Hardware Retailing November 2018

Serving Hardware, Home Center & Building Material Retailers

Leading by Example How Sharing Your Knowledge Boosts the Industry 38

Empower Your Pro Customers With the Right Tool Mix 54

VOLUME 215 • ISSUE 5 • NOVEMBER 2018 • HARDWARERETAILING.COM

Look Outside to Bring Customers In 62

WEBSITE

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All The Products We Need Orgill’s Inventory Selection Keeps Our Shelves Fully Stocked!

“Orgill offers a full selection of high-quality products, which makes it easy to provide my customers with exactly what they need.”

Taylor Baker l Foothills Hardware & Builders Supply, North Carolina l An Orgill customer since 2015

Why We Like Working With Orgill: • Strong vendor partnerships • Broad product selection • Strong retail programs that help us improve our store

Watch the video to learn about the partnership between Orgill and Foothills Hardware!

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Take the Next Step The Retail Management Certification Program offers your key employees the skills they need to strengthen their businesses.

Interactive Workshops

Business Improvement Project

Workshops include simulations, case studies, group exercises and discussions that encourage interaction and help students apply experiences to their businesses.

Students present their company-specific project and receive direct feedback from their peers, industry experts, business owners and university professors.

Quick Wins for the Business

Opportunity to Save Money

Students complete a final Quick Wins assignment to implement three projects for their businesses which can start building an immediate return on investment.

For a limited time, NRHA is offering a special early enrollment discount for independent retailers.

Save more than 20 percent when you enroll by Jan. 1.

“This course lets us decrease the learning gap and puts our leaders in place a whole lot faster by understanding the whole business.”

Leading b Example How Sharing Your Knowledge Boosts the Industry 38

VOLUME 215 • ISSUE 5 • NOVEMBER 2018 • HARDWARERETAILING.CO

Lee Bryant | W.D. Bryant True Value TO SEE THE CURRICULUM AND MORE, GO TO NRHARMCP.COM

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Serving Hardware, Home Center & Building Material Retailers

We understand that health insurance is a headache.

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“Many independent business owners struggle with the high costs of health insurance.

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AD #4 Empower Your Pro Customers With the Right Tool Mix 54 Hear their story on Dec. 6.

Look Outside to Bring Customers In 62

Attend the 2018 State of Independents Conference on Dec. 6 in Chicago to discuss growth opportunities in the independent home improvement industry. During the daylong event, Elliot Greenberg, owner of JC Licht, will discuss his philosophy that businesses must “grow or die” and how his company approaches growth. The event is free for retailers to attend, but seating is limited.

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NRHA creates opportunities for conversations between independent home improvement retailers of all affiliations and sizes, so you can share your ideas and learn new ones from a variety of industry professionals.

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NRHA offers topic-focused roundtables, educational conferences, events and retail management programs. With dozens of options and ways to engage, you can explore what’s most important to you. Regardless of how involved you are, your voice matters.

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“We are all facing the same issues, and working together is going to make us, and our industry, stronger.”

Scott Jerousek | Farm and Home Hardware | Wellington, Ohio JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

Serving Hardware, Home Center & Building Material Retailers

Leading by Example How Sharing Your Knowledge Boosts the Industry 38

Empower Your Pro Customers With the Right Tool Mix 54 VOLUME 215 • ISSUE 5 • NOVEMBER 2018 • HARDWARERETAILING.COM

Look Outside to Bring Customers In 62

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Headquarters Staff

COMING IN DECEMBER

PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

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

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

FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber

GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

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

CIRCULATION

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

CIRCULATION DIRECTOR Richard Jarrett

MEMBER SERVICES

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

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 EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RECRUITMENT Tom Marcum, 317-275-9430, tmarcum@nrha.org

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

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

Explore the challenges, successes and opportunities retailers took on in the last year in Market Measure, Hardware Retailing’s annual overview of the home improvement industry.

SENIOR DESIGNER Lynnea Chom

PRESIDENT AND CEO Bob Cutter

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

The Industry’s Annual Report

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

SALES/NRHA VENDOR PARTNER DIRECTOR OF SALES Lowell Huffman MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Lowell Huffman, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9443, Fax: 317-275-9403, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org BUSINESS DEVELOPMENT MANAGER Brad Lyons, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, blyons@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

NRHA MISSION

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

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD TJ Comstock, Northwest Hardware LLC, Billings, Montana EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina David Dishke, Grand River Home Hardware, Caledonia, Ontario

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

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

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

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

All editorial contents copyrighted 2018 by the North American Retail Hardware Association.

No editorial may be reproduced without prior permission of the publisher.

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

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HARDWARE RETAILING | November 2018

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

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

Contents NOVEMBER 2018 | VOLUME 215 | ISSUE 5

38

OPERATIONS

Follow the Leader

From managers to cashiers, every home improvement store employee has the ability to lead and inspire others to perform to their greatest potential. This month, we’ll take a look at how effective leadership can propel businesses forward.

Learn hard-hitting leadership tips and hear what has motivated them throughout their careers.

40 . . . . . . . . . . . . . . . . Pass-Along Leadership 44 . . . . . . . . . . . . . . . . Inside Out Leadership 48 . . . . . . . . . . . . . Taking Cues From Outside

W

S

62 MERCHANDISING

Catching Their Attention Exterior merchandising can sometimes be a missed opportunity to show off your creativity and catch customers’ interests, even when they’re not in your store. From a Jurassic display to jump-start your next sale to seasonal merchandising techniques and options for displaying products outside, you’re sure to be inspired by these unique merchandising solutions from around the country. Take a look at these exciting window and outdoor merchandising setups before your next sale hits.

N

E

Departments

54 CATEGORY SPOTLIGHT

Power Up Your Inventory At many home improvement businesses, the hand and power tool category is one of the most prominent departments of the entire operation. By stocking a variety of hand and power tools at your store, you can attract customers from all sectors, including professionals. Get tips from retailers who have catered to the needs of contractors, builders and tradespeople on how they have earned—and kept—the business of these different professionals.

4

HARDWARE RETAILING | November 2018

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 22 . . . . . . . . . . . . . . . New Products 32 . . . . . . . . . . . . . . . . . . Checkouts 68 . . . . . . . . .Newsmakers/Calendar 70 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Daren Padgett, store manager at Roselawn True Value in Roselawn, Indiana, displays leadership by being an example for members of his team.

NRHA photo by Lynnea Chom

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In-House Keying

On the Web TRAINING

See Leadership in Action At the second annual NRHA STIHL Foundations of Leadership Conference, retailers, business experts and leadership professionals united to discuss how effective leadership can bring businesses new success. Hear how leadership development has helped conference attendees and presenters reach their full potential and how other retailers can guide their operations with focus and determination. Watch the video at TheRedT.com/leadership-video.

MERCHANDISING

Build Your Own Displays The tools to create a must-explore display are right in front of you.

At Petersburg Hardware, store manager Eric Smith created a stack display that has helped grow his feed department by more than 400 percent.

Check out the step-by-step guide to create your own at TheRedT.com/ chalkboard-displays.

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/trainers-toolbox to download this month’s lesson, listed below.

MERCHANDISING

Masterful Store Setups All year long, Hardware Retailing has explored unique merchandising techniques. Turn to Page 62 for the final entry of the year. Then set aside time to browse all three previous lessons at TheRedT.com/ merchandising-series.

Making Every Experience Positive Front-line employees have a big impact on how customers view your store.

This month, Trainer’s Toolbox offers six principles of customer service etiquette to review with your staff.

The lesson is a downloadable PDF you can share with employees easily.

MERCHANDISING

Expert Window Display Tips Well-designed window displays can stop customers right in their tracks and bring people who wouldn’t normally shop your business straight through your front door. Get window display tips from Noelle Nicks, visual merchandising manager at Cole Hardware in San Francisco, at TheRedT.com/cole-windows.

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HARDWARE RETAILING | November 2018

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

©2018 CHANNELLOCK, Inc. Meadville, PA, U.S.A.

MARKS THE FUTURE For over 132 years, Channellock, Inc. has been a leading innovator of pliers and hand tools.

And to this day, we proudly carry on that tradition. A new take on a proven classic is on the way, sooner than you may realize. Your customers are going to want to get their hands on it—trust us.

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BUILT STRONG. WORKS HARD. WON’T QUIT.

Independent Thinking

Think Healthy Thoughts

T

“NRHA has helped

hundreds of retailers and thousands of their employees either save money by participating in the NRHA Health Care Plan or by using one of our quotes to help lower their current quote.

”

he Affordable Care Act (ACA) seems like an oxymoron in today’s world, as health insurance is almost anything but affordable. However, the fact of the matter is health insurance was a major issue before it became a mandate. As health insurance costs continue to severely outpace normal inflation, people are scrambling to find decent coverage with premiums they can afford.

There seems to be a consensus in our industry about how challenging finding affordable health insurance is for independent retailers. Last summer, the North American Retail Hardware Association (NRHA) hosted a Small Business Government roundtable, and the group listed the rising costs of health insurance as the No. 1 issue facing independent home improvement retailers.

In addition, as part of the Hot Topics section of our Cost of Doing Business Study, we always ask respondents if there is anything they want us to add to the data collection. In each of the last five years, by far the No. 1 request is related to health insurance.

Finally, people nearing retirement or those are who are currently retired nearly always say their primary concern revolves around rising health care costs. In fact, it is likely one of the top three expenses you incur personally.

Whether you are the owner of a business that is required to provide health insurance under the ACA or you provide it as a way to attract employees, you are likely looking for a solution for a quality health insurance plan at affordable rates.

Interestingly enough, a major wholesaler recently asked us if we had a solution for health care as they haven’t been able to develop a plan to help their retailers control costs. Indeed we do, and in fact, the NRHA Health Care Plan was developed to not only help retailers find alternative solutions, but to help NRHA educate the industry on changes in the law and strategies to combat rising costs.

We developed the NRHA Health Care Plan because we saw our own rates increase by almost 15 percent in 2013. With a young workforce and moderate claims, this increase didn’t sit well with us. Our broker at the time said it was just a standard increase that year, and while our claims were fairly decent, we were being punished because other groups were spending more on health care claims. To us, that wasn’t right.

We worked with Bob Chiesa, president and CEO of Custom Benefits Insurance Group, to develop a plan not only for NRHA, but also for independent home improvement retailers. Since 2013, NRHA has helped hundreds of retailers and thousands of their employees either save money by participating in the NRHA Health Care Plan or by using one of our quotes to help lower their current quote.

The NRHA Health Care Plan is a hybrid plan that acts like a fully insured plan, but also has the internal workings of a partially self-funded plan. In simple terms, you pay a set premium that will not increase during the year, but at year-end, based on your claims experience, you could receive a refund on premiums paid. In fact, in June this year, a retailer received a refund in excess of $22,000. As for premium increases, NRHA has been on the plan for six years, and the highest increase we’ve seen is 5.45 percent, and in three of those years, we actually received a premium decrease.

Read our conversation with Chiesa on Page 16 for more information about the current health insurance market. To get your own quote, visit nrha.org/health-insurance or contact Chiesa at cbigi@msn.com.

