Issuu

Serving Hardware, Home Center & Building Material Retailers

Maine Event

How Hancock Lumber Has Marked 6 Years as a World-Class Workplace Page 44

Are You the Right Fit for Your Family Business? Page 29

Volume 217 • Issue 5 • November 2019 • hardwareretailing.com

“If you have a world-class culture, you won’t have trouble finding employees.”

WEBSITE

JOIN MAILING LIST

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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!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com/about-us Digital_Foothills_Single Page.indd 1

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Are You the Right Fit for Your Family Business? Page 29

Build your bench and improve your business. Do you have a manager or director with real potential who could use additional operations training? Are there areas of your business you’d like to improve? Accomplish both by enrolling your employee in the NRHA Retail Management Certification Program. Over six months, they will have a flexible, in-depth experience learning core operations and management skills, while also advancing your business. Apply by Jan. 1 to save on tuition!

Volume 217 • Issue 5 • November 2019 • hardwareretailing.com

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

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The True Cost of Not Offering Health Insurance “If you have a world-class culture, you won’t have trouble finding employees.”

Health insurance continues to be a key differentiator for potential employees as they consider joining you or your competitor. The NRHA Health Insurance Plan offers an affordable solution with great benefits, providing flexibility, low group rates and numerous perks.

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Evolving Technology Hassett Ace Hardware | Woods Hardware Keeping up with new technology used to be optional, but today it’s mission critical if you want to grow or even maintain your business. Hear from two innovative, tech-focused retailers as they share how they’ve prioritized implementing technology in their operations as a way to differentiate in their specific markets, improve employee efficiency and compete against big boxes.

Join retailers, wholesalers and channel partners for this daylong event focused on finding growth opportunities in the changing retail landscape. To learn more about all of the keynote presentations, visit NRHA.org/SOIC.

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Serving Hardware, Home Center & Building Material Retailers

Maine Event

How Hancock Lumber Has Marked 6 Years as a World-Class Workplace Page 44

Are You the Right Fit for Your Family Business? Page 29

Volume 217 • Issue 5 • November 2019 • hardwareretailing.com

“If you have a world-class culture, you won’t have trouble finding employees.”

BEGINNERS rock.

DO IT BEST HELPS RETAIL ROOKIES BECOME SUCCESSFUL STORE OWNERS. When Lauren Melancon and Vanessa Melancon Pierce opened Melaco Sisters Hardware & Supplies, they weren’t just first-time Do it Best member-owners — they were new to the entire hardware industry. But with imagination, common sense, and guidance from Do it Best, they handled their business like experts. After working with the Do it Best team to design and rebrand their store, they set out to stock it. At the Do it Best Spring Market , Lauren and Vanessa used the Market Savings Builder and Sneak Peek Pre-Planner to assemble an impressive SM

inventory of proven customer favorites and innovative new products – all at great savings. They finished off their new store with The Color Bar™ and used Do it Best INCOM Supply to add an industrial/commercial department. SM

With hard work and their Do it Best partnership, Lauren and Vanessa have taken Melaco Sisters Hardware & Supplies from industry newcomer to an established trendsetter.

“We were a new store with a new generation of owners, and Do it Best helped us look like pros.” Lauren Melancon & Vanessa Melancon Pierce Melaco Sisters Hardware & Supplies

» Are you ready to try something new? Do it Best can help you turn your next venture into a success. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestretail.com.

Headquarters OUR MISSION

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

136 N. Delaware St. #200 Indianapolis, IN 46204 317-275-9400 nrha@nrha.org nrha.org

North American Retail Hardware Association @nrha_official

EDITORIAL, DESIGN AND PRODUCTION

PRESIDENT AND CEO Bob Cutter

EXECUTIVE VICE PRESIDENT AND EXECUTIVE EDITOR Dan Tratensek

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

MANAGING EDITOR Melanie Moul

Next month, the industry’s annual report returns. Featuring an overview of independent and big-box financials, information from the 2019 Cost of Doing Business Study and expert analysis, Market Measure is your yearly planning guide.

ASSISTANT EDITORS Kate Klein Todd Taber PRODUCTION EDITOR Hans Cummings SENIOR DESIGNER Lynnea Chom GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan PRODUCTION MANAGER Nancy A. Vondersaar SALES AND PRODUCTION ASSISTANT Freda Creech

SALES AND MARKETING VICE PRESIDENT OF SALES AND PUBLISHER Kevin Hohman, 317-275-9430, khohman@nrha.org DIRECTOR OF MARKETING AND COMMUNICATIONS Whitney Daulton

MEMBER SERVICES

MIDWEST REGION MANAGER Brad Lyons, 317-275-9424, blyons@nrha.org

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

NORTHEAST REGION MANAGER Lowell Huffman, 317-275-9443, lhuffman@nrha.org

RETAIL OUTREACH COORDINATOR Renee Changnon, 317-275-9442, rchangnon@nrha.org

SOUTHEAST REGION MANAGER Scott Gilcrest, 317-275-9414, sgilcrest@nrha.org

EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

CONTACT NRHA SALES 136 N. Delaware St. #200, Indianapolis, IN 46204 Fax: 317-275-9400

CIRCULATION, SUBSCRIPTION AND LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665 CIRCULATION DIRECTOR Richard Jarrett 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.

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

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

NRHA CANADA

STATE AND REGIONAL ASSOCIATIONS

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

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

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

All editorial contents copyrighted 2019 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher.

RETAIL LEADERSHIP INSTITUTE

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

The Industry’s Annual Guide

@nrha_official

EXECUTIVE STAFF VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

COMING IN DECEMBER

HARDWARE RETAILING | November 2019

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

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

Contents NOVEMBER 2019 | VOLUME 217 | ISSUE 5

29 OPERATIONS

Family Matters Working together as a family can be joyful and challenging. What happens when issues arise and it’s time for one family member to leave the business? Follow the story of one retailing family who worked through some difficult transitions to come out on top.

34 CATEGORY SPOTLIGHT

The Finishing Touch See how eye-catching merchandisers can encourage shoppers to interact with decorative hardware before they make their final decisions. Learn how you can create similar displays in your own hardware department, large or small.

39 OPERATIONS

Veterans, At Your Service Military veterans gain skills in the armed forces that make them top-notch retail employees. Discover the benefits of hiring veterans and learn how you can recruit them.

200,000 The average number of military members who leave active-duty service each year. Source: Institute for Veterans and Military Families

HARDWARE RETAILING | November 2019

COVER STORY

New England in the Fall

Ride along with NRHA’s Renee Changnon for a photographic journey through a handful of New England hardware stores. See the sights, hear the stories and learn from some of the top operators in the Northeastern U.S.

Hancoc k Lumb er has 10 througho locations ut Maine and New Hampsh ire.

Turn to Page 52 for a profile on Hancock Lumber.

54 OPERATIONS

An Appetizing In-Store Experience Big-box stores are using consumer mobile apps to make shopping experiences more convenient and enjoyable. Read about the tech big-box stores and other companies are using, and then find out how you can improve your customers’ shopping with mobile technology.

