Hardware Retailing May 2020

Serving g Hardware, ware, Home Center & Building Material aterial Retailers

Silver Linings Today’s Tough Calls Can Protect Tomorrow Page 36

Retailers Respond to COVID-19 Page 44

Give DIYers a Hand With These Tools Page 56

Volume 218 • Issue 5 • May 2020 • hardwareretailing.com

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Volume 218 • Issue 5 • May 2020 • hardwareretailing.com

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Volume 218 • Issue 5 • May 2020 • hardwareretailing.com

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Headquarters EDITORIAL, DESIGN & PRODUCTION 317-275-9400, editorial@nrha.org

You Are Essential, and We Are Here to Support You 136 N. Delaware St. #200 Indianapolis, Indiana 317-275-9400 nrha@nrha.org | nrha.org

@NorthAmericanRetailHardwareAssociation @nrha_official North American Retail Hardware Association @nrha_official

OUR MISSION

The North American Retail Hardware Association (NRHA) helps independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers.

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts David Dishke, Grand River Home Hardware, Caledonia, Ontario Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina Matt Woods, Woods Hardware, Cincinnati, Ohio SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN TJ Comstock, Northwest Hardware LLC, Billings, Montana

O

ver the last several weeks, staff members at the North American Retail Hardware Association (NRHA) have had to make quick decisions about navigating internal operations, rethinking editorial and marketing plans and developing brand new initiatives while keeping everyone’s health and safety top of mind. I know we aren’t the only organization that is learning a new normal.

I know all of you have had to make the same maneuvers, while also operating as essential contributors in your communities. We extend our sincerest thanks and appreciation to you and your staff who are continuing to keep your doors open during this uncertain time.

To uphold our mission—to help independent home improvement retailers run better, more profitable operations—we have opened our online basic training to all retailers at no charge through May 31. See Page 14 for more information on how to access these vital tools to keep your associates engaged and learning, even if they can’t be on the salesfloor.

Please reach out to any NRHA team member with questions or to share how your business is carrying out day-to-day operations.

Dave Gowan Vice President of Finance & Business Services

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

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

NRHA SALES

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

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

MEMBER SERVICES

800-772-4424, nrha@nrha.org

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

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

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

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

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

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

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

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

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

2

HARDWARE RETAILING | May 2020

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

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

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

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Contents MAY 2020 | VOLUME 218 | ISSUE 5

“Everyone understood the urgency of the situation.

We were fighting together.”

—Doug Mans, Mans Lumber and Millwork

Departments On the Web . . . . . . . . . . . . . 06 Association Matters . . . . . . . 08 Editorially Speaking . . . . . . . 10 Taking Care of Business . . . . 12 NRHA News . . . . . . . . . . . . . 14 Trends . . . . . . . . . . . . . . . . . 18

36

New Products . . . . . . . . . . . 20

COVER STORY

Back From the Brink

The Great Recession plunged Mans Lumber and Millwork into uncertainty, but perseverance and foresight from president Doug Mans helped his business survive . As retailers are currently facing another unprecedented challenge, discover how Mans made difficult decisions to keep his business afloat .

44

OPERATIONS

50

OPERATIONS

The COVID-19 Response

Prepared and Protected

Home improvement retailers are changing the way they do business to serve their communities and protect their employees and customers .

Use this overview as a guide to stay informed on best practices for protecting against COVID-19 and to prepare for future emergencies .

56

CATEGORY SPOTLIGHT

Tools for Every Trade Hand tools are many home improvement stores’ bread and butter . But when sales slip, how can you ensure a core category pulls its weight? Dive into hand tools data to learn how to market this classic category to every customer .

60

4

SUCCESSION PLANNING

62

LEADERSHIP

Counting on Your Business

A Management Journey

Discover the benchmarks that the Cost of Doing Business Study offers to be sure you’re on the way to getting the most value from your sale .

Cody Goeppner took an unexpected path to mentoring students through NRHA’s Retail Management Certification Program . Read his story .

HARDWARE RETAILING | May 2020

Checkouts . . . . . . . . . . . . . . 32 Newsmakers . . . . . . . . . . . . 64 Last Word . . . . . . . . . . . . . . . 66

On the Cover Mans Lumber and Millwork president Doug Mans made challenging but necessary cuts so his operation could survive the Great Recession.

Photo by Jennifer Patselas

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On the Web

Discover COVID-19 Resources at hardwareretailing.com/covid

Visit hardwareretailing.com/covid to find the latest news, workplace safety guides and operational best practices to steer your operation, motivate your team and connect with your community.

INDUSTRY LETTER

GUIDE FOR STATES AND PROVINCES

Share a letter signed by the president and CEO of NRHA and wholesaler executives to urge your local lawmakers to deem home improvement stores essential and continue serving their communities amid the COVID-19 pandemic.

Across North America, states and provinces are issuing new guidance to prevent the spread of COVID-19. Learn more about the COVID-19 regulations in your area with this regularly updated resource.

NAVIGATING THE CARES ACT

NEWS, PROFILES AND GUIDANCE

The Coronavirus Aid, Relief and Economic Security (CARES) Act allocates $350 billion to help small businesses. Learn more about Small Business Administration disaster loans and the Paycheck Protection Program.

Find the latest headlines on how COVID-19 is impacting retail and read profiles of retailers who continue to serve their communities.

Plus, get helpful operations resources and cleaning guidelines to protect your business.

PODCAST

Tune In to Weekly Podcasts for the Latest Industry Developments “Pep Talk,” a special limited series from the “Taking Care of Business” podcast, focuses on how COVID-19 is impacting the independent home improvement industry and the essential workers who power it.

Get the latest industry news and hear exclusive wholesaler executive interviews at TheRedT.com/peptalk.

Share how your home improvement operation is remaining resourceful amid COVID-19. Email operations tips and the latest news from your store to Todd Taber at ttaber@nrha.org. Share your story with the Hardware Retailing profiles editor Kate Klein at kklein@nrha.org.

STAY CONNECTED

6

HARDWARE RETAILING | May 2020

@hardwareretailing

@hardwareretail

Summer HARDWARE COMPANY

Spectacular

Attend our Virtual Market HARDWARE SPECIALS

June 25-26, 2020

Dealer Market

Due to the recent developments of the COVID-19 virus we have decided to change our June Dealer Market in Sevierville to a Virtual Electronic Ordering only Market. We are disappointed that we are not going to have a physical Market as planned, but will have the same great deals and pricing as we have always had and more. All the Bonus Buy Assortments and items will be available Thursday and Friday. More great spiffs will be available at this Market from our Vendors.

Go to etoolbox.net to register for our Virtual Market to participate.

Chat rooms will be available for you to talk to our Buyers and Vendors from 7:30 a.m.-5:00 p.m. on both days. All House-Hasson staff will be available to help you with all of your needs.

Top Reasons to Log-in to Our Virtual Dealer Market • Unmatched Super Saver Deals • Hot Deals on Bonus Buy Assortments and Items • Unbeatable Prices • Industry Leading Vendor Participation

• Easy Payment Terms • Exciting New Items • Electronic Ordering • State-of-the-art Marketing Program • Advertising & Merchandising Solutions

Register for our Virtual Market on etoolbox.net For more information about our Virtual Market, contact us today!

1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., Knoxville, TN 37914 • service@househasson.com

Association Matters

Hindsight of 2020 Your Association Is Here to Bring the Industry Together

A

s I write this column, we find ourselves in the midst of unprecedented times. With the rapid spread of COVID-19, our society faces a challenge unlike anything we have seen before. One reason this challenge is so unprecedented is that it is multidimensional.

On one front, we are facing a dire threat to our health and the health of our communities by a virus that spreads rapidly and without discrimination. On the other front, we are facing the emotional, financial and physical strains that come with the measures required to combat this terrible health crisis.

When taken as a whole, these challenges become incredibly complex and leave us with some vexing questions.

How can we continue to do business effectively when the most effective way to fight this virus is to stay apart from one another?

While our services and products are considered essential, how do we balance serving our communities with protecting our teams and ourselves?

How do we navigate the financial challenges that are emerging from communities that are literally being locked down?

It is my sincerest hope that by the time you read this column, we will have already seen the worst of the pandemic and are on the road to recovery. But, if we are still battling this challenge, I want to remind you of two things.

It is also important to note that because there are 35,000 independent operators, we have 35,000 different idea generators, all finding new and unique ways to address this challenge.

That’s why, at NRHA, we see our role as it has always been, bringing together these different points of view and providing them with a singular voice.

We see it as our role to provide you with the ideas, information and support you need during these times. To do that, we are pointing the bulk of our resources toward gathering and sharing information and insights about the COVID-19 pandemic and sharing them with you. Access resources that can help you navigate operations during this time at hardwareretailing.com/covid.

In addition to developing these resources, we are continually communicating with retailers, distributors and manufacturers, and we are working with other organizations and communicating with local, state, provincial and federal resources to advocate for small businesses.

All of this brings me to the other point I wanted to make.

“We see our role as it

has always been, bringing together these different points of view and providing them with a singular voice.

1. You are not alone.

There are more than 35,000 independent home improvement retailers across North America all facing this threat, and we are all stronger when we work together.

In the early stages of the pandemic, when cities started understanding that shutting down businesses and asking citizens to remain indoors might offer the best hope for mitigation, the North American Retail Hardware Association (NRHA) worked with other industry leaders to ensure that hardware stores, home centers and lumberyards be considered essential to the wellbeing of their communities.

This was a perfect example of how, when we work together, we are stronger.

8

HARDWARE RETAILING | May 2020

”

2. We will get through this!

NRHA has been around for 120 years, and throughout that time, our organization and the businesses we represent have seen many unprecedented challenges—a world at war, not once but twice, economic depressions and recessions, instances of civil unrest and natural disasters.

When we look at all these challenges with historical hindsight, we learn that the best thing to do is put our heads down, work together, watch out for each other and continue serving our communities.

Bob Cutter

President and CEO | bcutter@nrha.org

Editorially Speaking

It’s OK to Be Normal We’re Here for You Then, Now and in the Future

M

y son is 18 months old, and he’s stayed at home with his dad since the day I went back to work after maternity leave. So, he’s one of lucky ones who hasn’t really had his life upended right now.

