Issuu

Serving Hardware, Home Center & Building Material Retailers

What Does It Mean To Be Green? Giving Your Customers Earth-Friendly Options in Lawn and Garden 40

Pay Attention to Payroll: NRHA’s 2017 Employee Compensation Report 54

VOLUME 213 • ISSUE 5 • NOVEMBER 2017 • HARDWARERETAILING.COM

Is It Time for a Store Makeover? 62

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Delivering the Best in Class Orgill’s commitment to customer service is evident in every order, from the drivers who become part of the team at each stop, to the reliable, prescheduled deliveries.

“We expect our wholesaler to be competitive and efficient on deliveries, and with Orgill’s sophisticated network of distribution centers, they’ve never missed a beat.” Terrill Bartlett l Bartlett’s Lumber & Hardware, Texas l An Orgill customer since 2003

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A Continued Commitment

Orgill starts its best-in-class deliveries by putting

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North America and continues to make investments to enhance

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its efficiencies and service. Partner with Orgill to experience the

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Giving Your Customers Earth-Friendl Options in Lawn and Garden 40

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

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Is It Time for a Store Makeover? 62

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Serving Hardware, Home Center & Building Material Retailers

What Does It Mean To Be Green? Giving Your Customers Earth-Friendly Options in Lawn and Garden 40

Pay Attention to Payroll: NRHA’s 2017 Employee Compensation Report 54

VOLUME 213 • ISSUE 5 • NOVEMBER 2017 • HARDWARERETAILING.COM

Is It Time for a Store Makeover? 62

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NEXT MONTH

Measuring Up

he December issue features Market Measure, the annual roundup of the state of the industry. This in-depth examination of the data that matters to independent home improvement retailers will help you analyze how your business can excel going into 2018. We also include expert opinions on the state of the housing market and the economy.

Once you’re primed with the data, get ready to apply it in December’s cover feature about how to grow your business. Finally, we showcase the rental equipment that can turn your customers’ New Year’s Eve parties into showstoppers in the December Category Spotlight. Learn how you can take 2017 out on a high note with a bounce house and a cotton candy machine.

GIVE THE PEOPLE WHAT THEY WANT Your customers want reliable pliers. Your customers want pliers made in America. Most of all, your customers want pliers that don’t just finish the job, but defeat the job. Good thing Channellock, Inc. makes tough, American-made pliers that get the job done right the first time, every time. Give your customers what they want. Give ‘em Channellock. www.channellock.com

Going to STAFDA 2017? Visit us at booth #1325-1327  NEVER FORGET  Veterans Day is coming. DonÕt forget to thank a veteran for their service on 11/11/17. November 2017 | HARDWARE RETAILING

Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

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

MEMBER SERVICES TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9419, kstokes@nrha.org MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

RETAIL LEADERSHIP INSTITUTE

FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon

MULTIMEDIA DESIGNER Graeme Haase GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

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

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

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

SALES/NRHA VENDOR PARTNER

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

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

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

For more book recommendations, visit TheRedT.com/nrha-recommends.

SENIOR DESIGNER Lynnea Chom

NATIONAL SALES MANAGER Lowell Huffman

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

The NRHA Retail Leadership Institute is dedicated to developing independent home improvement retailers into leaders. For insights into leadership, Scott Wright, executive director of the Retail Leadership Institute, turns to “Learning Leadership: The Five Fundamentals of Becoming an Exemplary Leader” by James M. Kouzes and Barry Z. Posner.

ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber

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

NRHA CANADA

NRHA Recommends

WEST/MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 847-934-2494, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

“This book helps you get to know yourself and your leadership potential so you can help develop the other leaders on your team and improve your business.” —Scott Wright, executive director, NRHA Retail Leadership Institute

NRHA MISSION

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

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

David Dishke, Grand River Home Hardware, Caledonia, Ontario

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

Steve Fusek, Fusek’s True Value, Indianapolis

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2017 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

HARDWARE RETAILING | November 2017

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

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Contents NOVEMBER 2017 | VOLUME 213 | ISSUE 5

CATEGORY SPOTLIGHT

Let’s Talk About the Birds and the Bees

Sponsored by K-CO Products Many consumers are seeking green solutions when cleaning and renovating their homes, and the trend has been shifting outside, too. In this article, we explore the ins and outs of eco-friendly options in the lawn and garden category for customers who want to have an even greener space for birds, bees, pets and other yard visitors.

54 RESEARCH

Does Your Compensation Stack Up? Gain some insight from the North American Retail Hardware Association’s 2017 Employee Compensation Report, and compare your payroll expenses to industry averages for hardware stores, home centers and lumberyards. The study provides payroll information for a variety of positions at each store type.

Departments

On average, payroll accounts for 20 percent of total sales for hardware stores, home centers and lumberyards .

62 EXPERT COLUMN

Retail Is… Store Design Retail consultant Dustin Kaehr expands further on the elements of retail in his latest column. As an independent retailer, it’s important to consider the layout of your store, how it flows and how inviting it is—or isn’t—to your customers. If you haven’t thought about a store redesign, check out Kaehr’s advice and start planning. 4

HARDWARE RETAILING | November 2017

About 65 percent of retailers expect their payroll expenses to increase in 2018 .

06 . . . . . . . . . . . . . . . . . On the Web 10 . . . . . . . . . Independent Thinking 12 . . . . . . . .Taking Care of Business 16 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 66 . . . . . . . . .Newsmakers/Calendar 70 . . . . . . . . . . . . . . . . . . Last Word

On the Cover In San Rafael, California, Marin Ace Hardware owner Michelle Leopold has a handle on what it means to be green in the lawn and garden category . NRHA photo by Whitney Daulton

Fall migration is in full swing Make sure your customers have everything they need to see new and

Photo by: Michael Marler

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On the Web

EXPERT INSIGHT

What Is Retail: A Series Retail consultant Dustin Kaehr wraps up his four-part Retail Is… series on page 62 discussing the importance of store design for home improvement businesses. To read the complete series, visit TheRedT.com/kaehr-wrapup to read his expert insight on personnel, technology and merchandising.

PROFILE

Rand’s Hardware Is the Bee’s Knees The owner at Rand’s Hardware in Plymouth, New Hampshire, has found his niche: beekeeping. Visit TheRedT.com/rands-beekeeping to learn how this retailer puts in additional time and effort to make his business a destination for beekeeping enthusiasts.

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

PROFILE

Minnesota Retailer Honors Fallen Officer When a police officer died in Long Lake, Minnesota, the owner of Long Lake True Value led a communitywide movement to light up the town in blue to honor a fallen friend and local hero. Read the full story at TheRedT.com/blue-light.

BOOKS

Recommended Books for Retail Leaders The average CEO reads four to five books per month, according to Inc. If you’re looking for a new book to fuel your inspiration, check out this reading list from the North American Retail Hardware Association at TheRedT.com/nrha-recommends. 6

HARDWARE RETAILING | November 2017

NRHA Recommends

Presentation: Fireplace Safety FAQs Use this resource to re-educate your employees on how to answer the basic questions customers may have about safely using their indoor and outdoor fireplaces.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

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Independent Thinking

The More Things Change …

“Serving the

hardware retailer is a proud and humbling endeavor, and we plan to uphold these great traditions for a long time to come.

”

ince I only have one more column to write before I retire at the end of this year, I thought it would be fun to look back at some of the early years of our association. Maybe it’s just what old guys do, but sometimes looking back helps put today in a little better perspective. Here at your association headquarters in Indianapolis, we are very fortunate to have a historic treasure. On the shelves of our conference room, we have a collection of almost every magazine published by the North American Retail Hardware Association (NRHA), going all the way back to 1906. Someone in the very early days of the association decided that every issue from each year should be bound together in a leather volume. This foresight has managed to keep this history of our hardware industry intact through many years and numerous moves. We still keep binding the issues together to continue preserving our hardware heritage for future generations. If you’re ever in Indianapolis, stop by and take a look. These old magazines provide a snapshot of what was going on in our stores and in our country for over a century. I decided to take a look back 100 years, so I pulled out the volume from 1917. The National Retail Hardware Association was founded as an affiliation of state hardware associations in 1900, and a century ago, there were 29 state hardware associations that had joined the affiliation. As I looked through the National Hardware Bulletin (what the magazine was called then) from 1917, the vitality of our hardware industry shone through. Each state had a large annual convention, often with 500 to over 1,000 attendees. Like all meetings of hardware retailers today, the conversation was about how to operate more efficiently, how to attract more customers and how to understand pricing, merchandising and inventory control procedures. And, just like today, there was a true fraternity among owners. By 1917, your national association was a vibrant and active player in the hardware industry and was actively engaged in market research. In fact, the annual Cost of Doing Business Study was first issued that year. In addition, NRHA was providing detailed monthly pricing studies through its Price and Service Bureau to help retailers understand the costs of various basic goods. A hardware retailer named E.R. Showers spoke during the 1917 West Virginia Hardware Convention in Wheeling, West Virginia. “The average hardware dealer does not realize the great work which is being done by the National Retail Hardware Association for the benefit of the trade. At Argos, Indiana [the first headquarters location of NRHA], we have a great plant in which we are all interested, because it belongs to us and is working for our advantage. The men who are in charge of that work are keenly alive to the needs of the retail merchant and are doing everything possible to assist them in solving our problems and becoming more efficient merchants.” Hopefully, 100 years later, we can still say the same about NRHA. Serving the hardware retailer is a proud and humbling endeavor, and we plan to uphold these great traditions for a long time to come. When it comes to our hardware industry and the aspirations of the generations of risk-takers who operate across our country, the saying is true, “The more things change, the more they remain the same.”

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | November 2017

Taking Care of Business

The Costs of Reading This Column

“Just imagine the

benefits your business could reap from having an elite, focused group of driven individuals engaging with your customers.

”

s I sit in my comfy chair and hack away on my keyboard, I know it might seem like I am just full of ideas and observations about how retailers can invest in one thing or another. The truth is, after observing and researching this industry for more than two decades and getting to know many of you very well, I have a great appreciation for how hard you work for every penny you earn. So, when I pass along an observation that involves recommending you invest in a particular area of your operation, I do so realizing the impact of this kind of advice. So, consider the following. When you look for a doctor, do you think, “I wonder which one is the absolute cheapest?” What about when you go to a mechanic? Do you really wish you could find the one garage that paid their mechanics minimum wage? If you answered no, I would simply ask why you expect your customers to engage with people at your business who represent the absolute lowest cost help you can find? On page 54 of this issue of Hardware Retailing, you will find the results of our most recent Employee Compensation Study, which provide you with basic benchmarks for what other retailers are paying employees and the changing nature of payroll expenses on their operations. I don’t necessarily want to dive into just dollars and cents here. I want to talk about compensation philosophies. I want you to consider that the single biggest way an independent retailer can differentiate their operation is by offering high-quality service. With service playing such an important role in how independents can establish a solid place in the market, and employees playing the most pivotal role in delivering that high-quality service, it seems to make sense you should invest in this area. Investing in your employees isn’t necessarily about simply paying them more. It’s about investing in an attractive environment where the best and the brightest employees interact with your customers and promote your brand. This environment should include a solid wage and benefits package that is on the high side of competitive for your market. It should also include a profit-sharing plan that allows employees to benefit directly from their actions. Lastly, it should include a plan for constant feedback and improvement from every member of your team. While some of these things require an investment of real dollars, just imagine the benefits your business could reap from having an elite, focused group of driven individuals engaging with your customers. Without this kind of high-performance team, you may very well be giving up on one of the most meaningful points of difference independent retailers still possess.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | November 2017

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NRHA News

Training: Where to Begin With Young Leaders

eet hypothetical retail employee, Joe. Joe started working for the local hardware store in his town as a cashier at age 16 and continued through high school and college. Afterward, he decided to continue his career with the business. Over the years he moved up to lead cashier, to department manager and has recently become store manager. Joe is bright, motivated, great with customers, knows his company inside and out and has extensive industry knowledge. He’s likely to succeed, but could excel even further with proper leadership training. Perhaps you have someone like Joe employed at your company. How can you help that person develop their leadership capabilities to excel as a leader and benefit your business long term?

