myers was quick to switch into his new career as a retailer.

Take a look at these stories of retailers who built careers in other fields and then transitioned their lives into business ownership and retail home improvement stores.

What pieces of their stories can help your business take the next step?

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

June 13-15, 2019 Sevierville Events Center Sevierville, TN Here’s Why Our Customers Love Attending the Markets Discover New Items “We attend at least two shows a year and do a lot of buying.

It’s a nice time to get away from the business and discover new items to carry.”

-Kelly and Rodney Wells, Village Hardware & Rental, Barnesville, OH

First Class Job “House-Hasson always does a first-class job with their buying shows, and we look forward to coming every time.

Talking to vendors and other dealers gives us insights that we can put to use in our business” -Brian Williams, Leeper Hardware, Jefferson City, TN

Kelly and Rodney Wells

Brian Williams

We Can Take Advantage of Market Buys “I love the fact that I can go to a House-Hasson market and talk to the people from the office. We can take advantage of market buys to add specialty items.”

-Nicole Park, Kefauver Lumber & Hardware, Forest Hill, MD

Nicole Park

Scan the QR code to register today!

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

Hot deals at Bonus Buy Breakfasts Unbeatable Prices Great Payment Terms Electronic Ordering Educational Seminars

• • • • •

Marketing & Store Service Solutions Travel Rewards Program Great Food and Entertainment Family Friendly Attractions Enjoy Pigeon Forge & Gatlinburg

For more information about our Market, contact us today!

1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., 3125 Water Plant Road, Knoxville, TN 37914

A History of Caring

Malinda Milam (right) owns M Kay Supply in Benton, Missouri, with her husband Jarrett. The business was a longtime goal for the couple, with Milam leaving a career in occupational therapy to open the store.

W

hether it was helping stroke victims return to their normal lives or assisting someone injured in a car accident get back to the job they love, Milam was focused on the recovery of her patients. As an occupational therapist with a bachelor’s of science degree in occupational therapy and a master’s degree in business, she oversaw the rehabilitation of a wide variety of patients coming into the hospital.

“We would see patients for any number of reasons.

We worked with older patients who had a stroke and needed to relearn how to perform daily tasks and trauma patients who had a workplace accident that required them to readjust to their injuries,” Milam says. “No matter what the cause was, our focus was always on returning that patient to the life they lived before whatever brought them to the hospital.

What are their drives, their passions? How can we make sure the parts of their lives they enjoy the most are still available to them?”

Her path to a career as a therapist wasn’t always clear. Milam’s parents were business owners, and that upbringing, coupled with frequent trips to camps affiliated with Future Business Leaders of America led Milam to the desire to own a business.

132

HARDWARE RETAILING | May 2019

It was at a business camp that Milam first learned of occupational therapy. Milam researched the role and saw a connection with another one of her favorite activities.

“I was a candy striper all the way through my childhood, so I was already in the hospital environment taking care of patients, making them and their families comfortable and generally trying to take the anxiety away for someone during a stressful time,” Milam says. “It made so much sense. I wondered why I hadn’t thought of it before someone gave me that nudge.”

Milam’s dedication to her patients didn’t keep her from furthering her business skills.

She was often in charge of more than just her patients’ care as the manager of her therapy staff, including managing schedules for the whole staff and designing education programs for students.

These roles would become crucial when Milam and her husband Jarrett Milam began to focus on a longtime dream for the couple: opening their own hardware store. Benton, Missouri, is primarily a rural community, so locals often had to make long trips to find supplies they needed for home repairs, professional contractor work or farm supplies. Even more than just a business to

sell supplies, the couple’s dream was to have a center for the community that could bring more enjoyment for their neighbors.

“It wasn’t an overnight decision; we had wanted M Kay Supply in our lives and in our community for years. It was a focus for us even through our earlier careers,” Milam says.

What the Milams ended up bringing to Benton was a retail location doing far more than housing hardware and farm equipment. M Kay Supply has a full deli that also sells prepared food and caters events, a full outdoor and power equipment service shop, a grocery store and a sporting goods store that even sells kayaks.

The store draws in customers from up to a three-hour drive away, Milam says, because it operates as a one-stop-shop. While the customer base at the 14,000-square-foot location skews slightly more toward DIYers, the business also does a healthy amount of business with contractors working with the local government.

‘Devotion and Dedication’ With a background centered on providing support for people working on themselves, Milam sees clear connections between her previous work in occupational therapy and her current work at M Kay Supply. While she worked to rehab body and mind as a trained therapist, she now works to build a customer’s skills and knowledge to accomplish a goal.

“The entire idea of rehabilitation is that there is a goal you haven’t yet achieved. I fell in love with providing a service, to having devotion and dedication for patients,” Milam says. “That goal is now to renovate a house, repair a leak or even feed a family. We’re all about filling the needs of the community, and that doesn’t change just because you’re helping in different ways.”

Given her choice to start her career in health care, Milam sees her ability to create a family environment in a workplace scenario as a benefit for M Kay Supply. She fostered a close-knit team in the therapy division, which translates well to her current employees, she says. Team members assist customers and help them work toward a common goal.

Learning how to handle setbacks in a patient’s treatment also helped Milam manage challenging situations with customers. Problems with patients or their families can crop up, but approaching these issues with a team mentality, where the therapist and the patient are working toward a goal together in good faith, can be key.

A customer who knows an M Kay Supply employee is on their side and interested in making a project achievable can defuse tense situations.

“It’s all about adapting. You might lose an arm and have to relearn how to live without that limb,” Milam says. “We might not be dealing with such catastrophic alterations anymore, but working to help a customer adapt is a really great skill to have.”

M Kay Supply offers a diverse range of products and services, from groceries and prepared foods to core hardware categories and sporting goods. The business was designed to be a hub for the community.

May 2019 | HARDWARE RETAILING

133

Hometown Boy

R

iver Ridge Hardware was never far from Larry Myers’ mind growing up in Spokane.

Having graduated from the high school that sits 1½ miles from the store’s current location, Myers had frequented the business for his own home projects during a decades-long career in finance.

Prior to purchasing River Ridge Hardware in 2017, Myers was a mortgage banker. Myers spent his time reviewing a homebuyer’s financial situation and history, connecting them with accountants and attorneys who could assist them in finalizing a deal, and then selling the buyer as a qualified investment to a bank official who eventually signed off on the loan.

“I was already handling a lot of different areas of the mortgage industry, which is what I really liked about my time in those years,” Myers says.

“There were a lot of tasks I was shepherding customers through, and that translates well to how I approach River Ridge Hardware today.”

While mortgages were his primary business for the first few decades of his career, Myers also spent time flipping houses and maintaining rental properties he owned. These side projects made him very familiar with what River Ridge Hardware meant to the community.

“I was very close with the previous owner, and I was always in his store for items,” Myers says.

“I approached him about the store four years before he finally sold it to me, but I always knew this could be a new career I would want to try.”

Changes in the mortgage lending industry after the 2008 collapse of the housing market made the connections between Myers and his customers harder to maintain, which is what drove him forward in the business originally.

That change required devoting more time to the requirements of bureaucratic organizations and less time for Myers to form meaningful relationships with homebuyers and other financial professionals.

In a bid to make those personal connections a part of his work life again, Myers looked into River Ridge Hardware. He told the owner he was interested in purchasing the business should the owner ever be interested in getting out of the industry. After the sale was finalized, he quickly went about learning the business as he maintained momentum from the knowledgeable staff.

“One thing that caught me off guard was just how seasonal the hardware industry can be when it comes to sales,” Myers says. “Other retailers I spoke to would take it as a matter of course, but you have to be so on top of your seasonal offerings to drive growth.”

Larry Myers took over River Ridge Hardware in Spokane, Washington, after a long career as a mortgage loan officer and banker. He was a frequent customer at the store and saw potential in the business.

134

HARDWARE RETAILING | May 2019

“I wanted to learn as much as I could from other hardware stores and retailers. I started visiting every business I could, even some in Ireland when we visited there.

”

—Larry Myers, River Ridge Hardware In addition to serving hardware essentials out of a 10,000-square-foot salesfloor, River Ridge Hardware also has a strong rental business serving the operation’s mostly DIY customers. One unique feature of the business, which Myers believes might place it among just a handful of retailers in the U.S., is the company’s custom picture-framing business.

“I wanted to see a lot of growth out of the picture-framing business, and it has turned out well for us. We went to all of the area decorators and builders to let them know we can frame mirrors, pictures and even window screens,” Myers says. “It’s a niche service that you don’t expect to find in a hardware store like this, but once you see it, having access to quality framing fits right in with our other products.”

Always Something New Given his long history as a customer working on his own projects, Myers came into his retail career with a consumer mindset. That attitude first showed itself at River Ridge Hardware when Myers looked over the inventory with longtime employees at the store.

“I wanted to learn as much as I could from other hardware stores and retailers. I started visiting every business I could, even some in Ireland when we went there on vacation,” Myers says. “Some things I would see, especially in some businesses that had been around for decades, was that some of the products on the shelf had been there for all that time as well.

I wanted to completely end that, so we really dove into what we were doing with our inventory.”

Myers implemented a purposeful buying strategy with his managers and employees: Any new product brought into the store requires a reason, whether it’s fulfilling a customer’s request or filling a niche that isn’t yet handled in the product selection. It can also lead to a different marketing strategy for a product if Myers feels it should be moving at a faster clip.

River Ridge Hardware owner Larry Myers (right) took over the business from former CEO Brian Poirier (left) in 2017.

Another pleasant revelation for Myers as he grew more familiar with life as a retailer was his ability to manage employees. As a new owner, he relied heavily on his inherited team, and developing a positive atmosphere was a priority given that his previous work in finance had meant he was largely taking care of customers on his own.