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

8

HARDWARE RETAILING | November 2018

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Taking Care of Business

Not to Be a Downer, But…

B

y most measures, it seems 2018 is shaping up to be a solid year for home improvement retailing. The housing market is strong, unemployment is low and consumers remain cautiously optimistic about spending.

With all of this in mind, I’d like to pour a bucket of ice-cold water on this positivity parade and bring us all back to reality. While we are certainly in an upcycle for our industry, there are three warnings I would like to pass along as you begin planning for 2019.

These warnings don’t signal insurmountable challenges, but I truly feel it is imperative to point out several potential issues so we aren’t overcome by the apathy that a strong business climate can sometimes breed.

Warning 1: Stay on top of your pricing!

“These warnings don’t signal insurmountable challenges, but I truly feel it is imperative to point out several potential issues so we aren’t overcome by the apathy that a strong business climate can sometimes breed.

”

Given the volatile international market for raw goods and the tariffs that are currently and potentially impacting access to these goods, it is crucial that you address your pricing strategies. Because so many items you sell could be heavily impacted by the costs of items like steel and aluminum, you need to work closely with your buyers to ensure you are staying ahead of any potential price increases.

The last time we faced some of these challenges, too many retailers found themselves behind the curve—setting prices based on past acquisition costs and not on replenishment costs. With so many items potentially facing price increases, this strategy could be a dire mistake moving forward.

Warning 2: You cannot wait any longer to address the internet!

For the past decade or so, home improvement retailing has largely skirted the impact of online retailing. While more customers are going online for their home improvement needs, the shift hasn’t happened as quickly as in other retail sectors.

There is no reason to assume 2019 will be “the year” that online sales surge forward for home improvement. But every year that brick-and-mortar retailers in this industry do not address their online presence, they will continue to lose relevance in consumers’ minds.

Warning 3: If you aren’t differentiating, you are dying!

I’ve said this in past columns, but it has never been more serious of an issue than now. Because customers have so many choices for their home improvement needs, you must be looking for ways to create a difference, an edge, for your business—and “customer service” isn’t enough!

The nebulous concept of customer service isn’t a differentiator anymore; it is the cost of entry for any retailer to remain in business. How will your business make customers feel special or create an environment unlike one of hundreds of other options consumers have? If you can’t simply and clearly state why your business is different (and better) than the other options in your market, you have to address it!

While I’ve listed three warnings here, there are certainly other projects you need to take on to ensure your business remains relevant well into the future. But as rapidly as change comes right now, if you don’t address these three items, you might not have to worry too much about longer-range planning.

Dan M. Tratensek, Publisher

dant@nrha.org

10

HARDWARE RETAILING | November 2018

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NRHA News

Retailer Speakers Featured at NRHA Conference

H

ave you prepared your business for growth in 2019? On Dec. 6, attend the North American Retail Hardware Association’s (NRHA) 2018 State of Independents Conference for insights into growth from two of the industry’s prominent retail leaders.

“This year’s State of Independents Conference will give retailers and other channel partner attendees front-row seats to exclusive research on growth in specific categories.

Attendees will also hear about strategies from two very different retail operations,” says NRHA executive vice president Dan Tratensek. “The takeaways from this event will be vital for participants from all areas of the channel who are looking for new opportunities to optimize growth next year.”

To register and to see the complete agenda for the 2018 State of Independents Conference, visit nrha.org/soic.

“The takeaways from

this event will be vital for participants from all areas of the channel who are looking for new opportunities to optimize growth next year.

—Dan Tratensek, NRHA

”

Zach Coblentz | Hartville Hardware Coblentz will talk about how the country’s largest independent home improvement business develops growth strategies. The Hartville, Ohio-based business operates all core categories and several niche departments in more than 300,000 square feet of salesfloor.

Meet the Speakers Elliot Greenberg | JC Licht Greenberg will share his operation’s plans for future growth and will discuss his philosophy that retail operations must “grow or die.”

The business opened in 1907 with one location in downtown Chicago and now operates nearly 40 retail stores throughout the Chicago area.

12

HARDWARE RETAILING | November 2018

Keep your customers from being left out in the cold.

Be winter smart and stock up with the complete line of Safe Step ® ice melters.

Winter comes quick. And with it comes a panicked rush for ice melt. Be prepared for anything winter throws your customers’ way with the Safe Step line of ice melters. From economical rock salt to eco-friendly deicers, stocking up with Safe Step ice melters from Compass Minerals® is the best step to helping keep your customers safer this winter.

For more information on Safe Step products, call 913-344-9216 or visit safestepmelters.com.

Safe Step is brought to you by Compass Minerals. © 2017 Compass Minerals. All rights reserved.

NRHA News

Build a Base With Foundations of Leadership

I

f you are looking for a training program to give your new managers or supervisors insight into their leadership skills, the NRHA Foundations of Leadership Program is a solid place to start.

The 16-week online program is designed to prepare students for the next level of leadership in your operation, whether they are shift managers, assistant managers or training for a more advanced role. It is broken up into six modules that explore each person’s approach to management and their communication styles.

Tom Marcum, director of recruitment for the NRHA Retail Leadership Institute, says this program is geared toward retailers who are on the cusp of beginning new leadership roles in their company.

“We’ve developed the curriculum for the Foundations of Leadership Program to resonate with people who were recently promoted to supervisory positions or who are generally curious to learn more about their leadership styles,” Marcum says. “It’s an all-encompassing program that helps people improve their management skills.”

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Learn how attractive magnets can be for you at magnetsource.com/newlook or call 888.293.9190.

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14

HARDWARE RETAILING | November 2018

The online format allows students to work through the modules on their own time, which Marcum says is another benefit to the program.

“Because this program is online, it provides a lot of flexibility for people who can’t get away from the business to attend in-person training programs,” Marcum says.

“Students have a set period to work through each module, but they can complete them at their own pace during that time frame.”

Networking with other students is another added benefit of the program. Retailers can communicate with their classmates through the online platform during the session, which is a great way to learn new ideas and get feedback on operations and management challenges.

In 2019, there are three opportunities to enroll in the program, with sessions taking place in winter, summer and fall. The application deadline for the winter session is Jan. 4, 2019, and the program kicks off on Jan. 7.

Contact Tom Marcum at tmarcum@nrha.org or 317-275-9430, or visit nrha.org/fol for more information.

The Magnet Source® brand is a proven profit center with over 250 SKUs, trilingual packaging, customized planograms and free merchandising graphics.

Module 1

Module 4

Understanding Me and My Strengths Discover the wide range of personality types and complete a personality assessment.

Constructive Conflict and Communication Skills Discover the mutual accountability model and how to be effective through all means of communication.

Module 2

Leadership and Me

Module 5

Developing Talent

Understand leadership through vision and values, and learn about different leadership styles.

Understand the stewardship of people cycle.

Module 3

Module 6

Entrepreneurial Leadership Be introduced to workplace innovation and creativity for strategic advantage.

Team Building Learn different interviewing styles to achieve the best employee selection and performance management.

The NRHA Foundations of Leadership Program features six modules that are focused on helping students recognize their leadership and communication styles so they can become better, more effective leaders in their operations.

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NRHA News

Consider Your Small Business Insurance Options

H

ealth insurance is a major concern for every business owner. As the year winds down, business owners will be reviewing their expenses and considering how insurance affects their bottom line. Hardware Retailing checked in with Bob Chiesa, president and CEO of Custom Benefits Insurance Group Inc., to learn more about the NRHA Health Insurance Program, which offers health, dental, vision, life and disability insurance to operations as small as two employees.

“I always encourage people to look at their insurance options,” Chiesa says. “It costs nothing to review what’s available to you.

That’s where the NRHA Health Insurance Program has proved so valuable and successful for so many retailers.”

Chiesa says the biggest change to health insurance in 2019 is the repeal of the individual mandate, which required all adults to have health insurance or pay an annual penalty. Beginning in 2019, individuals will no longer be penalized for not carrying

Beginning in 2019, individuals will no longer be penalized for not carrying health insurance, but Chiesa urges every retailer to explore their options.

health insurance, but it is still a requirement on 2018 taxes.

Chiesa urges every retailer to explore their options.

Employers with fewer than 50 workers are not required to provide health insurance to their employees, but Chiesa says more health insurers are beginning to target smaller companies, some with as few as two employees, so even small operations can now explore health insurance options that fit their specific business model.

The NRHA Health Insurance Program offers a range of flexibility, Chiesa says, including plan design, the use of various PPO doctor networks and a national pharmacy program. The program is available to retailers in every U.S. state and includes a convenient online member’s claim portal.

For more information on the NRHA Health Insurance Program and to request a no-obligation quote, contact Chiesa at cbigi@msn.com or visit nrha.org/health-insurance.

Be ready to serve your customers IN ANY SEASON

www.chapinmfg.com I 800-950-4458 © 2018 Chapin International, Inc.

When the NRHA Board Visits Indy

In October, the NRHA Board of Directors gathered at NRHA headquarters in Indianapolis for its biannual meeting. The meeting was an opportunity for the board and NRHA staff to talk about the state of the industry and the direction of the association.

November 2018 | HARDWARE RETAILING

17

FIRST CHOICE. BEST CHOICE.

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Let our team show you how Merchandising Essentials drives immediate growth and long-term success. Together, we’ll make your business the first and best choice for every customer you serve – and keep them coming back.

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

Trends Physical Stores Beat Amazon for Power Tool Sales Brick-and-mortar retailers in the U.S. still garner the majority of consumer spending on power tools, despite the ever-expanding online retail marketplace.

Recent TraQline survey data from research firm The Stevenson Co. show that more than 80 percent of consumer power tool purchases happen in physical stores. The top three retailers that draw the most consumer spending in the category are Home Depot, Lowe’s and Sears, according to the research.

Nearly a quarter of customers decide where to buy their circular saws, cordless drills and other similar products based on where they happen to be shopping for other items already, according to the research.

More than half of the TraQline survey respondents are members of Amazon Prime, an annual subscription service that provides free shipping options and other members-only benefits. However, the data show that only 7 percent of consumer power tool spending goes to Amazon.

Applied to Retail Your retail operation has an edge on online retailers by selling in a physical location where consumers can see and touch power tools before they buy them. Play up this advantage.

Keep in mind that customers who are shopping for other products may buy their power tools from your business because they’re already in your store. Nearly 25 percent of consumers purchase power tools based on where they’re shopping for other products, according to the TraQline data.

So, consider product placement. Impromptu buys won’t happen if shoppers were planning to buy elsewhere and don’t see your power tool array because it’s buried in the back of your store.

If your displays are easy to spot, then be sure there’s no reason customers would turn away. Your power tool displays should be clean, stocked and well-merchandised, reflecting the quality of the products you’re selling.

A Closer Look at Consumer Power Tool Shopping

20

81%

60%

of power tool purchases are made in brick-and-mortar stores.

of consumers say they choose to buy a tool based on pricing.

67%

23%

of power tool shoppers are men shopping by themselves.

choose where they buy based on where they’re already shopping.