“

NRHA Foundations of Leadership Program Understanding the journey to improved leadership and performance starts from within. The North American Retail Hardware Association’s (NRHA) Foundations of Leadership Program is designed to move students from learning about their core identity to building and leading teams. Ideal for new managers like Joe or those looking to improve their leadership skills, this 16-week online course arms early leaders with the skills they need to successfully build strong teams, which can lead to improved employee retention and less turnover. Additionally, the course culminates with a business assessment project, where students address core issues and recommend ways to improve operations. For more information about NRHA’s Foundations of Leadership Program, visit nrha.org/RLI.

We’re facing an issue where employees who are new to management are being placed in positions without any formal leadership training. The Foundations of Leadership Program is designed to provide this critical missing link. —Scott Wright, executive director, NRHA Retail Leadership Institute

Qualities of a Strong Leader “Learning Leadership: The Five Fundamentals of Becoming an Exemplary Leader,” by James M. Kouzes and Barry Z. Posner, is an NRHA Recommends resource. It identifies five elements that make a person a better leader. 1. Believe in Yourself 2. Aspire to Excel 3. Challenge Yourself 4. Engage Support 5. Practice Deliberately Young leaders should understand these key concepts of leadership and personal development that aren’t necessarily learned on the salesfloor. For more recommendations, visit TheRedT.com/nrha-recommends.

HARDWARE RETAILING | November 2017

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NRHA News

Making the Rounds at Markets

RHA connects and engages with retailers from wholesale affiliations and co-ops across the industry, which means NRHA staffers are easy to spot at many seasonal markets. This summer and fall, association staff was

busy meeting independent retailers at industry events across North America. Check out where we made stops this season, look for us at your next wholesaler event and go to page 66 for upcoming industry events.

NRHA staffer Kate Klein was anything but blue at the Ace Hardware Fall 2017 Convention & Exhibits in Chicago, where she met with retailers, checked out new products and attended presentations, including the address about Amazon by Ace CEO John Venhuizen.

NRHA staffer Marci Taschler went to the Home Hardware Fall Dealer Market at the co-op’s headquarters in St. Jacobs, Ontario. Taschler (middle) met with Krista Young (left) and Heather McKinnon (right) from Valleyview Home Hardware at the retailer dinner.

The Orgill Fall Dealer Market took place in Boston, and NRHA was on the show floor. Staffers Tom Marcum and Marci Taschler met with retailers to learn more about their businesses and how NRHA could be of assistance to help them reach their goals.

At the Blish-Mize Fall Buying Market in Overland Park, Kansas, the distributor debuted a new stage to showcase the latest products. NRHA was there to see it firsthand and spoke to retailers about the growing opportunities the distributor is offering.

The Do it Best Fall Market happened right around the corner from NRHA headquarters in downtown Indianapolis. NRHA staffers Melanie Moul and Chad Husted attended Friday’s educational sessions and checked out the market floor on Saturday morning.

The True Value Fall Reunion took place this year in Chicago, and NRHA staffer Renee Changnon met retailers who look forward to new opportunities with True Value. She also made time for friends of the fluffier variety on the show floor.

HARDWARE RETAILING | November 2017

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NRHA News

How Research Can Help You Succeed

Adapt to the Changing Retail Industry

hile you’re working hard to bring customers to your business, send products out the door and run the back end of your operations smoothly, NRHA is looking at the bigger picture for you. Each year, your association conducts research for several industry studies, reports, events and Hardware Retailing stories. Below are a few ways home improvement retailers can benefit from industry research.

At the 2017 State of Independents Conference, NRHA will unveil brand new research addressing trends in retailers’ use of online platforms, like websites and social media for their business, and how this compares to what customers expect from home improvement retailers. Research like this helps the industry stay current with today’s online environment.

You Can Get Involved! Use Research Reports to Generate New Ideas

If you’re interested in participating in NRHA research studies, join the Retailer Research Panel at TheRedT.com/join-the-panel. As a participant, you’ll be asked to complete monthly surveys and will receive exclusive access to research and chances to win gift cards. You can also attend the 2017 State of Independents Conference to connect with manufacturers, distributors and retailers and hear research presentations addressing the state of the industry.

The Merchandising for Profit Study helps you evaluate your current tactics and inspire new ways to organize your store. The Social Media Study may encourage you to test a new platform, and you can evaluate the way you advocate for shopping local using the Home Sweet Home Study and Home Sweet Home Pros’ Edition.

Benchmark Your Business Against Industry Averages The annual Cost of Doing Business Study is a time-tested resource that allows retailers to compare their businesses to average and high-profit independent home improvement stores in key areas like sales volume, average transaction size and foot traffic.

Research Roundup Download these reports and more at TheRedT.com/research-roundup.

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5 Reasons to Attend NRHA’s State of Independents Conference

he 2017 State of Independents Conference (SOIC) will take place Dec. 7 in Chicago. SOIC is a one-day event packed with exclusive industry research and networking opportunities for retailers, manufacturers, distributors and other channel partners. Here are five reasons why you should register at soic.eventbrite.com today to secure your spot.

1 2

It’s Free for Independent Retailers Investing in the health of your operation has never been more affordable. Spend a day listening to presentations on the state of the industry and sharing your thoughts with manufacturers and distributors at no cost.

More Retailer-Led Panels This year’s event will feature four panel discussions led by high-impact retailers. Learn the latest about the economy, channel relationships, competing online and the future of the industry to help your operation succeed.

3 4 5

The Latest Industry-Specific Research Industry experts will present the latest research on the channel’s strengths, weaknesses, future challenges and how retailers’ use of online platforms compares to customer expectations. This data is compiled from retailers just like you.

Network With Peers and Manufacturers SOIC is a great opportunity to meet and catch up with retailers from across North America and the vendors your operation relies on. Let your voice be heard and tell channel partners how they can help your business excel.

See the Stunning Sights of Chicago When the conference wraps up, treat yourself to a tour of Chicago. Choose one of its world-class restaurants for dinner, get some holiday shopping done or take a walk through one of its parks.

November 2017 | HARDWARE RETAILING

Trends Retailers Want Truly Secure Credit Cards A new study from The National Retail Federation (NRF) finds that small business owners across the country are adopting new chip-and-signature credit card readers, but many still want increased credit card security. According to the study, 49 percent of U.S. retailers say their operations would be more secure if credit cards used a personal PIN like other countries use. Chip-and-PIN credit cards require a special code to ensure only authorized holders are making purchases. Before October 2015, banks shouldered the costs of purchases made with counterfeit credit cards at their stores. Now, retailers must pay for fraudulent purchases made on a credit card with a chip if their stores do not have a chip-reading POS system.

Applied to Retail No matter what kind of credit card reader your operation uses, ensure that your staff is following protocol for credit card payments. Teach them to analyze signatures on receipts and on the backs of credit cards and report suspected credit card fraud to authorities immediately. According to USA Today, 78 percent of consumers have positive feelings regarding chip credit cards. Reminding your customers that you value their privacy and financial security can help them feel secure making purchases at your operation. Each chip reader costs about $2,000 to install, which could be a small investment that helps your operation avoid potential liability on fraudulent purchases.

A Closer Look at Credit Processing Systems

99 percent

63 percent

of mid-size and large retailers are projected to have switched to chip-and-signature credit card readers by the end of 2017.

of retailers say their operations could not afford increased liability for fraudulent transactions made at their businesses.

19 percent of all surveyed retailers have no current plans to adopt chip-reading POS systems.

HARDWARE RETAILING | November 2017

The NRF estimates U.S. businesses will pay

$30 billion to install chip-reading POS systems.

Source: National Retail Federation

Above: Sherree O’Shea with several of the family’s children and grandchildren.

TRUE VALUE MAKES THE TRANSITION EASY ®

“We’re a family business, and True Value® supports us like family,” say Charlie and Sherree O’Shea, owners of Kings Hardware. “When deciding to rejoin, we factored in True Value’s name recognition, delivery reliability and support team, all of which made it a better fit than the cooperative we partnered with before.”

Since rejoining True Value, Kings Hardware has seen positive results. “To gain more commercial accounts, we tailored stock assortments, offered delivery services and adjusted our store hours to meet their needs,” says Sherree. “We’re dedicated to customer service, just like True Value. The company embraces the same values we do, and made the transition easy.”

FREEDOM TO RUN THEIR COMPANY THEIR WAY WITHOUT INTERFERENCE

FIRST QUARTER 2017 RESULTS

+6%

LAWN & GARDEN DOLLARS

+3%

RETAIL SALES INCREASE

+3%

CUSTOMER COUNT TRANSACTIONS

+2.5% MARGIN DOLLAR INCREASES

Andrew Young, Kings East manager and Sherree O’Shea proudly share their results in Wyandanch, NY achieved as a True Value retailer (your individual results may vary).

New Products

“I love the Boom Bowl and use it regularly. Customers were delighted to hear of a speaker that doesn’t need batteries, electricity or recharging.

”

—Michelle Leopold, Marin Ace Hardware

1 “Our daughter, who has a

phobia of spiders, spotted this product and loved the fact that it was all natural, can be used indoors and smelled great.

”

—Stacey Tryba, Dixon Hardware and Lumber

1. Sound Amplifier

2. Insect Repellent

The Boom Bowl amplifies sound from a cellphone or MP3 player by more than 15 decibels without requiring power. The chalkboard finish allows users to write on and customize their bowl. It is made from acoustically designed ceramic and is compatible with most devices.

Stay Away pest repellents protect indoor areas from unwanted pests. These repellents feature natural ingredients that are offensive to insects and rodents, but not to humans. Portioned in bags, each pouch works for 30 to 60 days. Varieties include deterrents for mice, spiders, moths, ants and beetles.

Global Product Resources 800-979-4326 or decobreeze.com

HARDWARE RETAILING | November 2017

EARTH-KIND 800-583-2921 or earthkind.com

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Chad Husted at chusted@nrha.org.