Having a team of individuals all working together was a new experience, he says, and something he didn’t know he’d enjoy as much as he does.

“Having the kind of quality employees we do obviously makes it even more special,” Myers says.

Having accomplished so many tasks in his previous career also set up Myers well for certain aspects of being a retailer. He had already conducted most of his marketing as a mortgage banker on his own, developing leads and business referrals. He devoted himself to doing similar work for River Ridge Hardware.

“I’m part of a referral group of several businesses in Spokane that all work together to promote each other. I took over the hardware store in our group, and I made sure the person who replaced me working in finance was included in our group,” Myers says. “It’s a great platform of businesses working to make each other successful. Whether it’s this kind of referral group or a community organization like Rotary International, it’s a vital part of our business.”

May 2019 | HARDWARE RETAILING

135

By Todd Taber, ttaber@nrha.org

Be Focused Bring Visibility to Your Website With SEO

I

f you have a website, but no one can find it, do you even have a website?

Many business owners today know that having a web presence is a necessity. Studies show even simple websites that give customers a broad look at your products, an overview of your services and a bit of history about your operation can engage shoppers and make them more likely to visit in person.

But these days, it’s not enough to simply have a website.

Operators are using search engine optimization (SEO) to ensure their websites are found among the top results on popular search engines. Whether a homeowner is looking for online inspiration for their kitchen renovation or a contractor is quickly searching for a hardware store with stainless steel rebar, even a simple SEO strategy can put your business right at their fingertips.

SEARCH Your Business Here your.website.link Enable your website to be discovered on popular search engines by following SEO best practices.

138

HARDWARE RETAILING | May 2019

SEO refers to the steps you can take to ensure many key elements of your website are working in harmony to be recognized by search engines as content-rich and relevant to searches. By using these elements to implement a keyword strategy on your website, you can aim to appear as a top search result when customers are looking for your products and services in your town.

On the following pages, broaden your SEO knowledge by learning more about how it’s evaluated by major search engines. Take a dive into the anatomy of a website to identify the elements you can use to position your business for new success through online searches.

Showcasing your web presence is becoming an increasingly important component to retail success.

Learn how you can use SEO to help customers discover your business in perfect clarity.

How Does SEO Work?

When you do an online search, how exactly are the results compiled? Answering that question can help you understand basic SEO principles and recognize how you can set up your website for powerful SEO visibility.

According to Google analysts, there are three main methods to rank websites. The first is called crawling, in which search engines scour the internet using “spiders” to look for new content to analyze and use within search results.

The second process, called indexing, aims to help search engines understand what a website is about. By analyzing the content of a website (the text, photos, videos and code), search engines can categorize a website within an index of similar sites.

The third part, according to Google, is serving websites in searches. All search engines will use their indexes to display results that match a searcher’s query. Search engines personalize the results based on a user’s previous browsing history, their location and what kind of device they’re using, Google reports.

“If you don’t have a website that shows up on the first page of a search, there’s a good chance you’ll be losing out on a lot of business.

”

—Michael Bellush, HighMark SEO Digital

In short, ensuring your website clearly identifies your industry, main products and services and location can be a powerful—and free—way to rank higher in online searches and introduce your business to new customers as they search for reliable home improvement retailers near them.

Making an SEO Splash Michael Bellush, founder of Indianapolis marketing firm HighMark SEO Digital, says it’s important to regularly update your website to ensure it is using current best practices to appear as high as possible on search engine results pages.

“The real value of SEO is that in today’s world, roughly 90 percent of people start their buying process by doing an online search,” Bellush says.

“It’s not just to do product research; it might be to get information about a specific business. If you don’t have a website that shows up on the first page of a search, there’s a good chance you’ll be losing out on a lot of business.”

For many retailers, a robust, SEO-friendly website is a vital component for any operator’s marketing efforts. Writing for Forbes, founder of content marketing firm AudienceBloom Jayson DeMers says nearly two-thirds of website visits originate from searches on well-known platforms like Google and Bing. Only 6 percent occur from paid advertising, like Google Ads. What’s more, Google estimates that half of all customers who search for local business information on a mobile device visit a store on the same day. The good news doesn’t end there; 18 percent of local mobile searches lead to a sale within one day, showing how critical SEO is for your operation’s success both online and in-store.

Web Words Glossary Don’t be stumped by common SEO terms.

Get a quick definition of helpful online search components now.

H1s, H2s This refers to an HTML tag that indicates a heading on a website. H1s are usually the first header on a page, and H2s refer to subsequent headers.

Meta Description This term refers to the short summary that appears below your page title in search engine results. Be sure it includes original content.

Title Tags Your website’s actual title—what appears in the window of your browser—is your title tag.

URL This term refers to your actual web address.

May 2019 | HARDWARE RETAILING

139

SEO in Sight You don’t have to be an expert programmer to implement a strong SEO strategy on your website. Take a tour of some of the most critical SEO components so you can identify where and how to boost your website’s SEO power.

Title Tags | Meta Description

www.yourwebsiteurl.here

Title Tags and Meta Description Bellush says title tags and meta descriptions are both prime opportunities to implement your keyword and boost your ranking.

Write your keyword close to your location to help customers find your products in your town, which will enable search engines to serve geo-specific search results.

Be sure each page of your website has a unique title tag and meta description.

Consider using the formula: Keyword Location | Your Business Name | Page Title for your page title.

About Us

Products

Heading 1

H1s and H2s What’s written on your website can be a powerful force in shaping your overall SEO impact, Bellush says.

By sprinkling your keyword in your page title, meta description, the first paragraph of text and within a header on your website, you can ensure your keyword appears in prime locations that can signal to the SEO crawlers that your website has relevant content for searchers.

Ensure each page of your website has more than 100 words of content. Using headers, which are essentially titles for paragraphs, can help you reach that word count and break down your content for visitors.

Heading 2 Your keyword

First Paragraph Bellush says the first paragraph of text is a prime location to drop your keyword and a location reference. Search engines prioritize websites with unique, specific content, so have someone on your team write a few paragraphs that include your full business name, your location and the keyword you’re hoping customers use to find your business.

“I’ve tried various ways, but I’ve found that the sooner you work the keyword in, the more successful your SEO becomes,” Bellush says. “The sooner a search engine can start to recognize what a page is about, the easier it is for it to rank that page.”

Finish this sentence to use within the first paragraph of your website’s home page: “Welcome to (business name), your top choice for (product or service) in (location).”

140

HARDWARE RETAILING | May 2019

Read our business profile online at Hardware Retailing.

Read It

View our team’s expert garden tips on WTVX.

Watch Now

Page URL Bellush says clear URLs are “the single most important ranking factor” for websites.

Bellush advises giving your top-selling product or category its own webpage and naming it with a clear keyword, not random characters. If you sell paint, create a page and name its URL www.myhardwarestore.com/paint-supplies so Google can tie that keyword into what the page is about, which will boost your overall SEO ranking.

e

Services

Contact

Review your website to ensure each page has a clear, logical URL. Update webpages that have random letters and numbers in their URL to include clear keywords for easy navigation and greater SEO reach.

Images and Site Speed

Image

One other aspect of SEO Bellush says to consider is your website’s overall loading speed.

Search engines penalize websites that are slow to load. Retailers can use several online resources to test their website’s overall site speed. If your website loads like molasses, there are a few steps you can take to speed it up. Ensure all your internal links are active and be sure to reduce image file sizes before placing them online.

No matter which web platform you use, be sure it incorporates responsive design, which will ensure it loads quickly and displays properly on mobile devices and tablets.

Links

Check out our Chamber of Commerce listing.

Get Info

Watch our latest how-to video on our Youtube page.

Stream It

Bellush says one of the most important aspects of boosting your website’s SEO power is working to establish links from other websites that point to your own. These are called backlinks and they have a powerful effect on your SEO. When websites that already have a well-established SEO pull link to your own website, spiders see those connections as votes of confidence in your content, which can signal to them that your website is full of valuable information for readers.

Links on your website can help readers discover new resources, but they do not impact your overall SEO, according to Bellush.

Do what you can to ensure your website has links coming to it. If you’re profiled by a local newspaper, ask the editor to link to your website in the publication’s online edition.

May 2019 | HARDWARE RETAILING

141

By Melanie Moul, mmoul@nrha.org

Blooming Opportunities The Value of Public Gardens and How Your Business Can Give Back

I

n many communities throughout the U.S., there are bastions of preservation, from community parks to certified historical sites. No matter their form, these places require care from experts and support from their local communities to continue operating. Sometimes, caretakers are volunteers who rely on donated tools, while other facilities are maintained by trained professionals who purchase supplies from approved sources.

To learn more about the needs of these spaces, Hardware Retailing spoke to the directors of two public gardens: Becca Turner Ohman, garden director at Garvan Woodland Gardens in Hot Springs, Arkansas; and J. Dean Norton, director of agriculture at Mount Vernon in Mt. Vernon, Virginia. Both institutions represent historical significance in the U.S. and in their local communities, and both employ dozens of caretakers to tend to many acres of gardens, structures and spaces that accommodate hundreds of thousands of tourists each year.

This article explores the needs of these gardens and discusses ways independent home improvement retailers may be able to support public gardens in their own communities and help elevate the value of these spaces.

Horticultural History As the former home of George Washington, Mount Vernon holds historical significance for Americans. Washington was very involved in the development of the property, taking inspiration from a book called “The New Principles of Gardening,” which started the naturalistic design movement in the late 18th century.

142

HARDWARE RETAILING | May 2019

Photo courtesy of Garvan Woodland Gardens

May 2019 | HARDWARE RETAILING

143

“I have so many primary source documents on the property to refer to,” Norton says. “We have nearly 40 years of Washington’s diaries, and from 1785 to 1786, a day doesn’t pass where he writes about some other trees he’s found or landscape he’s creating. The lawn that people see today is based on the design changes he made during those years.”