58 MERCHANDISING

Clean Up This Dump Dump bins can be highly effective merchandisers, if they’re used correctly. In this final installment of our Merchandising Makeover series, use this exercise to review some best practices for using dump bins as a tool to maximize your impulse sales.

ost t is the m ead Ligh H d e world. n la th Port ouse in th h lig d phe photogra

Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . .NRHA News 15 . . . . . . . . . . . . . . . . . . . . . Trends 16 . . . . . . . . . . . . . . . New Products 26 . . . . . . . . . . . . . . . . . . Checkouts 60 . . . . . . . . . . . . . . . . Newsmakers 62 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Kevin Hancock, president, chairman and CEO, celebrates Hancock Lumber’s sixth year as one of Maine’s best workplaces. Photo by Kevin Trehan

It’s got your back and your toes. SHOWER

Experience the two-atonce coverage of the Delta® In2ition Shower. Get water where you need it most, without having to sacrifice warmth. Learn more at deltafaucet.com/in2ition.

On the Web In 2018, 3.5 percent of all U.S. veterans were unemployed. Roughly 54 percent of these veterans were between the ages of 25 and 54.

NEWS

Your Top News Stories Subscribe to the weekly Hardware Retailing e-newsletter for an industry news digest. Visit TheRedT.com/1119-news for the most popular headlines.

Source: Bureau of Labor Statistics

New Initiatives From the Ace Fall Convention

Amazon, Home Depot Share Warehouse

1.3M More U.S. Workers Eligible for Overtime

Visit TheRedT.com/subscribe to receive the e-newsletter.

OPERATIONS

Resources for Hiring Veterans Hiring veterans for your next open position can bring drive and determination to your business. For resources you can use to find a military veteran, visit TheRedT.com/hire-vets for programs and organizations that can match you to a four-star candidate. To meet a few of the countless veterans working in the home improvement industry, visit TheRedT.com/veterans-day.

EPISODE 7

NEW ENGLAND ROAD TRIP PODCAST

Making Coastal Connections On Page 44, see highlights from NRHA’s road trip to home improvement stores in the Northeast. Then subscribe to “Tell Me More...” and listen to the latest episode to recount the takeaways from the retailers we visited along the way. Check out all episodes of the podcast at TheRedT.com/pod.

MERCHANDISING

OPERATIONS

Clean Up With Merchandising Review six merchandising reminders at TheRedT.com/merchandising to ensure your products are catching customers’ attention and helping build add-on sales.

The Ties That Bind David Karofsky, senior consultant at The Family Business Consulting Group, has helped retailers learn to resolve conflicts effectively. Check out TheRedT.com/family for his advice.

HARDWARE RETAILING | November 2019

CONNECT WITH US

@HardwareRetailing @hardwareretail

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

How many times do you throw away product or spend endless hours cleaning your store shelves due to a bad insect infestation? Now fighting the bug war is a thing of the past.

HARVEST FRESH LOCK™ TO THE RESCUE!

This unique packing system - usually reserved for human food - allows us to prevent insect infestations without adding pesticides or chemicals. Our seeds don’t lose nutritional content or dry out and spoil like other brands. Without this special technology, seeds are exposed to oxygen causing immediate degradation, but Cole’s products stay as fresh as the day they were packed. Guaranteed! Though it costs more to do it this way, Cole’s believes it is the best, safest, and most natural way to provide for our feathered friends.

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Attract seed, fruit & insect loving songbirds to your feeder with this unique mix of premium fruits, preferred nuts, nutritious Suet Kibbles, and whole kernel sunflower meats. This is the ultimate trail mix for your wild birds!

No Waste, No Mess! INGREDIENTS: Sunflower Meats, Raw Peanuts, Pecans, Cranberries, Currants, Apple Slices, Insect Suet Kibbles

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

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1-877-426-8882 • coleswildbird.com

Independent Thinking

How You Can Change Your Online Presence in 5 Minutes

“ With Pointy,

a consumer searching for a roofing hammer in your area would see your store at the top of the search results.

”

ou’ve read or heard me discuss the many ways the association works to fulfill its mission to help you run a better, more profitable operation. As part of our work, we partner with business services organizations to provide you more affordable options. From health insurance, workers’ compensation insurance and building insurance, to human resources services and credit card processing, we have made available a broad spectrum of solutions to our members over the last five years. For many retailers, one of the most challenging aspects of doing business today is getting noticed online. Our solution to that is our newest business services partner, Pointy. In our opinion, Pointy is a game changer when it comes to getting your products online with relative ease at a very low cost. The process is simple: Plug the Pointy in between your scanner and your POS, and start ringing. It takes minutes to set up, but builds an accurate in-store inventory as you ring in product while connecting you to the entire Pointy platform. Pointy has digitized over 50 million products to date, and it continues to grow daily. Your Pointy page also provides analytics, including the number of visits to your page, your search impressions and your most viewed products. Face it, your knowledge as an independent retailer puts you ahead of online stores and big boxes. But what about competing online? Suffice to say, most people would agree big boxes own the online world. However, being online does not equal e-commerce. You don’t have to be ready to sell online to put the products you sell online. In a recent webinar presented by Google and Pointy and hosted by your association, Google’s Ajay Arora says today’s consumer have three consistent qualities. They are curious because they are prepared to research before they buy; demanding because they want great service and a great price; and impatient because they want it all now. When consumers start this process, Arora says big boxes are typically at the top of the search results. Arora shared more remarkable statistics: In the U.S., 90 percent of purchases are still made at brick-and-mortar stores, but 62 percent of those offline purchases are digitally influenced, and not just big-ticket items. Google has seen a rise in even the most mundane items, like paper towels. There’s been a 173 percent increase in people searching for the “best paper towels.” There’s good news: A Pointy device can put your business at the top of search results in your area. It’s really great news that consumers are searching locally for where to buy. Google reports a 50 percent increase in mobile searches for “where to buy X product” and a 145 percent increase in searches for “open now.” One astounding figure is that every month, 550,000 people are searching for “hardware stores near me.” With Pointy, a consumer searching for a roofing hammer in your area would see your store at the top of the search results, above big-box stores. Competing with big boxes— out-positioning them—really is a dream come true. Why would any retailer not want this low-cost game-changing device in their store? Plus, it comes with a 90-day money back guarantee, no recurring fees, no maintenance fees and no commitment. In addition, no data entry is required on your part; products automatically appear on your Pointy page. Do yourself and your customers a favor and visit go.pointy.com/nrha to learn more about this fantastic device and to view the webinar.

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

HARDWARE RETAILING | November 2019

Strip Screw Program Star drive for additional torque Hardened screws reduce breaking XL1500™ exterior coating Serrated threads reduce splitting Quality manufactured tool is rugged and durable DeWalt® gun with 4000 RPM motor outperforms many competing drills Precise depth gauge vs competing models Screws advance on the upstroke reducing chance of jamming Open nose piece allows screws through easily Screws and gun compatible with competing screw lines for contractor ease

For your very own fastener destination, contact Glen @ 800-444-7313 x 120 800.444.7313

fastenerconnection.com

Taking Care of Business

Amazon’s Obsession

“You have the unique

advantage of living in the same community as your customers and sharing their daily lives with them.