He doesn’t even notice that he hasn’t been to the library for story hour in six weeks, and he doesn’t get packed into the car when Dada has a craving for a cheeseburger anymore. But as far as he’s concerned, the only thing that’s different is I’m home during the day, and that’s a change he can get behind.

It has not been as simple of a shift for my husband and me, though. We’re not used to being home together all day, every day. We’re learning that we have different parenting styles, different preferences in workfrom-home attire and different choice words we use when technology inevitably goes awry.

Despite all the differences my husband and I are working through since becoming co-workers, co-parents and co-crisis managers essentially overnight, we do still have familiarity. We get to stay in our own house, sleep in our own bed and raid our own fridge, albeit, a little more frequently. We are also generally homebodies, so we’re OK not leaving the house very often. And even though we have access to every media creation of the last century at our fingertips, we’re comfortable just going back to Season 1 when we complete the latest rewatch of our favorite shows.

We know we are fortunate. We are both still employed full time with jobs we can do from the comfort and safety of our own home. I don’t write this to be flippant or to flaunt what I know are luxuries in this predicament.

I write this to remind you—and myself—that there can be normalcy despite everything that has changed. We still bicker about dishes and diapers, and we love each other through it.

You may not have quite the same relationship with Hardware Retailing magazine that you do with your significant other, but I want you to know that the publication that has brought independent retailers the content they need to run better, more

profitable businesses for more than a century is still here in its normal form. If you need a break from the never-ending news cycle, we’ve got content in this issue on succession planning and leadership development. And at hardwareretailing.com, you can find years of archives on general operations tips, merchandising, customer service and more.

I hope you take a mental break and revisit some of your favorite articles or just brush up on some core business tips.

See Page 66 in this issue if you need some guidance on how to take a break.

Coincidentally, the cover story of this issue is called “Making Tough Cuts.” It’s the story about Doug Mans and his operation, Mans Lumber and Millwork in Detroit. Doug had to make some really challenging decisions to keep his business going during the Great Recession. When we had to completely change the issue lineup a month ahead of the print date to accommodate pandemic news, we were certainly grateful to have a story about resilience, recovery and regrowth already in the works. Check it out starting on Page 36 to see that there is a light at the end of even the darkest tunnels.

Over the last several weeks, my husband and I needed to adjust the normal components of a successful marriage in order to be able to function in the same space 24 hours a day. They’re probably the same key things you need in your operation: communication, respect and sometimes a little bit of raw honesty. We’ve learned that we can use what we already know to grow together through a challenging time.

We’ll see. We haven’t run out of toilet paper. Yet.

“The publication that

has brought independent retailers the content they need to run better, more profitable businesses for more than a century is still here in its normal form.

10

HARDWARE RETAILING | May 2020

”

Melanie Moul Managing Editor | mmoul@nrha.org

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Taking Care of Business

Not Just Any Column The Privilege to Be Essential During Crisis

E

very year for at least the past decade, my May column has talked about the National Hardware Show. I typically use this space to urge independent retailers to pry themselves from their stores, head out to Las Vegas and interact with other retailers and channel members.

As you can imagine, this is not the column I am writing this month.

It is amazing how the COVID-19 pandemic has put things into perspective. All of our typically important, yet mundane talk about how to improve your business, broaden your horizons or explore the channel are far less pressing today than they were just a few months ago.

Much like you, this pernicious pandemic has occupied my professional life from the early morning into the evening. And as familiar as I have become with my May column being similar year after year, I am damned sick of thinking about, writing about, talking about COVID-19.

But it persists.

Early on, as the pandemic was spreading in the U.S., I was on a call with a group of retailers talking about how hardware stores had been deemed “essential businesses” in most communities. One participant made a comment that I have since repeated often.

He indicated that he felt it was such a privilege for home improvement stores to be considered essential. He went on to explain that while so many other businesses—those of his friends and neighbors—were being forced to shut their doors to uncertain futures, he was being given the privilege of keeping his doors open to serve his community.

This is perhaps one of the moments that will stick with me the most out of this entire crisis.

The long hours, the frustrating days, the sleepless nights spent worrying about your customers, your employees, your business.

The early mornings spent cleaning your stores, encouraging your team, counting your supplies.

These are all moments of privilege.

The time our team at NRHA spends tracking down information, updating websites, sourcing content, recording podcasts or checking in on retailers.

These are all moments of privilege.

We are fortunate enough to have the opportunity to serve our communities in some small way during this crisis. Right now, others do not have the opportunity to do this.

Nothing I write here will likely make anyone feel better about our circumstances. We still have to wake up and do our best to face this crisis. What I hope I can do in this column is provide some perspective.

First, perspective on how those small, mundane topics seem to take on a different level of importance when we are faced with a crisis like the one at hand. Then, a bit more perspective on how the opportunity we all have to serve truly does make us privileged.

And lastly, some perspective on how the challenges we are all facing right now are even more inconsequential when compared to the challenges faced by our friends, family and neighbors who are fighting this disease on the front lines. Or even more importantly, the ones who are ill and are fighting for their lives.

So when you unlock your store or turn on your computer, remember to keep things in perspective and consider how truly privileged we are right now and how proud we can all be when we have beaten the hell out of this disease, and we get to go back to talking about those important, yet more familiar challenges we typically face.

Lastly, I wanted to let you know that we have decided to combine the June and July issues of Hardware Retailing into a single issue. Making this change allows us to focus our resources on delivering more timely information to you through hardwareretailing.com, our weekly e-newsletter and podcasts during this unusual time. We hope that by the time August rolls around, all our lives will be back to normal or at least whatever the new normal is.

“We are fortunate enough to have the opportunity to serve our communities in some small way during this crisis.

12

HARDWARE RETAILING | May 2020

”

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

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NRHA News

NRHA Offers Free Access to Paid Online Retail Training Courses Through May 31

A

s home improvement retailers navigate the changing landscape of retail during COVID-19, the North American Retail Hardware Association (NRHA) is here to support essential businesses. NRHA is waiving membership fees for retailers who would like to register for NRHA’s online training courses. Retailers can access 10 comprehensive online training courses—which include 230 training modules—through May 31 at no charge.

Visit nrha.org/membership to sign up, or email NRHA at nrha@nrha.org. Learn more about the available courses here.

NRHA Online Training Courses NRHA provides online training for every level of career in hardware retailing, covering a range of essential skills that include product knowledge, selling skills and operations. Store trainers can use NRHA’s online learning management system to track employee progress, and most courses include a test to gauge an employee’s level of competency in a particular subject.

14

Product Knowledge Training

Selling Skills & Merchandising

These courses teach employees basic information about the products in their store and how to sell them.

The Basic Training Course in Hardware Retailing takes employees through the eight core categories in a typical hardware store. It addresses features and benefits of common products, discusses frequently asked questions, offers ideas for add-on sales and provides tips for upselling to a better product.

The Basic Training Course in Building Materials Retailing is designed for those working in lumberyards and home improvement centers and addresses the features and benefits of products in eight core building material categories. It covers frequently asked questions, add-on sales and upselling.

Project PRO teaches employees the value of selling g an entire project and the impact that can have on overall store profitability. The course explains step-by-step step-by- p instructions for completing 15 popular home improvement projects.

In addition to understanding the products they sell, a well-rounded employee needs to understand how to sell.

The following basic courses are designed to help employees develop important retail skills.

The Basic Training Course in Selling Skills teaches the basic skills necessary for delivering top-notch customer service. Course topics include greeting customers, phone etiquette and dealing with complaints.

The Basic Training Course in Merchandising helps employees understand how effective merchandising improves sales. The course teaches best practices and how to maximize the impact of every display.

HARDWARE RETAILING | May 2020

Store Operations Every level of employee—from entry-level to management—can benefit from a basic understanding of how a retail business operates. These courses introduce basic operations concepts.

Our Three Pennies of Profit is one of NRHA’s most popular courses and is a valuable component of any training program. This 15-minute video offers workers a basic understanding of retail profit and loss and helps employees realize how their actions on the salesfloor directly affect their own success in the business.

Loss Prevention is a three-part course that covers internal theft, external theft and store safety. It helps employees understand how to develop a safe and secure retail environment.

Basic Inventory Management introduces the basic concepts of managing inventory in a home improvement retail operation.

It outlines the components of the inventory cycle and how to deal with inventory issues, such as slow-moving items.

Basic Retail Pricing introduces concepts such as pricing techniques, price audits and price shopping. It also addresses price image and best practices for improving the store’s overall pricing strategy.

Basic Retail Accounting explains, in simple terms, income statements and balance sheets and defines common financial ratios.

To access these courses and more NRHA training and business resources, visit nrha.org.

May 2020 | HARDWARE RETAILING

15

WE’RE HERE TO helpYOU BE THERE.

DO IT BEST HELPS LOCAL STORES SERVE THEIR COMMUNITIES.

In times like these, communities count on their local hardware stores for the essential products they need to stay safe, productive, and comfortable. And member-owners like Frank Herrera of Fischers Do it Best® Hardware count on Do it Best to help them succeed every day.

Using his knowledge of each community he serves, Frank worked closely with his Do it Best team to customize product mixes to meet the unique customer expectations at each of his three locations. He is able to maintain a steady inventory of plumbing, electrical, hardware, and paint products so that his customers can be confident that Fischers Do it Best® Hardware is ready to help. In the same way, Frank knows that he has the backing of the nation’s only single source provider to help his business and his communities stay strong.

“No one offers the inventory flexibility that Do it Best does – they make it easy to always be there for my customers.”

Frank Herrera Fischers Do it Best® Hardware

» Do it Best is ready to help you be there for your customers and your community. Call us today at 888-DO-IT-BEST (888.364.8237) or visit doitbestretail.com.

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

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

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

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

Consumer Confidence

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

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

150

FEB ‘20

JAN ‘20

NOV

OCT

SEP

AUG

JUL

JUN

MAY

60

DEC

$20

APR

$30 MAR

FEB ‘20

JAN ‘20

DEC

NOV

OCT

SEP

AUG

JUL

MAY

JUN

90

MAR

120

APR

$40

$10

30

Existing Home Sales

Housing Starts

600

500

(in thousands)

400

300

200

100

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN ‘20

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

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HARDWARE RETAILING | May 2020

FEB ‘20

If you want bird seed, buy any brand...

