Issuu

Serving Hardware, Home Center & Building Material Retailers

Facing the Challenge Smart Solutions from Small Spaces 42

How Power Tools Have Gone High-Tech 52

VOLUME 211 • ISSUE 5 • NOVEMBER 2016 • HARDWARERETAILING.COM

Making the Most of Small Business Saturday 62

WEBSITE

JOIN MAILING LIST

FACEB

Independence and Growth “Orgill Allows Us to Customize our Business.”

“Orgill has always been very supportive of us. You’re more independent when you’re dealing with Orgill.” Susan Elmore l Buzick Lumber & Home Center, Kentucky l An Orgill customer since 1992

Freedom

Expansion

“Orgill helps us adapt to our market and they don’t require

“Orgill was instrumental in getting us into rental. We

us to post their signs or run their circulars if we don’t want

worked with Orgill about 10 years ago to launch the

to. The freedom Orgill provides allows us to customize our

rental program, which now contributes about one-third of

product mix and advertise specifically for Bardstown and

our profits.”

the surrounding communities.”

Cutting Costs, Growing Profits Reliability

“Orgill’s recent Market Driven Retailing study will help

“I know I can count on my Orgill deliveries to be on time and

with updating our pricing to improve profit margins. They

accurate, so we are better able to manage our inventory.

looked at our competitors, and will help us earn more

They also don’t charge any hidden service fees.“

margin and be more competitive at the same time.”

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

Buzicks_Single Page.indd 2

10/18/16 11:14 AM

Facing th Challenge

Smart Solutions from Small Space

Stay connected wherever you are. Now Hardware Retailing magazine has a companion. Meet the HR Mobile App, which gives you access to the latest industry news and Hardware Retailing’s online exclusives including photo galleries, videos, quizzes and selling guides. Don’t have time to read while you’re on the run? Save your favorite articles on the app and access them later. Find HR Mobile in Google Play and the Apple App Store, or go to www.hardwareretailing.com/hr-mobile.

VOLUME 211 • ISSUE 5 • NOVEMBER 2016 • HARDWARERETAILING.COM

BOOK

ADVERTISE

Serving Hardware, Home Center & Building Material Retailers

Speak up. Join NRHA for this one-day event to share feedback with manufacturers and distributors on how to work more closely with the independent channel. It’s FREE for retailers to attend. Thursday, Dec. 8 | Chicago HardwareRetailing.com/SOIC

2015 2016 STATE OF INDEPENDENTS OF INDEPENDENTS CONFERENCE CONFERENCE

he e

In 60 days, you may need to make an important health insurance decision. Have you considered your options? Health insurance can be tricky, but the North American Retail Hardware Association is here to help. We offer an alternative program with a range of coverage options.

es 42

AD #4 How Power Tools Have Gone High-Tech 52 Making the Most of Small Business Saturday 62 To learn more, please contact Bob Chiesa at 888-201-7408 or cbigi@msn.com.

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VOLUME 211 • ISSUE 5 • NOVEMBER 2016 • HARDWARERETAILING.COM

Making the Most of Small Business Saturday 62

To learn more, please contact Bob Chiesa at 888-201-7408 or cbigi@msn.com.

NEXT MONTH

The State of the Industry

et ready to look at some numbers. In the December issue, we will be examining the facts and figures of the independent home improvement industry with our annual Market Measure report. We’ll present data collected for the 2016 Cost of Doing Business Study, as well as financial benchmarks and distributor performance data. You can also find an update

on the housing market and see what the big boxes are doing. This information can help you gain a better understanding of the larger industry and how your business stacks up against the competition. We will also zero in on babyproofing and childproofing the home. We’ll provide suggestions of what products you may want to stock to keep homes safe for all.

When it comes to demanding jobs, the pros demand CHANNELLOCK ®. Since 1886, we’ve been earning our reputation for quality and reliability – one tough tool at a time.

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November 2016 | HARDWARE RETAILING

Headquarters Staff

PUBLISHING PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek

NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. FEATURED BOARD MEMBER

COMMUNICATIONS

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

DIRECTOR OF COMMUNICATIONS Whitney Daulton FEATURES EDITOR Liz Lichtenberger ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein CONTRIBUTING EDITOR-NEW PRODUCTS Marci Taschler

HEADQUARTERS STAFF PRESIDENT AND CEO Bill Lee

SENIOR DESIGNER Lynnea Chom

CONTROLLER David Gowan

GRAPHIC DESIGNER Graeme Haase

EDUCATION

WEB DEVELOPER Kevin Trehan

TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org

PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar

MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9435, kstokes@nrha.org

SALES AND PRODUCTION ASSISTANT Freda Creech

RETAIL LEADERSHIP INSTITUTE

CIRCULATION

EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9430, swright@nrha.org

CIRCULATION DIRECTOR Richard Jarrett

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

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

NRHA VENDOR PARTNER

PHONE 314-432-7511 FAX 314-432-7665

VENDOR INTEGRATION MANAGER Marci Taschler

SALES

NRHA CANADA

VICE PRESIDENT OF SALES Bob Cutter

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

STATE AND REGIONAL ASSOCIATIONS MICHIGAN RETAIL HARDWARE ASSOCIATION Patrick Harrington, 603 S. Washington Ave., Lansing, MI 48933; 517-394-1710; Fax: 517-394-6754 MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS,FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; Alaska, Idaho, Ore., Wash. SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas

WHAT MEMORY DO YOU HAVE FROM YOUR UPBRINGING IN THE HARDWARE BUSINESS? My mom is from the United States, so I remember going on many vacations there from Canada. Every time we took a trip to the states, my Dad wanted to visit hardware stores and get ideas.

MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, Ill. 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com

CHAIRMAN OF THE BOARD James Cabirac, Kief Hardware, Cut Off, Louisiana

WEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, Ill. 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com

EXECUTIVE VICE CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas

NORTHEAST REGION MANAGER Brian Ziff, 17 Cutler Knoll, Watertown, Conn. 06795; 203-509-0125, Fax: 317-275-9406, bziff@nrha.org

FIRST VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana

GREAT LAKES REGION MANAGER 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9400, Fax: 317-275-9403, sales@nrha.org

SECOND VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin

SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org

THIRD VICE CHAIRMAN Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois

CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2016 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher.

HARDWARE RETAILING | November 2016

David Dishke, president of Grand River Home Hardware in Caledonia, Ontario, and Grimsby Home Hardware in Grimsby, Ontario, was elected to the NRHA board in 2016. His family business began over 45 years ago and has continued to grow under his leadership.

NRHA BOARD OF DIRECTORS

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

DIRECTOR

NATIONAL SALES MANAGER Lowell Huffman

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

REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

DAVID DISHKE

DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bill Lee, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Adam Busscher, Picton Home Hardware, Picton, Ontario

Growing our business for the next generation of our family.

That’s how we define success.

Petersburg Do it Best ® Hardware Petersburg, Indiana

From left to right: Eric and Robin Smith, Dennis and Sherry Bishop

At Do it Best Corp., we are fully committed to helping our independent member-owners achieve success that is meaningful to them. For Dennis and Sherry Bishop, it was taking the big step of relocating to a larger building to better position their company for growth. They used the Do it Best Corp. Retail Performance Loan Program and RetailSTART!® to help acquire the location and design and merchandise the store. Along with their daughter and son-in-law, they transformed Petersburg Hardware into a beautiful new 28,000-square-foot shopping destination, adding thousands of new items and many new categories. Sales are strong, solidly beating projections, and the Bishops hope their success inspires others to invest in their community to make it stronger for generations to come. Tell us how YOU deﬁne success. Call us today at 888-DO IT BEST (364-8237).

Learn more about Petersburg Hardware and its new location at independentsdoitbest.com.

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Contents NOVEMBER 2016 | VOLUME 211 | ISSUE 5

OPERATIONS

Small Store, Big Ideas Learn how three retailers with salesfloors of 5,000 square feet or less have used creative merchandising and strong inventory management to help their businesses thrive.

52 CATEGORY SPOTLIGHT

Tool Tech From an ever-growing variety of cordless tools to apps that can locate misplaced tools, technology continues to impact the power tools market. Hear from an expert about what’s happening now in the world of power tools, and then discover the trends you can expect to see in the future for the category.

Departments

Are You Ready for the Holidays? Turn to Page 62 to prepare for the holiday rush—using everything from events to sales to holiday signage—and to find out what kinds of sales numbers experts are predicting this holiday season.

HARDWARE RETAILING | November 2016

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 24 . . . . . . . . . . . . . . . . . . . . . Trends 26 . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 58 . . . . . . . . . Newsmakers/Calendar 62 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Matt Woods, COO of Acme Lock & Hardware in Cincinnati, Ohio, runs a profitable business that has a salesfloor of just 1,500 square feet . NRHA photo by Lynnea Chom

On the Web

RETAILER CASE STUDY

Thriving in a Small Space Check out TheRedT.com/mountain-hardware to read about a California retailer who has incorporated highly effective merchandising and inventory management tactics to help make his small store a successful one.

PRODUCT VIDEOS

Dan Tratensek Presents Finding new products and building up your inventory can be a daunting task at times. Visit TheRedT.com/product-video to view Hardware Retailing publisher Dan Tratensek’s most recent video, featuring the latest kitchen and party favor products.

Download free marketing materials to promote your store’s important local economic impact to shoppers before Black Friday and the winter holidays at TheRedT.com/holiday-signage.

1 Video: Managing Inventory in a Small Store PHOTO GALLERY

A Look at Acme Tools Take a photo tour of a family-owned business based in Grand Forks, North Dakota, at TheRedT.com/ acme-tools. This store specializes in hand and power tools and dominates its markets with deep selection and price matching.

HARDWARE RETAILING | November 2016

Hometown for the Holidays

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Visit nrha.org/freetraining to download this month’s lessons, listed below.

We shot the most recent series of new products videos at Fusek’s True Value Hardware in beautiful downtown Indianapolis.

FREE RESOURCE

2 Video: Merchandising Tips from a Small Store

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

REAL PEOPLE. STIHL PEOPLE. Rick Cantelmi I Cantelmi’s Hardware

JOIN US. #RealSTIHL

“We’ve been selling STIHL since 1977, and the dependability of their products is legendary.” In an era of mass merchants, Rick Cantelmi credits his family’s legacy of success to quality customer service and investment in premium products. “Customers have to come to independent dealers, like us, to buy STIHL products. That gives us a definite advantage over big box stores,” says Cantelmi. Exclusive dealer support and training programs like STIHL MasterWrench Service® technician certification also provide a competitive edge. “STIHL plays a big part in helping me service my customers efficiently. I don’t get this kind of service and support from most manufacturers.” To become a dealer: STIHLuSa.com/dealer *“Number one selling brand” is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2015 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. ©2016 STIHL

Independent Thinking

Do You Want to Be a High-Profit Retailer?

our association’s 2016 Cost of Doing Business Study is now available. If you’re an Ace or True Value retailer, it’s available free through your group membership programs with the North American Retail Hardware Association (NRHA). If you’re a member through the Orgill group membership program, it’s available free to you as well. NRHA direct members also have access through the member portal at nrha.org. You can also get a copy by getting in touch with your association headquarters. NRHA has conducted the study every year since 1917. Over 1,000 independent hardware stores, home centers and lumberyards sent their income statements and balance sheets to us this year, allowing us to build a range of financial benchmarks you can use in evaluating your business’ performance. This is an indispensable tool you can’t miss if you want to plan for increased financial profitability. Retailers use the study to dig into the details of their business; comparing their business line-by-line against industry benchmarks. Many use it to educate their bank or accounting firm about their business relative to others in the industry.