Norton says the team at Mount Vernon understands how important it is to maintain the integrity of the property, and having Washington’s notes helps in their decision-making.

“I didn’t study history, but it quickly became a part of my job. Our role is to preserve and protect this place,” he says.

“We’re not here to change things. This isn’t my garden, it’s not anybody’s site. It’s George Washington’s.”

In central Arkansas, Garvan Woodland Gardens was donated to the University of Arkansas Fay Jones School of Architecture and Design. The land was previously owned by local businesswoman and philanthropist Verna C. Garvan, who owned a lumber company and a masonry operation. Because of her connection to those industries, and the garden’s affiliation with the architecture school, the site features many structures built out of those materials.

“Architecture is a major component of our mission and what we provide our guests. Interacting with historical and landmark structures inspires and challenges our visitors,” Ohman says.

In 2008, Garvan Woodland Gardens developed a master plan for the entire property, which covers more than 200 acres and includes 4 ½ miles of lakefront. Many structures are laid out in that master plan, including a 650-square-foot, four-level treehouse, a chapel and a pavilion that Verna C. Garvan commissioned from Fay Jones.

“The Garvan Pavilion set the precedent for the materials we use throughout the gardens, including stone, metal and wood elements,” Ohman says.

Up Before the Sun Because Mount Vernon and Garvan Woodland Gardens function around tourism, most of the work needs to happen before the spaces open, which means early call times for garden staff. The properties open at 9 a.m., so most of the maintenance work happens between 6 a.m. and 9 a.m.

While staying cool on hot summer days is a consideration, one of the primary reasons the staff starts early is to reduce noise pollution for visitors.

“There’s nothing that’s going to ruin the historic setting more than motors,” Norton says.

At Garvan Woodland Gardens, limiting noise is part of the organization’s commitment to preservation.

“Part of our mission is to maintain, preserve and enhance the forest,” Ohman says. “As a component of that, we also try to preserve the guest experience as best we can so they can experience the quiet the gardens provide.”

Preservation and appreciation is part of the daily process at Mount Vernon, too. Each morning starts with the staff of about 15 gardeners and landscapers checking the property for damage or debris and getting it ready for maintenance.

“I try to make sure folks admire their space,” Norton says.

“Gardening is the same practices and principles that have been around for centuries. We’re keeping the ongoing routine that Washington’s gardeners would have been doing, too, and there’s something really special about that.”

Tips From the Garden You can take some cues from the gardeners at Mount Vernon and Garvan Woodland Gardens when it comes to maintaining your operation. Do you have a regular checklist of cleaning and maintenance tasks for your team? When do you complete those tasks?

Consider scheduling time for loud or invasive updates during low-traffic times in the store. If you’re constructing a new area or resetting a category, be sure you put up signage explaining any disarray.

Photo courtesy of Mount Vernon

144

HARDWARE RETAILING | May 2019

Visit TheRedT.com/maintenance for a PDF download outlining cleaning and maintenance tasks for each shift.

HOT! HOT! HOT!

®

HO

A T ME TS

HM05

3

7

1014 51478

Don’t skimp on the HEAT by going cheap!

THE ORIGINAL AND STILL THE HOTTEST... COLE’S! P R O V E N R E S U LT S

®

THE BETTER W

ILD BIRD F EED

BLAZING HO T BLE

ND

™ of highly desired seeds made even by adding hot habaner more appealing o chilies. Beautifu l songbirds will go crazy for this super spicy taste.

A traditional blend

Uniquely Seaso ned

INGREDIENTS: Black Oil Sunflower , Sunflower Meats, White Proso Millet, Cracked Corn, Liquid Habanero Chili Peppers, Safflower Oil

P.O. Box 2227,

Kennesaw, GA

Just for Birds!

GUARANTEED ANALYSIS: Crude Protein Min. 11% Crude Fat Min. 30% Crude Fiber Max. 13% Moisture Max. 12%

30156 • www.co

leswildbird.co

Please remember chili peppers Wash thoroughly are a strong irritant with soap and water after handling. to eyes, nose and skin.

Keep out of reach of children.

m

1-877-426-8882 • ColesWildBird.com

Photo courtesy of Garvan Woodland Gardens

Seasonally Relevant Each garden maintains permanent, perennial flora, such as azaleas throughout Garvan Woodland Gardens, and flower gardens featuring peonies, irises and roses at Mount Vernon. But both spaces take the opportunity to introduce new sections according to the seasons.

At Garvan Woodland Gardens, there are several seasonal highlights throughout the year, including a tulip festival, which features 150,000 tulips and 50,000 other spring bulbs, including hyacinths and daffodils.

During the summer, the core gardens feature a variety of blooms, tropicals and foliage to create a colorful display.

In the fall, the garden features mums, pumpkins, gourds and hay bales. While wintertime doesn’t lend itself to new blossoms, the garden does draw visitors with its 18-acre holiday light display.

At Mount Vernon, the kitchen garden was the first George Washington created in 1760. The garden includes fruit trees, berry bushes and leafy greens, which are essentially the same plants that grew during Washington’s time on the property. The Mount Vernon kitchen staff still maintains and harvests the garden throughout the seasons.

The Right Kind of Tool Maintaining more than 700 acres of gardens and land takes a variety of tools, and the staff at Mount Vernon and at Garvan Woodland Gardens has specific preferences and needs.

146

HARDWARE RETAILING | May 2019

Tips From the Garden Aside from bringing customers into your store to buy seasonal merchandise, how can you attract customers to come see the sights? Make your seasonal displays an experience instead of just another aisle in the store.

Not only will these setups increase impulse buys of seasonal merchandise, but they will also likely inspire word-of-mouth recommendations and create nostalgic memories of your operation for younger shoppers.

Go to TheRedT.com/seasonal-displays to see a photo gallery of different displays in independent home improvement stores.

“We use a wide range of tools, from screwdrivers to heavy equipment, like a mini excavator,” says Ohman. “We have some tulip planters, but we also make them in-house because of the volume of tulips we plant every year.”

A unique aspect of Garvan Woodland Gardens is the rock formations featured on the property. Ohman says the staff uses heavy equipment to position the formations, but they also require rock straps and bars to help maneuver rocks into the right spot.

While the historical value of Mount Vernon isn’t lost on its caretakers, there are some advantages to maintaining an old property with today’s tools.

“We are applying 21st-century technology and tools to an 18th-century setting,” Norton says. “We use whatever tools we need to be efficient at our jobs.”

The staff at Mount Vernon uses all types of power equipment on the property, and quality is a priority. However, some tasks require smaller tools, and that’s OK, Norton says.

“A good hand tool is just as good as a piece of machinery.

People have personal preferences on what type of tool they want, so I’m not going to mandate a certain type of pruner.” he says. “As long as it’s done right, that’s what I care about.”

Both Mount Vernon and Garvan Woodland Gardens employ team members with unique, specialized skills.

Mount Vernon employs a full-time mechanic, while welders, craftsmen, bricklayers and masons help create and maintain the architectural components at Garvan Woodland Gardens.

“They are a special part of our garden staff. In most cases, gardens aren’t afforded that type of in-house experience,” Ohman says.

Another key way to show support is to encourage attendance and volunteerism, Norton says.

“Some of these sites live and die by volunteer gardeners,” he says. “You would be surprised at the impact of volunteers.

If someone reaches out, other people want to get involved and do the same.”

Positioning the value of public gardens is also important.

“When someone sees Mount Vernon, they come away energized,” Norton says. “They want to plant a garden.”

Gardens are also an educational space in addition to being a place of inspiration and respite, Ohman says.

“Beyond the beauty, we are called to provide a learning laboratory for our community and region,” she says. “As we care for and protect our woodland areas, we think that’s a vital opportunity to share.”

Tips From the Garden

Supporting Public Gardens Because publicly funded spaces are often required to work with government-approved contractors, there may not be many supplier relationship opportunities. But there are other ways independent home improvement retailers can support public gardens in their communities.

Garvan Woodland Gardens operates a corporate sponsorship program that allows local businesses to become members of the garden through in-kind services and donations.

“Through these partnerships, the business owners and their employees can visit and become part of the community and the culture we offer here,” Ohman says.

If you want your associates to be able to serve anyone who comes into the store, the key is training.

A more knowledgeable staff leads to happier customers and stronger employee retention. Make sure everyone on your team can answer questions from novice gardeners taking on a backyard project as well as from experts who take care of historical green spaces like Mount Vernon.

Have your team brush up on their category knowledge with resources on lawn care, pruning tools and more in the Trainer’s Toolbox at nrha.org/product-knowledge.

Photo courtesy of Mount Vernon

May 2019 | HARDWARE RETAILING

147

By Bill Brunelle, Independent We Stand

Helping Your Hometown Why You Need to Buy Into Buying Local

A

s the buy-local movement sweeps the country, communities across the U.S. have seen a resurgence in record stores, independent bookstores and unique coffee shops. In the home improvement industry, this resurgence affects communities on an even more intimate level. Retailers in this channel shape the way people build their homes, maintain their personal sanctuaries and live their lives. In other words, the buy-local movement helps hardware feel like home.

Small businesses across a variety of sectors profoundly impact local economies. As the building blocks of the U.S. economy, small businesses reinvest locally, create jobs and give back to communities in ways national chains and online competitors simply can’t match. For home improvement retailers, this impact presents a significant incentive to embrace the buy-local movement.

Connecting Your Community When you embrace the buy-local movement, you join a well-established network of small businesses and community organizations dedicated to furthering a common cause.