“Customers like the elegant look of the magnetic board, not to mention its terrific practical functionality.

”

—Linda Johnson, Village True Value Hardware

4 “Coast of Maine composts

are a dark and rich product that really blows away other brands we have tried. Plus, they’re a local company that has the best customer service we’ve seen.

”

—Mark Sterry, Wilton Hardware Store

3. Magnetic Knife Strip

4. Organic Plant Food

M.O.C. Boards are designed, handcrafted and finished with nontoxic and food-safe materials. The board has a continuous magnetic field with no dead spots, which allows it to hold any objects containing metal. The holding power of the magnetic knife holder depends on the size, weight and shape of the object attracted to the board. The boards come in several finishes, including walnut, cherry, maple, white oak, wenge and zebrawood.

Coast of Maine products mix natural compost materials with seafood to create its plant materials. The Penobscot Blend Compost & Peat mix is an all-in-one blend for planting annuals, perennials, shrubs and trees or conditioning garden beds and borders. It uses a mix of salmon and blueberry compost, tiny mussel shell fragments and peat. The shell fragments help aerate the soil and add texture.

M.O.C. Woodworks 415-491-1403 or mocwoodworks.com

Coast of Maine 800-345-9315 or coastofmaine.com

November 2017 | HARDWARE RETAILING

New Products

5. Wood-Fueled Camp Stove

6. Flammable Paracord

This BioLite bundle includes the CampStove 2, a grill, kettle and USB light. The stove burns sticks and other natural combustibles. The heat from the fire charges its onboard battery. The battery provides air circulation to fuel the stove, as well as a charge for USB-connected devices. The grill and kettle are designed to work with the stove, and the entire bundle stores inside the kettle.

ParaTinder serves dual purposes in outdoor situations. It combines heavy-duty paracord, which can be used in any rope situation, such as lashing items to a backpack or creating a splint, with fire tinder at its core. By exposing the core of the paracord, the user has a fire tinder that can be lit by any normal lighter or match.

BioLite 844-424-6548 or bioliteenergy.com

UST Brands 904-786-0033 or ustbrands.com

WE ARE SIMONRACK, MANUFACTURERS OF THE LARGEST SELECTION OF STORAGE SYSTEMS • We can offer unique products, completely different from the ones available in US. • We don’t work with the Big Box. • We have more than 50 years of experience selling shelving. • 3 warehouses in USA.

Approved vendor for:

HARDWARE RETAILING | November 2017

8 7

7. Paint Collection

8. Pool Safety Kit

AphroChic, in collaboration with Colorhouse, an eco-focused paint company, has assembled 20 shades of LEED and Green Wise-certified paint for its collection, Brooklyn in Color. The paint collection was made to represent the colors of the New York borough. Available in flat, eggshell and semigloss finishes, the colors can also be used as chalkboard paint.

The Pool Safety Pack combines several products to keep cord connections and electrical wires protected around water. The Cord Dome protects multiple extension cord connections, including electrical strips and Y connectors. The Maxx protects heavy-duty contractor grade extension cord connections up to 10 gauge.

AphroChic info@aphrochic.com and aphrochic.com

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

• Clips To Can Rim • Holds Brush • Opens Can Lid

CCL

CCL15 Bucket

allwaytools.com November 2017 | HARDWARE RETAILING

New Products

10 9. Colorful Dinnerware The Kaleidoscope line is designed to resemble the colors of a spinning looking glass. The products come in two different patterns, featuring geometric shapes and bright colors. These designs are featured on 11-inch dinner plates and 9-inch salad plates. The plates are made from melamine, making them suitable for indoor or outdoor use. Zak Designs 970-270-8550 or zak.com

10. Holiday Light Remote The Treemote allows users to control holiday lights or on other hard-to-reach light switches or appliances. The green tree-shaped remote works from up to 80 feet away and with multiple devices. It is also a convenient tool for users with mobility limitations. Treemote 250-882-2213 or treemote.com

11. Aviation Snips

12. Plant Vitamin Solution

PowerGear aviation snips are designed to deliver 40 percent more power during a cut while providing comfort and control. The spring-assisted handle reduces hand fatigue, and Softgrip® materials give the user extra comfort. The blades are made from heat-treated steel. The snips can be locked from above or on the side and can cut a range of heavy-duty materials. Fiskars Brands 866-348-5661 or fiskars.com

Superthrive vitamin solution can secure transplanted plants, revive stressed plants and produce high yields. The nontoxic formula encourages natural building blocks when plants are in optimal situations. The formula can be mixed with water and applied directly to the soil or used in a sprayer or drip system. Superthrive 800-441-8482 or superthrive.com

‰

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This 16-week online course exposes new managers to key concepts of leadership and personal development, which arms them with the skills they need to properly manage staff. FOR MORE INFORMATION, GO TO NRHA.ORG/RLI

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SILICONE RUBBER SMOOTHER

STAINLESS STEEL BLADE

Removes Old Caulk Easily And Helps Reapply Like A PRO! PATENTED

allwaytools.com November 2017 | HARDWARE RETAILING

Power Tool Accessories and Hand Tools

Your name depends on ours...

New Products

14 What company is a cut above the rest?

13. Safety Lighting System The Pelican 9455 remote area lighting system is a Class I, Division 1 light, giving it approval for work in areas with explosive gases and vapors. It produces 1,600 lumens with a 125-degree beam spread. The nickel metal hydride battery provides up to 10 hours of light on its low output setting. It weighs 16 pounds and is collapsible, which makes it easy to travel with. Pelican Products 800-473-5422 or pelican.com

14. Mold Detector

Innovation Rules 30

HARDWARE RETAILING | November 2017

My Mold Detective is a DIY mold test kit that uses the same air-sampling method industry professionals use to test air quality in homes and businesses. The kit contains one airsampling pump, two air sample cassettes (one for outdoor control, one for indoor), two surface samples, one mailing envelope and instructions. It can indicate what type of mold is present while also determining if concentration levels are normal, slightly elevated or elevated. My Mold Detective 866-948-9056 or mymolddetective.com

15. Deicing Agent

16. Compact Stepladder ™

Winter Warrior Enviro LEADer Icemelter is designed to be used around green buildings and properties, where there are environmental or corrosion concerns. The product is effective down to minus 6 degrees Fahrenheit. It is readily biodegradable at lower temperatures and safe on the environment. Also, it does not chemically harm or alter concrete.

The Aluminum Compact Stepladder has double platforms and weighs less than 16 pounds. It stands at 5 1/2 feet tall, with a user’s reach extending to 9 to 10 feet from the ground. It has a Type I Duty Rating and can support up to 250 pounds. Werner 888-523-3370 or wernerco.com

XYNYTH Manufacturing 800-635-8423 or xynyth.com

‰

Get Retail-Specific Leadership Training

EXCLUSIVE, SAFETY POSITION

‰

Developed in conjunction with a consortium of independent home improvement retailers and Ball State University, this course provides formal leadership training for retail employees. FOR MORE INFORMATION, GO TO NRHA.ORG/RLI

Foundations of Leadership Program

allwaytools.com November 2017 | HARDWARE RETAILING

New Products

17. Pet-Washing Wand The Pet Wand features a contoured shape that creates a high-pressure WaterComb™ Spray to penetrate thick fur and avoid overspray. The EasySelect™ dial allows the user to fine-tune the control. It features an indoor adapter for a utility sink, as well as an outdoor adapter. Water Pik 800-525-2774 or pets.waterpik.com

18. Reciprocating Saw The SKILSAW 13-Amp Reciprocating Saw features Buzzkill™ technology, a patented full-frame counterbalance that suppresses vibration up to 35 percent. Other features include a single-wobble drive train, linear system, clock spring brush system and a variable speed trigger. SKILSAW 877-754-5999 or skilsaw.com

HARDWARE RETAILING | November 2017

19. Designer Cabinet Hardware

20. Folding Vehicle Ladder

The DIVINA collection of cabinet hardware offers three shapes. The Studio knob, smooth-sided knob and ridge-sided knob are available in a combination of 48 pieces in nine hand-polished finishes. These finishes include aged brass, brushed stain, nickel, brushed copper, oil-rubbed bronze, polished chrome, polished nickel, rose gold, satin brass and unlacquered brass.

Designed to work with the Rhino-Rack roof storage system, the Aluminum Folding Ladder allows access to the top of a vehicle safely. It attaches to the Rhino-Rack Pioneer System on either side, with an extra-wide setting and adjustable feet. It extends more than 6 feet in height, and it folds into a compact 41-inch form for storage.

Vesta Fine Hardware 800-499-9093 or vestafinehardware.com

Rhino-Rack 303-706-9700 or rhinorack.com

Take Your Managers to the Next Level ‰

Students of this online leadership training course get in touch with their personal leadership styles and are taught how to develop and lead high performance teams. FOR MORE INFORMATION, GO TO NRHA.ORG/RLI

Foundations of Leadership Program

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allwaytools.com November 2017 | HARDWARE RETAILING

Checkouts EVENTS

In It to Fix It

n a time when many people seem to see every broken item as something to be thrown away, few may consider repair as an alternative. Mike Filbin, owner of Filbin’s Ace Hardware, wants to change that. As a solution, he and several other community members have started a Repair Café in their hometown of Vancouver, Washington. The Repair Café is an international initiative to encourage people to repair broken items they might have around the home instead of throwing them away. This program helps reduce the strain on landfills. The foundation organizes events where volunteers help members of their communities fix various household items. This year, Filbin and his team hosted several Repair Cafés, including one at Filbin’s Ace. During the event, community members with broken items brought them to the Café and a volunteer helped them fix it. Volunteers have a range of skills, such as appliance, bicycle or garment repair. The event serves as an educational opportunity, too. Anyone who brings in an item for repair receives a consultation on how to fix the item and gets help fixing it at no cost. They only have to pay for any new parts required. “There is a big educational component to the Café,” Filbin says. “This is not like taking your broken appliance to the shop, dropping it off and picking it up when it’s fixed. You sit down at the table across from the repair specialist and you fix it together.” While attendees were waiting for their time with a repair specialist, Filbin offered them warm chocolate chip cookies, baked on one of his grills. He also had one of his vendors on hand to demonstrate furniture restoration techniques. “This turned out to be a really cool event with minimal direct costs,” he says. “It required time, community involvement and a willingness to share control of the event with our community partners, but it would be a big lift to try and pull off alone,” he says. Not only is Filbin saving landfills through the Repair Café, but he’s also creating future customers. “The biggest value for us is the educational opportunity for a new generation of customers who didn’t grow up fixing things. We’re teaching them how to fix the items they otherwise may have just thrown away, and we are turning them into the types of people who are willing to take something apart and try to fix it. That’s the type of person who’s going to shop our store.” During the two-hour Repair Café event, Mike Filbin, owner of Filbin Ace Hardware, says 19 volunteers fixed 75 items, mostly tools and electronics.

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 Jesse Carleton at jcarleton@nrha.org to have your story considered for publication.