“This is an

So How Do You Compare?

indispensable tool you can’t miss if you want to plan for increased financial profitability.

”

Do you want to drive a better bottom line, but aren’t sure where to start? Over the years, NRHA’s Cost of Doing Business Study has shown top performers excel doing little things better than the typical store. They shave margins and expenses, drive larger customer counts and achieve higher-than-average transactions. The study presents income statement and balance sheet benchmarks by store type: hardware stores, home centers and LBM outlets. Each line of the income statement is presented as a percentage of sales, making it simple to compare your store to the benchmarks. Data is broken out by a “typical” store vs. a “high-profit” store. This lets you check out the details of what makes high-performing stores tick and gives you targets to improve your store’s performance. You’ll also find charts of the key profitability and productivity measures for typical vs. high-profit stores, like inventory turnover, sales per square foot and more. And you’ll learn how to evaluate your store using the strategic profit model, which combines elements of an income statement and balance sheet in a profit-planning equation to measure performance in terms of a business’ most important criteria: return on net worth. You can also visit nrha.org/freetraining to find some online resources, including videos about payroll and increasing transaction size.

Use It to Budget for Increased Profit in 2017 The typical hardware store reports a profit before taxes of 3.8 percent. By contrast, high-profit stores earn 9.2 percent. Hopefully, by now, you’re on the way to building your 2017 budget. If you don’t usually put together a detailed, monthly line item budget, make this the year you start. And use the financial benchmarks in the NRHA Cost of Doing Business Study to see if you’re getting it right. Building a monthly forecast based on the study and measuring yourself against it will help ensure you’ll be a high-profit retailer in 2017!

Bill Lee, President and CEO

blee@nrha.org

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Taking Care of Business

Practice Some Retail Kung Fu

“Whether your store is 3,500 square feet or 35,000 square feet, it’s beneficial to practice good space management to maximize the inventory you offer.

”

oth factually and figuratively, I am a child of the ‘70s. Want some evidence? In one of my mom’s photo albums, there is a picture of me with one of my buddies. We’re both sporting feathered hair. He’s wearing a KISS Army T-shirt, while my shirt is emblazoned with the iconic Farrah Fawcett red swimsuit picture. For those of you unfamiliar with the decade—that more than earns me my ‘70s credentials. Growing up in this unique era, there were several iconic heroes that were pretty important to me. First, Astronaut Steve Austin (aka the Six-Million Dollar Man); next, Muhammad Ali; then Evel Kneivel; and of course… Bruce Lee. Bruce Lee was the baddest of the bad. In his movies, he whipped some butts, but legends circulated through boyhood circles about how much butt he would whip in real life. But what made Bruce different from most heroes was that he wasn’t some kind of larger-than-life figure. In actuality, Bruce Lee was slight of frame and stood just 5 foot 7. That’s a lot of butt-whooping in a small package. One of the lessons a young boy would learn by watching hours of Bruce Lee Kung Fu movies was that you should never underestimate someone based on their stature. Today, more than 40 years later, you can apply these same principles to retail stores. Just because a store is operating out of a small footprint doesn’t mean it can’t whoop some butt. And that’s exactly what we are looking at in this month’s main feature, which begins on Page 42. Our editors went out and talked to a number of retailers who are maximizing the productivity of their small spaces to wring sizeable profits out of every square inch of space they have. Unlike Bruce Lee’s martial arts mastery, these retailers aren’t using any ancient secrets to achieve these high levels of productivity. They are simply practicing sound merchandising principles and taking advantage of tools that allow them to pack as much product into their spaces as possible in a way that still make the spaces convenient to shop. Now, you might be thinking, “That’s great, but I’m not particularly challenged with space limitations in my store.” Truth is, that doesn’t matter. Retailers of any size can learn from the principles of good merchandising. Whether your store is 3,500 square feet or 35,000 square feet, it’s beneficial to practice good space management to maximize the inventory you offer. It’s also important to realize that getting the most out of your space doesn’t just mean stacking products on top of products from floor to ceiling. Maximizing your space is a process that is rooted in thoughtful merchandising and careful inventory management. All of the stores we visited were well-organized and neat. The management teams simply looked for ways to creatively utilize their spaces and focused on adding productive inventory and trimming away inventory that didn’t pull its own weight. So as you read the stories of these highly successful retailers who pack a lot of punch in their pint-sized stores, I will leave you with a bit of wisdom from another pint-sized puncher that can serve as a good guide to how you should approach your inventory management: “Adapt what is useful, reject what is useless, and add what is specifically your own.”—Bruce Lee

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | November 2016

Great Brand + Great

Flex-Grid™ Merchandising System One System… Unlimited Possibilities The Starrett Flex-Grid merchandising system is designed to enhance your customers’ experience and make it easier for them to find the right tool for the job. The Starrett Flex-Grid™ merchandising system is space efficient, informative and eye catching. Key facts: • Designed to fit standard pegboard and slat wall • 1” on-center horizontal wires for efficient use of space • Strong and durable wire frame construction • Optional inserts for on-site video and application guides • Slide-in color accent panels • Full color Starrett header locks directly to Flex Grid panels • Easy, tool free installation • Three standard module sizes: 12” W x 24” H, 12” W x 12” H and 12” W x 8” H • Mix and match modules for a plan-o-gram of virtually any size and product mix Flex-Grid is a great way to offer the exceptional power tool accessories, hand saws and hand tools made by Starrett, a brand with instant credibility for anyone that knows and uses tools. Contact your Starrett Representative today to learn how you can get the Flex-Grid merchandising system in your store!

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Innovation Rules

NRHA News

NRHA Updates Popular Merchandising for Profit Study

n 2002, the Russell R. Mueller Retail Hardware Research Foundation commissioned the North American Retail Hardware Association (NRHA) to engage in a study that would determine the effectiveness of nine different merchandising techniques by measuring the sales lift each created. This study, titled Merchandising for Profit, confirmed that by moving a product from its in-aisle position to an endcap, dump bin or rolling rack, a retailer could generate significant sales increases for that item. For example, research showed that products stocked in a temporary/disposable dump bin would see as much as a 427-percent increase in sales. Feature endcaps would generate an average sales lift of 25 percent. This comprehensive study outlined best practices for merchandising in each of these areas and delved into the shopper psychology behind why each technique worked. Today, NRHA has gone back into the field to test whether in-store merchandising techniques are still as effective. While this new study doesn’t seek to rewrite the rules of merchandising like the 2002 piece did, NRHA wanted to provide the industry with an update to the core numbers in the first report. “Today we are in a different era of retailing,” says Dan Tratensek, NRHA vice president and publisher of Hardware Retailing magazine. “Every customer is influenced in some way or another by things like social media and mobile devices. There is no doubt that merchandising techniques still have an impact on how consumers shop, but we wanted to see how that has changed over the years.”

HARDWARE RETAILING | November 2016

To do this, NRHA partnered with The Farnsworth Group, an Indiana-based research firm that specializes in the home improvement industry. Together, they enlisted the help of several leading independent retailers who agreed to test merchandising concepts over a three-month period. In all, merchandising techniques were tested in more than 20 different stores and in five different markets. The concepts tested included: • Disposable dump bins • Permanent dump bins • Power aisle stackouts • Feature endcaps • Service counter displays • Checkout displays • Clipstrips • In-aisle feature benefit signage “We are currently looking at the preliminary data and see that there have been some changes since the first study, but that merchandising can still have a dramatic impact on an item’s movement,” Tratensek says. These updated findings will be released on Dec. 8 at NRHA’s State of Independents Conference in Chicago. This conference is free for retailers to attend, and additional information can be found at TheRedT.com/soic. Following the conference, NRHA will publish the update to the Merchandising for Profit Study in the January issue of Hardware Retailing magazine. A white paper with the study’s findings will also be available for download.

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NRHA News

Out and About with NRHA

s your trade association, one of NRHA’s favorite activities is visiting retailers in their stores. Over the past several months, we’ve visited over 20 stores! Below are pictures from a few of our stops. To see more photos from store visits, check out NRHA on Facebook at www.Facebook.com/NorthAmericanRetailHardwareAssociation.

NRHA’s Renee Changnon (left) and McGuckin Hardware marketing manager Louise Garrels (right) in Boulder, Colorado. Fun Fact: McGuckin Hardware makes large, foam-core posters depicting the heads of celebrities, mascots and public figures for customers to purchase.

Harry’s Ace Hardware owners Scott Fox (left) and Kelly Fox (center), and NRHA’s Whitney Daulton (right) in New Orleans, Louisiana. Fun Fact: Harry’s Ace Hardware makes and sells special ladder seats for children so that their parents don’t have to hold them while watching Mardi Gras parades.

Bloomington Hardware president Vickie Temple Davison (left), store manager Kristi Hill (middle) and NRHA’s Tom Marcum (right) in Bloomington, Indiana. Fun Fact: The store offers $5 off a new flag for anyone who brings in an old flag to be properly retired.

Wangler Hardware owners Steve Schmitz, Patti Jo Minor, Mike Minor, NRHA’s Renee Changnon and store owner Matt Minor (left to right) in Fort Recovery, Ohio. Fun Fact: The store has been in business for 100 years, and recently hosted an event to celebrate the anniversary. Read more at TheRedT.com/wangler.

HARDWARE RETAILING | November 2016

NRHA News

NRHA Offers New Human Resources Services

mployee issues, new regulations, market conditions, new competition—as a business owner, you have a lot to worry about outside of normal day-to-day operations. In an effort to help retailers streamline one aspect of those operations, human resources, and help them grow their businesses, NRHA and Tilson HR have created a partnership to offer business owners a suite of resources for everything from hiring and evaluations to compliance and benefits. Tilson is designed to give retailers an option that bundles HR services in an integrated management solution. Focusing on professional employer organization (PEO) services, management systems and business consulting, Tilson helps store owners remain competitive while functioning without HR personnel. Tilson systems and programs have been developed to help companies control costs and increase productivity. “NRHA members, along with numerous other small business owners, are continually under attack by larger competitors and regulators,” says Scott Hall, senior vice president of business development at Tilson.

“The resources, integration

services and benefits packages available through Tilson HR make this program a great tool for home improvement retailers. —Dave Gowan, NRHA controller

”

“Whether they are trying to compete for key employees by offering attractive solutions normally only found at Fortune 500 companies or navigating through the growing number of regulations, Tilson can provide solutions for both options to support our partners.” Tilson is the latest organization to join NRHA’s growing business services offerings, designed to provide retailers

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with alternative solutions to common business needs. Already established business services programs include Payment Alliance International, Member Insurance, Health Insurance and RxCut Prescription Savings Card programs. Through Tilson’s program, retailers can access resources relating to benefits packages, payroll, recruiting, regulatory compliance and retaining high performance employees. “Tilson provides purchasing power and resources that support our partners to compete with their larger counterparts in the areas of HR, payroll and benefits,” Hall says. “We do this by helping reduce the reliance on multiple vendors and creating more simplicity and, in some cases, lowering costs by providing a more comprehensive and integrated solution.” “Providing alternative human resources solutions directly aligns with NRHA’s mission to help independent retailers become better, more profitable merchants,” says Dave Gowan, NRHA Controller. “HR management is essential to running a successful business. The resources, integration services and benefits packages available through Tilson make this program a great tool for home improvement retailers.” To learn more about the Tilson program and the offerings available to independent retailers through this partnership, please visit www.tilsonhr.com/NRHA or contact Scott Hall, vice president of business development at Tilson, at shall@tilsonhr.com or 317-701-1200.