HARDWARE RETAILING | November 2018

Source: TraQline, The Stevenson Co., 2018

THE BEST NEVER STOP

LEARN MORE AT: IRONCLAD.com

New Products

“Jumping Cracker Beans

greeting cards always feature that little something different that sets them apart from other cards. They also merchandise well, as the display is more of a fixture than a rack.

”

—Cathy Hamilton, Taylor’s Do it Center

1

2 “PK Grills are time-honored

and timeless in their design.

The product line also has a devoted following. Once someone is a PK Grills person, they’re all-in on the product line.

—Jeff Fuller, Fuller & Son

1. Unique Greeting Cards

2. Aluminum Grill and Smoker

Jumping Cracker Beans creates handmade greeting cards featuring surprising elements, like real feathers, tiny packets of herbs, cake mix with candy sprinkles, plantable seeds, colorful metallic confetti, Guatemalan worry dolls and friendship bracelets. Its international Card of the Year winner features real parsley, sage and rosemary and the card reads inside: “Let’s get together if you have the thyme.” Cards come sealed in clear protective sleeves with an iridescent envelope.

The PK360 charcoal grill and smoker takes the traditional cast aluminum design of previous PK grills and adds a new stand and side tables. The interior architecture along with the four-point venting system is designed to optimize air flow for both high-heat direct flames and low-heat smoking and roasting. The PK360 has 360 square inches of cooking surface on marine-grade stainless steel.

Jumping Cracker Beans 408-416-1676 or jumpingcrackerbeans.com

22

”

HARDWARE RETAILING | November 2018

Portable Kitchen 866-354-7575 or pkgrills.com

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

“The pureWash Pro system

gives a commercial-grade cleaning without the need for bleach, detergent or hot water.

It’s a great upsell, but more importantly it isn’t snake oil.

It really works, and customers see that when they use it.

”

—Joe King Fultz, Turner, Pierce & Fultz

3

4 “We really like Garden

Works products because they have features outside of the mainstream. Their scoop is deeper than most, plus the serrated edge adds versatility for gardeners.

”

—Kerri Connoer-Stiede, Miners Ace Hardware

3. Sanitizing Washer Accessory

4. Gardening Scoop

The pureWash Pro infuses oxygen into the cleaning water of a clothes washer, purifying and sanitizing while also cleaning the clothes or other fabrics inside. It works with cold water and no detergent and installs to front-load and top-load washers in 15 minutes.

The Soil Scoop is designed to dig toward the user, becoming a more natural extension of the hand and reducing stress on the user’s wrist while gardening. It features a sharp point and a serrated edge for removing weeds and cutting open soil bags. The rust-free stainless steel blade is thick enough to not bend under heavy-duty use.

GreenTech Environmental 423-352-7263 or greentechenv.com

Garden Works 425-455-0568 or gardenworksusa.com

November 2018 | HARDWARE RETAILING

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New Products

5

6

NEPTUNE’S HARVEST You’re going to LOVE our Natural & Organic Products!

5. Filtering Water Pitcher The Cleansui pitcher is the top-selling water pitcher purification system in Japan, filters water with a combined activated-carbon method and with a hollow fiber membrane at the end of the filter. The membrane removes fine particles up to 0.2 micrometers, such as turbidity and cysts.

Mitsubishi Chemical Cleansui ny@cleansui-usa.com or cleansui-usa.com

6. Extension Pole

SHOWS AMAZING RESULTS ON EVERYTHING! Call for a FREE SAMPLE SEE FOR YOURSELF

For everything you grow!

24

HARDWARE RETAILING | November 2018

The Sturdi-Extend extension pole features a fiberglass outer tube with a steel inner tube. The pole incorporates a double-locking feature where the inner tube locks inside the outer tube as well as an exterior locking assembly where the tubes transition. The thread is a ¾-inch metal thread that is commonly used on tools for painting, cleaning and other applications. It is available in extended lengths of 4, 6, 8 and 10 feet.

American Select Tubing 217-234-7300 ext. 831 or astubing.com

Original Since 1977

¨

ROOF SNOW REMOVAL SYSTEM

7 7. Chalk Paint Starter Kit BB Frosch Chalk Paint Powder can be added to any brand and color flat latex paint to create a chalk application. The Starter Kit includes powder, one specialty paint brush and a wax brush, brush conditioning soap, mixing jars, mini mixing whisk, a reusable huck cloth, lint-free wax cloths and a wax application wand.

These supplies are expected to last for two full projects.

BB Frosch 702-415-5810 or bbfrosch.com

Simply the best quality roof snow removal products on the market. There are imitators, but only one Avalanche Original.

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Add Avalanche Original to Your Winter Lineup.

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800-378-3088

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Prevent Rust • Lubricate • Penetrate Results of Rust Patrol® against competitors from a 47 day side-by-side test using 5% salt fog on 1010 carbon steel.

November 2018 | HARDWARE RETAILING

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New Products

8

9 STRAP, BUNDLE, ORGANIZE One-Tie®, the reusable tie strap built for everyone from the contractor to the crafter.

One-Tie is available in six lengths up to 32”, seven colors, and multi-count packs. For more on pricing and display options, contact Jerry Burstein at jburstein@tmadeproducts.com or call 262.563.6133.

See our video and more at

ONE-TIE.COM 262.563.6133

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HARDWARE RETAILING | November 2018

8. Insulated Pliers Channellock’s new line of insulated pliers includes 8-inch long nose pliers, 7- and 8-inch diagonal cutters and 8-inch combination pliers. They are designed for OSHA regulations for workplace safety and are tested to 10,000 VAC and rated for 1,000 VAC when working on live parts.

All four pliers have XLT™ Xtreme Leverage Technology to reduce force when cutting, and the insulation is impact-resistant and flame-retardant.

Channellock 800-724-3018 or channellock.com

9. Multipurpose Lubricant FiendOil™ is a multipurpose household lubricant that won’t attract dirt, contains no solids, like Teflon™ or graphite, and comes in both drip and spray form. FiendOil will work down to minus 65 F and up to 400 F. This temperature range allows it to be used in outdoor-facing locks, garage door tracks, hinges, bike chains and more.

FiendOil 651-748-1750 or fiendoil.com

11

10

Stop and smell the Toters.

10. Organic Fertilizer Blend Premium Gold® fertilizer is designed to work with every plant in a garden and feed nutrients quickly as well as sustain those nutrients over several months.

The blend provides micronutrients and multiminerals. TruBiotic® ensures organic nutrients are thoroughly broken down and then released in the soil for plant roots to absorb them as they are needed. Premium Gold is available in 4-, 12-, 25- and 50-pound bags.

Dr. Earth 707-448-4676 or drearth.com

Freshness is easy as ...

+

=

11. Striking Wrench Gearwrench® Slugging/Striking Wrenches are designed where hammers or sledges are needed to move fasteners. Wrench styles include a 6-point slugging wrench, 12-point slugging wrench and 12-point 45-degree offset striking wrench. The large striking surface allows for more efficient hammer contact, while the compact handle length permits usage in confined areas. All three styles are available in multiple sizes.

Apex Tool Group 866-907-9706 or gearwrench.com

Retailers nationwide are helping their communities with solutions for odor control with Toter’s PowerFresh™ odor eliminators and cart liners.

With our latest products, we’ve curbed the smell of trash day and delivered extreme freshness and odor-fighting power to Toter trash carts – the legendary brand that’s Built for Extremes. We’re spreading the freshness. We hope you’ll spread the good news to your customers.

Free POP Display with your first order of cart liners. try.toter.com/odorcontrol

November 2018 | HARDWARE RETAILING

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New Products

12

13

12. Ice Molds

13. Weatherproof Notebook

The Tiki Ice Molds create three detailed tiki-shaped ice cubes that cool a beverage without watering it down. The flexible silicone allows ice to pop out easily while handles on the tray create easy mobility. The stackable design conserves space in a freezer.

The All-Weather Notebook from Rite in the Rain® is now available in a new, high-visibility color. Blaze Orange matches construction safety wear and hunting gear, while the weatherproof paper sheds moisture and stains. The notebooks can be recycled or stored for long-term bookkeeping. Blaze Orange books are available in five sizes and bindings.

Tovolo 206-633-6066 or tovolo.com

JL Darling 253-922-5000 or riteintherain.com

QUALITY - DURABILITY - INNOVATION FOR OVER 75 YEARS

Since 1942, MAX has been recognized, worldwide, as a leading manufacturer of high-end industrial tools. MAX product engineers concentrate on developing products with highly innovative and durable features to support the ever-evolving needs of the professionals that use them.

The MAX Advantage begins with our R&D, engineering and production teams and ends with our customers. Based on end-user feedback, we continually re-engineer our products to meet real-world demands. Our close working relationships with our customers allow us to stay ahead of industry trends in growing markets.

CN445R3

SN883RH3

SN890CH3/34

Learn More About MAX 100 PSI Tools MAX products are developed in Japan and manufactured in ISO9001 and ISO14001 certified factories. All products are evaluated to meet strict quality performance standards.

PROMOTIONAL OFFER AVAILABLE ON THE TOOLS FEATURED IN THIS AD. OFFER VALID NOVEMBER 1, 2018 - DECEMBER 31, 2018. WHILE SUPPLIES LAST. CALL MAX USA CORP. FOR DETAILS.

WWW.MAXUSACORP.COM 800.223.4293

FREE BLUETOOTH SPEAKER WITH PURCHASE OF MAX CN445R3, SN883RH3 OR SN890CH3/34 TOOLS.

14

15

14. Washable Cushion Lorena Canals creates washable cushions and rugs designed to be cleaned in conventional home washers.

The Cushion Arrow is handmade of 100 percent natural cotton and nontoxic dyes. The Lorena Canals line of cushions includes a variety of options in various shapes and surface designs.

Lorena Canals 844-567-3622 or lorenacanals.com

15. Spring Clamp Bora Tool spring clamps apply 35 pounds of clamping pressure and feature swiveling head pads to adapt to odd or uneven surfaces.

The ribbed frame is designed for greater resilience, while TPR handles provide comfort. The clamps are available in 3- and 4-inch sets sold in pairs as well as 10-piece sets.

Bora Tool 866-588-0395 or boratool.com

November 2018 | HARDWARE RETAILING

29

New Products

17

16 American Made & Profitable For Over 80 Years

16. Closet and Garage Organization System The freedomRail design is a smart storage system that includes a full line of adjustable components and options.

Accessories in the Reveal line match into the freedomRail system and can be adjusted for height and depth, removed and reinstalled as the user’s needs change.

Organized Living 888-674-5484 or organizedliving.com

17. Ceiling Tiles 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

30

HARDWARE RETAILING | November 2018

The 204 Lilies and Swirls tile design crosses over from traditional to modern design concepts due to a combination of swirls and a floral design. The tiles are made from PVC and have a depth of ¼ inch. The tiles are paintable with water-based paints and are available in 24-by-24 inch and 24-by-48 inch sizes.