HARDWARE RETAILING | November 2017

Checkouts

SERVICES

Turning ‘Scrap’ Into Savings

orters Building Center prides itself on providing whatever its customers need. From a full-service lumberyard to rental and hardware, the four-location business has built a loyal following for service and products. Yet one of its most desired products started as an outlet for “scrap” lumber. When developing a creative use for warped and unsellable lumber, Porters Building Center founder Mack Porter created a template for what would become a thriving shed business. Mack Porter doesn’t believe in scrap, he says, but he knew there had to be a way to make use of odd cuts of lumber. The template, which is still in use in the lumberyard behind the Porters location in Kearney, Missouri, was first used to fit pieces of lumber together into trusses, allowing the lumber to be used as the frame for the sheds. The wood would fit into the template like pieces in a puzzle, which allowed employees to use almost any piece of wood to build a shed. Once enough wood was collected to complete the trusses, a shed could be built on the frame.

The garden sheds on display at Porters Building Center in Kearney, Missouri, have become hot items for the business.

Today, the sheds have become so popular in the area that the business has long since stopped using warped lumber for their construction, Mack Porter’s grandson Alex Porter says. The sheds come ready for paint and are delivered to a customer’s yard upon completion. “We put a lot of pride in their construction, and we’re able to work with customers on alterations and other customization packages they want. That could be moving a door to a different side or adding a window. For the price we put on them, they’re a really great option for our customers,” Alex says.

CUSTOMER RELATIONS

Employees Make the Grade at City Mill

At City Mill, employees Ernalyn Tumamao (left) and Minerva Ecraela, offer customers the opportunity to provide feedback on their experience at the store.

HARDWARE RETAILING | November 2017

taying sharp with customer service means listening to what customers have to say about their experiences. At City Mill, customers can post comments on social media sites like Facebook and Yelp, but many of them choose to use the store’s Customer Service Card. And the company takes every comment seriously. City Mill, which has eight locations on the island of O’ahu, Hawaii, has the comment cards available in the store or in a digital version online. The cards let customers rate their experiences at the store and leave their compliments or complaints. Then, each card goes straight to Steven Ai, president of the company. Ai reads and signs off on each card, and usually writes a note, such as a thank you to the employee the customer may have mentioned in their comments. Store managers use those cards at staff meetings to recognize employees or use them as teaching moments to show examples of what it means to provide good customer service. If a customer reports a bad experience, someone at the store will follow up to ask what went wrong and look for a solution. “We’re always looking for feedback from our customers, whether it’s for our service or our product mixes,” says Caleb Hanisee, store manager at the Ewa Beach location. “That feedback allows us to constantly improve, because if we don’t, it could be easy to become complacent.”

Your Brand Name Connection Distribution America members combined buying power and strong vendor relationships are the foundation for retailer success.

National Clout Keeps You Profitable. Local Knowledge Keeps It Personal. We are

FOR COMPLETE INFORMATION ON MEMBER PROGRAMS CALL 704-940-4801 or e-mail: dave.christmas@daonline.com

Checkouts EVENTS

Fun With Funding a Cause

A local school group performed a native dance routine among other entertainment options at the second annual Invermere Home Hardware Tailgate Party.

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hen Invermere Home Hardware decides to have some friends over for a party, the British Columbia-based business doesn’t joke around. It brings in every last bit of fun to be had and makes sure a worthy cause benefits when it’s all over. In September, Invermere Home Hardware conducted its second annual Invermere Home Hardware Tailgate Party, bringing together vendors with area residents to support a local charity. Last year, the party supported a local day care center that was raising funds for a new playground. This year, the party supported Summit Youth Centre, which offers drug- and alcohol-free spaces for young adults ages 12 to 18. Summit Youth Centre is raising funds for a new facility, Home Hardware floor manager Mandi Cox says. “We really try to look for immediate need when we organize this fundraiser. We want the funds to make a tangible, recognizable difference in the community,” Cox says. Vendors paid a fee for their booths, and all profits from the barbecue and the vendor spaces went to the designated charity. The group doing the fundraising also ran the barbecue. Other attractions included facepainting, vendor demonstrations, a popup library event from the local library organization with storytelling for children and dancers from a local school group that feature native dances. The youth center provided DJ services to show off the DJ grant it had recently received, while an employee of Home Hardware displayed her dog’s agility training. “We try to feature something for everyone, and we see the entire event as a big thank you to the community,” Cox says. “We know this community and our year-round customers are the ones we need to show appreciation for. So this is our way of saying, ‘Here’s to you.’”

MERCHANDISING

Growing Customer Confidence

ustomers can often become attached to brands. Once they trust a product to achieve an outcome, customers can become wary of a retailer who changes their lineup. Cottin’s Hardware & Rental in Lawrence, Kansas, took the proactive route on its grass seed. “We had a really strong following with our grass seed before the switch, so we knew we needed to reassure

our gardening customers. They expect a certain product from us, and we wanted to keep their trust,” store manager Aaron Hicks says. With a grow light stationed above the shelf, staff planted two trays of grass seed side by side. One contained the older product line, the other the new line coming into the store. Customers were asked to compare with their own eyes whether the new seed line held up.

The Amazing Fit-All Replacement Stopper

Unique ball-shift toggle system which opens and closes the drain with a simple push of the toe or finger.

Customers at Cottin’s Hardware & Rental were asked to compare two grass seeds.

American Made & Profitable For Over 80 Years Fit-All Stopper for Tub & Lavatory Drains • Will fit 90% of all tub drain openings and 95% of all lavatory sink drains. • Simple to install — no tools required. • Open or close with a touch of the finger or toe.

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

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

• Eliminates annoying stopper assemblies and pop-up stoppers which seldom hold water. • Can be easily removed for cleaning. • Available in chrome, satin nickel, brass and antique brass finishes

800-473-1803 www.pppmfgco.com November 2017 | HARDWARE RETAILING

By Renee Changnon, rchangnon@nrha.org

E(scaping) Old Habits Promote an Earth-Friendly Oasis for Birds, Bees, Pets and People This month’s Category Spotlight is sponsored by K-CO Products

n the past 15 to 20 years, consumer preferences have changed, as they look for environmentally friendly alternatives to traditional lawn and garden practices. Today’s consumer wants products to enhance their yard without contributing to pollution, killing off pollinators or inadvertently harming pets and people. To meet these expectations, retailers like Michelle and Jeff Leopold of Marin Ace Hardware in San Rafael, California, have become experts in eco-friendly lawn and garden offerings. Hardware Retailing spoke with the Leopolds, as well as retailers from three other stores across the country, to gain a better understanding of this growing niche. In the following pages, learn how these retail operations are leading the charge in modern landscaping ventures in areas like beescaping, birdscaping and petscaping.

HARDWARE RETAILING | November 2017

These terms, which have become more common in recent years as they pertain to lawn and garden, are all examples of ways customers are looking to make their outdoor spaces eco-friendly. In fact, the U.S. Environmental Protection Agency (EPA) encourages the idea of greenscaping, which is “a set of landscaping practices that can improve the health and appearance of a lawn and garden while protecting and preserving natural resources,” according to the EPA website. More specifically, petscaping is a way to protect pets from ingesting harmful chemicals, while beescaping and birdscaping are both designed to create a home for desirable visitors, like bees, butterflies and birds. Plus, these practices also encourage a healthier, more lush garden with help from nature’s friends, making them a natural extension of the greenscaping ideals.

November 2017 | HARDWARE RETAILING

Joe Franquinha of Crest Hardware and Urban Garden Center in Brooklyn, New York, fully embraced an organic approach to the lawn and garden category a few years ago. He says he knew he could convince customers to try green products, even if they were initially reluctant.

Stocking and Merchandising Alternative Options Whether you’re helping a first-time homeowner pick plants to attract butterflies or a customer pick out a new pesticide, having organic, chemical-free alternatives available is the first step to growing your eco-friendly, organic niche within the lawn and garden category. When Marin Ace first opened its doors in late 2011, Michelle Leopold knew she wanted the store’s selection of lawn and garden products to provide a greener alternative for their customers. The business works with local organizations and sources products from vendors that provide organic solutions. “We know what’s better for the environment, and we have customers asking what’s better,” Leopold says. “It’s not us pushing it on them. They’re asking for advice and we are the resource to offer it. We don’t just want to offer greener options. We want to educate our customers on why they should pick something over another product.”

HARDWARE RETAILING | November 2017

The same can be said for customers of Holdridge Home & Garden Showplace in Ledyard, Connecticut, where green products and organic alternatives are a big draw in the lawn and garden category. All retailers who offer those products should do their homework, Wayne Henson, advertising manager for the business, says. “I would encourage other retailers to pay attention to green and organic lawn and garden products by attending trade shows and visiting with manufacturers and other retailers at the booths,” Henson says. “Organic alternatives are becoming much more mainstream, so while we offer both options, we are growing our eco-friendly offerings and phasing out the more toxic products.” When customers walk through the lawn and garden aisles at Marin Ace, they are able to make informed decisions on products even if an employee isn’t pointing something out to them. Signs highlight items that have received an eco-friendly stamp of approval. These products are certified by a local organization called “Our Water, Our World,” Leopold says.

The business partnered with Our Water, Our World, which helps raise awareness of the effects pesticide use has on water quality. Through this program, the organization comes to Marin Ace and adds labels to the shelves and provides educational pamphlets. These labels are easy to read and declare specific products as eco-friendly and less toxic than competing products. Another business that has taken organic gardening to new levels is Crest Hardware and Urban Garden Center in Brooklyn, New York. While customers weren’t initially asking for the switch, owner Joe Franquinha says he knew he could convince customers to try green products. “I believe organic gardening is very important as a long-term strategy,” Franquinha says.

“We have removed about 98 percent of the nonorganic products from our lawn and garden offerings. We don’t have an organic section, because our entire garden department is organic.” The Brooklyn store even sells specific live bugs, which naturally get rid of garden pests by eating them, Franquinha adds. “We sell ladybugs, mantises, earthworms and beneficial nematodes, which are roundworms that feed on plants,” he says. “Kids are usually fascinated by them, seeing it as a cool thing to add to the garden, but what’s great is what these bugs do to help the garden thrive. Ladybugs, mantises and nematodes all help rid the garden of unwanted bugs, and the byproduct from earthworms is great for the soil.” Although convincing some of his older customers to give bugs as pest control a try in the garden takes a little more effort, Franquinha says it’s important to explain the benefits of different options to all generations.

Marin Ace Hardware in San Rafael, California, offers a variety of products to attract pollinators to their customers’ yards. Owners Michelle and Jeff Leopold (pictured below) have even partnered with a local association that provides shelf signage for eco-friendly products. To see more photos from the store and additional product and merchandising ideas, visit TheRedT.com/marin-ace.

November 2017 | HARDWARE RETAILING

“We make sure to meet the

needs of the young families wanting organic products while still carrying the products our older customers are used to and prefer.