If you want birds, buy Cole’s.

Customers 1 Choice for over 30 Years! #

®

® ®

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

THE BETTER WILD BIRD FEED

BLAZING HOT BLEND™

A traditional blend of highly desired seeds made even more appealing by adding hot habanero chilies. Beautiful songbirds will go crazy for this super spicy taste.

Uniquely Seasoned Just for Birds!

INGREDIENTS: Black Oil Sunflower, Sunflower Meats, White Proso Millet, Cracked Corn, Liquid Habanero Chili Peppers, Safflower Oil

GUARANTEED ANALYSIS: Crude Protein Min. 11% Crude Fat Min. 30% Crude Fiber Max. 13% Moisture Max. 12%

P.O. Box 2227, Kennesaw, GA 30156 • www.coleswildbird.com Please remember chili peppers are a strong irritant to eyes, nose and skin.

Wash thoroughly with soap and water after handling. Keep out of reach of children.

1-877-426-8882 • coleswildbird.com

New Products Fitted Face Mask The Airinum Fitted Face Mask from Ameico features a five-layer patented system of breathable polypropylene with an active carbon layer and two electro-charged layers to filter micropollutants, bacteria and allergens. They’re rated for up to 100 hours of use, are available in three colors and are treated with Polygiene, an antibacterial fabric treatment.

The masks are reusable and washable with adjustable ear loops. They’re currently accepting preorders.

Ameico ameico.com or 860-354-8765

Automatic Center Punch Mayhew Tools’ CatsPaw™ Automatic Center Punch provides 13 ½ lbs. to 31 ½ lbs. of adjustable force, ideal for marking personal tools and equipment. It features a chromium-vanadium alloy steel body and an ergonomic handle. It is suitable for use on metal, plastic, wood and more and doesn’t require the use of a hammer.

Mayhew Tools mayhew.com or 800-872-0037

Smart Lock August’s Wi-Fi Smart Lock uses geo-fencing to automatically unlock the front door when homeowners approach and can lock it again once it's closed for a specified amount of time.

The iOS or Android app allows users to control and manage the door and provides an activity feed. The Wi-Fi Smart Lock installs on the inside of the door over existing deadbolts.

August august.com or 844-554-4678

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

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HARDWARE RETAILING | May 2020

Blender The Ginsu® Everyday Blender offers 1,000 watts of power and uses six blades to blend smoothies, crush ice, grind coffee, spices and more. The BPA-free mixing jar includes one drinking lid and one storage lid. The blender jar, lids and blade sets are dishwasher safe.

Ginsu ginsu.com or 833-554-4678

Tub Filler Faucet Isenberg’s Freestanding Floor Mount Tub Filler is a modern solid brass faucet designed to complement contemporary freestanding bathtubs. It includes a hand shower and hoses with ½-inch NPT connections and features a backflow prevention check valve. Standard finishes include brushed nickel PVD, chrome, matte black and polished nickel PVD. Other finishes are available upon request.

Isenberg Bath Corp. isenbergfaucets.com or 888-342-2284

Ceiling Fan Duster Made using all natural lambswool, Wool Shop's ceiling fan duster's cylinders clean the top and bottom of fan blades in one swipe. The duster and frame hold the fan blade securely to keep it from spinning while being cleaned.

It includes a telescopic pole for extended reach.

Wool Shop woolshop.com or 800-635-8921

May 2020 | HARDWARE RETAILING

21

Nonstick Cookware Swiss Diamond’s 3.2 quart saucepan features a nonstick XD coating. The rivet-free cooking surface protects against bacteria buildup, and the cast aluminum construction ensures even heat distribution.

The heat-tempered glass lids feature an adjustable steam vent allowing cooks to control the amount of moisture in the pot and ensure optimal texture and flavor.

Swiss Diamond USA swissdiamond.com or 980-224-9044

At Mi-T-M, A we pride ourselves on building mighty, damn good equipment.

It’s what sets us apart from our competition.

When you purchase equipment with the Mi-T-M name on it, you are buying dependable equipment that is designed, built, and tested by good people.

Mighty. Damn. Good.

www.mitm.com 800-553-9053

Made in

USA

with Globally Sourced Components

Air Compressors | Air Compressor/Generator Combinations Air Compressor/Generator/Welder Combinations Portable Generators | Wet/Dry Vacuums Cold and Hot Water Pressure Washers | Jobsite Boxes Portable Heaters | Water Pumps | Water Treatment Systems 22

HARDWARE RETAILING | May 2020

Water Filter Pitcher The LifeStraw Home water filter pitcher is a 7-cup filter available with either a glass or BPA-free plastic carafe.

The dual-filter system protects against bacteria, parasites, microplastics and other contaminants while retaining essential minerals. Each purchase gives back one year of clean water for a child in a developing nation.

Vestergaard Frandsen Inc. lifestraw.com

Biodegradable Cooler RECOOL from Igloo is a patent-pending 100 percent biodegradable 16-quart cooler. It retains ice for up to 12 hours and can hold water without leaking for up to five days. It holds up to 75 pounds and won’t chip or break when bumped or dropped.

Igloo igloocoolers.com or 800-324-2653

Weed & Grass Killer Earth’s Ally Weed & Grass Killer uses all-natural sea salt as a safe alternative to glyphosate products.

It is lab tested and safe for use around pets and pollinators. It provides nonselective control by killing broadleaf and grassy weeds down to the root.

Sarasota Green Group sarasotagg.com or 800-550-6259

DURABLE GLOVES

In 1997 Ironclad created the performance work glove and continues to create innovative hand safety solutions used to protect the hands of the most sophisticated users today.

RELIABLE SERVICE

With 20 warehouses in the U.S. and another 10 globally, we pride ourselves on maintaining an exceptionally high fill rate and our ability to provide unparalleled customer service.

TOUCHSCREEN ENABLED WORK GLOVES

www.IRONCLAD.com 1-844-996-5664

New Products

Hand Vacuum The dustbuster® AdvancedClean+ Cordless Hand Vacuum features an extra large dustbin, two speeds, washable filter and prefilter and ONE-TOUCH easy empty. It uses a 16V battery to provide up to four times more suction than the 4V MAX hand vacuum. It includes a wall mountable base charger.

Black + Decker blackanddecker.com or 800-544-6986

Home Office Kit This Work from Home Office Premium Kit from Doug Mockett & Co. Inc, allows remote employees to work from their homes more effectively. It includes an aluminum flip-up power grommet, a flexible snake wire manager to channel cabling from floor to desktop, a solid brass grommet set with cap and liner and four table legs with glide levelers.

Doug Mockett & Co. mockett.com or 800-523-1269

Gaucho-Style Grill Handcrafted by artisan builders in Argentina, Nuke’s Pampa gaucho-style grill is constructed from heavy-gauge steel and lined with heat-refractory bricks that focus the heat. The 547-square-inch split grill grate allows easy access to the lower section of the grill where the charcoal or real-wood fire is built. An external adjustment arm raises or lowers the grilling surface for fine heat adjustment.

It includes a coal shovel, fire poker, an attached lid and stand with swivel casters.

Nuke nukebbqusa.com or 800-523-1269

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HARDWARE RETAILING | May 2020

Sliding Door Lock Inox’s PD96 is the industry’s first commercial-grade auto-latching and auto-locking sliding door mortise lock. It uses the same basic lock case for the passage, entry, office, classroom and storeroom functions and the trim determines each function. Only the privacy function requires a different lock case. The lock is ADA compliant, provides emergency egress and is constructed from 304 stainless steel and is available in several trims and Satin or Bright Stainless Steel as well as CeraMax ceramic-coating finishes.

Inox unisonhardware.com or 916-388-1888

Ignite Nitrile Gloves Aurelia® Ignite® examination gloves are non-latex made from 100 percent nitrile, powder-free and nonsterile.

Their 7 mil thickness and “Max Grip” texture provide exceptional tactile sensitivity and comfort. They are ambidextrous and conform to the highest international standards. Aurelia Ignite gloves are suitable for emergency medical service, industrial and automotive applications.

Aurelia Gloves aureliagloves.com or 877-989-8886

SIKAQUICK® & SIKAFLEX® TECHNOLOGY Introducing ntroducing Blacktop Repair for your Everyday Projects SIKAQUICK® ASPHALT PATCH

SIKAFLEX® ASPHALT SEALANT

y DRIVEWAYS y ROADWAYS y PAVEMENTS y APRONS

y SIMPLE APPLICATION 1. ROLL 2. MIX 3. CUT 4. POUR

No tamping required!

Easy to use, mix in the bag patcher for repairing spalls in your asphalt. y Learn more: usa.sika.com/retail

Self levels!

A durable & flexible sealant for filling cracks in your asphalt.

New Products

Beverage Insulator BottleKeeper X is made of stainless steel, lined with neoprene and padded for impact protection. It features a bottle opener built into the tethered cap and is double walled and vacuum insulated. It fits 99 percent of 12 ounce glass bottles.

BottleKeeper bottlekeeper.com

Clothes Drying System The Laundranet is a retractable wall-mounted clothes drying system to air dry hand washable apparel. It installs horizontally above the washer/ dryer, bathtub or from two similar opposing walls. The 24-inch wide netting pulls out up to 72 inches to hold up to 5 pounds of damp clothes flat. Suitable for use in homes, apartments, RVs or any living space.

Laundranet laundranet or 628-259-2162

Weed Killer Gordon’s® Trimec® SPEED Lawn Weed Killer delivers visible results in eight hours. It controls over 250 broadleaf weeds, including dandelion, clover, chickweed, ground ivy, henbit, wild violet and more and won’t harm lawns when used as directed.

One quart of concentrate covers up to 10,600 square feet and homeowners can reseed 14 days after application.

Wall Outlet Charger Leviton’s Dual Type-C™ with Power Delivery USB Charger Receptacle delivers 30-watt charging on a single USB-C port. It features a smart chip and overcurrent protection to protect electronic devices from overcharging.