Decorative Ceiling Tiles 866-297-0380 or decorativeceilingtiles.net

18

19

18. Star Wars® Waffle Maker

19. Rain Showerhead

The Millennium Falcon Waffle Maker is a replica of Han Solo’s spaceship from the Star Wars films. It can be used to create waffles, hash browns, cookies and other snacks in the shape of the iconic ship. Dual indicator lights show when it is time to pour the batter and when waffles are done, and the waffle plates are treated with nonstick materials.

The Raindance E shower range allows for versatility in creating a rain shower setup. The top showerhead can be mounted in the ceiling above the user or connected to the showerpipe along with the handshower attachment.

Glass covers the showerpipe and the heat controls, which also doubles as a shelf.

Uncanny Brands 888-922-6293 or uncannybrands.com

Hansgrohe 800-334-0455 or hansgrohe-usa.com

CATCHING MORE SPIDERS IS A NUMBERS GAME. RESCUE!® Spider Traps are uniquely designed with features that lure more spiders deep into the trap, so your customers can put an end to their problem, fast. Learn more at Rescue.com.

Checkouts COMMUNITY RELATIONS

On the Right Track

T

he community of Granby, Colorado, looks forward to the Christmas model train exhibit set up by the Grand County Railroad Club. Recently, the club secured land that will allow it to keep the display up all year, will feature a museum and has enough space for full-size trains outside.

The property requires significant renovations before the Moffatt Road Railroad Museum can be open to the public, which is a cause that caught the attention of Country Ace Hardware owner Amy Kaplanis.

“We’ve always tried to reach out and support the community,” she says. “We’re a small town. All of us who work at the store live here, too.”

Kaplanis hosted a Ladies Night with a $5 entry fee.

The railroad club served appetizers and welcomed attendees, and all of the entry fees went to the museum.

Following that event, Kaplanis knew how Country Ace and the community could give back even more. The business has the capability through its POS system to offer customers the chance to round up their purchases. Kaplanis decided to utilize the system as a fundraiser for the museum.

“Customers like this type of fundraiser because it benefits the entire community, and it’s a true project,” she says.

“They like to give to something local they can see.”

Country Ace ran the fundraiser from Memorial Day through the month of June, and Granby community members raised more than $4,600 for the visitor center in the museum.

The trains will be on display this holiday season, and the plan is for the visitor center to open next summer.

Country Ace Hardware in Granby, Colorado, hosted two fundraisers to benefit the Moffatt Road Railroad Museum. The museum will be a permanent home for a model train exhibit and will feature full-size refurbished trains on the property for visitors to explore.

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

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

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HARDWARE RETAILING | November 2018

BIG BRANDS=

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Checkouts

MERCHANDISING

Chalking It Up

A

dding a new niche or category can sometimes present challenges that require a little elbow grease to solve.

Nearly three years ago, Petersburg Hardware in Petersburg, Indiana, moved to a new location which grew the salesfloor by more than 20,000 square feet. The new space allowed the company to enhance its feed department, and they quickly realized that a few bags in an aisle would not meet their sales goals.

“Initially, we chose pallet racking to put bags on, but that didn’t allow very many SKUs of different feeds or large quantities,” store manager Eric Smith says. “In our area, when people come in, they buy five, 10 or 15 bags sometimes, so we realized we needed to have a lot more in stock, and we didn’t want it in the backroom.”

Smith designed and built two 17-foot-long stack displays using pallets, plywood and pipe that allows the business to merchandise several varieties of feed and include product information that customers need.

“I wanted the display to mimic our in-store signage, so we framed out thin plywood and painted it with chalkboard paint,” Smith says. “With the chalkboards, we can include facts, like what type of animal it’s for and the pricing, and it’s also easy to change.”

Smith says that since they transitioned to the new displays and put one in the power aisle, the store’s sales in the department have grown more than 400 percent.

“We had these same amounts in the back before, but the displays helped sales take off,” he says.

Another added benefit of the displays was that Smith had the opportunity to show customers how they can use the products Petersburg Hardware sells for decorative purposes. A recent trend has been using pipe for DIY projects, like wine racks, so Smith used pipe to connect the chalkboard signs to the pallets to show customers another way to utilize it in their homes.

For a step-by-step guide on building this merchandiser, visit TheRedT.com/chalkboard-displays.

When Petersburg Hardware transitioned into a larger location, store manager Eric Smith built his own merchandiser to expand his feed department. The customizable displays have helped the department grow sales by more than 400 percent.

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HARDWARE RETAILING | November 2018

TRUTH : THERE ARE ONLY TWO WAYS TO GROW A BUSINESS.

One, find more customers to sell to and two, sell more to the ones you’ve got.

That’s why we plan to grow our business by doing just two things: have new customers join us and make sure our existing True Value® family thrives.

The plan is simple. First, as a True Value customer, you don’t make capital investments. Second, you can access a nationally recognized brand plus over 500 top assortments. You won’t pay advertising fees, and the advertising you sign up for will be targeted only to your trade areas. Unlike our competitors, with True Value, you get all the value you’re paying for.

That’s how we’ll grow our business—and that’s how you’ll grow yours. You’ve got a bright future. And it’s ready and waiting.

IF YOU’RE READY FOR A TRANSFORMATION, VISIT TRUEVALUECOMPANY.COM/TRUTH OR CALL 1.888.291.7229. ©2018 True Value Company LLC. All rights reserved. TVRG-14275

Checkouts

CUSTOMER RELATIONS

Retailer Has a Whole New Ring

B

eing attentive on the phone is an important facet of customer service, but how do you retain that when you need to put a customer on hold?

Smith’s Ace Hardware, which has five locations in New Jersey and Pennsylvania with a sixth on the way, recently updated its hold recordings with the help of an audio branding company.

“Every month we develop a script for the latest sales or new products, and professional voice actors read them,” store manager Scott Baron says. “It’s an upgrade from the previous generic recording we were using.”

Each Smith’s Ace location can tailor its own message, and the messages can even be changed quickly should the need arise, such as when a winter storm is approaching.

“We put a prompt in to remind customers we have shovels and snowblowers,” Baron says.

The phone system offers an opportunity to provide another layer of customer service.

“Sometimes a customer has to be on hold while an employee finds an answer to their question,” Baron says.

“This system keeps them from feeling like they’ve been put on the sidelines.”

Smith’s Ace Hardware has five locations in New Jersey and Pennsylvania and each can customize its own phone hold message.

EVENTS

Fancy Rides Get the Prize

J

ust as adults like to show off their fancy cars, children love to show off their bicycles. Every year, Allan’s Home Hardware Building Centre in Cochrane, Ontario, gives them an opportunity to do that. The company’s Annual Bike Decorating Contest can attract as many as 45 local children who trim out their bicycles in hopes of a first-place prize.

For the past 10 years, the store has hosted a customer appreciation barbecue, but the event was mostly for their contractor customers, says Nicole Brazeau, store manager. She and the staff wanted a way to incorporate more children into the event, and the bike decorating contest was the answer.

Staff members judge each entry and pick a winner from each age group, but all of the children get a small prize for participating.

“Children get creative with their bikes,” says Brazeau.

“Some of them even wear costumes to complement the way their bike is decorated. They all love it.”

In addition to serving food, Brazeau has brought in a balloon artist and a face painter to entertain the crowd. The weekend also corresponds with a festival in town, which helps the event build momentum. The event still focuses on customer appreciation, but now it is geared toward the entire family.

“We have a lot of contractor customers, and it’s our way of thanking them for their business. It’s been a great way to draw people to the store.”

Children decorated their bicycles for the annual Bike Decorating Contest at Allan’s Home Hardware Building Centre.

Move Over Mother Nature.

With Red Lion® RL-SPRK Series Sprinkler Pumps, life will always be greener on your customers’ side of the fence. A leading 2-year manufacturer’s warranty, easy-to-retrofit design, and rugged cast iron casing will get their residential and commercial lawn and turf sprinkler systems back to good health in no time.

redlionproducts.com

November 2018 | HARDWARE RETAILING

37

W

S

N E

Conveying Leadership G

reat leaders break the mold. They inspire teams with motivational pep talks, individually mentor employees or stay behind the scenes to ensure a business stays profitable. Effective, focused leadership can help employees and businesses prosper.

But how are leaders made? What are the characteristics of the most effective home improvement retail leaders?

Hardware Retailing spoke with home improvement employees from across the country to learn how they view leadership and how managers and employees at all levels can draw inspiration to guide businesses forward.

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HARDWARE RETAILING | November 2018

In the following stories, discover how the North American Retail Hardware Association’s (NRHA) Retail Leadership Institute has helped two retailers capitalize on the skills they developed to lead their operations. Learn how the owner of nine Illinois hardware stores used business lessons outside the hardware industry to put his stores on the path to success.

No matter what their position may be, every employee at a home improvement operation has the opportunity to motivate other staffers and represent their business proudly. Dive into home improvement leadership and learn ways retailers can become more effective guides.

November 2018 | HARDWARE RETAILING

39

By Melanie Moul, mmoul@nrha.org

Pass-Along Leadership Share What You Know to Support the Next Generation

L

eadership comes naturally to some people who choose to make independent home improvement retailing their profession, while other retailers enhance their leadership skills over the course of their careers. No matter where you fall on the spectrum, you can always continue learning from other retailers who have built their lives in the industry.

Hardware Retailing spoke to two retailers with decades of experience who recently participated in leadership development programs. Read how they chose their paths and reached their current roles and why they view leadership development as a continual process. Their stories show how relying on other business professionals can encourage up-and-coming leaders and build up the industry.

Everyone Starts Somewhere Daren Padgett has a plan for his future.

He’s worked at Roselawn True Value Hardware in Roselawn, Indiana, since he was a teenager, putting in hours during holidays and summers while he was in college and returning full time after graduation.

“I really didn’t know what to expect after college,” Padgett says. “Everyone teaches you to dream big and move where the jobs are. Then when you start looking for something in your field, you start at the bottom no matter where you go. I knew there was room for me to grow here.”

Shortly after he returned to Roselawn, new owners purchased the business. Padgett saw this transition period as an opportunity to prove himself and begin a path to a career.

“I sat down with the store manager at the time, and we talked about growth that would benefit

40

HARDWARE RETAILING | November 2018

all of us,” he says. “Within a year, I was promoted to manager, and we’ve had record sales growth every year since, with only a little hiccup around the recession.”

A fresh endeavor that has already been a great source of growth for Roselawn True Value is its rental department, which Padgett planned and implemented two years ago. Initially, he wasn’t sure where to start, but then an opportunity to get vital input from other retailers arose.

With the encouragement of storeowner John Morgin, Padgett enrolled in the North American Retail Hardware Association’s (NRHA) Retail Management Certification Program.

The program is a six-month, college-level management course focused on giving key retail employees additional resources, knowledge and connections to help further their operations.

Padgett initially was unsure how much more he could learn about retailing through the course.

The opportunity to learn from other retailers and connect with people who already operated rental departments convinced him to sign up. But he didn’t initially think he would gain more than rental tips out of the experience.