”

—Karen Sandell, Green Thumb Nursery At Green Thumb Nursery in Lake Forest, California, the varying generations who shop at the store also have different preferences when it comes to making purchases in the lawn and garden category, store manager Karen Sandell says. Rather than phasing out the products her older customers prefer, she has a selection that appeals to all. “We make sure to meet the needs of the young families wanting organic products while still carrying the products our older customers are used to and prefer,” Sandell says. “And while we order a generous segment of plants that are organic, such as vegetable plants, we don’t have organic ornamentals because they are harder to find.”

Show Customers How to Attract Bees, Butterflies and Birds Along with wanting organic plants in their lawns and gardens, consumers also want to aid the pollinators that help keep their gardens in bloom. At Marin Ace, discontinuing products featuring neonicotinoids was a top priority for Leopold, who learned the damage these insecticides impart on the insects that come in contact with them. The store only sells neonic-free plants, and all pesticides that contain neonicotinoids are labeled as “harmful to pollinators.” Since pesticides containing neonicotinoids are linked to the international bee colony collapse disorder, Marin Ace is a resource for customers who want to help the bee population. According to Leopold, the loss of bees is becoming a big problem, as many bees not only produce honey, but they are also vital in pollinating a variety of plants, including ornamentals, fruits and vegetables. Retailers can also offer habitats for bees, which Holdridge Home & Garden Showplace stocks. The store sells a beehive starter kit as well as mason bee starter kits. These kits provide customers with everything they need to introduce and attract beneficial mason bees to a garden. The mason bee starter kit includes a bee nest, an informational book and certification for six live bees.

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HARDWARE RETAILING | November 2017

Just as bee populations are facing decline, monarch butterflies are another pollinator at risk. Holdridge Home & Garden Showplace has been actively involved in helping grow the population of monarch butterflies by releasing them from their store for the past 10 years, Henson says. To increase butterflies in the wild, there is a need for the insect’s host plant of milkweed. The staff educates customers to plant milkweed in their yards, as it is the only food monarch caterpillars can eat before they become butterflies. Attracting birds is another way to keep bugs and pests at bay. At Crest Hardware and Urban Garden Center, customers can find bird feeders, houses and wild bird feed to keep the local bird-watchers or wild bird enthusiasts coming back for more. In Southern California, Sandell at Green Thumb Nursery says hobbyists flock to their store for bird products. Nearly 75 percent are eager to attract hummingbirds and the remaining 25 percent purchase food that draws song birds to their yards, she says. “Our customers are enthralled by watching the birds and butterflies come to their yards,” Sandell says. “We sell lots of milkweed for our butterfly fans, as well as plants and bird feed that is more specific to different kinds of birds.”

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According to Joe Franquinha, to attract butterflies and bees, he recommends selling butterfly bush, astors, rose mallow, hyssop and milkweed.

HARDWARE RETAILING | November 2017

While selling milkweed is necessary for the butterfly population to thrive, it’s important to give customers warnings before purchasing milkweed if they have pets or children, Leopold says. “We always educate our customers on how important milkweed is, since it’s the only food monarch caterpillars eat,” she says. “However, this plant is poisonous, so it’s important to have it planted in the right place. Most dogs won’t eat it, but little kids might.” For a customer looking to transform their backyard to a bird sanctuary, Henson recommends having a feeder that is clean and properly displayed, along with a fresh, clean birdbath. Customers should not forget shade plants, as they provide a cool refuge for birds, Henson says. Plants that produce fruit in the fall, such as flowering dogwood and crabapple trees can keep birds around into the winter months. Henson is also aware of the concern people have for their pets outside. He recommends customers provide a grassy area where pets can mark their territory and spend their time. “With petscaping, explain to your customers the importance of paying attention to their pets’ habits outside,” Henson says. “A good cedar mulch doesn’t attract insects like fleas and ticks.

Their customers should also be aware of what products they’re using on the lawn, since pets might eat the grass.” One option to offer may be handheld tools that pull out weeds or spray products such as organic weed killers.

“We know our customers are looking

for greener alternatives, but we also want to educate them on why certain choices are better.

”

—Michelle Leopold, Marin Ace Hardware Educational Events Establish Retail Credibility One of the best ways retailers can establish their rightful place as an eco-friendly lawn and garden expert is by educating their staff and customers who come to them for advice. For the team at Marin Ace, education has been key to spreading the word about the business and their knowledge, Leopold says. “Our employees help establish Marin Ace as the experts in eco-friendly practices, with an emphasis on pollinators,” she says. “We know our customers are looking for greener alternatives, but we also want to educate them on why certain choices are better.”

Indoor houseplants are a great way to keep customers gardening all year long.

Cast your memories in stone www.midwestproducts.com November 2017 | HARDWARE RETAILING

“We do a lot

To help customers rid their lawns and gardens of pests, Franquinha says to look no further than beneficial insects, like preying mantises and lady bugs, which he sells live in his store.

of product knowledge meetings and have even invited vendors to come in and teach our team about the products we sell. —Karen Sandell, Green Thumb Nursery

”

For four years in a row, the store has hosted a Fall Pollinator event in conjunction with the local beekeepers association. “During the event, the beekeepers association brings in observation hives, so customers can see the honeycomb,” Leopold says. “They have the best interests of the pollinators in mind, and it’s also a great way to educate consumers on why it’s so important to buy neonicfree plants from us. When a bee goes to retrieve pollen from a plant with neonicotinoids on it, they then bring that back to the colony, which causes the entire colony to die.” However, to combat that and ensure the bees have the food they need, Marin Ace also educates customers on the types of native plants that will bloom throughout the winter and help the bees. The management team at Green Thumb Nursery knows that to best educate their customers, it’s important to educate their employees first. “We do a lot of product knowledge meetings and have even invited vendors to come in and teach our team about the products we sell,” Sandell says. “Plus, we also make sure our lawn and garden department includes individuals who are organically minded, as they will have more

HARDWARE RETAILING | November 2017

success at selling green alternative products. While organics are more expensive, these individuals can explain a specific product’s benefits and what it does.” Holdridge Home & Garden Showplace has cemented its expertise not only in organic solutions in the lawn and garden category, but also in its extra attention and care in highlighting the monarch butterfly. In honor of a prior store owner that died, Holdridge hosted a butterfly release event, because butterflies represent new life. The first event went extremely well, with over 200 cars in and around the building, and now, 10 years later, it is an annual tradition, Henson says. The event is also a great learning opportunity, Henson says.

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November 2017 | HARDWARE RETAILING

At Holdridge Home & Garden Showplace in Ledyard, Connecticut, customers flock to the butterfly enclosure inside the store. Here they can watch monarch caterpillars transform into monarch butterflies.

“I felt I had a moral obligation to

offer them something better, and they trusted us and broke old habits.

”

—Joe Franquinha, Crest Hardware & Urban Garden Center “We discuss the monarch butterfly’s migration pattern and their food needs,” he says. “The monarch butterfly species is endangered, so we discuss how important it is for them to have milkweed to help sustain them on their long journey up north and then back to Mexico.” Outside of the annual event, however, Holdridge Home & Garden Showplace makes sure customers are educated all year long with their indoor butterfly enclosure located in the store. “There is a great learning opportunity for our customers here,” Henson says. “Our butterfly enclosure allows them to watch the transformation from caterpillar to butterfly.” Whether a retailer is already heavily invested in organic, natural solutions for the lawn and garden or not, Franquinha at Crest suggests retailers approach the decision by not only

HARDWARE RETAILING | November 2017

thinking about what customers are asking for, but also following what they believe in their gut. “You want to answer your community’s needs, but don’t jump off the deep end and spend thousands on products people request,” Franquinha says. “Sometimes I’ve listened to people and brought products in, and other times you just have to go for it and give something a try. I strongly felt like organic lawn and garden products would do well in the store and among our customers, even if some might be resistant at first. I felt I had a moral obligation to offer them something better, and they trusted us and broke old habits.”

What’s the Buzz? Residents in Plymouth, New Hampshire, visit Rand’s Hardware for a variety of reasons. The business works with the local beekeeping association to educate customers on the hobby and provide the tools needed to practice it. Visit TheRedT.com/rands-beekeeping to learn more.

What can you expect from the 2017 State of Independents Conference? We heard your feedback. This year, we’re hosting four panels led by high-impact retailers on the economy, competing online, improving channel relationships and the future of the industry. Are you going to be part of the conversation?

“At the conference, I mentioned a few issues I had with vendors. They reached out to me directly wanting feedback on how to change their programs.” Megan Menzer | Newton’s True Value

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Category Q&A Sponsored by K-CO Products | kco-innovations.com

K-CO Products Has an Impulse to Help ou can’t escape the power of impulse. It’s not just a vital part of any retail business, it’s part of the human experience. It’s the need to break away from the ordered and planned and try something new.

K-CO Products LLC was founded under the principles of retail first and impulse strong. The company features products like the Little Big Shot®, the Johnny Jolter® and the upcoming lineup of adhesives, called Glü™. However, products are not the only way the company hopes to affect the hardware industry. K-CO Products has worked with the U.S. Department of Veterans Affairs for six years to offer paid work through a program designed to help disabled U.S. military veterans. This program is of vital importance for both K-CO Products and the valued veterans, says managing member David Kurrasch. Hardware Retailing spoke with Kurrasch to learn more. In this Q&A, he shares the values of K-CO Products as well as its focus on the future of the company and the industry.

Hardware Retailing (HR): What is the primary philosophy for K-CO Products? David Kurrasch (DK): K-CO Products wants to tackle innovative products that compete within high-volume and high-household penetration categories. We want to build categories with truly innovative products. HR: Please tell us more about your products. DK: Well, we lead off with Little Big Shot, which is a leading hose nozzle in the market. Because it is highly efficient and powerful, it really stands out in the water nozzle category and provides impulse sales as well. The Johnny Jolter toilet plunger is a unique addition to the plumbing assortment. Highly effective at clearing clogs, it significantly builds category margin for retailers who offer it. Unlike other plungers, it works with water instead of air, and that really attracts customers because it’s intuitive yet unique. Now with Glü, it was a happy accident. We actually used this adhesive in our assembly of the Johnny Jolter. It’s formulated to adhere various plastics to each other. We had a need in the shop to glue something that wasn’t plastic. This adhesive worked perfectly, so we started testing it on other materials and discovered it adhered to glass, polymers, woods and metals, really anything. We’re testing this product in retail, and we believe it will be a great addition as a true professional-grade, all-purpose glue in a very tough category. HR: How did your work with the veteran community begin? DK: It started about six years ago. A friend of mine worked in nonprofits, and she introduced us to a program with Veterans Affairs called Compensated Work Therapy (CWT). This federal program provides a pathway to help many disabled veterans integrate back into the private-sector workforce. CWT has become a vital part of our business, and we couldn’t do it without the help of the veterans. We’re proud to be made in the U.S., and we’re even prouder of our team. HR: How does the current program work? What are your plans to expand on the program in the future? DK: Right now, we provide seasonal work in the program, with about 18 veterans working with us for eight to nine months. We are working to expand our product mix and volume so we can have year-round work and add more veterans to the team. Our expansion should lead to opportunities for full-time employment. These veterans have really become family, and we cannot imagine them not being involved. For more information on K-CO Products, call 949-276-5252 or visit kco-innovations.com. November 2017 | HARDWARE RETAILING