PBI/Gordon gordonsusa.com or 816-421-4070

Leviton leviton.com or 800-323-8920

Make it Personal

Stamp it Yourself Yourse ImpressAr t.com

May 2020 | HARDWARE RETAILING

27

New Products Paving Stone Pavestone®’s Clayton line of pavers combines the beauty of classic clay bricks with the durability of concrete pavers.

The Clayton line is ideal for patios, walkways, pool decks and other concrete paver surfaces not intended for vehicular use.

They can be installed in stacked, running bond, herringbone and basket weave patterns and are available in red and gray blends.

Pavestone pavestone.com or 404-634-9100

Mailbox Post Designed to be installed over a 4-by-4 post, Kingsley Park Atherton Mailbox Posts feature intricate detailing and rich coloring to mimic the look of handcrafted woodwork without the maintenance. They include universal mounting hardware to fit the mailbox of your choice and stainless steel reinforcement plates to prevent long-term sagging.

Kingsley Park kingsleypark.com or 866-405-5592

Penetrating Oil WD-40® Specialist Penetrant with Flexible Straw features a fast-acting formula with Blu Torch technology to break bonds that hold stuck parts together. It helps prevent rust and corrosion from reforming and leaves behind a lubricating layer. It includes an attached, flexible 8-inch straw that bends and keeps its shape and is ideal for use on nuts, bolts, threads and locks.

WD-40 wd40.com or 888-324-7596

!

T H G I N A Z Z PI S S I IM

Convertible Water Cooler The OASIS® Aquarius Convertible Water Cooler provides hot, cold or room temperature water from either a 5-gallon bottle or by connecting directly to a water line. It features an 11-inch dispense height for large sports bottles and a polymer cabinet. It can deliver 1 ½ gallons of hot water per hour and is NSF/ANSI 372 and Energy Star certified.

Oasis International oasiscoolers.com or 800-646-2747

Toter Bear Tough Carts are built to withstand the baddest bears! Our carts are constructed with our Advanced Rotational Molding process that eliminates the weakness and brittleness associated with other injection molding processes. We’ve armed them with a bear-tight lock, double-walled lid and steelreinforced rim which makes them tough enough to withstand the strongest claws and jaws!

try.toter.com/beartoughcarts .toter.com/beartoughcarts

May 2020 | HARDWARE RETAILING

29

“Midwest Fastener delivered an amazing facelift to our department and backs it up with day in, day out great service.

They truly are one of our premier vendors”.

– Mike Brackin, CEO/Owner, HomCo Lumber & Hardware, Flagstaff, Az. pictured left to right, Todd Callan, Chief Operating Officer & Dan Groth, General Manager

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

Checkouts

Giving During a Global Pandemic

J

effrey Salk ordered about 4,000 protective face masks in January, never dreaming his community would be desperate for them before the full order came in.

The owner of four Salk’s Hardware & Marine stores in Massachusetts and Rhode Island has a friend who works with a manufacturing plant in Wuhan, China, where COVID-19 was first diagnosed. Salk’s friend asked for thousands of protective N95 face masks to send to Wuhan.

Salk put in the order in January and the first 2,000 masks went to help people in China.

“I didn’t think it would become a global pandemic,” Salk says. “It’s just surreal at times.”

By the time he received a delivery of nearly 800 more masks on March 17, he knew his community needed them badly.

“We’re here in a time of need,” Salk says.

“We’ve been here since 1900 and we’re ingrained in the community. Whatever we can do to help the community, that’s what we want to do. It’s not always about making a dollar.”

Salk donated every mask he could to a local hospital, which was looking for the N95 masks because they prevent 95 percent of particles from getting through them. If the rest of his mask order eventually comes in, Salk will donate those to the hospital, as well.

“I have friends in the medical profession,” he says. “I know how hard they’re working and I’ve heard of the risks. I decided to do my own little bit to help them. I wish I could do more.”

“We’ve been here since 1900 and we’re ingrained in the community. Whatever we can do to help the community, that’s what we want to do. It’s not always about making a dollar.”

—Jeffrey Salk, Salk’s Hardware & Marine

Salk’s Hardware & Marine donated hundreds of N95 protective masks to a local hospital.

Invitation for Free Coffee Hartville Hardware in Hartville, Ohio, sells just about anything a customer could need to make a tasty cup of coffee at home. In its housewares department, the store’s coffee bar typically provides free cups of coffee for all.

When the time is right to start inviting shoppers to linger in stores again, other retailers may want to create a free coffee bar following similar ground rules.

“We wanted to make it clean and inviting,” marketing director Katherine Merkle says.

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

Have an idea? Send an email to editorial@nrha.org to have your story considered for publication.

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HARDWARE RETAILING | May 2020

This is what HIGH PERFORMANCE Th t’ Wh Yo looks like

You can’t go wrong recommending Lexel, the No. 2 selling caulk SKU in Hardware and Lumber.

Wonder what it sticks to?

Need a new Lexel Demo Block or POP selling aids?

Call Customer Service 800.767.5656

sashco.com

Beautifying Displays When Belinda Billman began doing some redecorating at Clinton Hardware in Clinton, Maryland, the rest of the staff was skeptical at first. Billman, who is a manager, thought the look and feel of the store had gotten stale, so she brought in antique cabinets to spruce up some of the merchandising.

These days, employees and customers alike admire her handiwork.

I Spy Cuteness The pet department at King’s Ace Hardware in Billings, Montana, has grown over time, becoming a popular destination for pet parents who are looking for animal food, treats and toys. A small bulletin board hung on the side of a cooler in the department adds a personal touch to the area by featuring snapshots of customers’ and employees’ favorite furry friends.

34

HARDWARE RETAILING | May 2020

Half-Finished Business O’Donnell Ace Hardware in Clinton, Iowa, has a chalk paint display that doubles as an eye-catching attraction and a project demonstration. Store manager David Larsen painted a table halfway so one side shows the old wood and the other exhibits the fresh look a coat of chalk paint can give.

“It shows that you can take something that’s old and make it look new,” Larsen says. “It definitely helps sales. It gives people an idea of what they can do without much hassle.”

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

C O V E R

S T O R Y

Making Tough Cuts HOW MANS LUMBER F O U N D S I LV E R L I N I N G S IN TRYING TIMES

BY TO D D TA B E R T TA B E R @ N R H A . O R G

36

HARDWARE RETAILING | May 2020

You’re essential and we’re here to support you.

Access a growing library of news and resources specific to home improvement retailers, including state and federal guidelines, financial and operations advice and best practices tips we’ve collected from other retailers.

hardwareretailing.com/covid

T

o reach 120 years of service, Mans Lumber and Millwork president Doug Mans says you have to be able to adapt to changing circumstances, even if it means making difficult decisions in moments of crisis.

The family business began as a coal delivery outfit in Detroit, but as the Motor City grew, so did the business’s services. Soon, the company’s horses and buggies were hauling lumber alongside coal, helping build the city one structure at a time. Four generations later, the company now offers a full suite of custom molding, flooring and prefab installation services to property owners and builders across Michigan.

But growth has not been an easy ride. As the economic turmoil of 2008 rocked the home improvement and construction business, Mans and his family had to take drastic action to keep the company afloat, even though it meant making sacrifices that cut to the very root of the operation.

As companies of all sizes and from all industries now face their own challenges from COVID-19, Mans describes when he knew he had to move to protect his company, how he made painful choices to stabilize the business and the surprising revelations about team unity he discovered.

As the Bubble Bursts In the mid-2000s, Mans says the business was riding high and operating at its peak. Construction across Michigan was robust, and Mans Lumber and Millwork included six locations and employed 210 people. In 2006, the company hit a financial milestone of $83 million in annual sales.

As Mans Lumber and Millwork was operating at its apex, a toxic mix of subprime mortgages, unqualified lending and failures in financial regulation converged to cause one of the most disastrous financial crises in U.S. history.

Nationally, nearly 9 million jobs were lost as a result of the crisis. In Michigan, the unemployment rate rose to 9.3 percent, nearly triple what it had been in 2000. The effects on Mans’ business were swift and sharp.

“In 2006, life was great,” Mans says. “I had just taken over the presidency of the company after my uncle retired, but things changed quickly.”

The subprime mortgage crisis would eventually impact nearly every industry, but its effects on construction were staggering. From 2004 to 2009, housing starts in Michigan plummeted more than 83 percent.

Sales quickly fell at Mans’ company, eventually hitting a trench in 2009 at $20 million, a 75 percent drop in just three years.

“By the end of 2006, we knew we were in trouble,” he says. “Every month our revenue fell, and even though we had a responsible budget, we just couldn’t keep up.”

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HARDWARE RETAILING | May 2020

The Human Cost Mans says he had weathered economic slowdowns before, but nothing like the Great Recession. As conditions worsened, Mans’ team decided reducing the workforce would be a painful, but necessary, way to stem the tide.

“We started by cutting about 10 percent of our workforce—roughly 20 or 25 people,” he says. “It was never easy, but at that point, you know you have some fluff, you aren’t necessarily getting rid of your all-stars in that first cut.”

To endure the Great Recession, Doug Mans (center) knew letting go of employees and closing locations would be necessary to protect his business’s future, despite how challenging the decisions were to make.

As he made the unfortunate step to let employees go, Mans says seniority was not a huge factor in the decision.

Instead, Mans and his team focused on an employee’s overall utility to the company: Could they adapt to different roles and bring in revenue during a critical time?

“We all had to take on new roles. We all became custodians, cleaning the bathrooms and sweeping the floors,” Mans says. “Everyone learned that being multifaceted and accomplishing different roles was a huge value to the company.”

“One of the silver linings we found was that we were operating with really seasoned veteran employees, and that alone was a benefit in helping retain customers.”

—Doug Mans, Mans Lumber and Millwork president

May 2020 | HARDWARE RETAILING

39

Stress Test Your Business Recognizing your operation’s baseline can help you weather any storm. The annual Cost of Doing Business Study offers retailers direct insight into the performance of hardware stores, home centers and lumberyards. It also delivers helpful metrics to evaluate specific facets of your business, including three listed below. To learn more and participate in this year’s study, visit nrha.org/codb.