Independent We Stand works with industry organizations like the North American Retail Hardware Association and national Main Street organizations, such as the American Independent Business Alliance, to support independent retailers with promotional materials, messaging and inspiration. Through buy-local groups, your business can access exclusive resources—such as social media graphics, webinars and advertising discounts— and build a network of allies willing to cross-promote your business and collaborate on communitywide campaigns.

148

HARDWARE RETAILING | May 2019

You may also find ways to engage local officials and policymakers to advocate on behalf of the small business community.

Retailers who identify with the buy-local movement have seen sales increase as a result of more exposure and new promotional strategies. In fact, the Institute for Local Self-Reliance has previously found that independent retailers experience higher annual sales growth when a robust buy-local organization serves their community.

According to the National Main Street Center, Main Street organizations have driven a net gain of 138,000 businesses and 614,000 jobs since 1980.

Your business already significantly impacts your local economy. When you take the next step by working with a buy-local organization, you can learn new strategies for promoting those impacts to your customers and you can access additional resources for growing your business.

You’ll also set the stage for new businesses to open by fostering an appreciation for independent retailers in your community. As a result, your operation can better transform your town into a home sweet home for residents.

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

The Buy-Local Movement by the Numbers The results of the buy-local movement are undeniable: Independent home improvement stores return twice as much money to local economies per dollar of sales compared to national chains. Independent We Stand and the North American Retail Hardware Association (NRHA) have studied this impact for years. The Home Sweet Home Study series revealed how important the decision to support local hardware businesses is to local economies.

Here are some results from the study series. To see the complete results and to access shop-local signage like this poster here, visit nrha.org/home-sweet-home.

• When homeowners purchase goods at locally owned home improvement operations, sellers generate twice the local economic activity on the same revenue.

• Purchases from local lumberyards drive 113 percent more economic activity than those same purchases made at national chains.

• If contractors shifted 10 percent of their purchases from national chains to independent suppliers, hometowns around the country see an additional $1.5 billion in economic activity.

• Local retailers reinvest 130 percent more of their revenues than chain retailers and 676 percent more of their revenues than Amazon.

Buying into the buy-local movement means being a champion for your business’s independent identity.

As the data shows, there’s obvious value in independent businesses. Identifying as part of that group can make a difference to your customers.

TURNING HOME IMPROVEMENT INTO

HOMET WN IMPROVEMENT.

For every $1,000 you spend at your local home improvement store, $230 of that stays in your community. Spend the same amount at a big box, your community loses nearly half of this.

May 2019 | HARDWARE RETAILING

149

By Renee Changnon, rchangnon@nrha.org

A Taste of Independence Hardware Operations Shine on Annual Road Trip

A

s an independent retailer, you most likely strive to patronize other local businesses in your community. From quirky coffee shops to independent book stores, it’s important to support independent establishments. When you venture away from your hometown for a vacation, do you seek opportunities to experience the world around you from a local, independent perspective?

I’ve worked at the North American Retail Hardware Association (NRHA) for five years, and over that time, I have become more aware of how important it is to shop local.

As the retail outreach coordinator for NRHA, I have an even greater understanding of the power of independent businesses.

In March, I joined small-business advocacy group Independent We Stand for its annual road trip as an

150

HARDWARE RETAILING | May 2019

NRHA representative. The Great American Red, White & Q Road Trip marked my fourth time on a weeklong journey with the group. We traveled over 1,000 miles, visiting some of the best cities for barbecue, including Asheville, North Carolina; Nashville, Tennessee; Memphis, Tennessee; St. Louis and Kansas City, Missouri. During the trip, we stayed in locally owned hotels, ate at local restaurants and visited a variety of independent businesses. I especially enjoyed touring the home improvement stores.

To read my daily blog posts from the trip and gain ideas on local spots to visit if you’re ever in those cities, visit TheRedT.com/IWS-road-trip-2019.

On the following pages, explore the independent home improvement businesses we visited, and add these stores to your hardware store bucket list the next time you pass through.

BEST SELLERS – BIGGEST SELECTION • Soft Grip Wire Brushes • Solvent Proof Handles • Stainless, Carbon, and Brass Bristles

Patented P.O.P. Blisters Help Protect Your Fingers

MILLIONS SOLD WORLDWIDE !

• Carbon • Stainless • Polypropylene • Carbon

• Carbon • Stainless • Brass

• Stainless • Brass • Nylon

• Stainless • Brass • Nylon

• Stainless • Brass • Nylon

• Carbon

allwaytools.com

Town Hardware & General Store Black Mountain, North Carolina

To kick off the weeklong road trip, Independent We Stand and NRHA staffer Renee Changnon visited Beth (left) and Peter Ballhausen (center) of Town Hardware & General Store in Black Mountain, North Carolina.

E

ntering into Town Hardware & General Store in Black Mountain, North Carolina, feels like you’re taking a step back in time as you walk on the creaking wood floors.

The hardware and general store features a tin ceiling and wooden installations throughout. Adding to the character, the old-fashioned store occupies three historic buildings dating back to the 1920s.

According to owners Peter and Beth Ballhaussen, the store opened in 1928 and has always been locally owned and operated. The business has been passed between several families over the years. The Ballhaussens purchased the business in 2013, and they say it belongs to the community it has been apart of for nearly a century.

“Americans should support locally owned businesses because ... we are putting money directly into our local institutions, which helps the community.

”

—Beth Ballhausen, Town Hardware & General Store 152

HARDWARE RETAILING | May 2019

“We quickly learned that this store is ‘owned’ by the community and that we, just as the previous owners, are simply caretakers of the business,” Beth says. “Town Hardware has become something far bigger and more important than the physical store. It is part of the fabric of this town and we are honored to be a small part of its history.”

While it includes all the items someone would need from a hardware store, Town Hardware & General Store is also known for offering a wide selection of goods, from houseware items and classic toys to locally made jams sold in the store. There is even an upstairs loft area called the Book Nook, where children’s books are displayed and shoppers can look down over the entire store with a bird’s-eye view.

When asked their thoughts on supporting independent businesses, Beth talked about how their company thrives on that mission. Beth said supporting other independent businesses is a critical component for her team.

“Americans should support locally owned businesses because as a community retailer, we hire local people, we bank with a local bank and we hire people to do work for our store and business from a local setting,” Beth says. “We are putting money directly into our local institutions, which helps the community.”

To learn more about the business, read a more in-depth profile at TheRedT.com/town-hardware.

Flanagan Paint & Supply Creve Coeur, Missouri

R

esidents of St. Louis and surrounding communities have been turning to Flanagan Paint & Supply since 1950 for top-quality products, competitive prices and the best service. The business was purchased in 2007 by the Donnelly family, and there are currently two locations: one in Ellisville, Missouri, and the other in Creve Coeur, Missouri, which is where our road trip stopped during our journey.

While at the store, we met owner Jim Donnelly, who shared how he was introduced to the store he now owns after spending years in the paint industry as a sales representative. The family business also includes the second generation, with Jim’s son Jay overseeing sales operations, providing exceptional customer service to their customers.

The Creve Coeur store is a well-lit, beautifully merchandised store with a vibrant green sign displaying Flanagan Paint & Supply behind its service counter. When customers walk in, the associates are quick to step in and help customers find what they need.

For Jim, running an independent paint store has been a rewarding experience for a variety of reasons, including the relationships formed.

“The box stores have led to our best customers because we help fix their mistakes.

You never know who will wait on you in a big box.

”

—Jim Donnelly, Flanagan Paint & Supply

“I enjoy the fact that my customers have become my friends,” Donnelly says. “I always said our business is making friends in service and honesty, and if we do that, we’ll do fine.”

When customers and friends ask if big-box stores put pressure on his two-store operation, Jim says it often has the opposite effect and has helped bring new customers through his doors.

“The box stores have led to our best customers because we help fix their mistakes,” Donnelly says. “You never know who will wait on you in a big box. My team and I get to be there to help our customers and become a place for them to come that they trust.”

While visiting the various independent businesses on the trip, Independent We Stand put together video interviews with business owners like Jim Donnelly. He shared his thoughts with our team about the importance of shopping local.

May 2019 | HARDWARE RETAILING

153

Chic Lumber Co. O’Fallon, Missouri

F

Adam Hendrix, president of Chic Lumber Co., has worked with his team to find a variety of ways to connect and give back to their three communities.

or St. Louis natives, Chic Lumber Co. is more than just a business that helps DIYers and pros get the building materials they need for their home or job site.

The three-store operation has been serving the greater St. Louis area for more than 30 years and has established itself as an important part of the community.

Adam Hendrix, president of the company, gave us a tour of the company’s O’Fallon, Missouri, location. The business features a design center that showcases a complete selection of building materials, from kitchen and bathroom cabinetry to windows, doors, siding and even a finished garage.

According to Hendrix, the business’s culture is due in part to his employees.

“My favorite part of operating our business is the family atmosphere we have,” Hendrix says.

“Among our 61 employees, 23 of them are related to other employees, like fathers and sons or brothers and sisters.”

Make it Personal

tamp it ourself ImpressAr t.com

154

HARDWARE RETAILING | May 2019

The company is always looking for ways to connect with and give back to the local community, Hendrix says. The operation offers a conference center that is free for any local to use. Not only do they come to the store for their meeting, but they also get to know Chic Lumber employees and the products available, making it positive any way you look at it.

The Chic Lumber Conference Center is a 7,000-square-foot design and conference center that is made available for community use. Not only does it fulfill a need in the community, but it also brings people in who may not have shopped at the business before.

In addition to providing a free conference room, the Chic Lumber Co. team has also been very involved with nonprofit organizations in the area over the years as well, Hendrix says.

“We live here and so do our family and employees, so it’s important for us to be a staple in the community,” Hendrix says.

When locals visit Chic Lumber Co. in O’Fallon, Missouri, they browse a variety of home improvement project ideas, like this decked out finished garage concept.