HARDWARE RETAILING | November 2017

2017 Digging Into Employee Compensation NRHA Presents Insights From 2017 Report

mployee compensation is a major investment for every retail operation, and the topic is loaded with implications for businesses’ profit margins, staff retention and competitiveness in hiring. Independent home improvement retailers are working to balance profitability with offering competitive pay rates and, often, the desire but inability to offer benefits, such as health insurance and salary bonuses. Knowing how much similar businesses are paying their employees in specific positions and what benefits they provide can help you gauge if you’re spending too much or can find new ways to reward outstanding work. The North American Retail Hardware Association (NRHA) conducted research for its 2017 Employee Compensation Report in an effort to provide that insight. One challenge independent retailers face widely is the growing cost of payroll, which is the largest operating cost for independent home improvement stores. About 65 percent of the participants in the NRHA study expect their payroll expenses to be higher in 2018 than in 2017. That expectation is in line with a trend of payroll increasing as a percentage of sales within the past few years, even though employee counts

are generally decreasing, according to data retailers report for NRHA’s Cost of Doing Business Study. The growing cost of payroll impacts what businesses can afford to pay in benefits, such as 401(k) matches or noncommission bonuses. However, retailers are still finding creative ways to incentivize good work, and you, too, may be able to come up with plans to do the same. For example, some study participants offer bonuses based on average ticket sizes, gross margin increases, cost control and customer counts, rather than individual performance or profits alone. The following pages detail some of the findings of NRHA’s 2017 Employee Compensation Report, including average pay for specific jobs. The entire study will be presented in full in a report published separately. The data included in this article are broken out by store type and can be used for general guidance on salaries. Retailers should keep in mind that local market conditions, minimum wage laws and the cost of living vary across the country. Variations over time may reflect market conditions, or could be attributed to the fact that the pool of respondents changes for each compensation study NRHA conducts.

November 2017 | HARDWARE RETAILING

Hardware Stores

ompared to payroll numbers from NRHA’s 2014 Employee Compensation Report, wages were mostly up for full-time employees in 2017 at hardware stores. Owner and officer pay increased the most, jumping from $50,000 per year to $65,230, which could reflect industry growth. Unlike in 2014, the 2017 compensation study breaks out inside sales positions’ pay from outside sales jobs, as well as manager pay from assistant manager wages, so the average salaries for those positions are not comparable from study to study. Wages for full-time department managers, cashiers, office personnel, stockers, delivery and receiving positions,

warehouse workers and yard jobs all increased at hardware stores. For example, department manager pay grew from $12.20 per hour to $15, and cashier wages increased from $9.93 to $11 per hour. Pay for part-time workers dipped in nearly every position, except for stock, which went from $7.25 per hour to $10.24, and office staff, which jumped from $12.02 per hour to $15.93. Notably, the percentage of stores that offer health insurance declined from 2014 to 2017, with nearly 40 percent not offering medical plans of any kind versus 32 percent in the prior study. The stores that offer health insurance pay an average of 34 percent of premiums for full-time workers.

Types of Health Insurance Plans Offered by Hardware Stores Don’t Offer Insurance

39.58%

26.04%

PPO

HMO

18.75%

13.54%

HSA

FSA 0%

The stores that contributed health insurance information to this chart, at minimum, offer medical insurance to store managers and assistant managers.

2.08% 10%

20%

The typical hardware store dedicates 20 training hours per year to managers and assistant managers and 10 training hours per year to part-time workers. 56

HARDWARE RETAILING | November 2017

30%

40%

50%

2017 Employee Compensation Report

The median sales volume for hardware stores is $1.7 million.

A hardware store that offers health insurance, on average, pays 34 percent of premiums for full-time employees.

Average Number of Employees per Store in Each Position, Average Hours Worked per Week and Wage per Employee This chart shows the average number of people employed at the various positions in hardware stores responding to the study. The employee counts are listed per store and, in some cases, are fewer than one employee per store due to one employee being used across multiple locations or simple averaging across study participants.

Position

Full-Time Employees

Part-Time Employees

# Per Store

Wages

# Hours

# Per Store

Wages

# Hours

Owners/Officers (annual)

1.20

$64,321

0.08

$39,393

Managers (annual)

0.88

$45,495

0.01

$24,000

Assistant Managers (hourly)

0.71

$16.00

0.04

$13.38

Department Managers (hourly)

0.94

$15.00

0.12

$12.36

Salesfloor Personnel (hourly)

3.05

$12.00

2.72

$10.45

Inside Sales (hourly)

0.12

$16.00

0.29

$14.35

Outside Sales (annual)

0.07

$39,407

Office (hourly)

0.50

$16.00

0.27

$15.93

Cashiers (hourly)

0.80

$11.00

1.81

$10.03

Advertising/Marketing (annual)

0.01

$40,000

0.01

$11.00

IT/Computer Specialists (hourly)

0.01

$21.10

0.01

$13.50

Stock (hourly)

0.16

$10.00

0.40

$10.24

Delivery/Receiving (hourly)

0.18

$14.60

0.07

$10.20

Warehouse (hourly)

0.12

$13.00

0.05

$10.46

Lumber Counter (hourly)

0.07

$11.80

0.01

$17.00

Yard (hourly)

0.08

$10.90

0.35

$10.57

Color Consultants (hourly)

0.01

$14.75

Total

8.91

6.24 November 2017 | HARDWARE RETAILING

Home Centers

ages for home center employees also increased from the 2014 study to the 2017 edition. Owner and officer salaries nearly doubled, which likely reflects the large, high-performing operations that participated in this year’s research. Salaries for all full-time home center positions increased. For example, the average wage for a department manager increased from $16.65 per hour to $19.39 and, for cashiers, went up from $9.76 to $11.89 per hour. Warehouse personnel salaries increased by the second-highest percentage, going from $8.40 per hour to $14.86.

The majority of the study participants offer retirement plans to employees, with 36.7 percent providing a 401(k) and 16.8 percent offering SIMPLE (Savings Incentive Match Plans for Employees) IRAs. The most common fringe benefits that home centers offer include employee discounts, retirement plans, noncommission salary bonuses, cellphones and educational reimbursements. Vacation days are another benefit home centers offer to full-time employees. On average, they provide 12 vacation days per year to managers and assistant managers, about 11 to other full-time workers and six to part-timers.

Types of Health Insurance Plans Offered by Home Centers

PPO

47.06%

Don’t Offer Insurance

20.59%

HSA

HMO

FSA 0%

17.65%

5.88% 10%

Employee turnover during the past 12 months was 13.1 percent at home centers, on average. 58

The home centers that contributed health insurance information to this chart, at minimum, offer medical insurance to store managers and assistant managers.

8.82%

HARDWARE RETAILING | November 2017

20%

30%

On average, payroll accounts for 20 percent of sales at home centers.

40%

50%

2017 Employee Compensation Report

69 percent of home centers do not offer formal employee training programs.

65 percent of home centers budget 1 percent or less of sales for training.

Average Number of Employees per Store, Average Hours Worked per Week and Wage per Employee This chart shows the average number of people employed at the various positions in home centers responding to this study. The employee counts are listed per store and are, in some cases, fewer than one employee per store due to one employee being used across multiple locations or simple averaging across study participants.

Position

Full-Time Employees

Part-Time Employees

# Per Store

Wages

# Hours

# Per Store

Wages

# Hours

Owners/Officers (annual)

0.36

$103,098

Managers (annual)

1.18

$71,192

Assistant Managers (annual)

0.71

$51,848

Department Managers (hourly)

1.74

$19.39

0.18

$11.70

Salesfloor Personnel (hourly)

5.46

$15.85

2.97

$12.12

Inside Sales (hourly)

0.56

$20.76

0.13

$12.92

Outside Sales (annual)

0.46

$56,240

Office (hourly)

1.11

$18.44

0.14

$12.10

Cashiers (hourly)

1.42

$11.89

2.21

$10.36

Stock (hourly)

0.46

$14.40

0.16

$10.72

Delivery/Receiving (hourly)

1.12

$15.42

0.07

$12.25

Warehouse (hourly)

0.88

$14.86

Yard (hourly)

1.52

$14.74

0.96

$11.06

Lumber Counter (hourly)

0.19

$19.05

0.01

$9.25

IT/Computer Specialists (hourly)

0.12

$31.43

Advertising/Marketing (hourly)

0.33

$26.07

0.03

$10.82

Design Center (annual)

0.13

$44,401

Total

17.75

6.86

November 2017 | HARDWARE RETAILING

Lumberyards

umberyards composed the smallest segment of the independent home improvement industry represented in the 2017 Employee Compensation Report. The sample size and the fact that different businesses participate in the research each study offer potential for differences in data from prior reports. For instance, in NRHA’s 2014 Employee Compensation Report, lumberyards on average employed 18 workers per location. The 2017 study shows that, on average, lumberyards employ nearly twice that many people, or 33 per location. In addition, owner and officer salaries increased from $65,000 per year to $92,078.

The construction industry has been on an improving trajectory over the past few years, so the study results could reflect that growth. For the most part,the 2017 research shows that lumberyard employee wages consistently rose in amounts that reflect normal market fluctuations. The hourly pay rate for full-time yard personnel increased by 55 cents to $14.77. Department managers got a $3.47 bump in pay to $22.46 per hour, and cashiers’ wages rose from $11.50 per hour to $13.66. The only dip in wages was for warehouse workers, whose average hourly pay decreased from $19.23 to $15.19.

Types of Health Insurance Plans Offered by Lumberyards PPO

50%

HSA

20%

Don’t Offer Insurance

20%

HMO

The stores that contributed health insurance information to this chart, at minimum, offer medical insurance to store managers and assistant managers.

10%

FSA

0% 0%

10%

20%

The typical lumberyard dedicates more than 20 training hours per year to full-time employees and about 8 training hours per year for part-time workers. 60

HARDWARE RETAILING | November 2017

30%

40%

50%

2017 Employee Compensation Report The stores that participated in the study do not offer vacation days to part-time employees.

On average, lumberyards offer about 10 vacation days to full-time employees, including managers and assistant managers.

Average Number of Employees per Store, Average Hours Worked per Week and Wage per Employee This chart shows the average number of people employed at the various positions in lumberyards responding to the study. The employee counts are listed per store and are, in some cases, fewer than one employee per store due to one employee being used across multiple locations or simple averaging across study participants.