“I realized that all retailers in this industry have the same struggles, no matter what type of business we have, what wholesaler we use or what role we play,” Padgett says. “We all have the same drive, but we also have the same challenges. It’s nice to see what other retailers have found that works and what hasn’t worked.”

In addition to networking with other retailers, Padgett made connections with NRHA staff and course presenters, who suggested he also reach

November 2018 | HARDWARE RETAILING

41

out to the American Rental Association for guidance on setting up his new department.

“I’ve kept in contact with several retailers from the program who were already operating their own rental departments,” he says. “It’s great to be able to reach out and see what’s working for them, find what equipment to buy or not buy, what POS systems to use. We’re all in such different markets, so it depends a lot on the clientele, but it’s still great to have those resources.”

Meeting retailers from diverse backgrounds who also operate rental departments helped push Padgett to the next step as a leader. Since completing the management program, he’s grown his rental department even more, to the point where party equipment is rented out nearly every weekend during the summer. He’s also become a resource for other retailers looking to expand into the category.

“It’s nice to have other retailers contact you,” he says. “I was that person a few years ago.”

Padgett has also participated in his wholesaler’s young retailer group for the last eight years, and recently, he has been able to give back. At the biannual buying shows, young retailers meet for a casual meal and get a chance to learn from each other about business and the industry. Padgett is happy to be a part of the group and to impart his knowledge as a retailer with more than 20 years of experience.

“It’s great to be able to give advice to the next generation. The growth of the industry is young retailers,” he says. “This group gives me a chance to answer any questions they have. Maybe they just bought a store and didn’t know what to expect. Some of them aren’t at the owner level or aren’t children of owners. We need to get the next generation or two interested to help the industry grow, and sharing what we know is part of that.”

Padgett says he wasn’t expecting personal development to be a result of the industry programs and groups he participated in.

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Learn more at nrha.org/rli.

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Daren Padgett (right) is an advocate for sharing his knowledge with industry newcomers.

“At the time I thought, ‘I’ve been in this industry for a while; what else is there to learn?’” he says. “I realized that there is always something to learn, even if it’s personal growth.”

He has become more involved in his community, volunteering at the local American Legion hall, where he serves at the fish fry every other Friday.

Through his volunteering, he’s become more connected to his customers, which he says has helped everyone see each other in a different light.

“I’ve learned more about my customers who I’ve dealt with for more than 20 years. They’re not just customers,” he says. “Sometimes, they want to call to talk instead of just getting a part for their dishwasher.”

With his tenure as manager approaching two decades, Padgett says his next step is to take ownership of the business. He says he has no doubts about the future of the business well beyond that point.

“Every decision I make is for future growth and the long-term success of this business,” he says. “When it comes to being a leader, you can’t think you’re better than everyone else.

You need to sit and listen to the details from everybody involved. Nobody is ever finished with leadership development.”

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By Melanie Moul, mmoul@nrha.org

Inside Out Leadership How Professional Development Leads to Personal Growth

W

hen Jackie Sacks started working at Round Top Mercantile in Round Top, Texas, as a teenager, she never anticipated she would eventually become co-owner of the business.

“I had aspirations to become an agriculture teacher,” Sacks says. “I worked at the store through high school and college, and I worked my way up the ranks. I spent time stocking products and learning how things worked, like how to fix PVC pipe.”

Once she arrived at college, Sacks discovered how much she enjoyed her business-related classes. She also realized her appreciation for her customers. It was at that point that Sacks’ perspective shifted, and she saw the potential of building a career at Round Top Mercantile. She returned to the store after earning her degree and became more involved in the daily operations, including inventory management and bookkeeping.

“To this day, I still wear many hats at the store,” Sacks says. “I enjoy the interactions with customers, but I also enjoy being behind the scenes, maintaining the daily ebb and flow.”

Building a Stronger Foundation Over the course of about 10 years, Sacks identified ways to grow Round Top Mercantile.

She helped lead a store expansion that added more than 11,000 square feet to the store. She also further developed the paint department, and she manages the store’s connected grocery operation.

Sacks serves in a human resources capacity, too, managing more than 20 employees across both the hardware and grocery businesses.

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While she was busy finding new ways to expand the business, she sought additional opportunities to build on her knowledge and skills. In 2016, Sacks was named an NRHA Young Retailer of the Year honoree for her achievements in the business. Then in 2017, she attended the NRHA STIHL Foundations of Leadership Conference, which brought together retailers from across the industry to learn leadership lessons and business best practices from industry veterans and experts. Sacks says both experiences provided her the connections and the learning opportunities she was looking for.

“These programs are directed to the independent retailer, and they offer tools that have helped me train our diverse employee base,” she says. “I have become more confident and more aggressive at keeping things running at a good pace. I am a successful woman in what is traditionally seen as a man’s industry. When I can show a customer that I do know what I’m talking about and I can help them, their faces are priceless.”

Sacks says that her experiences in leadership development have helped her become a more thoughtful leader in her business, approaching management and decision-making more cautiously than she has in the past.

“I used to have such a knee-jerk reaction that sometimes it cost me a customer or an employee’s morale. Before, if I witnessed an employee making a mistake, I would correct them on the spot, in front of their peers,” she says. “I learned that our employees are more comfortable going to the back office without anyone else listening in. There isn’t always a need for in-the-moment correction, and the need to listen to both sides of a situation or hear out the issues is critical.”

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“My goal now is to

increase the confidence in my employees that I support their decisions made in my absence.

I want them to know I will back them up.

—Jackie Sacks, Round Top Mercantile

”

Making a Community Impact Sacks’ industry-specific skills have also helped her be more effective in her leadership roles in the community. Sacks has volunteered in the Round Top community for as long as she has lived in town, about 12 years. But her experience at Round Top Mercantile and in leadership development programs has led her to think differently about how her involvement can impact her business and her personal development.

Sacks currently serves as vice president of the local school district parents’ club, after serving for three years as the group’s president. She is also a member of the district’s education foundation, serves as a council member and event coordinator at her church and volunteers for her community’s Oktoberfest event and biannual craft show.

“It’s important to me to volunteer,” she says.

“We can’t always give monetarily, but I can give as much time as my schedule allows.”

Sacks says being involved in the community helps create connections with customers and with other businesses, which in turn can boost business. She says she’s also developed more confidence to discuss tough issues

NRHA Foundations of Leadership Through the NRHA Foundations of Leadership online course and the NRHA STIHL Foundations of Leadership Conference, retailers gain insight into their own leadership styles and how to become effective managers.

Learn more at nrha.org/rli.

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In between managing operations at Round Top Mercantile and volunteering at various events, Jackie and her husband Michael raise two young daughters.

with employees and customers and to bargain with vendors.

“The more you’re involved, the more connections you have and ideas you generate,” she says.

“You can more easily find a food vendor for your next store event or come up with something new to attract customers.”

Through the education foundation, Sacks helped coordinate a school supply drive with the local Lions Club, which was hosted at Round Top Mercantile.

The school bus parked on the property, and community members could drop off supplies and stop into the store to shop.

As a co-owner of Round Top Mercantile, Sacks understands that she has reached the top of the ladder. Her current role is now focused on supporting her employees and developing them into successful managers who she can trust with everyday operations.

“A good customer and successful businessman once told me, ‘You must be able to manage your business from the moon,’” she says. “My goal now is to increase the confidence in my employees that I support their decisions made in my absence. I want them to know I will back them up.”

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By Todd Taber, ttaber@nrha.org

Taking Cues From Outside Bringing New Points of View to Home Improvement

A

great leader can change the trajectory of an employee’s entire career.

By giving helpful compliments when an employee feels overwhelmed or maintaining a work environment where everyone feels respected and empowered, responsive leaders can help employees and businesses alike soar.

For Adam Ziegler, the time he spent away from the home improvement industry provided crucial lessons that he now applies to his career as owner and vice president of Ziegler’s Ace Hardware.

Ziegler also finds value in investing in his community. Like other home improvement leaders, Ziegler says he finds new opportunities to grow his business and his leadership skills by getting involved with community organizations.

Discover how those local roots have enriched his business and helped Ziegler expand his reputation as a leader.

A Family Foundation Ziegler is the fourth generation at the helm of Ziegler’s Ace Hardware, a business his great-grandfather started in 1930. Alongside his father, Ziegler now oversees nine locations across northeastern Illinois.

Ziegler says some of his earliest memories revolve around his family’s business, including his father making weekly rounds to every store.

He remembers his father checking on each store individually to determine the overall health of the business.

He worked in his family’s stores as a teenager, and later studied accounting and business administration.

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“I always knew that one day I would play a role in running our family business, but despite growing up in the business, my father encouraged me to focus on my education and gain outside work experience,” he says.

After graduating with a master’s degree in accounting in 2005 from Southern Methodist University, he got a job at a national accounting firm.

His new job placed him in a very different work environment than the stores where he grew up.

But Ziegler always had his family’s business in mind. After seven years in corporate accounting, he returned to Ziegler’s Ace Hardware.

When he rejoined to the family business, he updated the decades-old accounting system the business had been using with modern financial reporting systems. He says this decision led to a more streamlined financial reporting process and greater accuracy for the business.

Additionally, he used his experience in corporate finance to lower his company’s banking costs by preparing an RFP and negotiating with a new bank.

“Working outside the industry for a few years was really important for me,” he says. “It gave me a different perspective on how things should be done, and the best practices for running a business.”

Putting Leadership Into Words Two years later, he developed a plan to instill a new focus at the business. He decided to craft what he calls a “noble purpose” that would guide each employee to represent the business confidently and ensure they connect with customers, vendors and other team members on an authentic level.

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“I want my employees to

feel comfortable coming to me to discuss whatever’s on their mind. I have an open-door policy, and I love talking to my employees to encourage them.

”

—Adam Ziegler, Ziegler’s Ace Hardware “We had a mission statement for the business, but I didn’t think it went far enough,” Ziegler says. “I think mission statements can be a little too broad. We really wanted to make our business’s focus meaningful and something people can understand.”

After collaborating with his management team, Ziegler unveiled the business’s official noble purpose: “Our team develops trusting relationships with our neighbors by helping them find everyday solutions for their home and business.”

“Employees can use the noble purpose every day,” he says. “They can ask themselves, ‘Did I work to develop trusting relationships with my customers today?’ and know immediately whether that happened.”

Ziegler says the noble purpose served his entire team well as it embarked on the journey to open the company’s most recent store, its ninth location, which opened in Bartlett, Illinois, in February 2017.

“That was the first store I’ve opened, so there was a lot of learning that went into that process,” he says. “But I had an excellent team around me and they really helped me out. We took things one piece at a time and got things done together.”

Stay Transparent A few years ago, Ziegler made meeting minutes available for employees of all levels to review. Ziegler says this small gesture is one way to inform his entire staff about the business and encourage them to invest fully in its success.

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Adam Ziegler says all business owners should develop a noble purpose to give guidance and support to employees.

With so many locations in the area, the business is always hiring new employees.

Once a month, the company holds an orientation for new employees to introduce them to the company’s noble purpose. It’s also a chance to explain how they can use it to guide their in-store decision-making.