”

have had quite a few speaking engagements over the last couple months. One of the most popular topics for my presentations revolves around what is happening these days with Amazon and how independent retailers can compete against the online giant. Of course, the prominence of Amazon is nothing new. The company has been challenging retail norms and changing consumer behaviors for years. And while there is no doubt independent home improvement retailers have been watching Amazon’s rise to power for some time, there seems to be a much more deliberate focus on competing against this online giant as of late. Consider this: the North American Retail Hardware Association has been surveying independent retailers annually for the last several years, asking who they consider to be their biggest competitor. In one recent survey, a majority of our retail respondents listed Amazon above Home Depot, Lowe’s or Menards. It was the first time we’ve ever seen that result. So, while Amazon’s sales in the home improvement category aren’t exactly setting the world on fire (yet), it is clear to me that the specter of Amazon continues to loom large within the industry. And this leads me to the second part of the discussion I’ve been having a lot lately: How can independent retailers compete? I wish there were some silver bullet or magic formula I could provide that had an easy solution to this question, but I think the best advice I can give comes from someone who might know a little about Amazon: founder and CEO Jeff Bezos. When asked how Amazon stays focused, Bezos said (and I paraphrase here), “We are not competition obsessed. We are customer obsessed.” What a brilliant philosophy! While it can be helpful to understand what’s going on with a company like Amazon, what moves they are making and how they are appealing to shoppers, what’s even more important is asking the question, “What do my customers in my market want, and how can I deliver it to them?” One of the biggest advantages you, the independent retailer, have over Amazon or Home Depot or any other companies like them, is that you are closer to your customers and your market than they can ever be. You should be obsessed with how you meet their needs. You should know better than anyone what products your customers want, what projects they are working on, what services appeal to them and what help they need when they are in your store. I don’t say this in a casual way. While Amazon or Home Depot has the opportunity to do research and look at reams and gigabytes of purchase history data, you have the unique advantage of living in the same community as your customers and sharing their daily lives with them. So, when it comes to determining how you can compete against a company like Amazon, the answer doesn’t necessarily lie in understanding what they are doing. Instead, it lies in understanding what your customers need from you.

Dan M. Tratensek, Executive Editor

dant@nrha.org

HARDWARE RETAILING | November 2019

Open Wide.

See the full lineup: www.crescenttool.com

NRHA News

3 Reasons to Register for SOIC Today

hen’s the last time you surveyed your peers to discover the areas where they are finding success and what areas they’re predicting for growth in 2020? You probably haven’t done that recently, but the North American Retail Hardware Association (NRHA) did. And we’re excited to share the results of those surveys with attendees at the fifth annual State of Independents Conference (SOIC) in Indianapolis on Dec. 5. This year, NRHA is exploring the trends that are occurring throughout retail: technology; changing consumer demographics; and succession planning. Check out the following reasons why you should register for this eye-opening event today, then head to nrha.org/soic to reserve your seat.

Meet Some of the Speakers Matt Woods, president and CEO of Woods Hardware in Cincinnati, and Matt Mazzone, owner of Mazzone Ace Hardware in Brooklyn, are just two of the speakers scheduled to present at the 2019 State of Independents Conference Dec. 5 in Indianapolis on technology and consumers.

Your business depends on it.

2 3

NRHA keeps a pulse on the industry, and this conference gives a chance for everyone to hear those beats. Join your peers and other channel partners for critical industry updates.

Matt Woods

The takeaways are scalable. From rural single-store businesses to multistore tech-focused operations in city centers, the presenters and panelists have operations tips to fit every business type.

Space is limited. This year’s event is going to be packed with retail presentations, panel discussions and the latest data. But you need to act fast because we’re expecting to max out the attendance list soon.

HARDWARE RETAILING | November 2019

Matt Mazzone

Connect With Peers 24/7

arlier this year, NRHA launched a new way for retailers to connect and discuss the latest retail headlines, share best practices and engage with other business owners from across the country. The NRHA Forum is free for all retailers to access, and it is available via desktop computers, smartphones and tablets— whatever is most convenient for you. Join the NRHA Forum to share your operations successes with your peers and get solutions to your challenges. Whether you’re sharing ideas from your latest community event or asking for feedback on the best way to bring new products and services into your operation, the NRHA Forum is a place for retailers to connect, share inspiration and bring new success to their businesses. Start a conversation now at nrha.org/retailer-forum.

Why NRHA’s Online Training Is Mission Critical

re your employees unsure where to go with questions? Does your team need a boost in product knowledge and selling skills? If your answer is yes, then it’s time to assess your employee training program. With an NRHA Training Membership, your team will see marked improvement across several crucial components of

hardware retail. Available programs include Selling Skills, Loss Prevention, Merchandising, Basic Retail Accounting, the newest course, Basic Retail Pricing, and more. If you’re ready to see the following results in your operation, contact NRHA’s Renee Changnon to get your training program off the ground at rchangnon@nrha.org or 317-275-9442.

Stronger Customer Service

Empowered Workers

Increased Sales

When your employees understand what they’re selling, they are better prepared. Whether it’s specific product or project knowledge or selling skills tips, NRHA’s online training equips employees with the tools they need to confidently help any customer.

Having a training program in place shows employees that you care about their development and want to see them succeed. Additionally, you will improve employee retention because knowledgeable employees are more committed to the business.

When your employees can lead a customer to the right products, they are more likely to achieve a sale. Once a customer has had a successful shopping experience, you can be sure they’ll return to your operation for their next project.

November 2019 | HARDWARE RETAILING

NRHA News

Trainer’s Corner: Merchandising

his year, Hardware Retailing has produced a series of exercises to help you identify and correct common merchandising mistakes. Now, the entire six-part series is available as a free training tool. Generate discussion during an employee meeting or use it as a new-hire training tool. Download the complete package, Fix Your Merchandising, at nrha.org/trainers-toolbox.

Basic Training Course in Merchandising For comprehensive training on merchandising best practices, have employees take NRHA’s Basic Training Course in Merchandising. Students learn the role merchandising plays in increasing sales and how they can impact it. They will also learn best practices for every major type of display and much more. This course is available to NRHA Training Members. Learn more at nrha.org/membership.

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Model 8620B 150LB AUTO-STOP TOW-BEHIND SPREADER DUAL-IMPELLER DESIGN MEANS WHEN YOU STOP MOVING, IT STOPS SPREADING

KEEPS YOUR WATER AND CONCENTRATE SEPARATE

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HARDWARE RETAILING | November 2019

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Trends Updates in the Kitchen

Top 5 Renovation Project Challenges

Kitchens are the most popular room for homeowners to remodel, according to online home improvement company Houzz. The 2019 U.S. Houzz & Home Study shows that the typical kitchen remodel costs $14,000, making kitchens the most expensive room to update in a home. The data shows that nearly 90 percent of homeowners who completed or planned a remodeling project hired professionals, such as contractors or designers. Kitchen remodels were part of 30 percent of home renovations.

Finding the right professionals

Staying on budget

Finding the right products

Dealing with the unexpected

Staying on schedule

Spending Cash on Projects Kitchens are not only the most popular room to renovate, but also the priciest.