Strategic Profit Model This formula helps you evaluate your business performance based on return on investment.

Profit Margin (pre-tax)

X Asset Turnover Return on Assets (pre-tax)

X Financial Leverage

Return on Net Worth (pre-tax)

A typical home center averages 13.3 percent.

Liquidity to Debt Ratio This metric measures a company’s ability to pay its debts as they mature. As a general rule, target 2.0x to 3.0x.

Current Assets

Current Liabilities

Activity to Profitability Ratio Generally, a high turnover rate means good inventory management, while slower turnover indicates too much inventory for the sales it generates.

Cost of Goods Sold

Inventory

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HARDWARE RETAILING | May 2020

Even with personnel cuts, the business couldn’t stop the losses from the economic downturn. The Mans family gathered together to candidly rank every business asset: equipment, inventory and locations. They thought strategically about what was essential for operations, offloading superfluous inventory and selling trucks and lumber equipment.

Mans says the family ranked each of the company’s six locations, deciding which stores could be closed or consolidated in a worst-case scenario. The team learned that by closing one location, they could free up approximately $1 million to use in other areas. They drew a service radius around each location, identifying overlaps and deciding which locations could be closed without sacrificing customers.

Eventually, the business emerged with 60 employees and two locations. It was a long way from its peak just a few years before, but the Mans family knew the business was operating with a lean, agile team.

“One of the silver linings we found was that we were operating with really seasoned veteran employees, and that alone was a benefit in helping retain customers,” he says.

For the team that remained, acting quickly and urgently was vital. Mans printed business cards for every employee and encouraged them to introduce themselves, hoping to create new business with personal contacts.

“The funny thing is, during all this time, our competitors were saying we were going out of business. We were letting people go, selling inventory and closing locations, so from the outside, it looked like that was the case,” he says. “In reality, we were saving the business.”

‘Fighting Together’ As the company operated with a nimble crew, a phone call from an old friend helped motivate Mans. The caller, a former captain of the Michigan University football team, encouraged Mans to think of what he had currently, not what he had lost.

“From that day forward, I knew I was lucky,” Mans says. “I realized we had a better opportunity than 99 percent of the world. We still had a $20 million company and we couldn’t feel sorry for ourselves in that position. We had to change our attitudes from feeling pity to being proud of what we did have.”

The business continued operating under its leaner model, but a golden opportunity was just around the corner. National Lumber of Warren, Michigan, had experienced its own hardships during the Great Recession, dropping from $115

The financial crisis and its impact on housing had a huge effect on Mans Lumber and Millwork’s molding, flooring and prefab installation services.

million in sales to $10 million at its lowest point. Mans and the company’s president talked often about how they could find a way through the downturn.

“I called the company’s owner and said because we’re both struggling for revenue, why don’t we help one another?” Mans says.

The companies had complementary but distinct service models: Mans specialized in outfitting smaller construction companies and home remodelers. National Lumber leaned heavily toward multifamily and new construction.

The companies forged a strategic partnership: In late 2009, National Lumber executives and salespeople joined the Mans team, and as construction slowly returned to Michigan, so did sales.

“With our partnership, we added 50 percent of revenue to our bottom line in one year,” Mans says.

“That partnership allowed us to go from losing money to making money very quickly.”

Now, a decade removed from the darkest days of the recession, Mans is operating with about 150 employees across four locations. Revenue has returned, and the motivation employees felt to steady the ship hasn’t wavered.

“For a while there, it was all hands on deck,” Mans says. “It was absolutely one of the worst times I’ve had with the company, but also one of the best. Every team member understood the urgency of the situation. We were fighting together.”

May 2020 | HARDWARE RETAILING

41

BUILD ON A SOLID FOUNDATION Build your success on the solid foundation of the PRO Hardware program Independent businesses are vital; to the economy, to communities and to the American way of life.

The PRO Hardware and FARM MART retail programs support you as an independent retailer by providing all of the customizable pieces you need to build your success while maintaining the individuality that benefits your community.

As a member of the PRO Hardware and FARM MART programs, you have access to a $6 billion national network of hardware, farm, and lawn and garden distributors. Additionally, dedicated merchandising and marketing teams create innovative and creative advertising materials to help you promote your unique story and manufacturer programs designed to help independent retailers succeed.

Becoming a PRO Hardware or FARM MART retailer gives you access to the tools and knowledge you need to piece together a complete picture of a successful, independent business.

PRO Hardware Distributors: The Bostwick-Braun Co. Toledo, OH • 419.259.3600 Horizon Distribution, Inc. Yakima, WA • 509.453.3181 Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650

Learn more about the PRO Hardware and FARM MART programs by contacting Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com Find us online at www.prohardware.com or www.farmmart.com

GROWING SOMETHING The resources you need to grow your success PRO Hardware and FARM MART are a national network of successful, independently-owned home improvement and farm and ag supply stores. With a national brand presence, you will have all the resources you need to grow your success within your community.

• Customizable resources that allow you to maintain your independence and meet the needs of your local market • A $6 billion network of hardware, lawn and garden, and farm distributors • Marketing and advertising resources including fully customizable circulars, store signage and endcaps, Value of the Month promotions, email marketing, social media and the PRO Hardware and FARM MART websites. It also includes digital tools such as mobile coupons and giveaways, social media and email marketing • Merchandising tools including store signage, endcaps and visual merchandising resources directly from manufacturer partners • Value-added services that provide programs to help your store run smoothly including credit card processing, neighbor welcome packages, SEO and more • Recognition of excellent retailers with the Achiever’s Club and the Paul L. Cosgrave Memorial Award each year FARM MART Distributors: Horizon Distribution, Inc. Yakima, WA • 509.453.3181 Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650

PRO Group Vendor Partners

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HARDWARE RETAILING | May 2020

S P E C I A L

C O V E R A G E

Unexpected Adaptations H OW R E TA I L E R S A R E A D D R E S S I N G C OV I D - 19

BY K AT E K L E I N

Top: In-store signage about social distancing at Weakley-Watson Hardware. Bottom: Hassett Hardware employees follow new safety procedures to protect themselves and customers.

KKLEIN@NRHA.ORG

I

ndependent home improvement retailers across North America have shown their resiliency by swiftly changing how they do business in response to the COVID-19 pandemic.

In most U.S. states and Canadian provinces, governments have deemed businesses selling home repair supplies and building materials to be essential. Retailers are proving why they are so important to their communities as they provide the supplies area residents need for sanitation and home repairs and support their employees in the face of illness and fear.

Implementing frequent deep cleaning, modifying store hours and trying to stock high-demand products were just the beginning of retailers’ challenges.

Business owners in the industry have shared the following stories with Hardware Retailing about how they are functioning amid a public health crisis like nothing they have ever seen.

Protecting the Team

Balancing care for both employees and customers has forced Eric Hassett, owner of five Hassett Hardware stores in the San Francisco Bay Area, to reassess how he does business every day.

Hassett isn’t pushing concerned employees to work, especially if they are particularly vulnerable to contracting COVID-19 due to their ages or health conditions.

“This is a challenging time, and my employees are scared,” he says.

Recently, Hassett closed one of his stores for two days because he didn’t have enough employees available to keep all five locations open safely.

Hassett has furloughed many employees who are 60 and older, those who have pre-existing conditions that put them at risk or are caring for family members in either category so they can receive unemployment benefits while they isolate. To Hassett, that’s part of taking care of his team.

For employees who are willing to staff the stores, Hassett has offered temporary hazard pay raises, paid for team lunches and snacks and allowed them to buy products at cost.

Hassett is looking constantly for balance in keeping employees safe while still providing his community with the products they need. He talks through decisions with other business owners so he can make informed choices for his business and his team.

“There’s a moral quagmire we’re all in,” Hassett says. “Are we putting our employees at risk by having them work? Especially when we’re selling a lot of nonessential things? I struggle with that because I don’t want to put them in harm’s way.“ Through uncertainty, Hassett remains thankful for his community.

“Our community is supporting us and is appreciative of our hard-working heroes, which means we need to keep our team safe and healthy to continue to serve,” he says.

May 2020 | HARDWARE RETAILING

45

Curbside Service

Many retailers are switching to parking lot customer service to reduce the spread of germs in the store and to reinforce social distancing.

For example, O’Donnell Ace Hardware in Clinton, Iowa, takes orders over the phone for pickup. When the customer arrives, employees take their purchases to the parking lot. Manager David Larsen still lets customers in the store, but asks employees to stay 6 feet away from them as much as possible.

“My main concern is doing everything we can to keep our staff healthy and provide the service our customers are used to,” Larsen says.

Joe and Susan Wasko, owners of Wasko Hardware in Keosauqua, Iowa, decided to close their store’s doors to the public in early April after they heard one of their customers had contracted COVID-19.

Their county now has multiple confirmed COVID-19 cases. When a Wasko Hardware customer got so

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HARDWARE RETAILING | May 2020

sick he was flown by helicopter from the local hospital to a larger hospital and put on a ventilator, the Waskos reacted quickly. They set tables outside their store to provide customers with a place to pick up product orders without interacting much with employees.

“He’s a customer we hold dear to our hearts,” Susan Wasko says.

“That really wakes you up when it’s somebody you know who comes to the store regularly. When something like this happens, you put your heads together and make a decision.”

When the Waskos decided to transition to curbside service only, they used Facebook Live to share the news with customers. In less than one week, 2,300 people had viewed the video, reflecting the fact that people beyond their 1,000-resident community rely on their business.

The Waskos now answer customer questions and help diagnose home repair problems at the tables outside the store, but try to keep their distance.

“My main concern is doing everything we can to keep our staff healthy and provide the service our customers are used to.”

—David Larsen, O’Donnell Ace Hardware

They encourage people to make their product orders over the phone, but they still serve customers who come to the store without calling ahead.

The Waskos and their employees fill bags with products and run back and forth between the register inside and the exterior tables to process payments. They place filled bags on the tables or near the front door and ask customers to come and get them.

Joe and Susan Wasko, owners of Wasko Hardware in Iowa, serve customers at a distance outside their store. They closed the interior of the business to shoppers in an effort to protect employees and shoppers from spreading COVID-19.