Available at Tilson HR: Benefits Packages

Payroll

Recruiting Retaining High Performance Employees Regulatory Compliance

NRHA News

Seasonal Training 101: What You Need To Know

t’s officially the holiday season. Staff training is one of many things on your to-do list, and we’re guessing it might not be at the top. But, maintaining a knowledgeable staff is crucial to ensure customers have a positive holiday shopping experience. Whether you choose to put your staff through online training, conduct training

huddles or organize on-the-job training, planning and organization is key to successful training. Below are a few tips to help you manage staff training effectively and efficiently. For more tips, and for guidance on other training topics, check out NRHA’s Train the Trainer guide at nrha.org/freetraining.

Create a plan. You need to specify the tasks your new employee needs to learn and how you’re going to evaluate if training was successful. Approach this type of training with care.

Explain retail lingo. Retail might seem like a foreign language to those who have never worked in it. Pay extra attention to the words you are using and offer explanations as you go.

TIP

Choose the trainer wisely. When picking a trainer, select someone positive and patient who is willing to take on this role. A poor attitude will negatively affect new hires.

HARDWARE RETAILING | November 2016

TIP

Make it hands-on. If applicable, demonstrate first, and then let the trainee try it on his or her own. Most people learn best by doing.

WE KNOW

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

Monday – Friday 7:30 A.M. – 8:00 P.M. Phone (844) 223-4770 Fax (888) 583–9693 Fixtures.Orders@LincolnProducts.com

LINCOLNPRODUCTS.COM

0816 241581

SOMETIMES FORTUNE

SMILES UPON YOU.

OTHER TIMES IT SIZES YOU UP AND NODS.

Not just any product can be a Cat® product. And not just any business can be a Cat Home & Outdoor Power Authorized Sales and Service Center. We’re entering the portable generator market because we believe, as the global brand synonymous with power and durability, we’re uniquely suited to build a generator like no other. We’re out to be the best in the industry and we’re looking for partners who share that attitude. If you think you have what it takes. If you’re prepared to be an extension of the Caterpillar legacy – one of durability, reliability and raw power – we’d love to hear from you. Visit cat.com/jointheteam.

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© 2016 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow”, the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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Trends Let Customers Know Your Business Is a Better Investment Your customers likely understand that shopping at locally owned stores benefits the community, but why not use hard numbers to drive the point home? You have access to data specific to the independent home improvement industry, courtesy of the Home Sweet Home Study from the North American Retail Hardware Association (NRHA) and Independent We Stand, a group that promotes shopping local. The Home Sweet Home Study shows that nearly twice the amount of money spent at a local home improvement store stays in the community, compared to that same amount of money spent at a big box. In fact, if consumers would shift just 10 percent of their purchases from the big boxes to local home improvement stores, an additional $1.3 billion would stay in hometowns across the nation each year.

Applied to Retail: Remind your customers that your business is locally owned, and show them the numbers. Emphasize that they are investing more in the local economy when they spend money at your store. NRHA has created free resources, including posters, social media posts and bag stuffers, to help you promote the local economic advantages your business offers. To download the winter holiday marketing toolkit, visit TheRedT.com/holiday-signage. To find marketing material you can use year-round, visit TheRedT.com/shop-local.

Quantifying Local Advantages Retail Hardware Recirculation

Building Materials Recirculation Buying building materials from an independent lumberyard results in a 113-percent increase in local economic activity, compared to making the same purchase at a big-box store.

Buying hardware products from an independent retailer results in a 91-percent increase in local economic activity, compared to making the same purchase at the major chains.

$1,000

$800

Local Advantage: 91%

$600

$524

$412

$400

Local Advantage: 113%

$300

$400

$200

$100

$193

Local

Chain

Source: Home Sweet Home Study, NRHA and Independent We Stand

$500

HARDWARE RETAILING | November 2016

Local

Chain

Your Complete Power Source for 30 Years!

• Extension Cords • Bulk Wire • Household Cords • LED Work Lights

• Halogen Work Lights • GFCI's • Temporary Power Boxes • String Lights

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New Products

“At our store, we stock

old-time candies. Melville’s honey spoons are a fun item and sell very well in the wintertime, since they are perfect paired with hot tea. —Greg Smith, Mitchell Hardware

”

1 “The air purifying bag from

Moso Natural is popular with our customers. It's more powerful than baking soda for absorbing odors, and it can be reused. —Diana Tyler, Kelloggs & Lawrence

”

1. EDIBLE SPOONS

2. AIR FRESHENER

Gourmet Lemon & Honey Tea Spoons by Melville Candy Company are designed to add flavor to hot beverages. The spoons are created by infusing hard candy with real honey, and they go well with hot drinks, especially tea. Users simply place the Lemon & Honey Tea Spoon in their drink, wait one minute and enjoy the sweetened drink. Each spoon is hand-poured, individually wrapped and packed into gift sets or bulk. The spoons are also available in flavors like Bee Pollen & Honey, Clover Honey, Lavender Honey and more.

The Moso Natural Air Purifying Bag is a great option for maintaining a fresh, dry and odor-free environment. Without using batteries or wires, the Moso Bag works continuously to remove odors, allergens and harmful pollutants from the air. In damp, musty environments, the Moso Bag will absorb excess moisture to prevent mold, mildew and bacteria from forming. It is a safe alternative to air fresheners filled with formaldehyde, petroleum and fragrance. The Moso Bag is filled with nontoxic, chemical-free and fragrance-free bamboo charcoal that allows family and pets to breathe safely.

MELVILLE CANDY COMPANY 800-638-8063 or www.melvillecandycompany.com

MOSO NATURAL 877-322-6911 or www.mosonatural.com

HARDWARE RETAILING | November 2016

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.

“We added this line of clothing after learning about a store that had a lot of success selling it. We’ve already had interest from our customers.

”

—Jim White, Boyne City Hardware

“This backpack blower has

everything a customer wants in a leaf blower. The blower packs a lot of power without being too loud.

”

—David Camasso, R.W. Shattuck and Company

3. BAMBOO ECO CLOTHES

4. BACKPACK BLOWER

Boody® body wear is a line of ecoconscious clothing made of up to 95 percent organic bamboo rayon. The clothing and undergarments provide a seam-free stretch, offering a smoother fit that’s soft on the skin and maintains shape. The product line offers items for men and women, including socks, undergarments, tank tops, T-shirts and leggings. Boody products are naturally antibacterial, hypoallergenic and antifungal, making them long-lasting and long-wearing.

The STIHL BR 450 and STIHL BR 450 C-EF backpack blowers come packed with new features for operator comfort and convenience. The BR 450 C-EF model is the first STIHL blower to come equipped with an integrated instant electric start, designed to help pros save time and money on the job. The product has a telescopic tube adjustment to allow users to adjust length for a variety of heights and applications. Both are designed for comfort.

BOODY USA 800-945-7638 or www.boodywear.com

STIHL, INC. 800-467-8445 or www.stihlusa.com

November 2016 | HARDWARE RETAILING

New Products

5 5. CABLE LOCK The sturdy WordLock® Loop ‘N Lock™ doubles cable-locking capacity. The product is easy to use, as homeowners can loop it on one end and lock it on the other to secure items like outdoor furniture, grills, ladders, trucks and bikes to trees. WordLock integrates the lock head right on the cable, allowing it to loop around objects without the need for a separate padlock. The lock comes with an easy-to-remember word combination. WORLD AND MAIN, LLC 609-860-9990 Ext. 1178 or www.worldandmain.com

6. ANGLE DUPLICATING AND MEASURING TOOL The MiteriX Angle Measuring and Duplicator Tool from Bora Tool® is designed to create precise measured angles. Carpenters and DIYers know one of the harder parts of the job is getting exact angles, but using the Bora MiteriX Duplicator Tool makes it easy. The tool is designed to measure and lock at an angle and can split in half to transfer that exact angle to a miter saw. The MiteriX delivers miter cuts that match precisely without an unsightly gap that is all too common when measuring freehand. BORA TOOL® 866-588-0395 or www.boratool.com

7 8 4 Ways to Grow Your Craft & Hobby Business

7. MULTI-FUNCTION RECEPTICLE The new SmartlockPro® AFCI/GFCI Dual Function Outlet helps protect against electrical shock and fire hazards. The device offers a National Electrical Code® (NEC®)-compliant option for AFCI/GFCI protection in residential kitchens and laundry areas. The SmartlockPro electrical outlet helps maintain a safe environment in the home.

rsC supported*

Project Woods - Precision Cut

Balsa - Hobbies Basswood - Crafts Plywood - Hobbies & Crafts

small Footprint = High roi

LEVITON MANUFACTURING COMPANY, INC. 800-824-3005 or www.leviton.com/homesafety

8. INTERIOR CARGO RACK When transporting materials like lumber inside a vehicle, it's important to make sure it's safely secured. FourLane has addressed this problem by creating SeatRack, a sturdy interior cargo rack. Made in the U.S., SeatRack’s innovative design makes it easy to tie down items like surfboards, skis and snowboards, as well as fishing poles, lumber and ladders. It adjusts to fit most vehicles equipped with removable headrests and can carry objects weighing up to 50 pounds. FOUR-LANE, LLC 415-552-4801 or www.seat-rack.com

Balsa, Basswood, Craft Plywood DisPlay and assortment DisPlay - stock #78r assortment - stock #78

Craft Plywood DisPlay and assortment DisPlay - stock #499r assortment - stock #499

*most major Co-ops

New Products

9. DRYWALL FLAT BOX HANDLE

10. HARDWOOD ROOF SHINGLES

Drywall finishing contractors enjoy greater control, safety and productivity with the new model 8000 Wizard flat box handle from AMES. The Wizard places users’ hands directly over the pressure plate, creating reduced effort, while allowing for greater maneuverability by positioning directly in front of the user. The reversed front handle is ergonomically and intuitively designed. Its small size further simplifies work in tight spots, cutting down on wasted job time.

Turada® Hardwood Shingles add a touch of rustic elegance to any building. The shingles are aesthetically pleasing and highly durable, withstanding up to Category 5 hurricane winds. The shingles are also naturally insect- and decay-resistant and maintain a high fire-safety rating without chemical treatment. These hardwood shingles are used in the construction of resorts, hotels, villas and private residences by architects, designers and builders worldwide.