Ziegler also believes in empowering his employees by arming them with in-depth product knowledge to best serve customers.

Each year, Ziegler selects one area of the business where his employees will receive additional training. In the past, Ziegler Ace employees have taken a deep dive into plumbing and electrical, and in 2017, the stores’ employees focused on business-to-business sales.

Ziegler says he is still drawing on his experience outside hardware and home improvement to guide his operation forward.

He says his best bosses outside the home improvement industry motivated other employees to follow their example. They never demanded respect; they earned it, he says.

“I try to lead by example,” he says. “I want my employees to feel comfortable coming to me to discuss whatever’s on their mind. I have an open-door policy, and I love talking to my employees to encourage them.”

Investing in the Community Ziegler says he has a personal drive to explore new avenues to grow his business and as a leader. By taking stock of his own interests and hobbies, he was able to find volunteer opportunities in community organizations that aligned with his natural strengths.

Ziegler is an avid outdoorsman, so digging into his role as treasurer of the Elgin Parks and Recreation Foundation was a natural move. He’s also drawn on his accounting skills in his position as a former member of the South Elgin Economic Development Council.

He’s also a loyal supporter of the Ace Hardware Foundation and the Children’s Miracle Network.

“We’ve been in this community for so long, we have to give back,” he says. “This gives me the chance to work on our noble purpose—I can build relationships with people in the community. It gives me the chance to bring different skills back to the store.”

Ziegler leveraged his influence as the owner of a multilocation business to support initiatives he cares about. He started a roundup campaign where cashiers asked customers if they’d like to round their total at the checkout counter to the nearest dollar. The money that was raised was donated to the Children’s Miracle Network. Ziegler says his business has raised tens of thousands of dollars to date for the organization and the local children it serves.

Ziegler believes business owners should look outside their companies to find ways to volunteer and improve communities. He recommends retailers ask themselves what they’re passionate about and look for opportunities to parlay those interests into initiatives to serve their communities.

“Sometimes it’s easy to get caught in your own silo of being a hardware store owner,” he says. “Being active outside the industry opens my eyes to things that are going on outside, and that’s incredibly beneficial.”

Ziegler’s Ace Hardware recently opened its ninth location in Bartlett, Illinois. The new store marked another chance for vice president and owner Adam Ziegler to introduce new hires to the noble purpose he crafted for the company.

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By Chad Husted, chusted@nrha.org

Feel the Power What Pro Customers Look for in a Tool Supplier

C

ontractors and professional tradespeople are often in a hurry. Theirs is a business where time very much equals money, and downtime due to labor shortages, permit issues or mechanical failures are never welcome.

Many customers walking into a hardware store are looking for something that will solve a problem.

For professional customers, those problems aren’t usually a few holes that need patching as much as they are a few walls that need to be framed up. Those problems need powerful solutions, and retailers can make the most of that demand in their power tool department.

Power tools can be a tricky department to nail down for retailers. While these products are often some of the most high-profile offerings available at home improvement stores, margins can be tight on big-ticket items like drills, impact drivers, saws and grinders.

While professional customers are certainly concerned with price, they balance that concern with whether the tool will do the job they need and hold up to the rigors of the workplace.

How many problems can this power tool solve before they have to reinvest in another one? Hardware Retailing spoke to three retailers who have attracted professional customers with their power tool selections. They share how they’ve brought professional customers into their stores and how they’ve maintained their relationships with that customer base.

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What Do Pros Want?

The types of power tools available in the market are as varied as the pros who use them. From homebuilders to building superintendents working on apartment complexes and municipal buildings, the needs of professionals can change daily.

For retailers, customers who work professionally with power tools can become a foundation of steady sales if targeted correctly. Gemmen’s Home & Hardware in Hudsonville, Michigan, serves a market that is mostly geared toward smaller operations, such as municipal workers who are involved in a variety of projects in multiple buildings, like in a school district.

According to company president and owner Andrew Gemmen, these customers are not making large orders for fully outfitted construction crews.

“Portability is key for this market, and we’ve devoted more of the salesfloor to those products as opposed to stationary tools,” Gemmen says.

By catering their product selection and even store hours to this customer base, Gemmen’s Home & Hardware has built a loyal following among power tool users.

Branneky True Value Hardware serves a similar type of market just outside St. Louis in Bridgeton, Missouri. Co-owner Tim Branneky supplies area hotel maintenance crews and takes part in city projects by bidding on contracts.

By supplying a diverse clientele, the store has spread its name among several sectors of professionals, Branneky says.

“Our business has a really great mix, which includes business with several airlines in our area, as well as contracts that can lead to supplying tools for projects for up to three years,” Branneky says.

“It’s a wide range, and it builds word-of-mouth marketing in a great way, because these professionals all talk shop with each other, and that includes where they’re buying their tools.”

While Branneky True Value Hardware and Gemmen’s Home & Hardware cater to their markets through convenience and proper product selection, PaulB Hardware has built a business serving larger contractors by being a well-supplied and trusted source for power tools and accessories. With a warehouse to store plenty of backstock for its two Pennsylvania retail locations, PaulB Hardware can outfit an entire work van with everything needed in hand and power tools.

“We’ve found that having every item in stock and ready for these customers to either walk out of the store with or have in their employees’ hands in short order is a big draw,” says Phil Groff, sales and marketing manager for PaulB Hardware. “Contractors are always running against time. We’ve changed a lot of our operations to make it easier for pros to get in and out or have easy access to us for orders.”

Left: Devoting entire aisles and display areas to one brand, like this display at Gemmen’s Home & Hardware, can help customers easily find the brand they prefer.

Right: Branneky True Value Hardware allows its customers to handle its tools while on display, a strong merchandising tactic for professional customers.

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Different tradespeople will often be loyal to particular brands when selecting their power tools. PaulB Hardware in Pennsylvania has developed a strong following with area contractors due to its diverse selection and services like an in-store repair facility.

Supporting Brand Loyalty A common theme among these three retailers is the level of brand loyalty their professional tradespeople have shown and the need for those brands to be well-represented across the full line of products available.

Gemmen’s Home & Hardware as well as PaulB Hardware both recently remodeled their salesfloors and took advantage of that time to remerchandise their power tools by brand, rather than by tool type. Merchandising high-quality brands together allows a retailer to make use of the manufacturer’s signage, which helps show off a well-stocked department.

“When a professional buys into a brand, they’re going the whole way. They’re not coming into the store for just a reciprocating saw; they want a specific brand’s saw,” Groff says. “It makes sense to have all of that brand’s accessories, battery packs and other tools in the same area, because once they’ve purchased into a brand, they’re no longer looking over the selection to see which saw they like best.”

Brand loyalty also speaks to which brands retailers are bringing into their stores. While power tools at lower price points can appeal to homeowners and DIYers for projects in a home setting, professionals look for the tools that are more durable and more powerful. Most are willing to bring their price expectations in line with these top brands. Reaching out beyond the brands offered through a certain distributor and working directly with power tool vendors can help expand the selection.

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Other required power tools products for contractors and professionals include the latest in battery-powered options. Portable tools are quickly overtaking corded options for even those intense jobs accomplished by framing saws, impact drivers and chainsaws, Branneky says.

Drills with brushless motors are more popular than traditional brushed motors.

No matter what brands a retailer chooses to bring into their store, having the latest item on the minds of tool-obsessed professionals is key.

Staying in touch with brand vendors and knowing about new products rolling out are ways to stay ahead of demand, Gemmen says.

With the level of customer loyalty present in power tools, the consumer will often know more about what tools are hitting the market than retailers because manufacturers often mail flyers directly to consumers. In addition, brand loyalty programs and trade publications keep customers informed about new products in their favorite tool lines.

“Bringing in the latest new product can be scary sometimes, because you don’t know what will sell or if this brand new product will just languish on the shelf. But we need to take that chance for us to be known as a tool source,” Gemmen says. “Sometimes it’s just about having the coolest new tool on the job site. But if a customer walks in and you don’t have it, they’re going somewhere else that does, and now you’re not reliable.”

Presenting to the Pros Merchandising has several key tenets, no matter the product group or category.

For power tools, the trend toward brand-centric merchandising will likely continue as power tool manufacturers introduce more accessories and battery options designed to work specifically with their own product lines.

Some other ways to cater to pros are to make the products easily accessible on the salesfloor and putting the actual tools in their hands as often as possible. Make tools available for demonstration or encourage your sales associates to take the tool out of its packaging for a customer to handle.

At PaulB Hardware, outside sales associates often bring the latest power tools out on the road with them to offer demonstrations for prospective customers. The business also moved its stocked tools onto the salesfloor instead of storing them in secured back rooms and bringing them out once a purchase was going to be made.

This change was made to facilitate faster service for contractors, Groff says, but it has also exposed some products to greater threats of theft. While the change has been beneficial, it means employees must be more vigilant about observing the power tools department for missing inventory.

“We have always had a great training program that includes information about how to prevent theft.

This move just means we have to be extra careful in these areas,” Groff says. “We have two employees who are checking inventory and doing cycle counts for the entire store. It’s about being intentional with how you’re stocking items and making it a priority to check our faster-moving inventory.”

Power tools can also be included in impulse categories if merchandised in the proper way.

Most power tools have a variety of accessories and attachments that can be displayed in an engaging way to draw in customers.

Groff has often utilized “piles in the aisles” at PaulB Hardware to showcase bundle packages of items like drill bits that can attract a professional.

In addition to making these bundles more visible both around power tools and in high-traffic areas, showcasing prices based on bulk purchases can be an advantage in tools and consumables like screws and nails. Highlighting deals around the tools that need these accessories can increase the chance of a larger purchase.

Along with merchandising power tools in an accessible way, retailers should consider storage options available through different power tool brands. Similar to having the latest type of tool, these storage options are often flashy items that are attractive to brand-loyal customers and make great add-on sale options.

Top: While having power tools out of their boxes and on display for customers can help build interest in these products, it presents a greater risk of theft.

To prevent this, extra vigilance is required around these high-ticket items.

Bottom: Contractors often look for high-quality power tools that can stand up to the workload of an active job site.

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Events that attract vendor representatives as well as professional contractors can help boost a store’s reputation for power tools.

How to Maintain Relationships Tools break. Given the daily abuse power tools are subjected to in a professional environment, even the highest-quality tool will eventually succumb to time and stress.

Retailers can assist their professional customers in multiple ways in this area.

Most power tool manufacturers offer robust warranty options for their tools. While these programs often allow customers to go directly to the manufacturer, a retailer who takes on some of the stress and confusion can garner positive feelings from customers.

Gemmen’s Home & Hardware as well as Branneky True Value Hardware have systems in place to assist customers with submitting power tools to manufacturer warranty programs.

Knowledgeable staff members help customers figure out what the issue might be, and should it need to be submitted for service, the assistance can make a stressful situation much easier.

“It allows us to add value to what is already a high-ticket item. Customers can come to us, and we take care of the shipping and paperwork,” Gemmen says. “It’s one less thing on our customer’s plate and adds a lot of goodwill on our part.”