SEWER SKEWER - VENT DEFROSTER SEWER - FURNACE - RADON

-25˚F

-25˚F

LEAVE IT IN YEAR ROUND SEWER SKEWER® PATENTED 10,024,477

47” LONG

FITS ANY SIZE VENT

ß

NO INSTALLATION

à

AFTER

EXTENDS TO

BEFORE

DISCOUNT OFFER Purchase 5 Sewer Skewers wholesale at $34.95 ea and get the 6th one free.

The suggested retail on this item is $59.95 ea. and our Ace and True Values sold thousands of these.

Purchase 5 Sewer Skewer XL’s at $70 ea and get the 6th one free. The suggested retail on this item is $97.95 ea and it was our hottest selling item last year.

We offer free shipping with your order and free END-Cap POP signage.

Plus your store will be listed on our website so customers in your area will know where to find our product.

www.sewerskewer.com lvillella@aol.com

Limit 1 New Customers Only, On Your FIRST Order !

Euston Hardware Kansas City, Missouri

Kevin Euston, owner of Euston Hardware, has a close relationship with his customers and his employees. According to Euston, his team is an extension of his family.

T

he hardware industry is where Kevin Euston has spent most of his life. In 1971, his dad Ken opened Euston Hardware, and when Kevin wasn’t attending high school he was helping out at the new family business.

“My dad didn’t open the store until he was 54 years old, and it was quite a struggle at times,” Euston says. “Yet our high level of service has helped us survive. To us, good customer service is attitude. It’s born of a stubborn refusal not to compromise. It’s friendliness, individual service and attention to detail, and it all comes down to attitude.”

After college, Euston helped his dad open a second location and he’s been with the business full time ever since. Today, the retail operation has expanded to include four hardware stores in Missouri and Kansas.

One thing Euston has continued from his father is fostering a strong relationship with his employees and loyal customers. Each location hires a range of people, from high school and college-age students to retired professionals. On top of the close bond with his employees, several customers Euston assists are second-generation shoppers.

Euston says he was recently called to the salesfloor to meet with a customer who had a long history with the business.

156

HARDWARE RETAILING | May 2019

“Shopping here keeps

money in the community.

I’m spending money in the community as opposed to it going anywhere else.

—Kevin Euston, Euston Hardware

”

“He said, ‘You probably don’t remember me,’ and then I told him I did and said his father’s name.

His jaw dropped and he started crying.

He told me his dad, who had died, loved the store and always talked about how much he liked shopping here. It brought tears to his eyes that I remembered his dad. These are experiences we have quite often, and it really makes you feel good.”

When asked his thoughts on owning independent home improvement stores, Euston says it’s about being different from national chains.

“What sets us apart from the big-box chains is individuality,” Euston says. “Our product mix is tailored to what customers are asking for and what they need. Plus, shopping here keeps money in the community. I’m spending money in the community as opposed to it going anywhere else.”

Family Center Farm & Home Paola, Kansas

F

amily Center Farm & Home stores offer a wealth of products and services that are uniquely chosen to meet the needs of Kansas City-area residents.

The family business was founded in 1965 and has expanded from one location to six stores throughout Missouri and Kansas. These stores, along with other independent businesses in their respective locations, all help shape the communities they belong in, says owner Bill Mills.

“Locally owned businesses create unique communities because, in my opinion, they are the foundation of the community. Without a good foundation, you don’t have a good house,” Mills says.

While each of the stores has its own distinct assortments, there are a variety of products that catch customers’ eyes, from bags of feed and pet products to power tools, clothing and cowboy boots. The store’s team of employees is knowledgeable in all the different categories and can help their customers find exactly what they need.

Employees at all six locations make it a point to enrich the communities the stores are in, which is something all independent businesses should strive to do in some way, Mills says.

“The local businesses are the ones that are in your storefronts, on your main streets. They’re the people involved in your town, on your hospital board, your school board and city council,” Mills says. “They’re involved in your community because they have a passion for it—they have a business there. They filter out into the community in all aspects. That core base brings that dedication to the community where you live.”

Family Center Farm & Home shows its dedication to the area by giving back as well, Mills says.

“Our operation sponsors many local events, like fairs and 5K runs,” Mills says. “In this particular town, we’re very active in the Rotary Club. Whatever happens throughout the year, we’re glad to help if we can. In my opinion, if you just sell but you don’t participate in your community, that’s a slow death. You need to participate and the community recognizes that. It’s appreciated, and it’s a good overall feeling for everybody.”

Family Center Farm & Home in Paola, Kansas, is much more than a hardware store. The operation devotes a significant amount of salesfloor space to its clothing and cowboy boots, as well as other farm-focused products.

May 2019 | HARDWARE RETAILING

157

By Todd Taber, ttaber@nrha.org

HARDWARE

Retail on the Edge Business Owners Find Success in Remote Locations

E

very retailer faces their own set of challenges.

Suburban retailers may worry development is heating up away from the place they’ve called home for years. Urban retailers may fret over where to store a high-volume shipment without sacrificing space. No matter where you do business, unique challenges arise that keep you searching for ways to stay nimble.

Other retailers have wholly unique concerns that permeate every aspect of their business. Whether planning deliveries to a hard-to-reach locale or safeguarding their operation from the ravages of hurricanes, remote retailers’ success depends on staying resourceful and handling everything Mother Nature, shipping schedules and customers send their way.

158

HARDWARE RETAILING | May 2019

The constant drive to meet customer needs and provide your neighbors with the products they need unites all hardware retailers, no matter where they call home.

Robert Alred and Erik deBoer operate home improvement businesses more than 4,200 miles apart, and though their climates may be different, they share many of the same concerns. As owner of Ace Hardware Top of the World in Utqiagvik, Alaska, Alred battles frigid temperatures and lengthy shipping delays while overseeing a young but vital business. In Key West, Florida, Manley deBoer Lumber Co. managing partner deBoer relies on his decades of home improvement experience and a resilient spirit to keep his operation the premium choice for locals. Discover how both retailers are adapting to serve their communities.

HARDWARE

Utqiagvik, Alaska

R

obert Alred, owner of Ace Hardware Top of the World, says he knows more about retail success with every passing day.

He and store manager Herman Solomon were born and raised in Utqiagvik, Alaska, a town of approximately 4,300 and situated in northern Alaska at the very edge of the U.S. There are no roads in or out of the town also known as Barrow; instead, locals rely on a network of 30 to 40 miles of unpaved roads within the town to work, hunt and shop.

“It’s a different kind of town, but it’s home to us,” Alred says.

Utqiagvik is a land of extremes. In the coldest months, the average low temperature can tumble to minus 20 F. The town’s location also enables locals to experience two solar spectacles each year. In mid-November, the sun sets and remains below the horizon for more than two months, cloaking the town in darkness. In mid-May, the sun rises fully above the horizon and won’t set again until August, bathing the town in constant daylight for 10 weeks.

Before opening the business two years ago, Alred had been working in plumbing and heating, and Solomon worked as a carpenter. After Utqiagvik’s only hardware store closed, locals had to place orders from out of town, which was an often costly and lengthy process.

“If you needed screws, you had to place an order and wait a few weeks before you’d see them,” he says. “We saw an opportunity in the town.”

The Freight Factor

Ace Top of the World owner Robert Alred (right) and store manager Herman Solomon (left) oversee the only hardware store in Utqiagvik.

160

HARDWARE RETAILING | May 2019

Ace Hardware Top of the World enjoys a perk many retailers would envy: Its nearest big-box rivals are 500 miles away. But that distance from well-funded marketing campaigns and deep inventory comes at a steep price.

Without roads in or out of the town, Alred and Solomon say all products must be flown in to Utqiagvik. Most of their shipments originate from Seattle, where their cargo is placed on a barge and taken to Anchorage, the closest hub at more than 700 miles away.

There, the shipment is repackaged for air travel and then flown directly to Utqiagvik. In all, it can take three to four weeks to order a shipment and see it arrive at the operation.

“It’s sometimes frustrating,” Alred says.

“Whenever we have an event in-store, we have to plan well in advance. One Christmas, we had lots of gifts arrive after the holiday due to a freight situation. But it is what it is; we have to do more preplanning on our end.”

Both men say the business fulfills a necessary role in the community. It currently employs five people and stocks all the core categories of a hardware store. Due to its remote location, Alred says many locals have grown to be self-reliant, innate DIYers who want to tackle their home improvement projects themselves.

“Everybody here wants to work on something,” he says. “Everyone has the weekends to work on projects, and we have what they need to do it.”

Solomon says paint is the business’s best-selling product, but the classic Ace 5-gallon buckets aren’t far behind.

The business also hosts events whenever possible. In the past, they’ve seen success with bucket sales and are planning a Father’s Day event next month. In March 2018, the business hosted a one-year anniversary party. While Alred and Solomon are still relatively new to retail, they know events like these are key.

“We try to do events when we can,” Alred says.

“But there’s a learning curve. There’s such a long waiting period for supplies, but we know we want to do more events.”

A Whale of a Time As Alred and his team settle into retail, they’re eyeing future opportunities to help the business grow and best serve Utqiagvik.

Currently, the business doesn’t have room to stock lumber, but Alred says he’d like to possibly change that in the years ahead. He’s also considering getting into the whaling category.

“We have a pretty big hunting and whaling community here,” he says. “We’re trying to get more focused in that area.” Whaling success will mean the business dives deep into stocking hooks, ropes, knives and cooking pots to become a one-stop shopping source for locals.

Even with shipment delays, biting cold and long stretches of night or day, Alred and the rest of the Ace Hardware Top of the World team are committed to success, inspired by the people who call Utqiagvik home. No matter what he and the team decide to do, Alred says the focus will always be on understanding the needs of his community better.