AMES TAPING TOOLS 888-229-6652 or www.amestools.com

TROPICAL TIMBERWOODS, INC. 855-488-7232 or www.turadashingles.com

11 12

11. LIQUID PLASTIC ADHESIVE KIT RAPIDFIX® UV is a clear, liquid-plastic adhesive. It only sets when exposed to ultraviolet light. To use the product, customers must align all pieces in place. Then, they must shine the ultraviolet light that is included, and follow the blue fluorescent glow from the adhesive. The bond sets within 5 to 10 seconds. The high-strength adhesive can be sanded, filed, drilled and painted. Once a shape is found, users can finish the project by sanding or filing, then paint or leave a clear surface. Suitable for bonding plastics, metal, wood and glass objects. RAPIDFIX® USA 231-798-3600 or www.rapidfix.com

12. SWIVEL PUNCH HEAD The Swiv-L-Punch™ Knockout Punch Head makes accessing tight spaces easier while increasing efficiency and time-saving capabilities. Weighing 4.6 pounds, the Swiv-L-Punch can make up to 4-inch holes in 12-gauge mild steel and 14-gauge stainless steel with ease. It has 360-degree rotation at the pivot point of the Swiv-L-Punch as well as in the RE 6 QuickChange™ System collar. RIDGID® 800-769-7743 or www.ridgid.com

November 2016 | HARDWARE RETAILING

New Products

14 13. MAGNETIC SCREWDRIVER HANDLES This magnet set from PB Swiss Tools features PB Multicraft handles, designed to provide resistance and durability. With six different colors in each set, users can assign a priority color code for each. The smooth, polished surface prevents scratches. Each magnet holds up to 2.5 pounds, and their convenient size and shape makes them easy to use. All PB Swiss Tools are 100-percent Swiss made and feature an unlimited lifetime guarantee. PB SWISS TOOLS/COUNT ON TOOLS, INC. 800-880-7007 or www.pbtools.us

14. MOVIE THEMED DRINKWARE Zak Designs® offers a new line of drinkware that depicts both the evil Imperial forces and the Rebels from "Rogue One: A Star Wars Story." The line features edgy artwork that showcases both new heroes and familiar villains. Zak’s offering includes two different 16-ounce pint glasses, and two versions of the new 25-ounce Union water bottle made from durable Tritan material. The line also includes a ceramic coffee mug and a 17-ounce, double-wall straw and travel tumblers that are perfect for beverages to go. ZAK DESIGNS, INC. 800-331-1089 or www.zak.com

HARDWARE RETAILING | November 2016

15 16

15. SCENTED JAR CANDLES

16. ALL WEATHER WRITING PAPER

As customers prepare the home for the holidays, Colonial Candle has a new line of seasonal fragrances available. The company has been around for more than 100 years, built upon staying true to what customers want: superior quality and design, delightful aromas that fill the room, and a diverse palette of colors to complement today’s home decor.

Unlike other paper, Rite in the Rain® is a wood-based and recyclable writing paper that won’t turn soft and disintegrate when exposed to elements like water, heat, humidity, oil and grease. The products, which include printer paper, bound books and binders, are environmentally friendly and produced with a special coating process. A unique moisture shield helps preserve them for a long time.

COLONIAL CANDLE 866-445-9993 or www.colonialcandle.com

JL DARLING, LLC 253-922-5000 ext.126 or www.riteintherain.com

Checkouts PROMOTIONS

Ho-Ho-Holiday Letters Accepted Here

es, Santa will write you back—just ask any child who dropped off a letter in the big red mailbox at Berger Hardware last December. The Letters for Santa mailbox in the middle of the Hawthorne, New York, store is the latest addition to the Christmas festivities owner Aimee Nichols offers her customers. “Several years ago, we started a bake sale around Christmas to raise money for the Cookies for Kids’ Cancer organization,” she says. “Then we brought in Santa Claus to greet our customers, then we added door prizes. Last year we added the Letters for Santa mailbox, and we decided to make it an annual event.” For children who want to send a letter to Santa, Nichols encourages them to come in to the store and pick up a templated packet she’s prepared. The packet contains an envelope

addressed to the North Pole and a letter with a decorative letterhead. Children are instructed to craft their letter and return it to the store with their return address on the envelope. Every child who writes a letter gets a reply. Nichols responds to each child with a letter customized to include his or her name and some information about the gifts he or she requested. Letters are mailed to their home a week before Christmas. Nichols sets the mailbox in the middle of the store’s Christmas display. It’s surrounded by gift ideas for everyone, from home decor items to toys. “The mailbox brings customers in to the store twice— once to pick up the letter packet, and again to drop it off,” says Nichols. “Letters for Santa has had a good response. There are several of us at the store who have children, so we try to do a lot with families and make them comfortable in our store.”

The red mailbox sits in a central location, surrounded by Christmas decorations and gift ideas for parents when they bring their children to drop off their letters.

While the letters come from a template, children may feel like they are getting a letter straight from the red-suited man himself, as Nichols includes the toy requests asked for in the original letter.

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

HARDWARE RETAILING | November 2016

FAMILY FARM & HOME WILL DOUBLE ITS STORE COUNT … because they joined OUR co-op Al Fansler and his family operated a chain of 27 stores, but they had an even bigger vision for Family Farm & Home. To expand the company, Al, Tim and Bob needed a true partner. That’s why they chose the best option—True Value®.

(Left to right) Son-in-law Bob Tarrant, Al Fansler and son Tim.

FREEDOM TO RUN THEIR COMPANY THEIR WAY WITHOUT INTERFERENCE Family Farm and Home proudly shares the business results the company achieved as a member of our co-op. (Your individual results will vary.)

GROWTH

FROM 27 TO

47 STORES

DOUBLE-DIGIT PROFIT INCREASE

IN KEY CATEGORIES

IF YOU VALUE WHAT WE VALUE GIVE US A CALL AT 1-888-291-7229 TrueValueCompany.com

We understood the family’s long-term business strategy. Tim Fansler, co-president and chief marketing officer, says, “True Value demonstrated a level of expertise within our wide range of product categories that we couldn’t find anywhere else.” Today, the company operates 47 stores in three states with plans to add 5 more stores this fall. True Value offers sound business solutions and resources to ensure Family Farm and Home’s future growth and profitability. Al, Tim and Bob are more than our business partners, they’re family.

TAILORED ASSORTMENTS SUPPORTED BY

MARKET DATA

Checkouts

MERCHANDISING

A Century of History

isitors to Wangler Ace Hardware in Fort Recovery, Ohio, may feel like they’ve stepped back in time as they walk through the store, looking at endcaps that tell the story of past generations. Wangler Ace is a fifth-generation family hardware store, owned by P.J. and Mike Minor; their son, Matt Minor; and business partner Steve Schmitz. Minor’s great-great-grandfather, Erhard Wangler, founded the business in 1916. This fall, the family hosted a 100th-anniversary celebration. To recognize all generations of the business, they put together endcaps acknowledging each generation who had a part in owning and running the business. The endcaps included old tools and guns (which the store used to sell), as well as some ledgers and other older books. “We set up these endcap displays to give our customers a better understanding and more knowledge of the history of our business,” says Matt Minor. “Our team worked together to gather the information and find cool things to display,” he says. They also worked with a graphic designer to put together a history of each generation, which told the story of that generation’s owner and included photos from the time. Minor says the endcaps will stay up in the store for a while as a way to continue the recognition of its 100th year in business.

“We set up these endcap

displays to give our customers a better understanding and more knowledge of the history of our business.

”

—Matt Minor, Wangler Ace Hardware

Each endcap throughout the store highlighted a different generation and its role in the business’ history. Today, Wangler Ace Hardware is a fifth-generation family business owned by P.J. and Mike Minor; their son, Matt Minor; and business partner Steve Schmitz.

HARDWARE RETAILING | November 2016

Same great products, new look New York Wire and FibaTape® are now ADFORS

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There is an ADFORS screen to meet every lifestyle need. Our full line of specialty screen is designed for a variety of unique purposes, including UV blocking, small insect protection, extra strength for high traffic areas, pet resistance, allergen protection, and increased visibility.

Our full line of ADFORS wall finishing tapes includes both FibaTape® self-adhesive fiberglass mesh tapes and innovative FibaFuse® paperless drywall tapes. From Ultra-thin to Extra Strength, FibaTape is loved by DIYers and professional contractors alike!

Not sure what type of screen you need? Download our new Scene Weaver app to choose the best screen to fit your needs and see what it looks like when installed! On the App Store and Google Play.

Your partner for innovative textiles Follow us on:

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These revolutionary tapes are designed to be easier, faster and stronger than standard paper joint tape while also delivering excellent value and performance.

Checkouts

CUSTOMER RELATIONS

Carving Out a Place in the Community

hen it was time to plan the grand re-opening of Russell Do it Center in Clanton, Alabama, store manager Mickey Atkins knew inviting a local chainsaw artist to work on a carving would be sure to draw a crowd. But he also wanted a way to make a lasting impression on the community. “We decided it would be great to commission our local chainsaw artist to carve the Chilton County High School mascot and then donate it back to the school,” says Atkins. “It is very important for us to participate in the town. Our company thrives in giving back to our community.” Atkins and the staff at Russell Do it Center already are strong supporters of the high school’s football team—they’ve donated materials to help refurbish a locker room and a weight room. The mascot is something they hope everyone can enjoy. This past spring, on the day of grand re-opening event, the community gathered round as, piece by piece, the mascot began to take shape. When it was finished, Atkins placed it on display in the store during the summer until it was ready for a dedication to the school.

While today it sits in the high school’s foyer, the Chilton County tiger spent the summer at the store, where it generated a lot of excitement among students.

Dual-Slide Assortment Racking System

New Exclusively from Midwest Fastener! Double your assortments overnight with our new dual-slide specialty assortment racks. Did you know up to six out of 10 shoppers visit the fastener aisle? It is proven that specialty product drives traffic. Now, making your department a specialty destination can be accomplished without extending your fastener aisle linear feet.

2015 38

HARDWARE RETAILING | November 2016

Ph:800.444.7313

fastenerconnection.com

Customers can shop at Melby’s Home Center to find everything they need to create busy boards for toddlers. UNIQUE PRODUCT

Busy Boards Keep Kids Captivated

hen Megan and Brent Melby, co-owners of Melby’s Home Center in Scandia, Kansas, wanted to get rid of some old inventory, they found a creative way to use several pieces at once: by building a busy board for kids. Busy boards are developmental tools that give toddlers a chance to try out hinges, latches and other fasteners, helping develop fine motor skills. Megan built a busy board that was about two feet by two feet, using some spare pieces, such as door hinges and handles, and put it on display in the store’s hardware department. After she posted some photos online, several customers with young children came in to find out how they could make their own. “People loved them,” says Brent. “I wish we’d thought of it when my kids were younger!” He says there continues to be positive feedback. “These were great fun to make,” says Megan. “The little kids just have a ball playing with them,” she says. Customers know they can find all the parts they need for their busy boards at Melby’s. The store also sells lumber needed for the board, as well as paints and stains for any customers who want to decorate their busy boards.

I NTRO D U C IN G

The absolute best in price and quality Contact Linda@UltaLit.com for a sample

Over 5 Million Sold Fix Most Light Sets in Seconds Ulta-Lit Tree Company, Glenview, Illinois Celebrating our 20th Anniversary November 2016 | HARDWARE RETAILING

YOU BRING YOUR FIRE,

WE’LL HELP FUEL IT.