PaulB Hardware has built its service department to offer in-house repair with certified service employees through several vendors’ warranty programs. Instead of sending the tool to the vendor for service, repairs can be done in-house.

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“We’re seeing several manufacturers who won’t offer warranties for items bought online. When we have this conversation with customers, we’re saying that if this tool breaks, you’re dealing with us and not sending it back to Amazon,” Groff says. “They’re willing to come here and buy here because they’re talking to the person who will work on their tools.”

Another way to add value to purchases is hosting events that cater to their needs. PaulB Hardware conducts an annual May Tool Day where vendors set up booths for a small fee and interact with professionals who attend the event. It allows the kind of face-to-face interactions with knowledgeable manufacturer reps that contractors appreciate.

While contractors and tradespeople are often looking at the nuts and bolts of pricing, product selection and convenience, the building and maintaining of a relationship can’t be overlooked.

Once a professional knows a retailer can be relied on for the right tools for the job, the retailer now becomes an option for a purchase. If that purchase is followed up by strong customer service and enjoyable interactions, a retailer can become the only option that pro will want to patronize.

“It’s about building goodwill and knowing the kinds of problems the professional customer is dealing with,” Branneky says. “If they know you are in the best position to help them accomplish their job and not add stress to it, then the relationship goes beyond just selling tools.”

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Merchandising: Exterior Displays

By Jesse Carleton, jcarleton@nrha.org

See, Stop and Shop Using Your Store’s Exterior to Get Customers Inside

T

he brontosaurus standing in the outdoor garden center and poking its head above Beisswenger’s Hardware has become a landmark around New Brighton, Minnesota. Undoubtedly, most children see it and tug on their parent’s arm to go have a closer look, which is just fine with Jim Neumann, co-owner of the business. “The dinosaur draws kids to come in the store with their parents and to visit our lawn and garden area,” he says.

Beisswenger’s has found a creative way to execute one of the basic principles of retailing. The appearance of your store’s exterior can have a big impact on how well you attract new business and keep previous customers coming back.

Of course, you need to cover the basics: The exterior of your building needs to be clean and well-maintained.

You need clear signage and parking areas that are well-lit.

For those first-time customers who venture into your store, what they see on the outside is going to affect their attitude about what they see on the inside.

But if you are going to differentiate your store from every other retailer in town, you want cars to slow down, get passers-by to give you a second look and then give them a reason to come inside.

In the final installment of this year’s merchandising series, Hardware Retailing takes a look at how retailers around the country are dressing up their store exteriors to encourage customers to stop and shop. For some retailers, that means highlighting a few of the key products they have for sale. For others, like Beisswenger’s, it means finding a unique way to stand out from the crowd.

Let the ideas from other retailers spur your creativity as you think about how your storefront looks to those on the outside. Then, go to TheRedT.com/cole-windows to learn strategies for creating innovative and compelling window displays from Noelle Nicks, visual merchandising manager at Cole Hardware in San Francisco.

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1

Bulk up.

2

Use your wit.

3

Turn heads.

At Whitmore Ace, outdoor signage and stacks of soil and fertilizer let customers know right away: This is a lawn and garden destination. Stacking bagged goods outside a store sends the message that it’s the place where customers can get as much as they need and that prices will be competitive.

Becker is strategic with the layout of the pallets, too. “We lay out the parking lot with the best soil toward the greenhouse, putting them closer to the plants,” she says. “The premium product is out front so customers are sure to see it.” When merchandising bulk goods, it’s important to watch for torn bags and remove them so the area stays clean and free of debris.

Customers might be surprised when they learn that 95 percent of the items making up the window displays at Cole Hardware are actually for sale in the store. Noelle Nicks has a gift for taking ordinary hardware items and turning them into unique and eclectic works of art. The displays get people’s attention, and often get them in the door. “The window display should be an experience, not a store behind glass,” she says. And while her ideas are witty and creative, she says creating an effective display also requires meticulous attention to detail. “Pay attention to every detail of the display, including the backdrop, flooring, lighting and levels. Every item has to look like a museum piece.”

Passers-by are sure to see something unique in the window at Hillsboro Hardware in Nashville, Tennessee. Store manager Jason Mathias likes to dig up relics from the past along with unusual items. Arrangements in the windows might include old hand and power tools that give people a glimpse of hardware past. It could be something unusual, such as a 3-foot-long wrench or a large bulb used in theater lighting. “We try to have fun with it,” he says. “Many of the items are real eye-catchers that people aren’t used to seeing. I’m not using the windows for selling or promotions as much as using them to get people’s attention. Then they’re more likely to come inside.”

JC Licht has 36 locations in Illinois and is still charting a path to growth.

What’s their plan?

Hear their story on Dec. 6.

Attend the 2018 State of Independents Conference on Dec. 6 in Chicago to discuss growth opportunities in the independent home improvement industry. During the daylong event, Elliot Greenberg, owner of JC Licht, will discuss his philosophy that businesses must “grow or die” and how his company approaches growth. The event is free for retailers to attend, but seating is limited.

2018 STATE OF INDEPENDENTS CONFERENCE

REGISTER TODAY AT SOIC.EVENTBRITE.COM

Sponsored by

4

5

6

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HARDWARE RETAILING | November 2018

Get kids excited.

In addition to a brontosaurus, Beisswenger’s is also home to a raptor prowling among the birdbaths and prairie grass. Children visiting the store love to see the dinosaurs, along with a Bigfoot, giraffe and lion. In the meantime, parents are free to browse the store’s extensive offering of lawn and garden goods. According to Neumann, the store’s purchase of the dinosaurs four years ago coincided with the release of one of the “Jurassic Park” movies. “Our local Dairy Queen borrowed the raptor for a promotion they were doing in conjunction with the movie,” he says.

“It’s been worth the investment just for the advertising we got from that.”

Set the mood.

It’s easy for Malinda Milam, owner of M Kay Supply in Benton, Missouri, to give directions to her store. “We tell them to just look for the 1953 Ford truck with the big sign in the back,” she says. When she and her husband were designing the store, she wanted to make the outside of the business something people would remember. She also wanted to make customers feel welcome as soon as they pulled into the parking lot. “If you feel comfortable, you’ll want to come back,” she says. “We wanted the store to be warm and inviting, inside and out.

The experience you create on the outside has to carry through the entire store.”

Celebrate seasons.

Festive window decorations have become one of the traditions at Jeben’s Hardware in Blue Island, Illinois. Sometimes, they make the difference between someone stopping to come in or just walking by. Employee Judy Tuma blends the old and the new to create her seasonal displays, drawing on props such as an adult-sized rocking horse or an antique motorcycle. “Whatever we might have that is part of our window display, it’s likely to bring people into the store,” she says. “People love seeing the antiques in the window. It’s a way to get people to notice our store even during those hours we’re not open. They often come back just to learn more about us.”

7

8

9

Take the salesfloor outside.

With so much to see outside, it may take shoppers a while before they actually step inside Whitmore Ace Hardware. For much of the year, an area in front of the store is set up with live plants, patio furniture, grills and lawn and garden accessories.

It is full of merchandise and is attractive so customers want to stop and browse.

“We’ve created an open-air market look,” says Laurie Becker, director of marketing, who works with managers at all six of the business’s locations in northern Illinois to create outdoor displays. “We put add-on products on display alongside the live goods so customers are not running all over trying to find what they need.”

Cross-promote.

At Howard’s Hardware Hank in Arcadia, Wisconsin, manager Seth Howard makes the most of the limited but highly visible space next to his garden center. He made the area more inviting with some help from a landscaping contractor in town. “We don’t sell the pavers or bricks, but we can give customers the name of a local contractor who can help if that’s something they want for their yard,” he says. It’s also one more step he can take toward improving the outside of the building. “The more attractive exterior has made it more appealing to people,” he says. “They’re likely to think, ‘If it’s nice outside, the store must be nice inside, too.’”

Make it a quick take.

Items from both the garden center and gift shop are on display at the Ace Hardware in Cocoa Beach, Florida. Stephen Nichols, manager, creates seasonal displays that incorporate products popular in his area.

The outdoor display is meant to be only a sample of what’s inside the store.

“We use these outdoor areas to give customers an idea of what they will find in different areas of the store,” he says, adding that it’s also important to not overwhelm customers with too much merchandise.

“A good display lets them take in quickly what you have to offer and give them a taste for what is inside. It needs to be free of clutter and not too busy.”

November 2018 | HARDWARE RETAILING

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Newsmakers

3 Retail Takeaways From the HIRI 2018 Insights Conference

Upcoming Events November 7-9 Home Improvement eRetailer Summit Chicago

13-14 Hardlines Conference Niagara-on-the Lake, Ontario

14-16 Distribution America & PRO Group Inc. 2019 Executive Planning Conference Tucson, Arizona

A

t September’s HIRI 2018 Insights Conference, presented by the Home Improvement Research Institute, an informative lineup of speakers detailed economic trends and consumer preferences shaping the home improvement industry. Hardware Retailing gathered information from some of the presentations to deliver retail takeaways you can use to satisfy customers and attract new business. For more about the HIRI Insights Conference, visit hiri.org.

Takeaway 1: Homeowners Are Staying Put Mark Boud, chief economist for Metrostudy, reported that the nation’s low housing supply is motivating many homeowners to invest in home renovations instead of buying new properties. He cited data from the U.S. Department of Commerce that revealed that the number of housing starts has risen since the Great Recession, but still has not reached pre-recession levels.

What You Can Do: Cater to renovating homeowners by advertising simple DIY projects, like painting, they can undertake to boost their property value. Explain the benefits of new smart home technology to help homes run safer and more efficiently.

Takeaway 2: Homeowners Want Your Expertise Zach Williams, founder of Venveo, which helps building material manufacturers boost online sales, discussed the ways retailers can mimic Amazon’s success. He explained that companies that were once industry titans, like movie rental company Blockbuster, were toppled when startups like Netflix found ways to be closer to customers.

What You Can Do: Get personal with shoppers by adding a chat feature to your website to answer questions. Share expertise through videos, blog posts and photo galleries to inspire customers and position your business as a knowledgeable resource.

Takeaway 3: Homeowners Have Some Regrets Leslie Gillock, vice president and director of insights for marketing communications company Wray Ward, and Brenda Bryan, executive director of the Research Institute for Cooking & Kitchen Intelligence, shared that one-third of consumers who remodeled their kitchens in the past year would spend more money if they could do it again. Their data show homeowners who would spend more generally have a household income of at least $100,000 and have one child or more.

What You Can Do: When working with homeowners, take full stock of their project and help them prioritize the features that are most important to them. Common regrets included cutting back on budget and not adding storage space, so be sure to explain the importance of investing in quality materials and planning for their family’s future.

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HARDWARE RETAILING | November 2018

December 6 North American Retail Hardware Association (NRHA) State of Independents Conference Chicago

January 10-12 House-Hasson Spring Market Nashville, Tennessee

11-13 United Hardware Buying Market Minneapolis

13-15 NRF 2019: Retail’s Big Show New York

February 7-9 HDW Inc. Spring Market New Orleans

8-10 Florida Hardware Spring Market Orlando, Florida

Find more events online at TheRedT.com/calendar.