Employee Ava Dishke works behind a plastic shield at the checkout counter at Grand River Home Hardware in Caledonia, Ontario.

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HARDWARE RETAILING | May 2020

“Whoever answers the phone gets that customer’s order ready, bags and tags it, and we put it by the front door,” Susan Wasko says. “If we see a customer come up to the front door, then whoever’s there waits on them.

I’m just so thankful we can stay open.”

Grand River Home Hardware in Caledonia, Ontario, and Sayer Home Hardware in Hagersville, Ontario, are also primarily offering curbside service.

Customers aren’t allowed inside the store, unless they have an urgent need that can only be resolved in that manner. When that is the case, the stores allow one customer in at a time, which was implemented according to a government mandate.

“I never thought we’d do something like this,” owner David Dishke says.

For the most part, employees take product orders online and via phone or email, then allow customers to pick up their orders in the parking lot.

“We are still trying to provide our customers with the products they need and the best service we can

during such challenging times,” co-owner Deanna Dishke says.

Through the stores’ Facebook and Instagram accounts, the Dishkes keep customers up to date on changes, such as the fact that the stores have temporarily stopped accepting product returns.

“We are hugely reducing the risk by all the steps we’re taking,” David Dishke says. “It’s like putting armor on. I’m doing what I can to reduce the risk to the staff with the supplies we have.”

More Business Changes

Spring and summer are busy for Missouri-based Thorne Lumber Co. due to the company’s professional customers, who are continuing to build the projects they started prior to government shutdowns and other responses to COVID-19.

Chief operating officer Brett Thorne has set up new protocols to protect his staff. He had plexiglass guards installed at the checkout counters to

protect retail customers and staff and he reorganized how employees work in the lumberyards so they aren’t exposed to other people much on the job, just in case someone gets sick.

“We are no longer putting employees next to each other in delivery vehicles, meetings or other settings,” Thorne says. “Each one of the counties where our operations are located has COVID-19 cases.”

Adam Taylor with Trust Hardware in Lawrence, Indiana, and his staff have been making more deliveries than prior to the pandemic.

“We’ve been delivering to people who are either too scared to leave or are not able to leave home,” Taylor says.

His team has also been taking products to people waiting outside the store in their cars so they don’t have to enter the building.

The staff at Village True Value Hardware in East Hampton, New York, also serves an increasing number of customers who are asking for home delivery and curbside pickup. Some

shoppers want orders to be loaded in their vehicles for them at the store so they have minimal interactions with staff.

Village True Value customers’ anxiety seems similar to how they react during hurricanes, except COVID-19 doesn’t have the familiar pattern of the storms that come to the area, says manager James Boyd.

“It’s like a hurricane that never ends. We’re trying to keep people calm,” he says. “We live here.

These people matter.”

Weakley-Watson Hardware owner Weston Jacobs is also doing business differently in response to the virus in in Brownwood, Texas.

Out of necessity, he has implemented a no-handshake policy for his staff, which most customers have understood as a safety measure.

“We have become more of a self-service type store, pointing people where to go and running a lighter staff,” Jacobs says.

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O P E R A T I O N S

How to Survive a Crisis 3 EMERGENCY PREP PLANS FOR YOUR BUSINESS & COMMUNITY

BY H E AT H E R K A U F F M A N - P E T E R S

N

ormally at this time of year, retailers would be planning for the unpredictable spring season that often brings severe thunderstorms, tornadoes and hurricanes.

But nothing is normal about the second quarter of 2020.

Home improvement retailers know they are lifelines to products and services that protect and restore communities, even when their stores and employees have been affected.

In 2006, a tornado destroyed a Missouri lumber company, but the operation was opened in temporary trailers the next day to supply the people and businesses in the damaged community. After Hurricane Katrina, a Mississippi store stayed open for five 12-hour days without electricity in order to serve their ravaged community.

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HARDWARE RETAILING | May 2020

These stories are indicative of the resourcefulness and dedication of retailers in this industry. These workers now find themselves serving on the front lines of a once-in-a-century pandemic that has completely changed how many businesses can operate in a short time frame. How do companies handle an emergency of this magnitude without any prior experience? They do it with the same creativity and dedication they would apply to any emergency.

In this article, find best practices for preparing for or adapting to crises. Then, read stories of how retailers have adapted their operations to continue serving their communities at hardwareretailing.com/covid.

PA R T 1

Take Action During the Current Crisis In most areas, home improvement stores have been deemed essential businesses and can continue to operate, placing even greater responsibility on retailers when much is unknown. To keep everyone safe, having a plan is critical.

The best response to the unexpected is to be informed and make a plan as soon as possible, even if it changes frequently. Many retailers who initially worried about keeping toilet paper, hand sanitizer and cleaning supplies in stock have since implemented detailed pandemic plans for keeping stores clean and customers safe. Read some of the plans here and share your own solutions with the Hardware Retailing team at editorial@nrha.org.

F O R YO U R S TO R E Clean high-touch surfaces, like credit card machines and carts, every hour or after each use Limit the number of customers allowed in the store at one time

Install plastic barriers at the cash registers to reduce the spread of germs at checkout counters

Mark spots on the floor inside or on the sidewalk outside to encourage customers to stand 6 feet apart in lines

Do your best to accommodate high-risk employees or those who take care of people who are

Offer hazard pay, bonuses, meals and other incentives to help employees feel motivated and valued while they work

F O R YO U R S TA F F Set timers to remind employees to wash hands regularly Provide gloves and masks to employees; check local requirements about when to wear them

F O R YO U R S H O P P E R S Communicate through in-store signage, social media and other avenues when you are out of stock or have a fresh delivery of high-demand items, such as paper products, disinfectants and masks

Implement different approaches to customer service, such as offering curbside pickup, deliveries, or expanding your delivery radius

Find alternative sources for products and track changing needs

May 2020 | HARDWARE RETAILING

51

PA R T 2

Create a Readiness Plan Home improvement operators, due to how important their products, expertise and services are to communities during emergencies, need to plan well to serve their communities during times of need. Below are suggestions from the Department of Homeland Security for creating a general business preparedness plan to help your operation and employees be ready.

Know the Common Risks

Find a Backup Location

Be aware of the natural disasters that are common in your area and determine other potential hazards to your business, including human-caused and technological crises, such as extended power outages and hacked data. Create a plan for each scenario.

Create a continuity of operations plan in case your building is inaccessible. Many retailers have successfully moved operations into nearby trailers or elsewhere on the property.

Consider making arrangements with another business to use their facilities during a disaster.

Identify Who Can Help

Plan for Escape and Shelter

Make a contact list that includes suppliers, backup suppliers and local contractors you can seek help from during an emergency.

Be sure the list stays current.

Develop clear, thorough evacuation and shelter-in-place plans that can be quickly accessed and understood by anyone during different types of disasters.

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HARDWARE RETAILING | May 2020

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Know Your Systems

Keep Your Plan Safe

Identify operating systems critical for recovery, including emergency payroll and accounting systems necessary for paying bills and tracking and documenting expenses during a disaster.

Keep electronic backups of your emergency contact list and other important documents, but also store them in an emergency kit off-site, in case one type of backup is more accessible than the other.

Plan and Practice as a Team

Assess the Necessities

When developing an emergency plan, include all employees in the planning.

Review the plan annually and conduct drills. Make sure everyone understands the procedures and what each individual’s responsibilities are.

Determine which employees, procedures and equipment are imperative to keep your business operational. When possible, make backup plans so a single employee’s vacation or health crisis does not hinder your company’s emergency response.

Map Out Your Operation

Assign Key Roles

Create a site map of your business that includes access to utilities, protection systems and emergency equipment and shows access roads, parking areas, outbuildings and entrances. Share a copy with local emergency service providers and with employees responsible for building management and security.

Create a succession of management that includes at least one person not located at the store or headquarters who can serve as a contact for customers and employees in case phone lines at the store are down or to manage other communications and logistics.

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PA R T 3

Become a Community Resource With plans in place, home improvement retailers can help their communities prepare for or respond to emergencies. Tornadoes, snowstorms, hurricanes and floods can displace residents from their homes or interrupt critical utility services, while biological hazards, like COVID-19, can isolate people with only limited supplies. Below are three ways retailers can help customers prepare for emergencies before they happen.

01 Create a Niche Once a state of emergency is declared, products such as batteries and flashlights will fly off the shelves. However, many other items could be in high demand. To best serve your customers who are likely coming for specific items, create a display of items that customers will need during and after a severe weather event or other crisis. Include water purification tablets or tools, rain ponchos, emergency blankets, first-aid kits and hand-crank radios with USB outlets in your standard inventory.

02 Host Readiness Workshops Retailers can also provide informational services that help their communities get ready for common disasters. As severe-weather seasons approach your region, host workshops showing homeowners how to prepare their properties for storms or flooding or how to put together emergency kits that include all of their families’ needs. Also, consider teaming up with local emergency responders or the American Red Cross to provide additional guidance or organize a class in first aid and CPR.

03 Provide a Checklist When emergencies loom, many consumers race to buy supplies to keep themselves comfortable and safe. Retailers can help by providing a list of necessary supplies. The Federal Emergency Management Agency (FEMA) has a comprehensive emergency supply checklist that offers examples of what people need during a disaster. Retailers can hand out the list to customers and use it to create a disaster preparation product niche. See FEMA’s emergency supplies list on Page 55.

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HARDWARE RETAILING | May 2020

F E M A E M E R G E N C Y S U P P LY

CHECKLIST S A F E TY

NOUR ISH MENT

First-Aid Kits

Food & Water Supply

Simple kits with bandages and antibiotic ointment

A three-day supply of nonperishable food items, including dehydrated and freeze-dried goods

Complex kits that can be used for severe injuries

Water purification tablets, liquids or tools

At minimum, a three-day supply of prescription medications

Collapsible water containers

OTHE R S AF E TY IT E MS

EQUIPMENT

Protective Supplies

Tools & Shelter

Dust mask for filtering air

Emergency blankets and rain ponchos

Moist towelettes for sanitation

Hand-crank or battery-powered radios Emergency whistles

MIS C E L L ANE OUS

General Needs Wrench or pliers for turning off utilities Can opener Garbage bags

Hand-crank flashlights, light sticks or battery-powered flashlights Duct tape and tarps or plastic sheeting for sheltering in place Waterproof containers for items like medication, matches and critical documents

Three-day supply of pet food Sturdy shoes and extra clothing

To download and print this checklist, go to TheRedT.com/emergency-checklist.