Introducing the Bernzomatic “Find Your Fire” Retail Management Certification Program Scholarship

LEADERSHIP

MARKETING

FINANCIAL

SKILLS KNOW-HOW SAVVY Fuel your retailing knowledge and take your business to the next level.

Bernzomatic wants to feed your burning desire to learn and to grow your business. The NRHA Retail Management Certification Program (RMCP), one of the industry’s most coveted certifications, can help ignite your professional growth – and a scholarship from Bernzomatic can help bring it within reach. We provide four scholarships to this college-level program – designed for independent retailers by the NRHA – to prepare today’s blazing talent for tomorrow’s challenges and opportunities. The $6,250 scholarships cover 50% of the RMCP tuition for four prospective students. “Find Your Fire” scholarship recipients will join other high-potential employees of independently owned hardware and home improvement stores for the six-month program. Industry leaders and top-level college instructors teach and coach students through group projects, in-depth case studies and more. It’s a great way to light up a new generation of independent home improvement retailers.

SPARK SOMETHING TODAY. Apply for the Bernzomatic “Find Your Fire” Retail Management Certification Program Scholarship before January 27, 2017 Apply for the “Find Your Fire” Scholarship today at: NRHARMCP.COM/SCHOLARSHIPS/FINDYOURFIRE

What Would You Do With 1,500 Square Feet? Retail Lessons From Small Salesfloors

o some, 1,500, 2,500 or even 5,000 square feet may seem like an impossibly limited amount of space to sell eight core hardlines categories, plus a niche or two. However, Matt Woods, COO of Acme Lock & Hardware, a hardware store and locksmith in downtown Cincinnati, does it every day. And he’s not alone, either. While the average size for a typical independent hardware store’s salesfloor may be around 9,500 square feet, there are thousands of retailers who have much less space than that at their disposal. They’re not letting that size stop them from making a big impact on their markets, and they have lessons to teach retailers of any size about efficient merchandising, tight inventory control and strong product selection. In fact, small stores can be highly profitable. A smaller building means lower overhead costs and allows retailers to quickly move inventory in and out of the store. It also ensures retailers keep their displays fresh and continually try new merchandising tactics. To find out more about what makes these retailers with small businesses so successful, Hardware Retailing turned to Woods, as well as two other retailers who operate profitable operations within the confines of 5,000 square feet, or less, of retail space. Read on to learn how they’ve built successful businesses in small spaces.

HARDWARE RETAILING | November 2016

23’

7’

45’ 4’ November 2016 | HARDWARE RETAILING

At the City’s Center Acme Lock & Hardware Cincinnati, Ohio Retail space: 1,500 square feet Acme Lock & Hardware, in downtown Cincinnati, Ohio, may have only 1,500 square feet of retail space, but it’s more—much more— than what the store used to have. “For 75 years, we had a 500-square-foot store around the corner from our existing location,” Woods says. “About 10 years ago, after several stores in the downtown area had closed, my parents purchased the store next door so we could add hardware to our offerings. Our store is like the Walgreens of hardware—it’s a convenience hardware store.” In addition to the salesfloor, there’s an additional 1,000 square feet for storage. One reason for the small store is the cost of real estate in downtown Cincinnati. And, Woods says the family didn’t want to build too big when they moved to the new building in 2006. “We let the market dictate,” he says.

Keeping an Eye on Inventory The biggest part of using a small space wisely is having the right product mix.

Woods stocks primarily A and B movers and consistently asks customers for feedback about what items they’d like to see in the store. “We think 80 percent of our profits come from about 20 percent of our customers, so we use that 20 percent to identify what we need,” he says. “We know our products will turn faster, because that’s what our customers want.” His weekly orders and deliveries also help him determine what those products are. “The worst feeling in the world is when you have to tell someone you don’t have what they are looking for,” Woods says. Once or twice a month, he and his staff go through the store to identify dead items. There isn’t room to keep those products, even for clearance sales, so Woods donates the unsold product to a local reuse center and ministry. It may sound counterintuitive to keep trying new products when you have so little space to work with, but Woods says he loves to try new things. “My dad hates that we spent money on that inventory and it’s not selling, but I love seeing what can go in its place.” It doesn’t take him long to find a replacement product—he usually has a list of customerrequested products and can try one or two of those once he’s rid the store of the dead inventory.

Slider racks give Woods a way to stock more inventory in a limited amount of salesfloor space.

HARDWARE RETAILING | November 2016

“We have several maintenance guys who are regular customers, and they’ve even helped us lay out what products should go where,” he says. “If I have a couple of sections that haven’t been turning, they are more than happy to give us some ideas of what might make better day-to-day movers.” Average inventory turns at Acme are 2.3, Wood says, compared to 1.8 for a typical hardware store, and 2.4 for a high-profit hardware store (according to NRHA’s 2016 Cost of Doing Business Study), and his sales per square foot is $247, compared to $176 for a typical hardware store and $214 for a high-profit store. With just a quick look at these numbers, it’s easy to see Woods is doing something right.

Creating the Right Look “I see our store like a giant puzzle,” Woods says. It’s a puzzle he spends plenty of time on, as he shifts the product mix to make it fit in a tight space. He’s learned a few tricks to do more with less; and he’s now able to make 12-foot planograms fit into 8-foot sections. “I’ll use every square inch available. It seems like some manufacturers try to be very liberal with the amount of square footage they want, so we try to create as much square footage as we can.” Some planograms may require a couple of inches between peg hooks. Woods skips that step. He also keeps everything as linear as possible, so products flow logically from one department to another throughout the store. Because of a small amount of space, it’s more difficult to create clear definitions between departments—a few aisles for electrical, a few more for plumbing. Instead, he relies on signage to help customers easily find what they need. “I love vendor POP,” he says. “I try to use their type of marketing to set each aisle or each assortment, and I use aisle violators as well. I try to have a logical flow throughout the store—in the electrical section, we’ll go from electrical supplies to home safety to batteries. We want people to be able to find things easily, without it being too busy inside the store.”

The Good and the Bad One challenge of a small store, Woods says, is that he doesn’t always get the same level of attention from his vendors that a larger store with more volume might. While he often orders full planograms, sometimes he simply doesn’t have the space for them and has to place smaller orders instead. But there are advantages to having a smaller store, too. “Our customers are able to find products and receive excellent customer service quickly— they can be in and out of the store in a matter of minutes,” he says. “That’s important when customers know what they need and want to buy it quickly and easily.”

Woods places products closely together on shelves to save as much space as possible. He can fit 12-foot planograms into 8-foot sections.

“When you walk in the

door, you are just a few steps away from 95 percent of our product.

”

—Matt Woods, Acme Lock & Hardware And everything is within easy reach. “When you walk in the door, you are just a few steps away from 95 percent of our product.” While Woods has found plenty of ways to successfully have a profitable business in a small space, he’s also found the opportunity to expand his salesfloor. The business’ downtown Cincinnati location will soon move to a new building, allowing Woods to expand his showroom to 8,000 square feet. This will offer him the opportunity to take what he’s learned about merchandising and inventory control and use those lessons in a larger space. “We feel the demand for urbanization is going to continue,” he says. “If we don’t make the investment now, it could be too costly in the future, or we could have a competitors step in. We are the only hardware within a couple of miles right now, and when you’re downtown, a couple of miles is a long distance.”

November 2016 | HARDWARE RETAILING

An Island Dream Chet’s Hardware Avalon, California Retail space: 3,500 square feet Chet’s Hardware is what many home improvement retailers would like to be—the only retailer in town. But for owners Mike and Cinde Cassidy, that town is only about 2 miles square and sits on a small island 26 miles off the coast of Los Angeles. Space in the small town of Avalon is at a premium, and limited retail space is something the couple must address every day. While they have a prime location, nestled in a shopping mall on a busy street, Chet’s Hardware only has 3,500 square feet of salesfloor with a small backroom. They’ve managed the limited space masterfully. They serve the island’s residents as well as the thousands more that visit the island during peak tourist season. They also sell more than just hardware. Housewares is their second largest department. For customers looking to purchase a major appliance, it’s the only place in town to get one right away. Paint is the couple’s No. 1 seller. They go deep in key categories such as plumbing and

electrical with several hard-to-find items, and they have created a business with several commercial customers. How do they do it in a small footprint? It involves nimble merchandising and careful ordering.

Find Merchandising Resources Without a lot of space for merchandising, Cinde uses her creativity and ideas she gathers from being out in the industry. She starts with the resources available through her co-op. “A couple of years ago, our co-op sent a team to remerchandise the store. They helped us see how we could put as much product in about two-thirds of the space we had before,” she says. The couple also attends the National Hardware Show® and visits other retailers. They usually bring back ideas to implement in their store. “A general rule we try to follow is, less pegboard is better. After all, we’re selling products, not pegboard,” Cinde says. “We try to get items close together, and usually with just one facing, so you don’t see a lot of the fixture. We also use the knowledge of our vendor sales reps. They specialize in knowing how to use space and how to make their product look good.”

Mike and Cinde Cassidy are more than just home improvement retailers. Cinde serves on the city council and the couple also runs a bookkeeping service, a fire extinguisher service and a heating and AC repair service.

HARDWARE RETAILING | November 2016

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Sales Out the Back Door Some of the products the Cassidys sell never touch the salesfloor. Bulk orders of paper products or cleaning supplies they sell to other businesses in town can go straight to the customer shortly after they unload it from the delivery truck. Commercial sales, says Cinde, are their next growth opportunity, since they can increase sales without increasing their volume of inventory. Their strategy is similar to the one they use for large appliance sales. Instead of giving up valuable floor space to multiple models of appliances, Mike has one display model with a couple of different sizes in the backroom for those who need a new appliance right away. Most customers are willing to wait until the order comes in, especially since they may want to order a specific model. “We take them straight from the loading dock to the customer’s house, so it never hits the floor of the store and never takes up space,” he says.

Displaying pillows using a hanging clothes bar allows Cinde to place an otherwise bulky product into a small space.

“We can work with our customers to order just what they know they will need.

”

—Cinde Cassidy, Chet’s Hardware Establish a Pre-Order Habit Rotating seasonal items is standard practice for many retailers, but the Cassidys need to put a short turnaround time on that merchandise. Rather than bringing in seasonal merchandise far ahead of the season and then trying to attract customers’ attention to the items over the period of several weeks or months, Cinde says their approach is different. They have a small amount of space they can dedicate to seasonal items, so they discuss with their customers what seasonal products they might need, and then order appropriately. Letting customers pre-order seasonal products allows the Cassidys to fill the needs of the majority of their customers and save merchandising space on the salesfloor, since most of those pre-ordered items never hit the salesfloor. “We have a long-term relationship with our customers and have trained them to know that we’ll have certain products at a certain time of the year,” she says. “We can work with our customers to order just what they know they will need. That gives us a shorter turnaround on inventory, so we can have room for other products our customers need.”