Position

Full-Time Employees

Part-Time Employees

# Per Store

Wages

# Hours

# Per Store

Wages

# Hours

Owners/Officers (annual)

1.09

$92,078

0.22

$44,900

Managers (annual)

1.96

$65,610

Assistant Managers (hourly)

1.22

$48,957

Department Managers (hourly)

2.78

$51,390

Salesfloor Personnel (hourly)

1.26

$14.62

0.13

$10.00

Inside Sales (hourly)

1.48

$19.97

1.13

$28.50

Outside Sales (annual)

0.57

$83,775

Office (hourly)

1.78

$17.67

0.04

$14.00

Cashiers (hourly)

0.70

$13.66

0.65

$11.27

Stock (hourly)

0.39

$13.16

0.35

$9.63

18.25

Delivery/Receiving (hourly)

4.04

$17.67

Warehouse (hourly)

3.13

$15.19

Yard (hourly)

6.61

$14.77

0.91

$14.37

Lumber Counter (hourly)

1.17

$18.23

0.22

$16.94

IT/Computer Specialists (hourly)

0.22

$38.12

Advertising/Marketing (hourly)

0.22

$21.44

Design Center (hourly)

0.09

$10.00

0.04

$10.00

Design Professionals

0.61

$24.57

Total

29.32

3.69 November 2017 | HARDWARE RETAILING

By Dustin Kaehr, dk@dustinkaehr.com

Expert Perspective: Retail Is...

Store Design M

y grandpa used to love eating at little hole-in-the-wall restaurants. “It may look like a dump, but those places usually serve the best food.” My dad, who was a truck driver for nearly 30 years, subscribed to the same theory, and he used to love to drag my mom, brother and me to a truck-stop restaurant on Friday nights. To be honest, I also look for shady looking places to eat, although my wife tells me to eat alone. While this idea of eating at a dive may work for some businesses, it generally isn’t appealing to retail shoppers. The first impression of your operation matters. In fact, it matters a whole lot. Potential customers make assumptions and decisions about your store simply based on what they see when they drive by. First-time shoppers do the same when they walk in your door. While long-time customers are quicker to forgive and may overlook subpar exterior and interior designs, they are not immune to being turned off by them. My criteria for a well-designed, thought-out store is solely based on one question. It’s a question I share every time I talk to a retailer thinking about doing a major store renovation: Based on the store’s design, appearance and ease to shop, is this a store where my wife would like to shop? I’ve taken her to enough stores over the years that I know what she likes and doesn’t like

HARDWARE RETAILING | November 2017

when shopping at a hardware store. Every family vacation and couple’s getaway usually involves us driving around and me saying, “Oh, look! A hardware store. Let’s stop and look around!” Maybe your spouse can relate. My wife is my filter for what the environment of a retailer should be. Regardless of industry, customers hold your operation to the same expectation as they do the other retailers in your area. If you have a Target, Best Buy, Food Center and dozens of other retailers, your store needs to look just as nice! Just because you are locally owned does not mean you get a free pass to have a subpar appearance. Going through a major renovation is an opportunity to evaluate your operation, your customers, your competition and other stores to make sure you are keeping up appearances.

Perception Is Reality As I’ve already said, potential customers are already making assumptions about your store based on what they see from the road. It doesn’t matter how great your product selection is, how competitive your pricing is or that you have the friendliest, most knowledgeable staff. If the way your store looks prevents them from coming in, you will never have a chance to show them any of that other stuff. For them, how they perceive your store is the reality of your store.

“Going through a project will help your existing customers see your store differently. They will shop it differently. They will spend differently.

” November 2017 | HARDWARE RETAILING

This is why when you do a major renovation, it needs to include all areas of your operation. You do not want to spend $15,000 on an exterior update, only to have them come in and be underwhelmed by your store’s layout, product selection and interior design. You get one shot to make a good first impression. If you are going to do it, do it right. You should plan for and execute a major store renovation about every 10 years. If you were to sign a franchise agreement for a restaurant, they build in major remodels as part of the agreement. Remodeling the store, upgrading the design and redoing the interior is expected as a standard cost

“Successful exterior design is much

more than a fresh coat of paint. You need to partner with a professional designer who can help you reimagine the outside of your store as if it were a silent salesperson.

”

of doing business. I would argue if it has been more than 10 years since your operation has executed a major store design project, your current design has lost your operation sales and customers. Let me give you two reasons why you should regularly evaluate your operation’s appearance.

The Silent Salesperson If a customer says to you, “I’ve always wanted to stop in here,” it is actually customer-speak for, “I’ve always thought about shopping here, but your store just never looked that appealing.” These are the customers you are hoping to reach. They’ve seen your store. They knew what products and services you’ve offered, but they never wanted to stop because something about the way your store looks told them to stay away. If you want a simple way to think about how many potential customers you may be missing, find the average daily traffic count for your road and then compare it to average transactions. While this is not a totally scientific business metric, it will give you a good indication of what you could be missing!

Starter Program #302166 Complete Program #302167

Ph:800.444.7313

Successful exterior design is much more than a fresh coat of paint. You need to partner with a professional designer who can help you reimagine the outside of your store as if it were a silent salesperson. It may be silent, but it is a powerful (and probably expensive) salesperson, so you should get all you can out of it.

Making New Discoveries Completing a renovation is important for your existing customers, too. They will be thankful you invested in a project and may buy more because of it. I promise that once the store remodel and remerchandising are done, you will be at the checkout and a customer will come up carrying a product. They will look at you say, “I am so glad you started carrying this! I’ve been buying this for years and it’s great I can get it from you now!” You’ll look at them and say, “I’ve been carrying this for years! Are you kidding me? Where have you been buying it?” Of course, you’ll just say that in your head. Look at them, smile and say, “That’s great! My team and I certainly appreciate your business.”

Going through a project will help your existing customers see your store differently. They will shop it differently. They will spend differently. They will spend more. It is the natural consequence of putting a customer into a new retail environment. At the beginning, the thought of going through a store design or remodel process is overwhelming to business owners. The thought of tearing up the store is scary and disruptive. But I promise, when it is all said and done, you’re going to wish you had done it sooner—and so will your current and potential customers. Dustin Kaehr is a retail consultant with over 17 years of experience working with independent retailers, national retail chains and small businesses. He frequently presents seminars and training sessions throughout North America on a range of topics including marketing, sales growth, employee retention and the customer experience. Learn more about him at dustinkaehr.com.

Espresso

To learn more visit www.myoldmasters.com or call 800-747-3436

Aged Oak

Weathered Wood

Newsmakers

Insurance Advice: Preparing for Hurricanes and Floods

cott Reynolds, president and CEO of Member Insurance, answered questions from Hardware Retailing about preparing for and recovering from catastrophic storms, such as the recent hurricanes and related flooding. Member Insurance is the largest provider of insurance to independent hardware stores in the U.S. For more information, visit memberinsurance.com. Hardware Retailing (HR): What should retailers know about flood insurance? Scott Reynolds (SR): The National Flood Insurance Program (NFIP) is the federal program to cover losses due to flood for residential buildings and property and commercial buildings and property. The actuarial rates charged for flood coverage under the NFIP are not sufficient, and it’s created a debt of about $25 billion. Our concern is not only with the health of the National Flood Insurance Program, which, after hurricanes Harvey, Irma and even to some extent, Maria, will just be thrown into greater debt. Our concerns also have to do with awareness. Floods don’t just happen due to hurricanes. They also happen in all parts of the country. People like to think that if they’re not in what’s considered to be a high-risk flood zone, then they do not need flood insurance. The fact is that everybody is in a flood zone. There’s a far greater likelihood of a flood than there is of a fire, and everybody buys fire insurance. A flood loss can be a damaging loss—perhaps a total loss—to the property, and that can be crippling if it’s not covered by insurance. In today’s environment, buying both wind and flood, and, in fact, insurance for your fire, too, is still a bargain for the buyer. HR: How can retailers be sure they’re adequately insured for wind and flood? SR: They need to know what it’s going to take to rebuild. If their building was recently constructed, they’re going to know their replacement cost with a great deal of precision. If the building is an older building, it’s a good idea to have it appraised. Ultimately, they should be comfortable that, if there’s a total loss of the building, their coverage will allow them to rebuild. The same thing is true for the contents. It’s a very good idea to have a detailed inventory on hand at all times and have that inventory backed up and off-site so it can be accessed readily. An inventory list, in conjunction with photos after the loss, will make handling the claim so much easier for the insured and the insurance company for a fair outcome. That’s definitely true for both private and public insurance. HR: How can retailers keep their insurance costs affordable? SR: The characteristics of the building are going to affect the rate. Things such as newer buildings, superior construction and whether a community participates in the NFIP will affect rates. By community participation, I mean that a community has decided to map where the flood zones are and where they are not. It also will establish the rates for the buildings that are in the flood zone in that community. HR: What else can they do to keep rates affordable? SR: Shop. On flood, the rates will not vary from carrier to carrier. But on the wind exposure, the rates will vary. It’s a good idea for them to ask their insurance agent to get options for them. They should make sure to share the characteristics of their building with that agent, because, ultimately, that agent is going to have to present the exposure to an underwriter at an insurance carrier to price their risk for a wind loss. The more information underwriters have, generally, the better they can rate.

HARDWARE RETAILING | November 2017

Upcoming Events November 12-14 Specialty Tools & Fasteners Distributors Association (STAFDA) Annual Convention & Trade Show Austin, Texas

14-15 Hardlines Conference Niagara Falls, Ontario

14-16 Distribution America & PRO Group Inc. 2018 Executive Planning Conference Marco Island, Florida

December 7 North American Retail Hardware Association (NRHA) State of Independents Conference Chicago

January 5-7 United Hardware Spring and Summer Buying Market Minneapolis

9-11 Kitchen & Bath Industry Show and NAHB International Builders’ Show Orlando, Florida

February 10-12 True Value Spring Reunion Washington, D.C.

22-24 Orgill, Inc. Spring Dealer Market Orlando, Florida

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.

You have until Jan. 1 to renew your health insurance. Finding affordable group health insurance can be challenging. Are you getting the best rate possible through your current provider? Now is the time to consider alternative options for your business.

“The NRHA Health Insurance Program is designed with retailers in mind. It can offer lower rates due to the numbers of business owners who have bought into the program and offer the insurance to their employees.” Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

Newsmakers

How Will Tariffs Impact the Solar Panel Industry?

Amazon Searches for Second HQ, Walmart Stays Put

Kohl’s to Sell Amazon Smart Home Devices, Accept Retailer’s Returns

The U.S. International Trade Commission (ITC) announced its decision that U.S. solar panel manufacturers are negatively impacted by imported solar panels. TheRedT.com/solar-panel-tariffs

Amazon and Walmart, are taking drastically different approaches to choosing locations for their corporate headquarters. TheRedT.com/amazon-walmart-hq

True Value Fall Reunion Pushes Retailers to ‘Act Now’

Optimistic Home Improvement Outlook at HIRI Conference

As retailers begin planning ahead for their busy selling season, those attending the True Value Fall Reunion were also encouraged to think in the moment. TheRedT.com/true-value-fall-2017

The Home Improvement Research Institute (HIRI) recently presented the latest research on home improvement trends and the economic and social factors affecting the channel. TheRedT.com/hiri-2017

Sales and Attendance Increase at HDW Fall Market

You Won’t Be Competing With Walmart for Holiday Hires

Equifax Breach Reportedly Affects 143M Americans

Ace CEO: Hurricanes, Plans and an ‘Incredibly Good Enemy’

If you’re hiring extra help to staff your retail store during the winter holidays, you won’t be competing for temporary hires with Walmart this year. TheRedT.com/walmart-holiday-help

In September, credit monitoring firm Equifax announced a data breach that affected 143 million Americans, as well as some in Canada and the U.K. TheRedT.com/equifax-breach

Ace Hardware’s president and CEO, John Venhuizen, recently sat down with Hardware Retailing for an interview to talk about the co-op’s future. TheRedT.com/ace-ceo-plans

At a time when all eyes are on Amazon, it appears that Kohl’s is eyeing the online retailer as well. The department store chain has given two ways it is teaming up with Amazon. TheRedT.com/kohls-amazon

Hardware Distribution Warehouses Inc. (HDW) saw record attendance and sales during its recent fall market. TheRedT.com/hdw-fall-2017

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

2. Publication Number

Hardware Retailing Magazine

0 8

8 9

3. Filing Date

2 9 8 9

4. Issue Frequency

5. Number of Issues Published Annually

Monthly

13. Publication Title

6. Annual Subscription Price (if any)

15. Extent and Nature of Circulation

$50.00

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

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Contact Person

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.)