Hired professional help when remodeling their homes.

Remodeled a kitchen during renovations.

Amount kitchen remodel spending grew.

87%

30% 27%

$14,000 The typical amount homeowners spent on kitchen remodels in 2018.

Source: 2019 U.S. Houzz & Home Study, Houzz Inc.

November 2019 | HARDWARE RETAILING

New Products

“Parents and grandparents can’t say no to these classic toys that nurture learning and creativity when placed around the counter.

”

—Dale Drew, Merrilees Hardware

1 “This is one of many

products we sell that keep our Ace stores unique. As a dog-friendly store, this is a great item to stock!

”

—Camille Gibson, Mark’s Ace Hardware

1. Wooden Tool Kit Toy

2. Pet Gazebo

Melissa & Doug Toys are designed to encourage free play, creativity, imagination, learning and discovery. The Take-Along Tool Kit Wooden Toy features sturdy wooden construction and includes wooden hardware and tools. It promotes hand-eye coordination, counting, sorting, color recognition and problem-solving skills.

The unique, patented design of Advantek’s Pet Gazebo requires no tools allowing it to be set up in minutes. It is sturdy enough to be a stay-at-home kennel, yet light and portable enough to take on the go. It is suitable for camping, fishing, dog shows, family gatherings or road trips and has an array of accessories available.

Melissa & Doug 800-718-5365 or melissaanddoug.com

Advantek 800-664-4939 or advantekpet.com

HARDWARE RETAILING | November 2019

Retailer Picks These four products were selected by retailers like you! Share your favorite products by contacting Hans Cummings at hcummings@nrha.org.

“The Blue Q line has sold well for us. They are unique and a little cheeky, but people can relate and get a good laugh. —Margaret Clark, Clark’s Ace Hardware

”

3 “We know it is a quality

product and want it to be available to those customers who want to have every Yeti product.

”

—Hanna Wingo, Indian Trail Hardware

3. Dish Towels

4. Insulated Waterproof Blanket

Blue Q’s screen printed and woven dish towels are made from 100 percent cotton. They’re soft and absorbent with a variety of modern and vintage-looking designs and colors. Blue Q donates 1 percent of the sales of their kitchen products to hunger relief programs throughout the world.

The Lowlands™ Blanket by Yeti helps transform any outdoor concert, tailgate or picnic spot into your personal base camp. It features a waterproof utility layer and a soft, insulated interior. It’s designed to repel dirt, burrs and pet hair.

Blue Q blueq.com

Yeti 512-394-9384 or yeti.com

November 2019 | HARDWARE RETAILING

New Products

5. Gutter Guards

7. Key-Free Smart Lock

Leaf Solution Extreme gutter guards are stainless steel mesh designed to block all debris such as leaves, pine needles, oak tassels, shingle grit and pollen yet allow water to flow freely. A durable substrate backing reinforces the mesh horizontally and vertically. They are available in mill silver or black for fascia or under-shingle mounts and include a 20-year transferable warranty.

Yale’s Pro SL Smart Lock features seamless integration with Z-Wave Plus smart home and alarm systems, such as ADT, Resideo by Honeywell, Alarm.com, Qolsys, AT&T, Ring Alarm and more. Its slim design and small bore hole enables easy installation with just a screwdriver. The Pro SL Smart Lock is available in bronze, brass and satin nickel finishes.

Leaf Solution 885-996-2326 or leafsolutionusa.com

Yale 855-492-0505 or yalehom.com/en

6. Flashlight

8. Deep Cut Hole Saw

The HX5R Clip Light is a lightweight pocket light featuring the ultimate rechargeable flexibility: just unscrew the back cap for direct male USB connector to plug in to any USB port. At the lowest price point for any of COAST's rechargeable lights, this flashlight features a slide focus and up to 178-meter beam distance. It also comes with a reversible pocket clip to affix to any pocket or even the bill of a hat.

Starrett Deep Cut Bi-Metal Hole Saws are designed for cutting thicker material and feature tooth material with extra cobalt for enhanced heat and wear resistance. They have a hole depth of 2 inches (51 mm) and are available in a variety of sizes from ¾ inch to 6 inch and a metric-only line from 56 mm to 210 mm.

Coast Products 800-426-5858 or coastportland.com

HARDWARE RETAILING | November 2019

Starrett 978-249-3551 or starrett.com

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New Products

9 9. Tool Bag Crescent’s 14-inch Tradesman Closed Top Tool Bag is divided into two interior sections to provide increased organization. It includes three exterior pockets and a 29-pocket interior tool wall. Sleeves hold tools in place. This bag features a hard polypropylene base and is made from 1680D polyester with metal hardware and includes a water bottle holder and tape measure clip. Crescent Tools 919-362-1670 or crescenttool.com

THE COMPANY INC.

10 10. Infrared Grill This infrared grill reaches 1500 F (816 C) in minutes, enabling quick use. It uses propane to provide up to 8,500 BTU of heat, features a push-start and easy-to-clean slideout racks. Vivere Ltd. 519-836-0986 or northfire.com

New Products

11 11. Multipurpose Plier Set Pro-4’s 12-in-1 multipurpose plier set features an easy-to-use compact design and includes a carrying case. The attachments include long nose pliers, standard pliers, wire-cutter/stripper, three sizes of flat head screwdrivers, a small and large knife blade, metal/wood file, saw, Phillips head screwdriver and a bottle and can opener. The Sure Grip handle allows for comfortable use and you can adjust the tool torque to your needs. Pro-4 Tactical 833-776-3687 or pro-4marketing.com

HOLDS

700 + LBS THE ABSOLUTE STRONGEST DUCT TAPE THE ABSOLUTE STRONGEST DUCT TAPE Holds more than 700 pounds with than a single of tape. Holds more 700 loop pounds with a single loop of tape. T-RexTape.com Extreme real-world test; tape not weight-rated for towing applications. T-RexTape.com Brands, LLC 2019/78677 All Rights Reserved. HARDWARE RETAILING | November 2019real-world test; tape not weight-rated for towing applications. 22 ©ShurTech Extreme ©ShurTech Brands, LLC 2019/78477

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13 1

SCAFF OLDING

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STORAGE RACK

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ARE YOU CAPTURING YOUR SHARE OF THE SCAFFOLD BUSINESS?

12. Cordless Dust Extractor Makita’s 18V X2 LXT® Dry Dust Extractor uses two 18V lithium-ion batteries and has a HEPA filtration system to capture 99.97 percent of particulates 0.3 microns and larger. The motor is electronically controlled to optimize battery energy use and offers up to 75 minutes of continuous run time on low setting or 40 minutes on high setting.