Go Deep When Necessary Despite the size of the store, Chet’s Hardware stocks 10 different types of coffee pots. It’s one of the Cassidys’ best-selling items, in a category that is a destination for many customers. Just because a store is small doesn’t mean it shouldn’t stock plenty of product in key categories. “Being the only hardware store on the island means we need to go deep in some areas, such as fasteners and plumbing. If you have that one hardto-find part the customer needs, they will come in and buy other stuff,” says Mike. That doesn’t mean he does it in all categories. The lawn and garden offering is very limited, due to a very small demand on the island. He also has a difficult time competing on power tools, since the higher freight charges he has to pay to get anything shipped to the island make it difficult to compete on those types of higher-priced items. One challenge any retailer faces is where to offer a larger array of products, and what categories don’t require as many items. But in a smaller store, perhaps, there is less room for error.

HARDWARE RETAILING | November 2016

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Doing More With Less Fuller and Son Hardware Little Rock, Arkansas Retail space: 4,300 square feet When Bobby Fuller decided to open a store in a neighborhood called The Heights in Little Rock, Arkansas, he didn’t have much choice in the size of building he would use. Most retail spaces in the historic area were small and landlocked. But what he could choose was how he filled that space. Today, the 4,300-square-foot salesfloor packs as much merchandise as a store three times its size. Fuller operates six Fuller and Son Hardware stores throughout central Arkansas, ranging in size from 20,000 square feet down to the smallest in The Heights, his newest location. “That store is our third best performing store,” he says. “It probably has 35,000 SKUs, probably more merchandise than the rest of our stores, except for our largest store.” The ability to stock just about anything, including lumber and bagged goods, in an area with such a limited footprint may seem like magic. For Fuller, it’s all about creative merchandising, constant attention to inventory and meticulous attention to housekeeping—all principles retailers of any size can use to improve their operations.

Sliders and Drawers “We have a lot of customers who visit our other stores who come here expecting to find the same items,” Fuller says. “We intend to have it for them. We utilize every square inch of this store.” It’s no surprise then that merchandising in The Heights store is anything but typical. Fuller leaned heavily on his distributor for advice on how to put together a merchandise plan that would fill the space and provide everything his customers needed. His customers range from the walk-in DIYer to contractors and commercial accounts. He needs a little bit of everything, and not just the A and B items. The inventory goes deep into all of the hardlines categories, including a full line of power tools and plumbing fittings. Staff can offer all of the services of a traditional hardware store, too, such as glass and pipe cutting. To find a place for all of that merchandise, Fuller uses sliding racks three tiers deep. Many of the shelves have drawers, which allow for additional storage. That allows him to stock full assortments as well as a few niche lines, such as pet supplies, that fit with customers in the area. Even though he has a small space, Fuller resists the temptation to turn his endcaps into just

Bobby Fuller (center) and his sons Jeff (left) and J.R. designed their newest store to fit into a small space while maintaining high standards of merchandising and organization.

HARDWARE RETAILING | November 2016

another space for a standard run of merchandise. He uses them for promotional displays and changes them out weekly, staying in line with merchandising best practices.

Help Every Customer Because the merchandising is so unusual, customers might have to dig a little to find what they want, especially when drawers and sliding racks may hide some of the products. That means staff need to be extra conscious to make sure every customer gets attention. “If a customer doesn’t see something right away, that doesn’t mean we don’t have it; they just have to learn how to use the slider racks and drawers,” Fuller says. “It’s important that our employees help every customer,” he says. “It also means employees have to know the location of every product in the store and be able to find it quickly.”

Order Often, Order Everything Shelving height at the store is a standard 8 feet, but due to the sliding racks, the peg hooks are usually shorter. That makes inventory a challenge. Fuller can keep fewer items at a time, and with no backroom where he can store overstock, he needs frequent deliveries. Where in his other stores Fuller may be able to buy case quantities, at The Heights location, he must buy smaller quantities, and buy them more often. “I have to order once a week here, and my orders are much larger, because I’m ordering more lines every week than at the other stores. There’s a lot more inventory to put on the shelves each week, too, when the truck comes in,” he says. Outside the store in a shed, Fuller stocks enough lumber and building materials to build a deck or remodel a room. Typically, he supplies that area twice a week by transferring stock from one of his other stores. He also sells plenty of bagged goods, and it’s not unusual for him to sell a truckload of ready-mix cement products in a week.

Fanatical Housekeeping Despite being packed with SKUs, the Fuller and Son store in The Heights looks anything

“With a store this

size, it has to be neat. Housekeeping is everyone’s job, and it happens daily.

”

—Bobby Fuller, Fuller and Son Hardware

Sliding racks three tiers deep allow Fuller to stock complete assortments of smaller items such as power tool accessories.

but cluttered. Housekeeping is something Fuller and his staff stay on top of daily. He uses tote boxes on top of the gondolas as places for storing overstock, and eliminates cardboard packing boxes, which easily become dented or torn. The interior of the building has bright lights to balance the black fixtures, which give the store an upscale appearance. He doesn’t allow boxes to sit on the floor, either, but insists all products are on display racks, faced, fronted and full. The exterior of the store must remain spotless, too, especially given the affluent nature of the neighborhood. “With a store this size, it has to be neat. Housekeeping is everyone’s job, and it happens daily,” he says. “We don’t leave anything lying on the floor. All pegs and shelves are full and fronted. We sell a lot of bagged goods that we have in front of the store. Everything has to be square and perpendicular, and well swept.” Hardware Retailing staffers Liz Lichtenberger and Jesse Carleton contributed to this article.

November 2016 | HARDWARE RETAILING

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HARDWARE RETAILING | November 2016

By Jesse Carleton, jcarleton@nrha.org

Tool Tech D Three Power Tool Trends You Should Know id you ever think you’d sell a cordless table saw? What about a power drill with an app that helps you find it when it’s lost? Manufacturers continue to make bigger and better power tools, and now they’re going high tech. Recently, they’ve come up with a number of significant innovations, especially when it comes to cordless power tools. To get more detail on those innovations and how they will impact the future of the tool category, Hardware Retailing spoke with Clint DeBoer, editorin-chief of Pro Tool Reviews, an online tool magazine. DeBoer has a job most any retailer or DIYer would envy. He and his staff get to test the latest tools— sometimes before they’re released to the public. His website, www.protoolreviews.com, offers tool reviews and news helpful to any tool user or retailer.

According to DeBoer, there are three major trends happening in power tools today: the emergence of smart technology for cordless tools, a greater variety than ever in cordless power tools and a revolution in battery technology. If you want to be the category leader in your market, these trends offer insights into the new products you should be incorporating into your assortments. In the photos throughout this article, we’ll give you a look inside Acme Tools (www.acmetools.com), a family-owned business based in Grand Forks, North Dakota that has 10 locations in North Dakota, Minnesota and Iowa. This 65-year-old company has established itself as a dominant competitor in the hand and power tool market, both online and in its retail stores. To see more photos from Acme Tools, visit TheRedT.com/acme-tools.

November 2016 | HARDWARE RETAILING

Smart Tools

ou knew there was an app for just about everything: now add power tools to the list. As smart technology makes its debut in the tool market, manufacturers are trying out different smart features to see what consumers will embrace. “Some manufacturers are doing better than others with app-enabled technology,” says DeBoer. “But it’s yet to be determined what features will actually be useful to most users. This is still a maturing market, but we’re headed in the right direction.”

Programmable Tools Apps that can control a power tool are possible today thanks to another recent development in tools: the brushless motor. In addition to the fact that brushless motors last longer and are more efficient for cordless tools, another big benefit is that this type of motor allows for more precise control of the motor’s speed and torque.

Scott Peterson, general manager of the Plymouth, Minnesota, Acme Tools store, calls his store a “house of brands.” Part of the store’s competitive strategy is to use a strong brand presence, coupled with a price match guarantee, to dominate the hand and power tool market.

HARDWARE RETAILING | November 2016

“Brushless tools use a different motor technology than more traditional motors, which means they can be controlled by electronics in a way that wasn’t possible before,” says DeBoer. Since specific applications require specific speeds and torque values, the next logical step was to program those tools for those specific applications. When using an impact driver, for example, it’s easy to apply too much speed or too much torque to the fastener. The result could be driving the fastener too far into the material, or snapping off the head of the fastener. Some tools offer high, medium and low settings, or a dial with a range of speeds, but those seem primitive now compared to what smart tools can do. Smart tools take the guesswork out of those fastening applications. For example, you can set the tool with the exact speed and torque values you need for driving sheet metal screws, or drywall screws. In fact, you can even program them to start slow and then speed up, which is exactly what you might need to do when driving, for example, a self-tapping screw into sheet metal. The possibilities for how users can apply this level of control over their tools are endless, but the bottom line is that power tools can now be customized and configured for very specific applications. Where before tools came with a set of generic, pre-configured settings (or no settings at all), now individual users have the ability to customize the tool for any application. Those settings can all be created and controlled through a smartphone or tablet. Users can switch between modes for a tool simply by tapping on a screen. What Customers Love and How to Sell It Currently, the pro customer is likely to be more excited about the ability to program settings on a tool than the average do-it-yourselfer. It’s important that you and your employees understand the technology enough to explain the benefits. Show your customers how using the correct setting on the tool for the application can save money on accessories. For example, someone using a reciprocating saw should know there are different blades for cutting through metal and cutting through wood. But they should also know it’s best to cut wood at a higher speed and metal at a slower speed. The metal-cutting blade will be more effective and last longer if it cuts at the proper speed. Cut at a higher speed and the blade burns out, fast.

In the past, users could vary the speed of the saw by applying more or less pressure on the trigger. With a smart tool, those users can dial in a setting created specifically for cutting metal. Cuts made with the smart tool will be more efficient and more consistent, and blades will last longer. This can be particularly beneficial to contractors who may have workers with a variety of skill levels. “In some markets, skilled labor is tough to find. So a possible scenario is that a worker who’s cutting through pipe with a reciprocating saw may go at it too fast and burn up the blade,” says DeBoer. “Now, that contractor can hand any worker the saw and tell him to use mode two, preprogrammed for cutting metal. Now he’s saving money on blades.” Will many DIYers buy smart tools? It’s up to you to explain the benefits as you sell this as an upgrade to the regular tool. You can talk about the money they’ll save on accessories. Fortunately, manufacturers have done their part in making the software that goes with the tools easy to use. The harder sell will be the price upgrade. “Many manufacturers are offering the regular tools and then the smart tool as a premium product, and there’s usually only about a $50 price difference, currently,” says DeBoer. “The consumer will just have to determine if they want to pay that premium for that functionality.”

Acme Tools also leads power tool sales by having complete vendor lines, which is critical to serving contractor and commercial customers. “We go deep into our vendor’s lines, and we back that up with inventory,” says Peterson. “If someone needs eight band saws, we have them.”

“We won’t have true theft prevention until there are actual GPS chips inside of the tools, much like they are inside a phone,” says DeBoer. “That isn’t happening yet, but I think it’s coming. We will soon get to the point where manufacturers can put in a GPS chip without affecting the price of the tool too much.”