Cash

May 2020 | HARDWARE RETAILING

55

C A T E G O R Y

S P O T L I G H T

If They Had a Hammer THE DATA YOU NEED TO BREATHE NEW LIFE INTO YOUR HAND TOOLS CATEGORY

BY JERRY RABUSHKA

H

and tools often represent one of the most reliable categories in a home improvement store. Whether a young couple is moving into a new home and building up their supply of DIY tools or a pro needs a replacement for their go-to wrench, hand tool sales are some of the most common purchases at home improvement stores.

However, new data from the Home Improvement Research Institute (HIRI) shows that among core categories, hand tools have shown one of the most substantial drops in purchase rates over the past five years. Use the hand tools data found on the following pages to learn who is buying hand tools and the strategies you can use to grow this staple category.

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HARDWARE RETAILING | May 2020

May 2020 | HARDWARE RETAILING

57

Who’s Buying Hand Tools?

The Deciding Factor Why customers buy hand tools: Competitive price: 51% Already in store to buy other items: 36% Convenient location: 25%

Give Them a Hand Category top-performers:

With HIRI’s data, you can get a better view of who your hand tool customers are. By recognizing who you’re selling to, you can expand your marketing efforts to capture sales from previously underserved consumer segments.

The research shows men are twice as likely to purchase hand tools as women, but as women complete more DIY projects, that figure could fluctuate.

Incorporating images of women using hand tools in your in-store signage and digital outreach could be a key way to encourage women to shop for hand tools at your business.

HIRI’s research shows the largest purchasing group of hand tools is 35-54 years old, and the average purchaser is 48. This data suggests older customers and younger customers are less likely to buy hand tools, meaning if you formulate specific marketing outreach to address these potential customers, you could boost your operation’s overall hand tool sales.

Living on the Margins Utility knives

Screwdrivers

Hammers

Measuring tools Source: 2018 Product Tracking Study, Home Improvement Research Council

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HARDWARE RETAILING | May 2020

Many hand tools have low margins, meaning cutting prices further to boost sales could be a shortsighted strategy. To keep hand tool sales strong, try adopting some strategies to keep your hand tools merchandising enticing and relevant to your customer base.

Incorporate hand tools into your full-project merchandising tactics. Asking customers about the projects that bring them into your store will help you suggest hand tools to add to their arsenal.

By recommending useful, durable products, you’ll become a reliable, knowledgeable partner for the customer.

Once you have your customer engaged, you can quickly build trust and recommend a suite of tools not only for the immediate project the customer is working on, but also for their day-to-day needs as a homeowner or renter.

Check It Twice

Even if customers don’t arrive at your store with a list in hand of the specific hand tools they need, you can help them identify key hand tools to add to their at-home toolbox.

If you’re helping customers build their supply of tools, be sure to explain the importance of each specific tool. When customers hear a thorough explanation of what different tools can be used for, it can unlock new project possibilities in their mind and net your business long-term recurring sales.

Don’t sell customers items they don’t need, but ensure they leave with a comprehensive toolkit to weather any DIY storm. By connecting them with as many useful tools as possible, you’ll build trust and keep sales at your business—not a competitor’s.

Even though hand tools may be old hat for you, for many younger customers, they could be truly unknown. Viewing hand tool sales as an entryway with young customers is a solid strategy that can position your independent home improvement store as a reliable partner for them. When they’ve had a good experience buying a top-of-the-line hand tool from you, they’ll probably remember your business when it comes time to tackle a more involved DIY project.

Invest in the Staples

Hand tools may not be the most exciting category on your floor, but they do represent the backbone of many home improvement operations. Taking time to ensure hand tool sales are solid and stable is a simple way of anchoring your business as a trusted go-to partner for your community.

Many younger customers often turn to local handyperson or repair services for simple DIY fixes, but by holding hand tool demos at your business, you can empower them to tackle simple projects themselves and turn to you for the tools to make them possible.

Get a Handle on the Data Having the Conversation Remind staff to ask customers questions that start a conversation.

Replace “Can I help you find something?”

With “What project are you working on today?”

Replace “Do you need a hammer?”

With “Have you seen how durable this new model is?”

Replace “This wrench works great.”

With “This wrench is designed for comfort and safety.”

Get the Word Out Thinking creatively on how to market hand tools can boost your business in the long run.

Contact your supplier to hold a customer-focused, in-store hand tools demo.

Develop an e-blast that outlines the safety risks of relying on old hand tools.

Advantage: Independents While e-commerce is quickly gaining traction, hand tools are most often purchased at brick-and-mortar locations.

19% of customers research hand tools online, but only 10% buy them online.

Post videos of your staff using new hand tools, highlighting their safety and comfort features.

May 2020 | HARDWARE RETAILING

59

05

RESOURCES

DOCUMENTS

ADVISERS

COMMUNICATION

NUMBERS

What’s Your Number The 3 Metrics You Need to Know to Carry Out Your Plan

I

ndependent retailers have been voluntarily submitting their financial data to the North American Retail Hardware Association (NRHA) for more than 100 years to aid in the development of the annual Cost of Doing Business Study. This industry resource gives operators of hardware stores, home centers and lumberyards the medians of specific metrics that are crucial to running a more profitable business.

According to Castle Wealth Advisors president and CEO Gary Pittsford, there are three metrics that are critical for a retailer to understand about their operation before they can embark on a profitable succession plan: gross margin, payroll expenses, and occupancy costs. Ensuring these metrics are balanced before selling your business will help you receive top dollar.

In this installment of Hardware Retailing’s yearlong succession planning series, learn why these metrics are important to review and how the NRHA Cost of Doing Business Study can keep you on the right track.

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

Participate in the 2020 Cost of Doing Business Study Visit nrha.org/codb to find out how you can submit your data to be included in the 2020 Cost of Doing Business Study. All information remains completely confidential. Contribute your data for a free copy of the study and a Personalized Financial Analysis to help you determine the areas in your business that you need to focus on to get the most value out of your succession plan.

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HARDWARE RETAILING | May 2020

IN A PINCH

Gross Margin After Rebate

Typical

High-Profit

40.0

25.6%

27.7%

31.6%

10.0

34.4%

20.0

43.7%

30.0

39.8%

% of Net Sales

Boost your gross margin. Pittsford says increasing your gross margin by 1 or 2 percentage points over a 12-month period can be the key to increasing the value of your business. Talk to your wholesale representative and vendors to find out what tools are available to help you evaluate your margins in certain departments or on specific products. Also, be sure to price-shop competitors in your market. You may be keeping margins low on items that would still be competitively priced with higher margins.

50.0

0.0

Hardware Stores

Home Centers

Lumberyards

Payroll Expenses 25.0 20.0

14.3%

5.0

16.2%

17.4%

18.6%

10.0

19.2%

15.0

20.4%

% of Net Sales

Rein in expenses. Adjusting your gross margin won’t be effective if you don’t also control your largest expenses. Payroll and benefits are often the most significant expenses. Find out how you may be able to save on insurance costs for your whole team at nrha.org/health-insurance. To reduce other payroll expenses, Pittsford recommends developing a job description for every position and assessing their salary. Consult the U.S. Bureau of Labor Statistics to determine the average wage for specific positions by state.

0.0 For industry-specific data on employee compensation, visit nrha.org/employee-compensation to access the 2017 Employee Compensation Report.

Hardware Stores

Lumberyards

8

Occupancy Expenses

Hardware Stores

Home Centers

1.5%

0

1.4%

2.6%

5.2%

2

5.8%

4

6.6%

6

% of Net Sales

Reduce your occupancy costs. The next most significant expense for retailers is occupancy costs: rent or mortgage, utilities, and building repairs. There are some occupancy expenses that are difficult to adjust, but even making small changes can make a difference. Call your utility companies and ask about available promotions, such as discounts for being a long-time customer or operating a small business. Look into retrofitting the store with LED lighting to save on electricity costs.

Home Centers

Lumberyards

Data source: 2019 Cost of Doing Business Study, North American Retail Hardware Association

May 2020 | HARDWARE RETAILING

61

LEADERSHIP In this three-part series, we will highlight the lessons retailers have learned from leadership development and management programs inside and outside the industry.

BY MELANIE MOUL | MMOUL@NRHA.ORG

Leading Through Change Recognizing an Opportunity in Uncertainty

S

ometimes it takes hardship to realize the potential to succeed. Hardship—and a little coincidence—led Cody Goeppner, retail manager at Bleyhl Co-op in Washington state, to completely rethink his career plans in 2017.

After college and brief careers in theater and restaurant management, Goeppner moved home to southern Indiana to serve as a manager at his family’s business, Muller True Value Hardware, although it wasn’t one of his initial career goals.

“Growing up, I never wanted to be involved in the family business,” Goeppner says. “But I realized what a great opportunity I had there.”

To better prepare him for his new role, his mom and Muller True Value co-owner enrolled him in the NRHA Retail Management Certification Program (RMCP).

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HARDWARE RETAILING | May 2020

“When I got to the first class meeting, I thought I was so unqualified. I was a 20-something manager in a room of operations managers and vice presidents with years of industry experience,” Goeppner says. “But by the end of the first class meeting, we had made lifelong connections that we still rely on today. We all brought something valuable to the conversation, no matter what our level of experience.”

Clearing Up the Future

After Goeppner completed the program, he returned home to Muller True Value only to have his entire future upended a few weeks later: His mom and grandparents decided to close the store.

“Closing a family business may seem like the end to some people,” Goeppner says. “But it felt like a bigger opportunity to me.”