• • •

Widest product offering Best in class packaging Best in class signage

Makita 800-462-5482 or makitatools.com

13. Cut Off Saw The M18 FUEL™ 9 inch Cut Off Saw with ONE-KEY™ cuts reinforced concrete without gas while being up to 50 percent lighter than gas saws. It has sufficient power to cut reinforced concrete and other metal and masonry materials. Milwaukee® Tool 262-790-6655 or milwaukeetool.com

BECOME A METALTECH DEALER: METALTECH.CO November 2019 | HARDWARE RETAILING

New Products

14. Replaceable Tip Hammer Set This nine-piece replaceable tip hammer set for pneumatic hammers features three metal (steel, brass and aluminum) and three plastic (soft, medium vinyl and hard nylon) interchangeable tips. Their quick-change threads allow worn out or damaged tips to be easily replaced. Mayhew Steel Products 800-872-0037 or mayhew.com

15. Fill Valve

Toter helps retailers and their customers with a full line of professional solutions to collect, transport, and dispose of waste and recyclables. With our product offering of two-wheel carts, tilt trucks, litter containers, and more, Toter products work as hard as you do. Our Advanced Rotational Molding™ manufacturing process results in stronger, more durable products that will make you feel like a Pro.

The Fluidmaster® PRO45H PRO Fill Valve with Tank and Bowl Water Level Control gives you the ability to control both tank and bowl water levels. It works with all toilet types from 1 gallon per flush to 3.5+ gallons per flush. It features code approved anti-siphon design and is ideal for high-efficiency toilets. Fluidmaster 800-631-2011 or fluidmaster.com

try.toter.com/pro 24

HARDWARE RETAILING | November 2019

16. Pull-Up Power Grommet Mockett’s PCS97-90 Pull-Up Power Grommet with USB Cap collapses below the desktop, hiding away nearly flush when not in use. Dual USB charging ports in the cap remain accessible while the unit is closed. An additional outlet is included at the bottom of the tower for added convenience. It is UL listed and safe for use in residential and commercial settings. Doug Mockett & Co. 800-523-1269 or mockett.com

17. Extendable Box Level The Empire eXT40 and eXT78 Extendable Box Levels replace up to three level sizes. They feature mark and scribe edges for continuous scribing capability when extended and include high-contrast e-Band™ Vial Technology with 0.0005 degree per inch accuracy. Empire Levels 800-558-0722 or empirelevel.com

November 2019 | HARDWARE RETAILING

Checkouts COMMUNITY RELATIONS

Meaningful Makeovers

hen a local TV station challenged a group of retailers who own Ace Hardware stores in Florida to spend a day of service in their communities, the 12 retailers were thrilled to help. Owners from the Jacksonville Ace Group jumped in to plan local projects, according to Jacob Hagan of Hagan Ace Hardware in Jacksonville, Florida, which is part of the group. The retailers partnered with local nonprofit organizations to identify families who could use yard makeovers. Several store owners visited each home and helped the residents come up with lists of necessary supplies for projects volunteers from the stores could complete in a day. The owners donated their time, the use of equipment, such as pressure washers and weed trimmers, and products, including mulch and flowers. They also paid their staff members to work alongside them to beautify the yards. Forty-five employees from the group’s stores took an entire day to work until the projects were finished. The five lawn makeovers included projects such as rebuilding raised garden beds, pressure-washing decks and driveways, mulching and planting flowers. “Our communities are what keep us in business,” Hagan says. “We’re just people helping our neighbors.”

“ We’re just people helping our neighbors.” —Jacob Hagan, Hagan’s Ace Hardware Team members from Ace Hardware stores in Florida banded together to do yard work and other exterior home care for families in need who were recommended by local nonprofit organizations.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Kate Klein at kklein@nrha.org to have your story considered for publication. 26

HARDWARE RETAILING | November 2019

Events: Supporting Other Shops Indian Trail Hardware in Indian Trail, North Carolina, invites local artisans to open popups in the store’s parking lot on designated days to sell handmade goods and food items. “We do it to support them, and they reciprocate and support us,” manager Hanna Wingo says.

Customer Experience: A Mural Attraction Seagren’s Hardware sits in front of a tourist train stop in Two Harbors, Minnesota. To attract more visitors, owners Scott and Jennifer Seagren hired a muralist to paint a scene on the building. The artwork is so realistic that people thought the store was being remodeled. Seagren’s daily customer count has more than doubled since the mural’s installation.

November 2019 | HARDWARE RETAILING

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By Jesse Carleton, jcarleton@nrha.org

Freeze Frame Preserving the Family Unit When Business Gets Rough

mploying family members can be tricky business. To your benefit, common culture, work ethic, trust and loyalty often run strong among family members who work together. However, having relatives on staff or in leadership can also present a challenge. What if that person isn’t a good fit for the job? Or the job isn’t a good fit for the person? You may all feel as if leaving employment in the family business is tantamount to being ripped from the family portrait.

Separation involving a family member can be a minefield with the potential for doing long-term damage to personal relationships. During these times, you must preserve the family while also doing what’s best for the business. That was the challenge for Rick and Marilyn Nelson, owners of Nelson’s Ace Hardware in Whitefish, Montana. They began their careers in retailing with a difficult family partnership situation and had their doubts about whether the business would survive at all.

HARDWARE

November 2019 | HARDWARE RETAILING

Today, sales are strong and they are preparing for a successful transfer to the third generation. Getting to that point wasn’t easy, but along the way, the Nelsons gained a wealth of insights about working alongside family. Whether the family members working for you are dream employees or you’re facing the challenging situation of their departure, you can make managing family equitable and positive for all involved. Many delicate situations can be managed with proper planning and open communication.

At a Stalemate Rick and his brother Don grew up in the family business. Their parents had purchased a failing hardware store in 1948 and worked hard to make it profitable again. When the senior Nelsons bought the business, there were

This summer, Nelson’s Ace Hardware moved to a new 14,000-square-foot building from its downtown location. Sales are already up double digits.

HARDWARE RETAILING | November 2019

six other hardware stores in the area. By the time they were ready to retire, their operation was the only one left. They were proud of the business they had built and assumed their two sons wanted to follow in their footsteps. “The problem was that neither Rick nor Don had chosen hardware for themselves,” Marilyn says. “It was more of an expectation from their parents that their children would be the next owners. There were expectations, but they never really talked about them as a family. Both sons received a 50/50 ownership in the business, and that was the beginning of 32 years of a very challenging partnership.” Neither brother wanted to disappoint his parents. Despite his misgivings about being an owner, Rick decided he would dig in and work hard. Don was more interested in other pursuits, such as serving on city council and developing other business interests. He spent twenty years dutifully showing up for work he found unsatisfying, before following his heart in increasingly frequent trips abroad. But family considerations led him to keep his shares of the business. Overworked and lacking resources to hire additional help, Rick struggled to pay the bills. Marilyn took a second job to bring in extra money. Tension in the family was growing. “Rick couldn’t force his brother’s hand due to the 50/50 partnership,” Marilyn says. “He just continued to work long hours with little vacation. There was no capital to hire someone else to alleviate the workload because both brothers were taking an equal salary.” Then, starting in 2005, a series of unfortunate events broke what seemed like a never-ending stalemate. Don and his wife decided to divorce, and the business shares were marital assets. Through a series of negotiations, Rick was able to purchase Don’s shares so he would have full ownership of the business. He then reconfigured the corporation for estate planning purposes, but, learning from the lessons of the past, Rick retained majority ownership in a new partnership with Marilyn. Whatever might happen in the future, there was now only one person, Rick, with final say in what happened in the company. Rick also wanted to make sure the transaction was fair to his brother to guard against lingering resentment from that side of the family. He paid full price for Don’s share of the business, which was based on a value assessed by an independent appraiser. Getting an appraisal from a third party assured the deal was fair to everyone involved.