Tool Inventory Management Smart functions also help contractors keep track of their tools. Some tool manufacturers are making that possible with RFID technology. Imagine a jobsite with multiple workers using tools out of a common tool crib. Whoever is managing that inventory of tools would like to know what tool is being used and who is using it. Workers on a jobsite can “check out” their tool for the day and managers can keep track of those tools via an app on a tablet or smartphone. It’s easier to account for all of the tools at the end of the day. Just swipe a scanner over the tools to check them in. The next logical step to this technology is theft prevention, such as the ability to lock down a tool when it’s stolen and then find it, but that feature is still in its infancy, says DeBoer. Current theft prevention features still have several limitations. If you have a tool stolen, you can report that tool as stolen and enter in the date and time when you last saw it. But the tool’s smart feature still relies on Bluetooth, which means the lost tool will only “appear” if the app is running on someone’s smartphone, and if that individual is within close proximity of the tool.

What Customers Love and How to Sell It Contractors who oversee a jobsite with a lot of tools in use should quickly see the benefits of a tool inventory management system. They can ditch the spreadsheets or manual checklists of what tools are in use. It will be easy to tell if all tools are returned to the tool crib at the end of the day so they’re not left unsecured. Some manufacturers also offer a function that allows the tool user to store all purchase and warranty information in the app. If a tool goes missing, or if there is a warranty issue, the tool owner doesn’t have to rummage through a file to find the correct paperwork. One of the best ways to start promoting these new items is to invite your key contractor customers for a tool demonstration day featuring, if possible, a representative from your key tool vendor. This type of event will show your customers you are staying current with the latest trends. Have the event during the slower winter months, when contractors are more likely to be able to spend some time at your store, and combine it with a customer appreciation dinner so you stay close to this customer base.

November 2016 | HARDWARE RETAILING

Cordless

he cordless jobsite is getting closer to reality. Power tools are once again evolving in a big way and more tools are going cordless than ever before. When cordless technology first appeared on the market, battery operation seemed a good fit for some tools, such as drills, that required low voltage. They likely weren’t suited for tasks that required long run times or that might put a lot of strain on the motor, or so went the general thinking. As technology improved, manufacturers continued to add batteries to more and more tools, but it wasn’t until the introduction of the lithium ion battery that the market exploded. Now, manufacturers and consumers are rethinking cordless. Lithium ion batteries pack a lot more power in a lot less space than their nickel cadmium cousins. That means manufacturers can put batteries on bigger tools that usually require high power and long run times, such as SDS max hammer drills, table saws and even grinders. There are more features and capabilities on these tools than ever before. “When the lithium ion battery came out, that’s when tools started to mature rapidly,” says DeBoer.

“Now the batteries are so good, we are seeing a 12-inch miter saw going cordless. That’s never happened before this year. There are a lot of tools you would have never thought would go cordless hitting the market now.” What Customers Love and How to Sell It Benchtop tools like the cordless table saw and miter saw will be ideal for customers working in remote areas without access to electricity. But for those with easy access to electricity, it’s yet to be seen if cordless models of these larger tools will win out when consumers must choose between that and a corded model. Regardless, if you want to make an impact with your tool department, it would be wise to bring in any new cordless tools your tool vendor offers, even if they are just for display. Do-it-yourselfers and contractors alike love tools, and they love looking at what’s new. Even if these products aren’t fast movers, having the latest tools on display helps establish your dominance in the category so you become the place your customers come to make all tool purchases.

Peterson puts new items front and center on the salesfloor, and then follows it up with advertising. Some of the latest trends in cordless and battery technology have been generating a lot of attention from his customers.

HARDWARE RETAILING | November 2016

Batteries

attery manufacturers continue to face the challenge of how to create a battery that lasts longer and produces more power. Turns out, a lot of it has to do with the battery’s wiring. Lithium ion battery technology has given manufacturers a whole new set of tricks to use. Essentially, battery manufacturers have rearranged the way they wire together the cells inside a battery so they can get more power. “The power density per cell is also larger, and manufacturers are able to pack more power into the same size cell than they used to when they first came out,” says DeBoer. “Batteries that are the same size and voltage have gone from 2 amp-hours to as much as a 6 amp-hour capacity.” What does that mean? “Higher-capacity tools are also allowing us to get twice the run time from existing battery sizes,” DeBoer says. Batteries on the market today are more powerful than they have ever been in the past. That means they can power larger tools, such as the cordless table saw, and they will last longer, which makes them more practical. What Customers Love and How to Sell It In light of these recent trends, when selling cordless power tools, it’s important to clear up misconceptions customers may have about tools. First, voltage doesn’t tell the full story, and it’s easy to make the mistake of using that as the main basis for comparing cordless tools. “Make sure you know what’s going on under the hood of these tools,” says DeBoer. “Today’s 12-volt lithium ion battery tools are every bit as powerful as the 18-volt NiCad battery tools that were out several years ago. That’s due to battery power density, brushless motors and all of the other improvements manufacturers have made to tools.” Battery technology continues to be one of the points manufacturers use to differentiate their products, and recently there have been major advancements in this area. You’ll need to help customers distinguish between how different manufacturers are marketing their products. Some may emphasize higher voltage batteries, while others may emphasize run time. When selling, it’s important to dig down into the specs of each product so you get a true picture of how they compare. Remind customers that bigger isn’t always better, either, when it comes to power tools. Ever since the introduction of lithium ion batteries, tools have continued to get lighter. Especially for those who use tools all day long, ergonomics will be a factor in

While major brand-name tools are merchandised along the wall at Acme Tools, adjacent aisles offer a complete line of accessories for each brand.

choosing a tool. “You may be able to get a smaller tool to do the work of a larger tool,” says DeBoer. “If you’re holding a drill over your head repeatedly throughout the day, you may not need an 18-volt; you may be able to get the job done with a 12-volt driver.” Another major consideration of a cordless tool purchase is the charger. Charging technology continues to improve. “As tools have gotten higher in capacity, the time required to charge a battery has gone up,” says DeBoer, “but there have been advancements in technology that allows charging to happen at a faster rate, too, so it evens out.” Most manufacturers sell a basic charger with the tool or tool kit. But most manufacturers also offer other options, so be sure to point these out to customers who may need faster charging times. Recommend rapid chargers, which will charge more quickly than the standard model, or dual chargers that will charge multiple batteries at once. Finally, tell customers about the advancements in battery charging technology. Batteries today last longer, and if you want the best results, you don’t have to wait until they are completely dead to recharge them again (a common problem with NiCad batteries). “Most batteries today will handle at least 800 to 1,000 cycles,” says DeBoer. “For the most part, we’ve seen a lot fewer failures on batteries made today than those of older batteries. You can expect a lot of use out of batteries today, with some manufacturers offering 3-year warranties.”

November 2016 | HARDWARE RETAILING

Newsmakers

The Big Event That Gives Year-Round

or more than 70 years, the National Hardware Show® has served as the primary gathering place for the home improvement industry—a unique event where representatives from across the channel can gather, interact and do business. This year, the National Hardware Show will be May 9-11 in Las Vegas. (Find details at nationalhardwareshow.com.) But the show impacts the industry well beyond the three-day event by supporting numerous industry events and causes. In December, the show will again sponsor NRHA’s State of Independents Conference in Chicago. (Learn more at TheRedT.com/SOIC.) The show also provides scholarships for students to participate in NRHA’s Retail Management Certification Program. Rich Russo, vice president of the National Hardware Show, spoke with Hardware Retailing about the show’s involvement in the industry. Hardware Retailing (HR): How can independent retailers take advantage of the National Hardware Show to help their businesses? Rich Russo (RR): Each year, we introduce new elements to the show to make it more accessible and useful for the independent retailers who attend. We know the show can be incredibly valuable for independent retailers to see products and interact with suppliers and other partners they might not otherwise get to see. HR: What are specific ways you are doing this? RR: We introduced an “Independent Retailers’ Guide Book” listing all the exhibitors who are looking to do business with independent retailers. Through this guide, exhibitors can let independent retailers know about show specials, drop-ship programs and new products. This is available on the website and in the mobile app, as well. We also know that education is a big part of what independent retailers want to get out of the show, which is why we have fostered our relationship with NRHA to provide meaningful programs at the show and events that bring independent retailers together. Lastly, we have placed a great deal of emphasis on making it easy for independent retailers to identify new and unique products through areas at the show featuring hundreds of new products, some of which are the most creative, innovative ideas you won’t see anywhere else. HR: Over the past several years, the show has made several changes to target independent retailers even more. Can you tell us about these changes? RR: One big thing has been to make sure that our exhibitors are truly educated on the value, benefits and buying power of the independent retailer. We have also worked with vendors to offer additional buying opportunities and show specials. In addition, we have created a service to match independent retailers with vendors from the specific categories they want to explore at the show. HR: Are there changes on tap for the 2017 show for independent retailers? RR: Everyone should stay tuned for a big announcement coming soon that will transform the National Hardware Show into the most valuable show in the calendar year for the independent retailer. HR: Why is it important to the National Hardware Show to support a variety of independent retailer-focused programs? RR: The independent retailer and the health of the industry are of utmost importance to us. The show is the one place where a retailer can see the entire industry in context.

HARDWARE RETAILING | November 2016

Upcoming Events November 17-19 2016 Distribution America/ PRO Group Executive Planning Conference Marco Island, Florida

December 8 North American Retail Hardware Association State of Independents Conference Chicago

January 5-7 World and Main Houston 2017 Spring Market Houston

6-8 United Hardware Spring and Summer Buying Market Minneapolis

10-12 The Kitchen & Bath Industry Show (KBIS) Orlando, Florida

10-12 2017 NAHB International Builders’ Show Orlando, Florida

15-16 Do it Best Winter Conference Orlando, Florida

15-17 2017 Retail’s BIG Show New York

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

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Newsmakers

Who Is Bidding on Sears’ Craftsman Business?

Tractor Supply Co. Buys Pet Store Chain for $116M

As Sears continues to search for ways to make its business profitable again, a bidding war may be underway for the company’s Craftsman tool business. Companies reportedly bidding on Craftsman include Stanley Black & Decker Inc. and Hong Kong’s Techtronic Industries Co. TheRedT.com/craftsman-bidding

Rural lifestyle retailer Tractor Supply Co. has purchased a 136-location pet store chain for $116 million in cash. Petsense, the pet supply and services company, will operate as a Tractor Supply subsidiary. TheRedT.com/tractor-supply-petsense

China International Hardware Show Adds Enhancements In October, more than 50,000 people gathered in Shanghai, China, to attend the China International Hardware Show (CIHS) 2016. With new enhancements, the show provided a convenient experience for both exhibitors and visitors. TheRedT.com/cihs-2016

Retailers Buy, Shop and Learn at Blish-Mize Fall Buying Market In September, Blish-Mize customers gathered in Overland Park, Kansas, to find good deals, source new products, network and attend educational sessions. The overall mood from attendees was positive and reflected a generally good year for Blish-Mize, which has posted steady sales increases. TheRedT.com/blish-mize-fall-2016

Retailers Find Focus at True Value Reunion Retailers gathered to find new products, gain business inspiration and

network with their peers at the True Value Fall Reunion in Denver. TheRedT.com/tv-fall-2016

Bass Pro Shops to Buy Cabela’s for $5.5 Billion Two former rivals in the outdoor sporting goods industry are uniting. Bass Pro Shops announced that it is acquiring Cabela’s Incorporated for about $5.5 billion. The companies are expected to close the deal during the first half of 2017. TheRedT.com/bass-pro-cabelas

Plenty to See at the Do it Best Fall Market Retailers from all over gathered in Indianapolis for the Do it Best Fall Market, where they looked for new products, attended seminars, found good deals and more. Retailers also experienced some changes to the

Statement of Ownership, Management, and Circulation (Requester Publications Only) 1. Publication Title

2. Publication Number

Hardware Retailing Magazine

0 8

4. Issue Frequency

5. Number of Issues Published Annually

8 9

3. Filing Date

2 9 8 9

Monthly

13. Publication Title

14. Issue Date for Circulation Data Below

15. Extent and Nature of Circulation

Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date

9/21/16 6. Annual Subscription Price (if any)

$50.00

7. Complete Mailing Address of Known Office of Publication (Not printer) (Street, city, county, state, and ZIP+4 ®)

Contact Person

Rich Jarrett

a. Total Number of Copies (Net press run) Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing, and Internet (1) requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.)