“My favorite part of retail is helping my community,” Alred says. “I like seeing everyone work on their projects and get them completed.

Whether they’re fixing doors or painting their rooms, we have the products they need.”

Robert Alred, owner of Ace Hardware Top of the World, says his customers are self-reliant and eager to tackle DIY projects. In the coming years, he’s considering branching into the whaling category to offer new products to his shoppers.

May 2019 | HARDWARE RETAILING

161

HARDWARE

Key West, Florida

E

rik deBoer, managing partner of Manley deBoer Lumber Co., is thankful for plentiful sun and clear skies over Key West, Florida.

He first came to the city immediately after graduating high school in 1971, working as a contractor with his friend and business partner Richard Manley. The two specialized in historic building preservation, which was plentiful around the island.

“Key West was quite a bit different from what I was anticipating,” he says. “When I came here for the first time, I thought it would be a tiny place with a few streets, but it’s really a self-sustaining small town.”

Key West, the southernmost city in the contiguous U.S., is divided roughly in half: The newest section is home to an array of big boxes and national chains, while the other half is one of the largest historic districts in the U.S., protected by a framework of laws aimed at preserving the history and culture of the region. For 17 years, the two business partners worked around the island, helping maintain homes and buildings that had weathered sun and storm for decades. deBoer says he doesn’t consider Key West a remote location—the city has an international airport, and in just three hours, he can drive to the neon Miami coastline. But, he does acknowledge the city has logistical vulnerabilities.

“I guess it is remote in that we’re 100 miles from the mainland, but it doesn’t feel inaccessible.

Our lifeline is continuous: We’ve got a string of highway and bridges, we’ve got a freshwater pipeline and electricity that emanates from the mainland. But the key transportation and infrastructure elements that make Key West livable are all a daisy chain,” he says.

That connection to the mainland was tested in 2017, when hurricane-force winds were gathering off the coast of West Africa and growing closer to Key West and the Manley deBoer Lumber Co.

Surviving Hurricane Irma

In Key West, Florida, the Manley deBoer Lumber Co. team provides a full selection of lumber and building materials to customers.

162

HARDWARE RETAILING | May 2019

In 1997, deBoer and Manley bought a lumberyard and the Manley deBoer Lumber Co. officially began.

In 2006, the pair decided to open a second location, about 30 miles east on Big Pine Key. deBoer says the decision to open a second location came easily. In the partners’ minds, a second location enabled the company to reach new customers and stake a greater claim in the independent home improvement market of southern Florida.

In September 2017, Hurricane Irma was gathering strength over the Atlantic Ocean, charting a course toward the Florida Keys. Original predictions estimated the hurricane would hit Key West directly, but in the end, it was Big Pine Key that was most affected by the 100 mph winds.

“The Key West lumberyard opened up about two days after the hurricane,” deBoer says.

“But Big Pine Key was a different story. It was the worst storm to hit the Keys in the 40-something years I’ve lived here.”

The Big Pine Key location was almost completely destroyed by the hurricane.

Forklifts, lumber and trucks were all ruined.

What wasn’t flooded at the business was damaged by corrosive saltwater spray.

Many employees’ homes were destroyed by the hurricane. As a final blow, Manley had been cleaning up his home after the hurricane hit when he suffered a fatal injury.

Suddenly, deBoer was tasked with getting the operation back on its feet without the business partner he had trusted for decades. deBoer credits the employees for volunteering to clean what they could after the storm cleared, an action that helped stabilize the business in an uncertain time. In March 2018, the Big Pine Key location reopened for business.

“Every single employee was amazing throughout the hurricane,” he says. “Once people had secured their own homes, they immediately wondered what they could do to help the business.”

A Sense of History deBoer says the lumberyard’s location in the city’s historic district influences its inventory. A big-box competitor operates in New Town, but deBoer says the lumberyard’s customer base enables it to stock specialized products national chains don’t carry.

“We have a locational advantage for people who live in the historic district,” he says.

“There’s a very distinct difference in the materials that go into historic houses versus new construction. Our historic district has a lot of regulatory protection to get a building permit.” deBoer says his lumberyard and another local independent home improvement business have the specialized materials owners of historic homes need to fulfill all historic building guidelines.

From wood siding to windows and trim, deBoer says stocking materials for historic properties serves as a competitive advantage.

“What we find is that big boxes aren’t really geared toward fine-tuning inventory from store to store,” he says. “So the big box in Key West has the same stuff on the shelves as the one in Naples. Our willingness to stock items for historic preservation and our background as contractors really help us.”

He says one of the biggest obstacles to operating in Key West is the increased price of goods that

In addition to the lumberyard, Erik deBoer owns multiple businesses in the Keys, including a hotel he says embodies the unique Key West style.

must be transported to Key West, but he feels relieved the big boxes must shoulder that extra cost as well.

As the busy vacation and home improvement season begins, deBoer says the lumberyard team is looking for calm waters. deBoer is 67 years old and now considering a time when he won’t be working at the business as intensely. He recently brought on his son-in-law to help manage the lumberyard, which is still a partnership with the Manley family.

“This past year has been a year of rebuilding and figuring out how to move forward without Richard,” deBoer says. “In terms of having a succession plan in place that enables the Manley family and my own to benefit and thrive and grow, I’m seeing the light at the end of the tunnel.”

May 2019 | HARDWARE RETAILING

163

Merchandising Makeover

By Jesse Carleton, jcarleton@nrha.org

Aisle in Disorder Can You Fix This Merchandising?

T

he rows of gondola shelving spread throughout your salesfloor may not be as flashy as your endcaps or power aisle displays, but they do a lot of work. That’s where you put the rank-and-file products that make up your core departments. Customers will be looking there for destination items that can make or break their shopping trip, so it’s critical you keep up with your housekeeping. Messy aisles mean it is more difficult for customers to find what they need. They might leave with a bad impression of your business.

164

HARDWARE RETAILING | May 2019

Don’t let it happen to you. Especially for departments that get a lot of traffic during the busy spring and summer, it’s critical that employees know how to fix a merchandising issue when they see one.

You can even use the photo below as a test. Something has gone wrong in this lawn and garden accessories aisle; can you and your employees spot what needs to be fixed? Do you have any suggestions for making the aisle easier to shop? Identify what needs attention, then turn the page for the answers and a review of some best practices of in-aisle merchandising.

Compare your business to the rest of the industry.

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

Median Sales Per Customer

$120

Typical

Key Business Indicators

High-Profit

50%

Typical

High-Profit

$105 $100

40%

$91 $96

32.3%

$80

$45

HARDWARE STORES

$40

$41

$49

16.7% 17.4%

20%

$51

$43

$42

10%

6.3%

$36 $20

2013

2014

2015

3.1%

2016

2017

Key Performance Differences At-A-Glance • The home centers responding to this year’s study saw gross margins (after rebate) increase over last year by 230 basis points, and this year’s group also reported sales that were 7.4% higher than last year’s.

Home Centers Home centers are a hybrid mix of a hardware store and a lumberyard. Home centers carry full assortments of hardlines shelf goods as well as commodity lumber and building materials in a minimum of 10,000 square feet of selling space.

12

30.8%

30%

$60

2018 Cost of Doing Business Study

• Higher sales numbers didn’t necessarily translate to higher expenses, though, as home centers held payroll to 16.7% of sales, which are the lowest levels we have seen since 2005.

• Home centers have also kept a tighter grip on accounts payable, keeping that number to 6.7%, the lowest on record for the group.

• All of this translated to profit before taxes of 3.1% for average home center operators in our study versus 6.3% for the high-performance retailers in the upper quartile.

By most measures, home centers fared well last year compared to their historic averages when it came to productivity. Although top-line sales can fluctuate dramatically based on the group of operators we have responding to the survey, when you look at the productivity percentages, they tell a positive story.

0%

Gross Margin After Rebate

FOR MORE INFORMATION, GO TO NRHA.ORG/CODB

Profit Before Taxes

The average home centers in our study saw their bottom lines increase last year by 40 basis points from 2.7% to finish at 3.1%, which is the second-highest return they have seen since 1994.

This increase was primarily driven by Cost Of Goods Sold being down 140 basis points and rebates being up 90 basis points over the prior year.

When we take a look at the best-in-class home center performers, we find much the same story we see in other store classes. Those garnering the greatest net profits are also doing the best job of expense control, inventory and employee productivity.

In addition to a lower payroll expense percentage, high-profit home centers also showed lower occupancy expenses than the average store, with occupancy of high-profit operations at 2.5% of sales versus typical stores at 4.4%, and lower other operating costs, with high-profit home centers’ costs at 6.7% of sales versus typical home centers at 8.7%.

It is worth noting that while high-profit home centers had a lower average gross margin (30.8% versus 32.3%) than their average counterparts in our most recent study, this statistic is typically indicative of them selling larger projects involving commodity items with historically lower margin opportunities.

North American Retail Hardware Association

“Comparing the industry average ratios to our store helps when we’re having conversations about a new store location because it gives us real numbers to look at.”

Neal Aissa | Tarzian Hardware

Total Payroll

13

1 Missing in Action

3 Read the Handbook

Shooting the outs (or identifying empty spaces on the shelves) on a weekly basis is the best way to keep ahead of empty peg hooks. A product that is completely out may be a sign you need to adjust your minimum/maximum levels of how much you order. Or it could be a sign of other errors in your inventory records. Regardless, don’t let that peg stay empty for long, or customers will start thinking you can’t fulfill their needs.

2 AWOL

4 Step in Line

It’s difficult for customers to find what they need if products are not in their proper places. It’s also difficult to keep accurate inventory records if a product is separated from its bin tag. In this photo, the long-handled sprayer nozzle gets a double demerit for being absent from its hook and also protruding into the aisle, a potential hazard.