Minding Family Business With a Business-Minded Approach There may be little you can do if faced with a situation similar to the Nelsons, created by two owners with equal share in the business. But you can make sure it doesn’t happen again. David Karofsky is senior consultant with The Family Business Consulting Group.

He has extensive experience helping family businesses be successful in areas such as leadership transitions, strategic planning and conflict resolution. He offers three ways you can mitigate conflict and help set up the next generation for success.

Clarify Expectations

Leadership ≠ Ownership

Have the Right Documents

If you own a business and have children, clarify what you do or don’t, expect from them. Make sure they know that they are not letting you down if they decide to choose a different career path. Some retailers, like the Nelsons, even insist their children step away from the family business for a time and explore other career paths or work for another company.

When passing the business on to the next generation, arrange the leadership structure to set your children up for success. There needs to be an opportunity for majority rule, and it’s possible to do that while still treating the children fairly.

Whatever arrangements you make, having the proper legal documents will make sure everyone knows what to expect. Karofsky suggests multiple owners set up a shareholder’s agreement, which will define who has controlling shares and who has voting shares.

One way to avoid potential problems is to make sure family members have a skill that matches what you need.

“You have to separate leadership from ownership,” Karofsky says. “Ownership may simply represent having a share of the company. Leadership has to do with the day-to-day operations of the business.”

Compensation should reflect the role an individual performs. Two siblings with equal equity in a business do not necessarily need to have the same compensation just because they are both owners.

“Find the right seat on the bus. If you can match the skill sets of the individual to the needs of the business, then that is what will drive it forward, but you have to find that best match.”

“Always be asking yourself what is in the best interest of the business and what is in the best interest of the family. Those two answers are not always going to be the same.”

“Set up equity arrangements ahead of time. Two children may each get a 50/50 share in the business, but only one will have voting shares and the other will only have equity shares.”

November 2019 | HARDWARE RETAILING

Rick and Marilyn Nelson (left and right) are preparing to sell their business to their eldest daughter, Mariah Joos (center). By building a strong operation and creating a thorough succession plan, they’ve prepared both for their future and their children’s futures.

After that, the family was able to put the tough situation behind them. And Don was able to spend his final years doing work he loved, as a gifted nature photographer and international adventure traveler and guide, until his untimely death in 2017. The remaining family still gets together for holidays and family events, including recent celebrations at the store. Key to the Nelsons’ success through the process was putting family and business in their proper place. Protecting both is important, but putting the interests of the family ahead of business interests may be counterproductive. A poor decision made because of a family situation could cause the business to fail. It’s better to separate the two when it comes to making a difficult decision involving family members. “To survive a separation from long-term family partners, you need to air what needs to be aired and try to depersonalize it. The family is more important, but by depersonalizing the dialogue and putting the business needs first, we were able to navigate very difficult conversations around our joint desire to protect the business that Rick’s parents had worked so hard to create.” Marilyn says. “You have to preserve the business without letting your personal issues get in the way and always seek the ‘win-win.’ We are so grateful that Don was able to really embrace his life outside the store in his remaining years.”

HARDWARE RETAILING | November 2019

Setting Expectations The Nelsons made deliberate choices to avoid having similar challenges in the future. Whereas Rick’s parents had the expectation that their children would continue the family business, Rick and Marilyn made it clear they would not do the same with their three children. “We went as far as telling them that the business wasn’t going to be available to the third generation,” Marilyn says. “They all got their degrees and moved away, working other careers.” When their youngest daughter Mariah announced her desire to someday run the family business about 12 years ago, it was on her own terms. Trusting she was up to the task, the Nelsons began a succession plan that would allow Mariah to purchase the business and maintain full control of the leadership while making provisions for the other siblings. She is poised to take ownership next year. In 2005, when the Nelsons were struggling with the dual ownership, annual sales were around $1.5 million; this year they will top $3.5 million. The family just moved the store to a new location in a new building, and they’re looking ahead to continued growth in the future. Rick and Marilyn have taken the lessons learned from a difficult situation to develop a succession plan that serves the business and the family well into the next generation.

Knowing You’re Not the Right Fit A difficult conversation with any employee, family member or not, can be easier if you know their perspective. When the Nelsons’ son-in-law, Brett Nail, was looking for a new opportunity, Rick and Marilyn offered him a job at the store. As Brett showed the potential to be a future leader in the business, they began to transition him into a managerial position.

Choosing to work in hardware. “My plan at first was just to work through the summer until I found another job. Then seven years later, I was managing the store. I’m a people person, so I always enjoyed being with customers, especially in a small town where you get to know a lot of people by name.”

Deciding to leave. While Brett worked hard to learn the business and his new managerial role, it became evident that the pressures of the job were taking a toll on him and his family. He was increasingly unhappy. “We were clear in our expectations of what the job entailed,” Marilyn says. “And we never tried to sugarcoat it. But as time went on, we all began to realize that leadership at the store may not be the best choice for Brett and his family long term.” Fortunately, Brett had the courage to make the necessary change. He approached Rick and Marilyn to say he needed to leave the business and make his way elsewhere.

“Managing employees was difficult. What triggered my decision was that I got to the point where I was waking up in the morning and wasn’t happy to be going to work. Once that started happening, it was time to move on. It’s not productive for anyone to be unhappy with what they’re doing.”

Having the talk with his bosses—his in-laws. “It was hard to make the transition out of this job, and it weighed on my mind for a while. Once I finally decided to have that conversation about leaving, my in-laws were understanding. They are great people and easy to talk to. They always said from the beginning that if the job wasn’t for me, then I shouldn’t do it.”

Helping others handle a similar situation. Brett worked at Nelson’s Ace Hardware for about seven years before he decided to move on. Today, he’s a realtor and owns a rental franchise, and he loves working for himself. Here’s what he had to say about his decision to switch careers.

“Be upfront and honest with your feelings. If you’re not happy in your job, let your boss know. It doesn’t do anyone any good if you don’t enjoy what you’re doing. Employers need to have that same openness with their workers, too. If someone wants to do something else, let them do it.”

November 2019 | HARDWARE RETAILING

HARDWARE RETAILING | November 2019

OPEN THE DOOR With low inventory requirements, creative merchandising opportunities and strong margins, decorative hardware brings new possibilities to retailers. By Todd Taber, ttaber@nrha.org

November 2019 | HARDWARE RETAILING

ithin the hardware and fastener category rests decorative hardware. Unlike most items in this category, decorative hardware purchases aren’t born of necessity. While a customer needs screws, bolts and nails immediately for almost any task, decorative hardware is a space where customers can browse and ensure they find doorknobs, drawer pulls and handles that perfectly match their personal style. With its low inventory requirements, relatively high margins and the fact that category purchases often represent one piece of a much larger construction or renovation project, decorative hardware merits a close examination from every retailer. Marc Adler, co-owner of Adler’s Design Center and Hardware in Providence, Rhode Island, says decorative hardware is a key component of the business he runs with his cousin. In the suburbs of Houston in Conroe, Texas, Decor Builders Hardware manager Alan Weemes searches for new ways to connect customers, designers and contractors with his decorative hardware assortment. Discover how Adler and Weemes are merchandising their inventory, finding new products and staying on top of trends to help customers add character and functionality to their living spaces.