Telephone (Include area code)

136 N. Delaware St., Suite 200, Indianapolis, IN 46204-2529

314-432-7511

8. Complete Mailing Address of Headquarters or General Business Office of Publisher (Not printer)

136 N. Delaware St., Suite 200, Indianapolis, IN 46204-2529 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor (Do not leave blank) Publisher (Name and complete mailing address)

Dan Tratensek, 136 N. Delaware St., Suite 200, Indianapolis, IN 46204-2529

b. Legitimate Paid and/or In-County Paid/Requested Mail Subscriptions stated on PS Form 3541. Requested (Include direct written request from recipient, telemarketing, and Internet Distribution (2) requests from recipient, paid subscriptions including nominal rate subscriptions, (By mail employer requests, advertiser’s proof copies, and exchange copies.) and outside Sales Through Dealers and Carriers, Street Vendors, Counter the mail) (3) Sales, and Other Paid or Requested Distribution Outside USPS® (4)

Editor (Name and complete mailing address)

Dan Tratensek, 136 N. Delaware St., Suite 200, Indianapolis, IN 46204-2529 Managing Editor (Name and complete mailing address)

(1)

10. Owner (Do not leave blank. If the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of the total amount of stock. If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership or other unincorporated firm, give its name and address as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address.) Complete Mailing Address Full Name

North American Retail Hardware Association

136 N. Delaware St., #200, Indpls., IN 46204-2529

d. Nonrequested (2) Distribution (By mail and outside the mail) (3)

(4)

11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities. If none, check box. X None Full Name

Complete Mailing Address

Requested Copies Distributed by Other Mail Classes Through the USPS (e.g., First-Class Mail®)

c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4)) Outside County Nonrequested Copies Stated on PS Form 3541 (include sample copies, requests over 3 years old, requests induced by a premium, bulk sales and requests including association requests, names obtained from business directories, lists, and other sources) In-County Nonrequested Copies Stated on PS Form 3541 (include sample copies, requests over 3 years old, requests induced by a premium, bulk sales and requests including association requests, names obtained from business directories, lists, and other sources) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g., First-Class Mail, nonrequestor copies mailed in excess of 10% limit mailed at Standard Mail ® or Package Services rates) Nonrequested Copies Distributed Outside the Mail (Include pickup stands, trade shows, showrooms, and other sources)

Total Nonrequested Distribution [Sum of 15d (1), (2), (3) and (4)]

Total Distribution (Sum of 15c and e)

Copies not Distributed (See Instructions to Publishers #4, (page #3))

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* If you are claiming electronic copies, go to line 16 on page 3. If you are not claiming electronic copies, skip to line 17 on page 3.

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner 12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: X Has Not Changed During Preceding 12 Months Has Changed During Preceding 12 Months (Publisher must submit explanation of change with this statement.) PS Form 3526-R, July 2014 [Page 1 of 4 (See instructions page 4)] PSN: 7530-09-000-8855

HARDWARE RETAILING | November 2016

PRIVACY NOTICE: See our privacy policy on www.usps.com.

Date

9/21/16 I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

market format for the first time, as well as some new product assortments and creative merchandising ideas. TheRedT.com/dib-fall-2016

Lowe’s Australia Operations Wind Down, Despite Court Fight Australian company Woolworths is selling off segments of its failed joint venture with Lowe’s in Australia, and a court has ruled against Lowe’s request to have a court-ordered outsider handle the liquidation. TheRedT.com/woolworths-lowes-court

CANADA Exclusive With CEO Terry Davis: Good Gets Great at Home Hardware At the Home Hardware Fall Market, retailers were generally consistent in their reports that business is up yearto-date. Against this positive backdrop, Home Hardware CEO Terry Davis spoke about internal changes that are geared to driving the company and reflecting the latest market’s theme, “From good to great.”

PRO Group Merges With Reliable Distributors, Inc.

It’s Time: Recycled Paint Saves Waste and Budgets

Denver-based PRO Group, Inc., announced that it is merging with Reliable Distributors, Inc. Reliable Distributors, which is based out of Chicago and has more than 200 distribution centers across the country, is a marketing, merchandising and wholesale distributor group that will add 74 distributors and over $2 billion in volume to PRO Group. TheRedT.com/pro-reliable-merge

While traditional paint companies continue to count on trends and finishings to drive their sales, at Laurentide Paint, its Boomerang collection presents special marketing challenges. This line of recycled paints was originally acquired from Norman Maurice, a retired school principal in Victoriaville, Quebec, who developed a technique for making eco-friendly paints low in volatile organic compounds by

remixing discarded returns with just 1 percent new paint.

Home Hardware Named One of Canada’s Most Trusted Brands Home Hardware Stores Limited has been recognized as one of Canada’s 10 most trusted brands. Out of 276 brands, the company was ranked fourth, after MEC, President’s Choice and Costco.

Gypsum Tariff Is Creating Widespread Shortages Following the imposition of a tariff on gypsum drywall sold in Western Canada, reports of shortages are coming in from as far away as Ontario. Suppliers in Ontario have confirmed that product is being shipped out west, creating shortages locally. One supplier calls the current state of affairs “complete chaos” as builders and contractors look for new sources of supply. For the full story of each of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX Ace Hardware ..........................................................11 www.myace.com; 630-990-6900

General Pipe Cleaners, Div. of General Wire Spring Co..........31 www.drainbrain.com; 800-245-6200

Starrett................................................................12-13 www.starrett.com; 888-674-7443

ADFORS Saint-Gobain .............................................37 www.adfors.com; 800-762-6694

HSI...........................................................................49 www.hardwaresuppliers.com; 800-334-5625

Stihl............................................................................7 www.stihlusa.com; 757-486-9100

Ajax Wire Specialty Co.............................................32 www.ajaxwire.com; 855-966-2529

Lincoln Products.........................................................21 www.lincolnproducts.com; 844-223-4770

Stump Chunks .........................................................18 www.stumpchunks.com; 603-935-5405

Allway Tools Inc. ........................................................63 www.allwaytools.com; 718-792-3636

Magna Industries Inc..................................................28 www.magna-insto.com; 800-969-3334

Sun Gro Horticulture ................................................19 www.blackgold.bz; 800-732-8667

Bernzomatic ........................................................40-41 www.nrharmcp.com/scholarships/findyourfire

Marklin Inc. ................................................................33 www.lgb.com; +49 7161 608-0

True Value Company................................................35 www.truevaluecompany.com; 888-291-7229

Caterpillar............................................................22-23 www.cat.com; 888-614-4328

Midwest Fastener....................................................38 www.fastenerconnection.com; 800-444-7313

Ulta-Lit Tree Company................................................39 www.ultalit.com; 888-858-2548

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

Midwest Products Co. Inc. ......................................29 www.midwestproducts.com; 800-348-3497

U.S. Wire & Cable....................................................25 www.uswireandcable.com; 800-327-4673

Cole’s Wild Bird Products Co...................................15 www.coleswildbird.com; 877-426-8882

NRHA Health Insurance ......................................... IFC www.cbigi.com; 888-201-7408

Woods WiOn .............................................................9 www.woods.com

Darex .........................................................................5 www.darex.com; 800-597-6170

Old Masters .............................................................30 www.myoldmasters.com; 800-747-3436

Wooster Brush Company ..........................................BC www.woosterbrush.com; 800-392-7246

Distribution America ................................................59 www.daonline.com; 704-940-4800

Orgill Inc. .......................................................... 64-IBC www.orgill.com; 800-347-2860

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

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

Sears Hometown Store ...........................................17 www.ownasearsstore.com

Fish Tales LLC ............................................................20 www.bubbablade.com; 844-486-7265

Simpson Strong-Tie Co. Inc. ....................................47 www.strongtie.com; 800-999-5099

November 2016 | HARDWARE RETAILING

Last Word

Are You Ready for the Holidays?

he holiday shopping season is upon us. Is your store ready? From holiday advertising to hiring seasonal workers to setting up holiday displays, there’s plenty for independent retailers to do in November and December. The shop-local trend has continued to strengthen over the years. In 2010, American Express created Small Business Saturday, which is held the Saturday after Thanksgiving, to encourage consumers across the country to shop at small, local businesses. Make the most of the shopping season on Nov. 26.

Holiday Shopping By the Numbers

655.8

BILLION

3.2%

Holiday sales in November and December are expected to increase 3.6 percent, to $655.8 billion.

Non-store sales are expected to reach as much as $117 billion, an increase of 7 to 10 percent. (In 2015, holiday sales increased 3.2 percent over the previous year.)

Three things to consider as you plan for the holiday shopping season: 1. Host an Event Host an event in your store on Small Business Saturday. Promote it on social media, and create a hashtag (“#shopsmall” is a popular one from American Express, creator of Small Business Saturday) so your customers can share their shopping experiences that day with their families and friends.

2. Encourage Shopping Local Remind customers, through in-store signage, bag stuffers and social media posts, of the importance of shopping local. Turn to Page 24 to learn more about how shopping locally makes an impact on your community and to find out how to download free marketing materials to promote shopping local.

3. Offer Special Deals

640,000690,000

Retailers are expected to hire between 640,000 and 690,000 seasonal workers this holiday season. (Last year, that number was approximately 675,300.)

Source: National Retail Federation (NRF)

HARDWARE RETAILING | November 2016

Offer some one-day-only sales on Small Business Saturday to drive traffic. Once customers are in your store, remind them of the benefits of shopping local—and impress them with your product knowledge, product selection and customer service—to encourage them to come back.

Susan Elmore Buzick Lumber & Home Center Kentucky

“Orgill has always been very supportive of us. You’re more independent when you’re dealing with Orgill.”

Independence and Growth “Orgill Allows Us to Customize our Business.”

Freedom

Expansion

“Orgill helps us adapt to our market and they don’t

“Orgill was instrumental in getting us into rental.

require us to post their signs or run their circulars if we

We worked with Orgill about 10 years ago to launch

don’t want to. The freedom Orgill provides allows us to

the rental program, which now contributes about

customize our product mix and advertise specifically for

one-third of our profits.”

Bardstown and the surrounding communities.”

Cutting Costs, Growing Profits Reliability

“Orgill’s recent Market Driven Retailing study will help

“I know I can count on my Orgill deliveries to be on time and

with updating our pricing to improve profit margins.

accurate, so we are better able to manage our inventory.

They looked at our competitors, and will help us earn

They also don’t charge any hidden service fees.“

more margin and be more competitive at the same time.”

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