Long-handled items in particular can easily get messy.

Check each aisle regularly for offenders.

3

1

2

4

166

There’s a way to improve this aisle. Help customers understand the project they’re working on. Signage with product information will give customers greater confidence they are purchasing the correct product for their needs and offer tips on how to use it. It will also help them find what they need faster. In addition, informational signage can boost every staff member’s product knowledge if they review it during their downtime.

HARDWARE RETAILING | May 2019

Clean merchandising means all product packaging is aligned, with boxes in neat, orderly rows. Hanging products should be hung squarely. A product that is out of line may more easily get damaged, too. Consider removing damaged packaging and selling it at a discount or returning it to your supplier. Damaged packaging gives shoppers the impression your inventory is subpar. If packaging is damaged, verify all parts are present and that nothing has been stolen.

The Premier Retail Management Program Designed to Help You...

Grow Top-Line Sales

Create Great Customer Experiences

Reduce Staff Turnover Increase Bottom-Line Profits

Empower and Train Your Managers

Produce More Effective Customer Communication

Now Enrolling for Fall NRHA offers the only immersive and comprehensive retail management training program in the industry that can teach your key people how to increase top-line sales and bottom-line profits. This six-month program gives retail employees flexibility while providing an in-depth learning experience with topics and assignments that can immediately have a positive impact on your business. Apply by June 1 to save on tuition.

FOR PROGRAM DETAILS OR TO APPLY, GO TO NRHARMCP.COM

Develop More Effective Retail Sales Space

Newsmakers

What to Know About the Methylene Chloride Ban

Upcoming Events May 7-9 NRHA All-Industry Conference at the National Hardware Show® Las Vegas

17-20 Do it Best Spring Market Indianapolis

June 13-15 House-Hasson Summer Dealer Market Sevierville, Tennessee

17-19 The EPA has banned consumer products made with methylene chloride due to the deaths of people who were using paint strippers containing the chemical.

I

n a March 15 decision, the U.S. Environmental Protection Agency (EPA) banned the manufacturing and selling of paint and coating removal products that contain methylene chloride if the products are being sold for consumer use.

The rule takes effect May 28 and requires that manufacturers and sellers of consumer products containing the chemical stop making and distributing the paint strippers within about six months of the effective date, according to the EPA. The EPA is restricting the use of methylene chloride because the chemical has been determined to be the cause of multiple deaths in the U.S. “Acute (short-term) exposures to methylene chloride fumes can rapidly cause dizziness, loss of consciousness, and death due to nervous system depression,” the EPA reports. “People have died after being incapacitated during paint and coating removal with methylene chloride.”

Multiple home improvement companies, including Ace Hardware Corp. and Lowe’s, have already stopped selling paint strippers containing the chemical, though retailers have had access to consumer versions of the products through other channels.

Key Points of the Rule • Retailers who sell consumer products that contain methylene chloride after the rule goes into effect will be violating the law and may face repercussions. “Knowing or willful violations could lead to the imposition of criminal penalties for each day of violation and imprisonment,” the EPA ruling states.

• Local and state governments have different rules about how to dispose of toxic chemicals. Retailers should confirm and follow local regulations for getting rid of the remaining products they have that contain methylene chloride.

• Retailers are not required to notify consumers of the hazards of using the existing methylene chloride paint strippers they already own.

• The law applies to all retailers, including e-commerce businesses, which sell to one or more consumers.

• The new rule does not apply to retailers who sell entirely to commercial users.

For more information, visit epa.gov.

168

HARDWARE RETAILING | May 2019

PRO Group Inc. 2019 Group Merchandising Conference Atlanta

28-30 United Hardware Fall & Winter Buying Market Minneapolis

August 13-15 Independent Garden Center Show Chicago

13-15 Independent Home Improvement Show—Powered by NHS Chicago

16-18 Florida Hardware Fall Market Orlando, Florida

22-24 Orgill Fall Dealer Market Chicago

Find more events online at TheRedT.com/calendar.

To have your event added, contact Kate Klein at kklein@nrha.org.

We understand that health insurance is a headache.

The NRHA Health Insurance Plan offers an affordable solution with great benefits.

Providing flexibility, low group rates and numerous perks, NRHA’s plan is worth considering for your insurance needs.

A Simple Solution Get a quote today.

Offering health, dental, eye and life insurance coverage, there are several options available through NRHA. Learn more by contacting cbigi@msn.com, or call 888-201-7408.

“Many independent business owners struggle with the high costs of health insurance.

The NRHA Health Insurance Plan provides retailers with a realistic solution to offer benefits to employees.”

Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

Newsmakers UNITED STATES Blish-Mize Welcomes New Customers to Buying Show Attendees of the Blish-Mize Spring Buying Market appeared optimistic for spring. “We have a lot of customers who were hit hard the last few months, so it’s led to them being very conservative with their buying,” says president and CEO Jonathan Mize. “We’re prepared to offer all the products and supplies these customers will need to take advantage of spring renovations, repairs or just excitement for getting back outdoors in the coming months.”

House-Hasson Hardware Invests $10M in Inventory, Warehouse Expansion After buying inventory from Hardware Distribution Warehouses (HDW) and hiring several of its salespeople, House-Hasson Hardware is planning a 100,000-square-foot expansion of its warehouse in Knoxville, Tennessee.

In total, House-Hasson will spend approximately $10 million to acquire the HDW inventory and expand its Knoxville facility to 500,000 square feet.

Lowe’s Sees Net Loss in Fourth Quarter In its fourth-quarter 2018 financial results, Lowe’s reported a net loss of $824 million. This figure is in contrast to net earnings of $554 million during the same period in 2017.

Sales for the fourth quarter came to $15.6 billion, up slightly from the fourth quarter of 2017. The company also reported comparable sales increased 2.4 percent during the fourth quarter in the U.S. “Most of the intense work over the past six months to transform our company has been in preparation for an improved spring season and fiscal 2019,” says Marvin Ellison, Lowe’s president and CEO.

“As our customer base grows in the west, we may look at a distribution center somewhere in that region,” says company president Don Hasson.

INTRODUCING

The CLEANER Way To Caulk Finger Wiping Tray

“Always where you need it” LESS MESS • HANDS FREE

REUSABLE

SAVES TIME • SAVES CAULK Added Convenience and Safety when working from a ladder

CaulkersChoice.com (615) 922-9836 US PATENT 8,701,237B2

170

HARDWARE RETAILING | May 2019

New Episodes Now Streaming Discover two new podcast shows featuring the latest ideas and expert insights into the industry.

Listen and Subscribe TheRedT.com/pod

Brought to you by

CANADA

Federal Budget Offers Positives for Homeowners, Retailers

BMR Set to Expand Its Urban La Shop Concept With Second Montreal Location

The Canadian government offered some measures in the most recent budget that would positively affect home improvement retailers, such as new guidelines concerning homeownership. First-time homebuyers will be able to get a shared equity mortgage through the Canada Mortgage and Housing Corp. to finance part of their purchase.

The government would pick up a portion of the cost of a mortgage for eligible Canadians—up to 5 percent of the cost of a mortgage on an existing home purchase and 10 percent on a new home build. In addition, the limit that homebuyers can draw from their Registered Retirement Savings Plans has been increased by $10,000 to $35,000.

BMR Group is bringing its La Shop urban store concept to the Montreal-area town of Mount Royal in spring 2019. La Shop made its debut in 2018 in Montreal’s trendy Griffintown neighborhood. The concept store has a distinctive product mix aimed at meeting the needs of young urban families, especially those living in small spaces. The Mount Royal store will feature a similar range of smart products, hardware and seasonal items as well as new categories promoting eco-friendly commerce.

Canada’s Best Managed Companies Program Honors Home Hardware Canada’s Best Managed Companies program from Deloitte recognized Home Hardware for business performance and sustained growth. The Platinum Club designation, which Home Hardware received, recognizes companies that the program has honored for seven or more years.

For the full story on these briefs, head over to TheRedT.com/0519-news. To read the Canadian briefs, visit hardlines.ca/hardwareretailing. For the latest independent home improvement news, interviews, trends and videos, visit hardwareretailing.com.

AD INDEX Ace Hardware................................................... 57 www.myace.com; 630-990-6900

GE Sealants & Adhesives................................. 13 www.GEsealants.com; 877-943-7325

Orgill Inc. ................................................. 176-IBC www.orgill.com; 800-347-2860

Ajax Wire Specialty Co. Inc. ............................. 33 www.ajaxwire.com; 855-966-2529

General Pipe Cleaners, Div. of General Wire Spring Co.127 www.drainbrain.com; 800-245-6200

Patrol Group ..................................................... 42 www.qbricksystem.com; +48 12 376 45 51

Allway Tools Inc. ............................................ 151 www.allwaytools.com; 718-792-3636

Hardware Retailing Podcast ........................... 170 www.TheRedT.com/pod

Pennsylvania Lumbermens Mutual Ins. Co...... 36 www.plmins.com; 800-752-1895

Ancra Cargo...................................................... 50 www.ancracargo.com; 800-626-8353

Hillman Group Inc........................................... 115 www.hillmangroup.com; 800-800-4900

PRO Hardware ........................................ 100-101 www.prohardware.com; 303-792-3000

Apache.............................................................. 51 www.apache-inc.com; 866-757-7816

House-Hasson Hardware Company ............... 131 www.househasson.com; 800-333-0520

Quikrete............................................................ 47 www.quikrete.com; 404-634-9100

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

Howard Products Inc........................................ 42 www.howardproducts.com; 800-266-9545

Red Lion ........................................................... 99 www.redlionproducts.com; 844-250-4981

Bengal............................................................... 35 www.bengal.com; 225-753-1313

Hyde Tools Inc................................................ 109 www.hydetools.com; 800-872-4933