Top-Shelf Merchandising Adler says merchandising decorative hardware strategically is important. Customers are encouraged to touch decorative hardware products, such as knobs, locksets and drawer pulls, that are well merchandised. That connection brings them one step closer to a purchase. Adler’s decorative hardware displays hang from slat walls and have six rotating displays on the salesfloor, enabling customers to compare models quickly. Shoppers can also find active locksets installed in displays that replicate miniature doors. “The rotating displays and active locksets are good ways to demonstrate the quality of the products,” Adler says. “Once people touch them, they can tell they’re heavier and have better springs than a lot of the big-box models.”

A Packed House Understanding your specific market is critical. In suburban Texas, Weemes says residential construction has boomed, motivating him to be resourceful and capture sales from contractors. “We offer what we call a full-house pack,” Weemes says. “That kit goes out to crews working on new homes, and includes all interior and exterior door locks, cabinet hardware, towel rings, doorstops and Molly bolts needed to mount items into sheetrock.”

ON THE RISE Though Adler and Weemes do business in different regions, they both agree that one specific category trend is on the rise with modern homeowners: satin brass hardware. “New colors are always popular, but I think satin brass is the hot new trend,” Weemes says. “Once you see a few manufacturers gravitate around one specific color, you know it’s going to be around for a while.” Alan Weemes says clean merchandising helps shoppers browse decorative hardware items in their personal style.

HARDWARE RETAILING | November 2019

“The longer you sell decorative pieces and research your market, the more your reputation will grow.” —Marc Adler, Adler’s Design Center and Hardware

Rotating displays encourage customers to touch hardware to examine its quality, says Marc Adler.

Weemes relies on special orders for most decorative hardware products, but keeps enough inventory in stock to send out 40 to 50 full-house packs each day. But that’s not the only way Weemes and his company court construction crews. Decor Builders Hardware also displays products in the offices of local custom home builders, which can drive business even if customers never set foot inside the company’s own showroom. “The selection in custom homebuilders’ offices is smaller,” Weemes says. “Someone might have dozens of choices when they come into my store, but the homebuilder just wants them to choose between a few pieces to streamline everything.”

Retail by Design For more than 25 years, Adler’s business has also offered complete design services for customers. “Designers guide customers through wallpaper, paint, decorative hardware—whatever they need. We also provide installation services, so we’re a little different from most hardware stores,” Adler says. The design team is based inside Adler’s Design Center and Hardware, but often makes in-home visits to help customers visualize renovation possibilities and establish a more personal connection between the business and its customers. With the design and installation services, customers feel they’re investing in their next project and receiving a stronger finished product than with big-box stores. “Lowe’s and Home Depot often sell low-quality hardware, so we’re not really competing with them. We’re offering something they just don’t have for customers,” Adler says.

Even if your store can’t offer design or installation services, Adler says there are still ways to bolster decorative hardware sales. “Check out design centers in your area—even competitors,” he says. “Find out the income levels in your area to determine what you should carry. The longer you sell decorative pieces and research your market, the more your reputation will grow.”

Off to Market Both retailers say attending industry markets and trade shows is a worthwhile investment to boost product knowledge and discover new inventory. Adler and Weemes have both attended the Kitchen and Bath Industry Show, and Weemes also attends annual homebuilding events in the Houston area to reach prospective homeowners. They say the events give retailers like them the opportunity to compare new category additions at a glance and offer a chance to speak directly with manufacturers and sales representatives to learn more about how decorative hardware inventory can enhance their businesses. Adler and Weemes encourage other retailers to seek out new trade shows to browse upcoming merchandise in person. Attend local trade shows or consider traveling to a national event and visiting local hardware and home centers while you’re away from your business. “If you’re not going to trade shows, you’re not finding the newest and best products on the market,” Weemes says.

November 2019 | HARDWARE RETAILING

Dec. 5, 2019—Indianapolis

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Sponsored by

By Kate Klein, kklein@nrha.org

Serving Proudly Military Vet Employees Raise the Standard

acqueline Thompson, owner of Thompson Ace Hardware, isn’t surprised when customers call her store asking if a specific employee is on duty. Her Jacksonville, Florida, store is known for its knowledgeable, gracious staff, and she believes the six military veterans on her team have set

the tone for the operation. The vets aren’t just hard workers; they’re also the employees customers most often request by name when they need help with projects. Thompson’s staffing success story doesn’t surprise Tony Lee, who is an executive from the Society for Human Resource Management.

November 2019 | HARDWARE RETAILING

Retired vets or younger veterans returning from military service generally offer skills, experience and loyalty that would significantly benefit many retail operations if retailers recruited them, Lee says. Read on to hear from retailers about why they hire veterans and how improvement businesses offer fulfilling careers for former military service members. In addition, learn from Lee’s insights on why and how retailers should recruit veterans and help them build careers in the industry.

“Veterans have

Winning Tactics

a phenomenal work ethic, and I have a lot of respect for them.

”

—Jacqueline Thompson, Thompson Ace Hardware

Thompson has found veterans are among her most dedicated workers and they take pride in their jobs—even in mundane but important tasks, such as mopping floors. “Veterans have a phenomenal work ethic, and I have a lot of respect for them,” Thompson says. “That’s one of the main reasons I’ve brought them on.”

Frank Viggiano, a floor associate at Thompson Ace Hardware in Jacksonville, Florida, served in the Navy during the Vietnam War.

HARDWARE RETAILING | November 2019

Thompson’s father-in-law and father both served in the military, so when she opened her store in 2015, she knew up front she wanted to honor veterans through her business. Initially, she offered a military discount to shoppers and hired a handful of veterans who happened to apply for jobs. Today, Thompson actively recruits military veterans to work for the business and regularly has local Vietnam Veterans of America members host fundraisers at the store. If she meets vets who are working at other stores, she tells them if they want to change jobs, she prioritizes hiring veterans. She also encourages her veteran employees to wear military hats because she knows they enjoy the conversations that start when customers ask about their service. Those conversations not only create greater camaraderie among her employees and customers, but they also build shoppers’ loyalty to Thompson Ace. Her veteran employees have a special touch with customer service— they’re relational, patient and good listeners to customers of all types, she says. They also offer empathy to elderly shoppers or people with disabilities that some other employees haven’t developed yet. And they connect easily with other veterans and current service members. “We often have customers come in their uniforms, and you’ll see our veteran staffers make a beeline for them,” Thompson says. “They’ll say, ‘I was in the Navy. I see you’re in the Army.’ Automatically, you can see the relationship forming.” The relationships between staffers and customers make the shoppers more loyal. Some customers will only shop at the store on days when specific employees are working. But the veterans offer even more to the business than connections with customers, Thompson says. All of her veteran employees are retirees who wanted to return to work, so they bring extensive experience from varied careers.