RMCP Takeaways Program NRHA Retail Management Certification Program

Cody Goeppner Bleyhl Co-op 4 Locations Eastern Washington

Sessions Three in-person class meetings in 6 months Key Audience New to experienced managers

That bigger opportunity was sowed through a connection Goeppner made in RMCP. Bleyhl Co-op CEO Dan Morano had met Goeppner at the final class session and was impressed with his zeal for the industry. After learning Goeppner’s career plans had changed when his family business closed, Morano invited him out to tour Bleyhl and offered him a position to develop the farm store’s retail operations. Goeppner quickly earned the respect of his new co-workers, and he knew he had Morano’s support to enroll new Bleyhl managers in RMCP to further develop their skills and knowledge.

Today, Goeppner has sponsored three other Bleyhl managers through the program, with more on the horizon.

“There’s just nothing like this program out there,” he says.

“It covers every aspect of the business and is applicable to so many different kinds of home improvement operations. I know when I send my team through RMCP, they are going to grow from the experience, and they’re going to come back to the store with new ideas and a new passion.”

Learn more than just retail operations knowledge.

“If I didn’t go through that training, I wouldn’t be where I am today. The class brought out what was already inside me, and it so easily translates to different types of operations.

No two operations do things exactly the same way, but this program brings them all together in humbling and exciting ways.”

Better understand yourself and your team.

“RMCP helped me be more intentional about delegating tasks. You can hand the same project to different people and they will all complete it differently. What I learned is that you need to give projects to the key people who can take them across the finish line. When you’re able to know the strengths and opportunities of yourself and your team, that’s huge.”

Gain a new perspective mentoring your managers.

“We’ve been fortunate to send three managers through the program. I have served as a mentor, helping them develop their business improvement projects. Being a part of that is awesome because I get to see someone else’s perspective. They all came back from their first visits on fire, and it reignited it in me because I remembered how that felt.”

Additional Opportunities NRHA has development programs available for staff members at every level of your organization.

Foundations of Leadership This 16-week online course is geared toward developing new managers. Visit nrha.org/rli for details.

Online Basic Training From general project knowledge to basic accounting, these courses cover the gamut. Go to nrha.org/online-training to see what’s available.

Since joining the management team at Bleyhl Co-op in 2017, Cody Goeppner (left) has mentored (from left to right) Roman Chavez, Kattie Blanchard and Victor Garcia through the NRHA Retail Management Certification Program.

Want to find out how the NRHA Retail Management Certification Program can inspire your team? Visit nrha.org/rmcp or contact Scott Wright at swright@nrha.org.

May 2020 | HARDWARE RETAILING

63

Newsmakers

Understanding the Paycheck Protection Program

T

he Coronavirus Aid, Relief and Economic Security (CARES) Act allocates nearly $350 billion to small businesses that have been adversely affected by the COVID-19 pandemic. One of the most important segments of this legislation is a new loan program from the Small Business Administration (SBA) called the Paycheck Protection Program (PPP).

Certified financial planner Gary Pittsford breaks down what PPP means for your home improvement store.

The Finer Points of PPP Home improvement stores with fewer than 500 employees are eligible to receive PPP loans, which can be forgiven if borrowers meet certain conditions. PPP loans can be used to cover payroll costs, group health insurance premiums, salaries, rent, mortgage interest and utilities.

The single largest benefit of a loan issued under this program is the possibility of having all or a portion of the loan forgiven. In order for the loans to be forgiven, your business must maintain the same number of employees (or equivalents) from Feb. 15 through June 30, 2020 as it did during either the same period in 2019, or from Jan. 1, 2020 until Feb. 15, 2020. To the extent this

requirement is not met by business owners, the amount eligible for forgiveness will be reduced ratably.

To calculate how much money your business can borrow, multiply your operation’s average total monthly payments for payroll by 2.5 during the period beginning Feb. 15 to March 1, 2020. That figure must be spent over the next eight weeks and at least 75 percent must be spent on meeting payroll. Operators in high-rent areas should note that only 25 percent of the total borrowed amount can be spent on rent or utilities.

Finally, repayments from loans made under PPP will be deferred for a period of not less than six months and no longer than one year.

The “trigger” for a company to begin to be eligible for the credit is either that operations of the company have been fully or partially suspended during a quarter as a result of governmental authority or a quarter in which the revenue in 2020 that has less than half of the revenue from the same quarter in 2019. Remember when calculating the business income for the quarter, the stipulation refers to the gross revenue for the quarter and not profit.

Gary Pittsford is president and CEO of Castle Wealth Advisors. Castle specializes in helping families and closely held business owners with valuations, succession planning, estate and income tax analysis and retirement income projections. For more information visit castle3.com or email gary@castle3.com.

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HARDWARE RETAILING | May 2020

Find Business Resources Visit hardwareretailing.com/covid for more resources to protect your business.

Industry Events In light of the COVID-19 pandemic, many industry events have been canceled or postponed.

• VIRTUAL EVENT: House-Hasson Summer Dealer Market June 18-20 • VIRTUAL EVENT: PRO Group Inc. 2020 Group Merchandising Conference June 22-24 • POSTPONED: National Hardware Show and the NRHA All-Industry Conference New Date: September 1-3

The following upcoming events are currently scheduled to take place as intended. Visit TheRedT.com/calendar for more information about canceled or postponed events and for news on managing your operation. Contact editorial@nrha.org with questions, concerns or ideas to share with your peers.

• United Hardware Fall & Winter Buying Market June 26-28

Follow NRHA & Hardware Retailing on social media for updates. @nrha_official @hardwareretailing

Ad Index Brave ......................................................................... 13 www.braveproducts.com/HRM; 866-281-4421

Ironclad Performance Wear Corp.............................. 23 www.ironclad.com; 844-996-5664

Rust Patrol................................................................. 53 www.rust-patrol.com; 803-396-8400

Coles Wild Bird Products Co. .................................... 19 www.coleswildbird.com; 877-426-8882

Kness Mfg. Co. Inc...................................................... 3 www.kness.com; 800-247-5062

Sakrete ...................................................................... 11 www.sakrete.com; 866-725-7383

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

Lighthouse for the Blind............................................ 26 www.rapidfix.com; 800-542-3697

Sashco ....................................................................... 33 www.sashco.com; 800-767-5656

Dutton-Lainson Company.......................................... 52 www.dutton-lainson.com; 402-462-4141

Lumax........................................................................ 24 www.lumax.com; 844-660-6876

Shurtape Technologies, LLC ..................................... 35 www.frogtape.com; 800-321-1733

Flame Engineering..................................................... 34 www.RedDragonTorch.com; 800-255-2469

Maxim........................................................................ 13 www.maximmfg.com/HRM; 888-376-0849

Shurtape Technologies, LLC ..................................... 49 www.T-RexTape.com; 800-321-1733

Fluidmaster.................................................................. 5 www.fluidmaster.com; 800-631-2011

Mi-T-M Corporation ................................................... 22 www.mitm.com; 800-553-9053

Sika ............................................................................ 25 usa.sika.com; 201-933-8800

Franmar Inc. .............................................................. 48 www.franmar.com; 800-538-5069

Midwest Fastener ................................................ 30-31 www.fastenerconnection.com; 800-444-7313

Stihl...........................................................................IFC www.stihlusa.com/dealers; 800-467-8445

Hardware Retailing Covid Resource.......................... 37 www.hardwareretailing.com/covid

NRHA Online Training Courses ................................ 67 www.nrha.org/membership

Turfco ........................................................................ 13 www.gnedi.com/turfco-rental; 800-822-0295

Hardware Retailing Podcast ...................................... 52 www.TheRedT.com/pod

Orgill Inc. ............................................................ 68-IBC www.orgill.com; 800-347-2860

U-Haul.......................................................................... 9 www.uhaul.com/hardware1; 800-468-4285

House-Hasson Hardware Co. ...................................... 7 www.househasson.com; 800-333-0520

PLYLOX Hurricane Window Clips ............................. 47 www.plylox.com; 800-583-4289

Wagner ........................................................................ 1 www.wagnerspraytech.com; 800-328-8251

Howard Products Inc................................................. 46 www.howardproducts.com; 800-266-9545

PRO Hardware ..................................................... 42-43 www.prohardware.com; 303-792-3000

Wastequip ................................................................. 29 try.toter.com/beartoughcarts; 800-424-0422

Impress Art................................................................ 27 www.impressart.com; 631-940-9530

Rescue Sterling International Inc. ............................ BC www.antbaits.com; 800-666-6766

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

Iron & Oak ................................................................. 13 www.ironandoak.com/HRM; 866-281-4509

RMR Brands .............................................................. 28 www.RMRsolutions.com; 866-822-8744

May 2020 | HARDWARE RETAILING

65

Last Word

4 Ways to Reduce Stress

Y

ou may be focusing right now on running your essential business, spending time with your family and (hopefully) getting some sleep, but it’s important to slow down and decompress.

Here are some strategies from the American Psychology Association to take care of yourself during this challenging time. For more self care resources, head to TheRedT.com/self-care.

01 Take a media break.

Sometimes reading too much news or scrolling through comments on social media can contribute to stress. Schedule time to gather the need-to-know details, but don’t spend more time than you need. The Hardware Retailing weekly newsletter is prioritizing COVID-19 news and updates for the foreseeable future.

Subscribe at TheRedT.com/subscribe to get everything in one place.

02 Leave work at work.

Empower other managers to make decisions when you aren’t in the store, and post answers to FAQs (whether staff or customer questions) in the break room so information is easily accessible.

Head to hardwareretailing.com/covid to access operations resources to help navigate business during the pandemic.

03 Prioritize family and self.

Like most families right now, if you’re not working at your essential business, you are all home together. Eat meals together and plan activities, like movie nights or indoor camping to make it easier.

Set aside time for yourself, too. Listen to a podcast, read a book or just head to bed a little early. It’s OK to say you need some space.

04 Remember to breathe.

According to Scientific American magazine, several studies indicate how deep breathing exercises can mitigate stress, help with insomnia and overall improve your emotions. As time allows while you’re working, take breaks for a few deep breaths and encourage your staff to do the same. Search for deep breathing videos online if you need to take guided meditation breaks.

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HARDWARE RETAILING | May 2020

Access 10 Online Training Courses for Free from NRHA Train your staff on product knowledge, project selling, customer service, inventory management, loss prevention and more.

Get free access through May 31.

nrha.org/membership

Scott Ward Fix & Feed Hardware Texas

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