To have your event added, contact Kate Klein at kklein@nrha.org.

Amazon Becomes Second Company Valued at $1 Trillion Amazon’s value recently reached a new height, with increased stock prices making the retailer a $1 trillion company. The e-commerce giant is the second American company to achieve a $1 trillion value.

TheRedT.com/amazon-value

True Value Hosts Fall Reunion For the first time in the company’s history, the True Value Fall Reunion was open to all independent home improvement retailers across the industry, regardless of wholesaler affiliation.

TheRedT.com/tv-reunion

Do it Best Names New Paint Merchandise Manager HDW Fall Market Attendance Up 30 Percent Hardware Distribution Warehouses (HDW) Fall Market attracted increased attendance of 30 percent compared to its previous market. CEO and president Kenneth R. Beauvais says registration and attendance this year were the second highest in the company’s history.

TheRedT.com/hdw-market

Big Boxes Offer Competitive Holiday Perks

Do it Best Corp. annonunced Jenna Myers as the co-op’s new paint merchandise manager. She will create and develop the company’s paint merchandising programs and initiatives with leading suppliers.

TheRedT.com/dib-paint

CANADA Home Hardware Names New CEO Home Hardware Stores Ltd. named Kevin Macnab, the former president

of Toys R Us Canada and Toys R Us International, as president and CEO. Macnab has more than 30 years of retail industry experience.

Lowe’s Canada Buying Show Launches Craftsman Brand Lowe’s Canada hosted this year’s RONA and Ace Canada buying show in Montreal. Highlights included the launch of the Craftsman brand.

Home Hardware’s Fall Market Brings Changes At the Home Hardware Fall Market in St. Jacobs, Ontario, the layout was altered to emphasize the range of services the company offers retailers. Emerging categories were highlighted as well.

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

Big-box stores are looking for new ways to compete for tens of thousands of seasonal workers. For example, temporary workers at Target locations will receive starting pay of $12 per hour and will also be eligible for $500 gift card prize drawings.

TheRedT.com/holiday-perks

Blish-Mize Fall Market Sizzles The Blish-Mize buying market, which was held Sept. 20-22 in Overland Park, Kansas, included the Most Valuable Profits Event, which was a chance for customers to see the show floor ahead of time.

TheRedT.com/blish-mize-2018

Home Depot Expands Same-Day Delivery Home Depot is offering same-day and next-day local delivery of more than 20,000 of its most popular products to 35 major cities across the U.S. The initiative is part of Home Depot’s $1.2 billion supply chain upgrade, which includes the addition of 170 distribution centers.

TheRedT.com/hd-delivery

November 2018 | HARDWARE RETAILING

69

Last Word

A Brief History of Black Friday

D

o you know Black Friday’s backstory?

The shopping holiday’s name has been connected to retailing only in recent history, when the days after Thanksgiving became some of the busiest for U.S. consumer spending, according to the National Retail Federation (NRF).

1950s Employers use the term to describe the day following Thanksgiving because employees were habitually failing to show up for work the Friday between the holiday and the weekend, The Atlantic reports.

1980s Businesses start using the name to refer to “upbeat connotations of healthy balance sheets” with the beginning of the holiday shopping season and accounts going from red to black, according to The Atlantic.

2011-2016 In-store Black Friday traffic decreases over the years, but the day remains a major shopping event online and in stores for the holiday season, data from ShopperTrak show.

Download free marketing materials at TheRedT.com/holiday-marketing to promote the benefits of shopping local for the holidays.

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HARDWARE RETAILING | November 2018

1869 The term Black Friday is first used when discussing hard events, dating back to stock market crashes that occurred on Fridays in 1869 and 1873, according to an article from The Atlantic.

1960s Police officers use Black Friday as a nickname to describe the day when chaotic crowds and traffic flooded Philadelphia prior to Army-Navy football games, according to reporting from the Philadelphia Business Journal.

2005 NRF begins referring to the Monday after Thanksgiving as Cyber Monday when reporting a notable increase in online retail sales that day. The name stuck and so did the popularity of the shopping day.

2017 The days from Thanksgiving to Cyber Monday have all become big for shopping, but Black Friday attracts the most in-store shoppers and Cyber Monday draws a crowd online, NRF says.

AD INDEX Ajax Wire Specialty Co. ...........................................30 www.ajaxwire.com; 855-966-2529

Master Magnetics Inc. ............................................14 www.magnetsource.com; 888-293-9190

Red Lion ..................................................................37 www.redlionproducts.com; 844-250-4981

Allway Tools .......................................................... IFC www.allwaytools.com; 800-422-5592

Max USA Corp.........................................................28 www.maxusacorp.com; 800-223-4293

Rescue Sterling International Inc. .........................31 www.rescue.com; 800-666-6766

Avalanche ................................................................25 www.avalanche-snow.com; 800-378-3088

Midwest Fastener .....................................................1 www.fastenerconnection.com; 800-444-7313

Rust Patrol ............................................................25 www.rustpatrol.com; 713-244-8755

Channellock Inc .........................................................7 www.channellock.com; 800-724-3018

Neptune’s Harvest ..................................................24 www.neptunesharvest.com; 800-259-4769

SimonRack USA....................................................53 www.simonrackusa.com; 585-568-7904

Chapin International Inc...........................................16 www.chapinmfg.com; 800-950-4458

NRHA 2018 State of Independents Conference ....65 soic.eventbrite.com

Simpson Strong-Tie .................................................11 go.strongtie.com; 800-999-5099

Cole’s Wild Bird.......................................................43 www.coleswildbird.com; 877-426-8882

NRHA Health Insurance Plan ..................................57 www.CBIGI.com/NRHA-PROGRAM

SureCan ...................................................................36 www.SureCanUSA.com; 801-827-0500

Compass Minerals...................................................13 www.safestepmelters.com; 913-344-9216

NRHA Retail Management Certification Program ...61 www.nrharmcp.com

TailorMade Products Inc..........................................26 www.one-tie.com; 262-563-6133

Distribution America..................................................3 www.daonline.com; 704-940-4801

Old Masters.............................................................17 www.myoldmasters.com; 800-747-3436

True Value Company .........................................33, 35 www.truevaluecompany.com; 888-291-7229

Do it Best Corp...................................................18-19 www.independentsdoitbest.com; 888-364-8237

Oneida Air Systems.................................................51 www.oneida-air.com; 833-434-3258

Wastequip LLC........................................................27 try.toter.com/odorcontrol; 800-424-0422

FiendOil ...................................................................15 www.fiendoil.com; 651-748-1750

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

Woodland ................................................................29 www.pinecar.com; 573-346-5555

HSI.............................................................................5 www.hardwaresuppliers.com; 800-334-5625

Paladin Data Corporation ...........................................9 www.paladinpointofsale.com/nrha; 541-803-6060

W.R. Case & Sons Cutlery Co.................................69 www.jessupsales.com; 800-821-1924

Ironclad Performance Wear Corp.....................21, BC www.ironclad.com; 844-200-5664

Quickscrews............................................................47 www.quickscrews.com; 800-743-6916

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

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

2. Publication Number

Hardware Retailing Magazine

0 8

4. Issue Frequency

5. Number of Issues Published Annually

Monthly

12

8 9

_

3. Filing Date

2 9 8 9

13. Publication Title

6. Annual Subscription Price (if any)

15. Extent and Nature of Circulation

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

Contact Person

a. Total Number of Copies (Net press run)

Rich Jarrett Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541.

(Include direct written request from recipient, telemarketing, and Internet (1) requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.)

Telephone (Include area code)

314-432-7511 8. Complete Mailing Address of Headquarters or General Business Office of Publisher (Not printer)

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

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

b. Legitimate Paid and/or In-County Paid/Requested Mail Subscriptions stated on PS Form 3541.

Requested (Include direct written request from recipient, telemarketing, and Internet Distribution (2) requests from recipient, paid subscriptions including nominal rate subscriptions, (By mail employer requests, advertiser’s proof copies, and exchange copies.) and outside Sales Through Dealers and Carriers, Street Vendors, Counter the mail) (3) Sales, and Other Paid or Requested Distribution Outside USPS® (4)

Editor (Name and complete mailing address)

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

(1)

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

Complete Mailing Address Full Name 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

■

38,392

37,431

26,647

27,599

1,457

1,601

28,104

29,200

8,071

7,056

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)

Full Name

September 2018 Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date

$50.00

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

North American Retail Hardware Assoc.

14. Issue Date for Circulation Data Below

Hardware Retailing

9/25/18

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

e.

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

f.

Total Distribution (Sum of 15c and e)

g.

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

h.

Total (Sum of 15f and g)

i.

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

Complete Mailing Address

1,509

468

9,580

7,524

37,684

36,724

708

707

38,392

37,431

74.58%

79.51%

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

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

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

12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes:

■ Has Not Changed During Preceding 12 Months

Has Changed During Preceding 12 Months (Publisher must submit explanation of change with this statement.)

PS Form 3526-R, July 2014 [Page 1 of 4 (See instructions page 4)] PSN: 7530-09-000-8855

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

NOVEMBER 2018 Date

9/25/18 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).

November 2018 | HARDWARE RETAILING

71

Foundations of Leadership This online course helps new and upcoming managers become leaders.

Team-Building Tactics Managers discover how to best connect with employees and solve larger issues like staff turnover and productivity.

Management Strategies Participants are taught to be innovative and creative in the workplace to create a strategic advantage.

Self-Evaluation Skills Students learn their strengths and weaknesses and how to communicate with different personality types.

“After this course, I’m confident I can leverage my strategic mindset and employee relations skills to be a successful new manager.”

Josh Johnson | Assistant Manager Trainee | Ace Thrift Supply

FOR MORE INFORMATION, GO TO NRHA.ORG/FOL

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Taylor Baker Foothills Hardware & Builders Supply North Carolina

“Orgill offers a full selection of high-quality products, which makes it easy to provide my customers with exactly what they need.”

All The Products We Need Orgill’s Inventory Selection Keeps Our Shelves Fully Stocked!

Getting Started

A Strong Partnership

“When we bought our store, it had a lot of older, obsolete

“Orgill’s partnership with vendors is the best we’ve ever

inventory. Orgill’s team came in and worked closely with

seen among any distributor. Orgill works with every brand

us to reset the store in just two weeks. No other supplier

you can think of to provide its customers with all of the

could have made such a transformation so quickly.”

high-quality products they need.”

A Smart Program

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“We have nothing but good things to say about

“Orgill has thousands of SKUs in their warehouses, so we

Orgill’s Smart Start program. When we reset our store,

know we can find anything we need. They provide us with

the program helped us replace tired products with fresh,

both hardware and LBM products. This broad selection

complete assortments. Smart Start gives retailers such an

allows us to offer products to our customers at a variety

advantage, and at little to no cost.”

of price points.”

Learn more about Foothills Hardware & Builders Supply’s success by visiting Orgill.com/aboutus.

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017

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