Rust Patrol........................................................ 65 www.rustpatrol.com; 803-396-8400

Big Green Egg .................................................. 49 www.biggreenegg.com; 800-793-2292

Imperial Blades................................................. 41 www.imperialblades.com; 800-743-9844

Sakrete ............................................................. 63 www.sakrete.com; 866-725-7383

Bonide .............................................................. 28 www.bonide.com; 315-736-8231

Impress Art..................................................... 154 www.impressart.com; 631-940-9530

Sashco ................................................................ 5 www.sashco.com; 800-767-5656

Broil King Barbeques .......................................... 9 www.broilkingbbq.com; 800-265-2150

Independent Garden Center Show ................. BC www.igcshow.com; 203-286-8772

Sewer Skewer................................................ 155 www.sewerskewer.com; 701-371-2327

Caterpillar Inc............................................... 74-75 www.cat.com/jointheteam; 844-797-6387

IPG.................................................................... 71 www.itape.com; 888-898-7834

ShurTech Brands/Frog Tape ............................. 31 www.frogtape.com; 800-321-1733

Caulker’s Choice............................................. 170 www.caulkerschoice.com; 615-922-9836

Ironclad Performance Wear......................... 22-23 www.ironclad.com; 844-200-5664

ShurTech Brands/TRex................................... 119 www.T-RexTape.com; 877-376-4827

Channellock Inc. ............................................... 69 www.channellock.com; 800-724-3018

Kness Mfg. Co. Inc........................................... 26 www.kness.com; 800-247-5062

Sika ................................................................... 43 www.usa.sika.com; 800-933-7452

Chapin Mfg....................................................... 48 www.chapinmfg.com; 800-950-4458

Leviton................................................................ 3 www.leviton.com/afci; 800-323-8920

Stihl.............................................................. 14-15 www.stihlusa.com; 757-486-9100

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

LHB Industries.................................................. 98 www.tearmender.com; 800-552-8252

Stillwater Designs ............................................ 34 www.kicker.com; 405-624-8510

Cole’s Wild Bird Products Co. .................. 21, 145 www.coleswildbird.com; 877-426-8882

Lifetime .......................................................... 117 www.lifetime.com; 800-225-3865

Superior Pump.................................................. 59 www.superiorpump.com; 800-495-9278

Delta Faucet ................................................... 125 www.deltafaucet.com; 800-345-3358

Lumax............................................................... 40 www.lumax.com; 844-660-6876

SureCan USA.................................................. 171 www.surecanUSA.com; 801-827-0500

DeWitt .............................................................. 19 www.dewittcompany.com; 800-888-9669

Master Magnetics Inc. ................................... 126 www.magnetsource.com; 888-293-9190

Taiwan Trade Center ............................... 136-137 www.taitra.org.tw; 213-908-1801

Do it Best Corp............................................ 44-45 www.independentsdoitbest.com; 888-364-8237

Metaltech Scaffolding ...................................... 27 www.metaltech.co; 800-363-7587

Tarter Farm & Ranch Equipment........................ 7 www.tarterUSA.com; 800-414-2837

Dutton-Lainson Company................................. 37 www.dutton-lainson.com; 402-462-4141

Midwest Fastener ....................................... 52-53 www.fastenerconnection.com; 800-444-7313

True Value ........................................................ 11 www.truevaluecompany.com; 888-291-7229

ECI Software Solutions ........................... 120-121 www.ecisolutions.com; 800-588-5128

National Hardware Show.................................. 67 www.nationalhardwareshow.com

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

Fiskars Brands Inc. ........................................... 25 www.fiskars.com; 866-348-5661

NRHA Cost of Doing Business Study ............ 165 www.nrha.org/codb

UGL .................................................................. 95 www.ugl.com; 800-845-5227

Flame Engineering Inc.................................... 118 www.reddragontorch.com; 800-255-2469

NRHA Business Services ............................... 173 www.pointy.com/nrha

Warp Bros. ....................................................... 30 www.warpbros.com; 800-621-3345

Flexon ............................................................... 17 www.flexonhose.com; 800-327-4673

NRHA Health Insurance Plan ......................... 169 www.cbigi.com/nrha-program

Wastequip ........................................................ 29 www.toter.com; 800-424-0422

Franmar ............................................................ 18 www.franmar.com; 800-538-5069

NRHA Retail Management Certification Program....167 www.nrharmcp.com

Wooster Brush Co.................................... 39, 159 www.woosterbrush.com; 800-392-7246

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

172

HARDWARE RETAILING | May 2019

“For me, the hardest task is reaching new customers.

Pointy has helped massively with this—now when someone does a simple Google search for a product we stock, they’re directed to our store.”

Michelle Leopold | Standard 5&10 Ace | San Fransisco

Increase In-Store Sales Pointy is designed for retailers looking to drive online traffic directly to their stores. This easy-to-use device connects between your barcode scanner and POS system. Simply scan products and Pointy uploads them, giving retailers the ability to promote in-store products on Google. It’s hassle-free and can increase your store’s foot traffic. Retailers can now purchase Pointy at a special introductory rate of $399 (regularly $699) through NRHA.

VISIT POINTY.COM/NRHA, CALL 646-693-7224, OR EMAIL NEIL@POINTY.COM

Visit us in person at the National Hardware Show® Booth #2842

Last Word

3

4 1

2

Northwest Notables

A deck display shows the grills and decking materials available at Scott McLendon’s Ace Hardware in Port Orchard, Washington. If a customer needs help getting those items home, the retailer offers a free local delivery service as part of a strategy to compete against Amazon on its home turf.

I

3 Get Lost in Housewares

1 DIY Friendly

4 Bucket Brigade

f you’re looking for some new ideas, hit the road.

Visiting other retailers is a valuable way to get inspiration and a perspective of what others in the industry are doing. Everyone has something to contribute.

Earlier this spring, Hardware Retailing visited a few stores in northwestern Washington state, and here are some of the merchandising tips and other takeaways from each store.

An endcap at Dunn Lumber, with nine locations in northwest Washington, features “Build This Project” cards that list the tools and materials needed to complete simple building projects. Cards direct customers to dunndiy.com for more project ideas, step-by-step tutorials and regular blog posts.

174

2 Free Delivery

HARDWARE RETAILING | May 2019

At Henery Do it Best Hardware in Port Townsend, Washington, housewares in the center aisle compel shoppers to stop and look.

It’s an area that gets frequent updates with new products so there’s always something new to see.

Buckets make it easy to display impulse items at Johnsons Home & Garden in Maple Valley, Washington.

“The best part of the endcap is that one of our high school employees saw a similar display somewhere and took the initiative to make it in our store,” says Brad Johnson, president.

7

5

8

6

5 Fast Reflexes

7 Small Perks, Big Impact

6 Suggestions Welcome

8 Spring Is Here, Fly a Kite

Look at the impeccably merchandised endcaps throughout Wilco’s Bremerton, Washington, store. You’d never know that the day before the business had a sales event that scorched average daily sales records. “We have a rigorous salesfloor recovery process that ensures the shelves are stocked and aisles are clean at the end of each day,” says TJ Colson, director of store operations for Wilco. “We also have strict standards for keeping endcaps full throughout the day.”

In a market heavy with competition, how do you differentiate your business? Town Center Hardware in Kirkland, Washington found a niche in equine feed and accessories. They have a part-time staffer who also works on a nearby horse farm to advise on product selection and help customers. The department includes a suggestion sheet where customers can list the equine products they prefer and the store can usually stock them.

There are at least two items always in high demand at Johnsons Home & Garden. Younger shoppers head straight for the mini carts, which keep them busy so the parents can spend more time in the store and do more shopping.

Adults and children alike stop for a bag of popcorn, and the popcorn machine stays busy all day. Finding small ways to make shoppers happy while they’re in the store helps them stay longer and gives them one more reason to come back.

Walk into Junction True Value Hardware in Seattle and you’ll be surrounded by springtime. The compelling garden display includes vegetable seeds and lawn accessories.

Lawn and garden is one of this urban store’s strongest categories. Look up, and you’ll see a kite or two. Kites are popular with children enjoying one of the many city parks. Samples of the store’s kite selection hang throughout the store, making it easy for young shoppers to find something they like.

May 2019 | HARDWARE RETAILING

175

Philip Chapman, Kate Borroni and Stu Chapman Woodson Lumber Texas

“When we considered switching distributors, we were looking at who could provide us with the product selection and level of stock fulfillment we knew we needed. Orgill was absolutely the best fit for us.”

Everything We Need Orgill’s Product Selection Was Exactly What We Were Looking For!

Why We Like Working With Orgill: • Programs that keep us on top • Services to help us reset and of our product selection update various categories • Dealer Markets highlighting • Exceptional customer service new products and vendors that’s quick and efficient

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

INDEPENDENTS

WE’VE GOT YOUR BUYING NEEDS COVERED TWO TRADE SHOWS

INSIDE & OUT

TWICE THE VALUE

NEW! + AUGUST 13-15, LAKESIDE | MCCORMICK, CHICAGO It’s twice the buying power for your indie hardware store, co-locating the launch of the Independent Home Improvement Show (IHIS), a new trade show entirely home improvement, exclusively independent, with the IGC Show, America’s largest and longest-running trade show for independent garden centers. You’ll double your product buying opportunities with two free trade shows in the same place at the same time. Plus, you’ll enjoy full access to all the extras IGC Show offers, including free admission to all three morning keynotes and Wednesday’s networking party and concert with San Francisco music legends Starship featuring Mickey Thomas. IHIS & IGC - it’s a must for your store.

Educational component for IHIS provided by the North American Retail Hardware Association

REGISTER TODAY! WWW.IGCSHOW.COM WWW.IHISHOW.COM