314-432-7511 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

(4)

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

(1)

136 N. Delaware St., #200, Indianapolis, 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. None

■

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))

Managing Editor (Name and complete mailing address)

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

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)

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 2017

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

26,997

27,652

1,440

1,474

28,437

29,126

8,359

7,663

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))

Total (Sum of 15f and g)

Percent Paid and/or Requested Circulation (15c divided by 15f times 100)

18. Signature and Title of Editor, Publisher, Business Manager, or Owner

■ Has Not Changed During Preceding 12 Months

37,391

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)

17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the issue of this publication.

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:

38,465

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®

Editor (Name and complete mailing address)

Full Name

September 2017 Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date

Rich Jarrett Telephone (Include area code)

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

North American Retail Hardware Assoc.

14. Issue Date for Circulation Data Below

Hardware Retailing

9/19/17

1,098

9,457

7,717

37,894

36,843

571

548

38,465

37,391

75.0%

79.1%

NOVEMBER 2017 Date

9/19/17 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).

Blish-Mize Fall Buying Market Takes Center Stage More deals, more options and more interaction were all in the spotlight at the Blish-Mize Fall Buying Market, held Sept. 15-16. TheRedT.com/blish-mize-fall-2017

Lumber Prices Rise After Hurricanes, Political Deadlock Recent hurricanes in the southern U.S. and an ongoing political deadlock between the U.S. and Canadian governments threaten to raise the prices of softwood lumber, reports Canadian newspaper The National Post. TheRedT.com/lumber-deadlock

According to the company, 87 percent of Lowe’s dealer base attended, including 71 of the company’s 87 Ace retailers.

Weeks Home Hardware Owner Finds Efficiencies Through Local Expansion Weeks Home Hardware help a grand opening for its fourth store in September. Owner Ron Ciccutini has successfully expanded his business with the addition of stores in smaller communities around the Hamilton, Ontario, area. The new store is the first location built from the ground up and features full-service departments, a home expressions area, a paint and decorating department and a bath shop.

CANADA Lowe’s Buying Show Highlights RONA and Ace Retailers

Roxul to Rebrand in North America as Rockwool

Lowe’s Canada held its annual buying show for its independent dealers.

Roxul Inc., the North American division of the Rockwool Group,

will be rebranded to the Rockwool name. The Rockwool brand has been marketed internationally for 80 years and will now be adopted in North America for the company’s insulation business. It takes effect Jan. 1 and will apply to all segments of Roxul’s North America insulation business.

UFA to Close Wholesale Sports to Focus on Agro, Fuel Businesses United Farmers of Alberta Cooperative Ltd. has announced it will close all 12 Wholesale Sports Canada Ltd. retail locations in the four Western Canadian provinces. Liquidation sales began Sept. 15, and all stores will be closed by Dec. 28.

For the full story of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX Ajax Wire Specialty Co.................................... 39 www.ajaxwire.com; 855-966-2529

Metaltech Scaffolding ..................................... 32 www.metaltech.co; 800-363-7587

Simon Rack..................................................... 26 www.simonrackusa.com; +1 585 5687904

Allway Tools ................................... 27, 29, 31, 33 www.allwaytools.com; 800-422-5592

Midwest Fastener........................................... 64 www.fastenerconnection.com; 800-444-7313

SKM Industries Inc. ........................................ 27 www.skmproducts.com; 800-851-8464

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

Midwest Products........................................... 47 www.midwestproducts.com; 800-348-3497

Southwire ....................................................... 19 www.moonrays.com; 800-561-4321

Blufixx 3D Systems LP......................................20 www.blufixx.us; 713-325-9130

NRHA Foundations of Leadership Program .29, 31, 33 www.NRHA.org/RLI

Starrett............................................................ 30 www.starrett.com; 888-674-7443

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

NRHA Health Insurance ..................................... 67 www.CBIGI.com/NRHA-PROGRAM

Sun Gro Horticulture ....................................... 46 www.sungro.com; 800-732-8667

Chapin Mfg. .................................................... 45 www.chapinmfg.com; 800-950-4458

NRHA State of Independents Conference .............51 www.SOIC.EVENTBRITE.com

True Value....................................................... 23 www.truevaluecompany.com; 888-291-7229

Cole’s Wild Bird ................................................ 5 www.coleswildbird.com; 877-426-8882

Old Masters .................................................... 65 www.myoldmasters.com; 800-747-3436

U.S. Wire & Cable........................................... 35 www.uswireandcable.com; 800-327-4673

Compass Minerals ............................................ 7 www.safestepmelters.com; 913-344-9216

Oneida Air Systems ........................................ 21 www.oneida-air.com; 800-732-4065

Wastequip .........................................................49 www.toter.com; 800-424-0422

Delta Faucet Company...................................IFC www.deltafaucet.com; 800-345-3358

Orgill Inc. ................................................. 72-IBC www.orgill.com; 800-347-2860

Woodland ..........................................................48 www.pinecar.com; 573-346-5555

Distribution America ....................................... 37 www.daonline.com; 704-940-4801

Paladin Data Corporation ...................................17 www.paladinpointofsale.com; 541-803-6060

Wooster Brush Company ..................................11 www.woosterbrush.com; 800-392-7246

Do it Best Corp. ............................................. 8-9 www.independentsdoitbest.com; 888-364-8237

PPP Manufacturing Co.................................... 39 www.pppmfgco.com; 800-473-1803

Yardmax.............................................................44 www.yardmax.com; 877-YARDMAX

Flair-It.............................................................. 28 www.flairit.com; 800-842-2543

Reckitt Benckiser/d-Con ...............................14-15 630-434-1350

HSI.................................................................... 3 www.hardwaresuppliers.com; 800-334-5625

Rust Patrol ...................................................... 38 www.rustpatrol.com; 713-400-3100

K-Co Products ............................................ 52-53 www.kco-products.com; 949-276-5252

Sakrete ..............................................................13 www.sakrete.com; 214-991-0280

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

November 2017 | HARDWARE RETAILING

Last Word

Something To Be Thankful For

ere at Hardware Retailing, we’re in a thankful kind of mood this time of year. Thankful for all the connections we’ve been able to make this year and looking forward to the ones coming in 2018. Thankful that, year after year, we’re still learning and are able to help the independent home improvement industry grow.

Yet, at the end of the day, we’re also thankful for that big meal we wait all year for. In that spirit, we wanted to highlight some aspects of the home improvement retailing industry that most reminds us of our favorite Thanksgiving foods. Just don’t throw a hammer at the table when someone asks to pass the potatoes.

1. Veggies

5. The Bird

Veggies on the Thanksgiving table, with the diverse options available, can be likened to your product mix. You have to have something for everyone, and each “diner” will have their favorites. Also, kids probably look right past most of them on the way to the stuff they like. Does your store have a spot for sweets? That’s ice cream after dinner’s done.

The main event. Whether you go old school with a roasted turkey, add some experimentation with a turducken or opt out of meat with Tofurky, this is the centerpiece of the experience. What else can inspire the same attention in your business except customer service? Treat customers well and they’ll keep coming back for seconds.

2. Cranberry Sauce

6. Stuffing

Is there anything more associated with this time of year than cranberry sauce? It only happens once a year and holds such a key place on the table that you wouldn’t think to not include it. Remind you of another once-a-year event? Your operation’s annual full-store inventory holds just as necessary a spot on the calendar.

Stuffing, maybe more than any other Thanksgiving dish, is steeped in tradition. Your community relations and events serve the same purpose in your business. Do you put on an annual event? Children coming to that event in the early years will still talk about it when they bring their own kids. Just like grandma’s stuffing.

3. Pie

7. Mashed Potatoes

For most of us, pie is something you break out a few times a year. They require time and effort, but they pay off. Attending industry shows and buying markets can also be time-intensive for retailers. But the chance to make connections with vendors, co-op and wholesaler representatives as well as other retailers is always something to take advantage of before it’s gone.

The glue that binds the meal together, mashed potatoes represent the employees who make your business thrive. Potatoes serve as the base layer of the meal, supporting the sides and bringing everything together, just like a great workforce. Just make sure to leave the mashing to the spuds.

4. Crescent Rolls

8. Gravy

Rolls, or your bread of choice, have a specific role (pun intended) on Thanksgiving Day and really at any large meal. It’s the opener, the starter, the first thing a diner sees and eats. That’s your entryway and checkout area, the opening stage for customers preparing to enjoy your business. Except in the case of your store, “flaky” might not be what you’re going for.

If potatoes are employees, what’s a necessary addition that makes the whole meal (business) sing? Training, just like gravy, allows the whole dish to stand out among the other priorities on the table. Employee training programs help maintain a business’s balance and elevate the performance of every other part of the business.

HARDWARE RETAILING | November 2017

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3 4 5 6 7

8 November 2017 | HARDWARE RETAILING

Delivering the Best in Class Orgill’s commitment to customer service is evident in every order, from the drivers who become part of the team at each stop, to the reliable, prescheduled deliveries.

It Starts With Distribution

Fast, Efficient Delivery

In order to run their businesses, retailers need a

With a consistently high fill rate and quick turnaround

distributor that gets them the products they need in a

time, Orgill customers can count on being able to take

timely and efficient way. That’s why Orgill puts so much

care of their customers’ needs. Some Orgill customers

emphasis on developing and maintaining its world-class

have said their deliveries are so reliable, they can set their

distribution system.

watches by their drivers’ arrival times.

Familiar Faces

A Continued Commitment

Orgill starts its best-in-class deliveries by putting

With one of the most sophisticated distribution networks

dedicated, caring people behind the wheel, which

in the industry, Orgill services customers throughout

means Orgill customers know their orders will be

North America and continues to make investments to

delivered by people who are committed to the success

enhance its efficiencies and service. Partner with Orgill to

of their business.

experience the service and commitment to success firsthand.

When you join the Benjamin Moore retailer network, it’s your store, not a franchise. Which means no franchise fee, and 100% of your investment goes into your own store. Go to benjaminmoore.com/newdealers to learn more.