They are excellent problem-solvers who readily tackle any task, improve processes and train new hires, Thompson says. For example, one veteran taught the team to use a spiral notebook as a pass-down log, like he’d used in the military. At the end of shifts, employees write need-to-know information for the next work shift or notes on topics ranging from special orders to requests to buy more receipt paper. Employees also note in the log how many boxes arrived via drop-ship and who checked them in. Thompson looks at the employee notes in the log daily to make sure all of the tasks have been completed. “It has made a major difference, even for simple stuff, like ordering receipt paper when we’re low. We are never in a panic anymore because we don’t get down to one roll of receipt paper,” she says. And no job is too minor or too dirty for the vets to do. Thompson’s teenage son works at the store in the summers and, thanks to the veterans, has learned to take pride in cleaning a bathroom meticulously. One employee, Frank Viggiano, is an expert on many things, including plumbing and electrical repair work. But he served two tours in Vietnam and isn’t above any job. “Frank said, ‘I was a swabbie in the Navy. I know how to scrub a floor. You know, there’s a certain way to mop,’” she says. “There was such pride in his face.”

Career Starters Army National Guardsman Sam Ransdell, store manager of Burney True Value Hardware in Seven Lakes, North Carolina, is making a career out of home improvement. The fit seems obvious; he was born into the family that owns the business and he worked at the store growing up. But the six military veterans he has on staff aren’t family members, and Ransdell values the skills and perspectives they gained from military service like he values his own.

Many Opportunities to Serve The following military veterans have years of military service behind them. They use what they learned from their experiences to excel in their home improvement retail jobs.

Sam Ransdell Burney True Value Hardware Seven Lakes, North Carolina

Military Branch: Army National Guard Years of Service: 2010-Present

Taylor Cox Cox Hardware & Lumber Houston

Military Branch: Army Years of Service: 2008-2016

Frank Viggiano Thompson Ace Hardware Jacksonville, Florida

Military Branch: Navy Years of Service: 1965-1969

November 2019 | HARDWARE RETAILING

“They’re used

to hard work and sacrifice. They don’t shy away from leadership opportunities.

”

—Taylor Cox, Cox Hardware & Lumber

HARDWARE RETAILING | November 2019

Taylor Cox with Cox Hardware & Lumber in Houston is an Army veteran who is building a career in home improvement.

They have leadership skills, stamina and discipline they acquired in the military that many civilians don’t have, Ransdell says. In addition, they’re strong merchandisers because they are trained to pay attention to details and fix problems with precision. “It’s second nature for those folks,” he says. Some skills, such as small engine repair, translate directly from the military to a hardware business. Other strengths, such as self-discipline, don’t necessarily show up on a resume, but benefit a business just as much. “If they’re doing a march and they’re dead tired, they still put their rucksacks in formation at the end,” Ransdell says. “When we recognize a section of the store is dirty, it doesn’t matter if we’re tired or busy. It needs to be done, so we do it.”

Taylor Cox, an Army veteran and store manager and purchaser for Cox Hardware & Lumber in Houston, also sees independent stores as particularly good fits for vets. Veterans are used to irregular schedules, unexpected tasks that come up throughout a day, physical labor and working with their hands, Cox says. If they’re exiting the military, then they’re likely looking for new careers that use their skills, are better for their families and offer the stability of no overseas deployments, he says. “What we’re really looking for is a fulfilling career with opportunities to advance and give back to the community,” Cox says. “If I were to work for some large company, I would just be a guy in a suit who doesn’t see a lot of impact. I like to see the actual effects of my efforts. I really like to help people.” When service members are nearing the end of their military commitments, home improvement retailing may be a good option as their next career, even if the skills from a military job don’t always seem like an obvious transition to a retail position, Ransdell says. For example, a move from infantry soldier to retail worker might not appear to be a natural career progression. However, it could be an opportunity to continue using leadership skills and growing into management roles, Ransdell says. With the right staff members in place, Burney True Value could grow enough to add more store locations, opening up more management jobs, Ransdell says. “Why wouldn’t you hire a veteran?” Cox says. “They’re used to hard work and sacrifice. They don’t shy away from leadership opportunities.” When first enlisting in the Army, everyone starts out as a private, and veterans need to know they won’t start at the top in new careers when they exit the military, Cox says. But they will want to see potential for growth. Often, veterans become first responders—but whether they work at a retail store or hire on at a police department, they all have to start somewhere, Cox says.

“Employers don’t necessarily give you extra credit for serving,” he says. “You have to work your way up. Once you qualify for the job, you have to go in there and prove to your bosses that you have the knowledge and work ethic and you’re open to learning.” A worker doesn’t have to stay at the bottom long, though, Cox says. “If we had someone who was supercharged and came to us with the leadership skills, that could be an opportunity for us to make a job for them,” Cox says. “If we were ever to expand, the opportunities would open. I would welcome that.”

Recruitment Strategies Recruiting returning military veterans to work in retail can be challenging, but worth it, according to Lee from the Society for Human Resource Management. Hiring roadblocks arise when retailers often aren’t clear in their job postings about the skills required for specific positions, what career paths are available, whether there’s opportunity for professional growth and what pay ranges they offer, Lee says. Retailers also aren’t reaching out to local military offices and making an effort to explain how a service member’s skills would translate well into a retail job, he says. Some military jobs, such as driving trucks, have clear transitions to civilian positions. However, a service member who worked in logistics may need to see clear job listings describing positions that include overseeing a warehouse or managing deliveries, Lee says. “If veterans can see where it’s a logical transition for them, then the stereotypes that exist about working in retail are of less concern to them,” Lee says. “They are typically more concerned about how they can individually contribute to the success of a company. Many veterans are project-oriented and success-focused, so where they work is less of an issue.” An enlisted military member may have experience managing people, materials or logistics. Retailers can contact organizations, such as AMVETS or American Job Centers,

that offer veterans support when they’re entering the civilian workforce and ask questions about how specific jobs could transition into a retail environment. Regardless of their jobs in the military, service members have much to offer new employers, Lee says. “Research has shown that veterans are loyal employees,” he says. “They tend to be very respectful, especially of authority, and are skilled in whatever area of the military where they served. You’re getting someone who is extremely well trained.” Business owners also may not be aware they can recruit veterans through the Department of Defense, local military bases, organizations that help veterans assimilate back into civilian life and state employment offices. “If retailers say they have a preference for hiring veterans, those offices will let veterans know,” Lee says. “Very few businesses contact those offices, but it’s a good practice for effective hiring.”

Hiring Resources Need suggestions for how to recruit veterans to work on your team? Hardware Retailing rounded up some hiring tips and tools you can check out at TheRedT.com/hire-vets.

Sam Ransdell, manager of Burney True Value Hardware in Seven Lakes, North Carolina, is currently a motor rail officer in the Army National Guard.

November 2019 | HARDWARE RETAILING

CASCO

Read wha t led comp any cha irm to refocus an, presid his operati ent and C on’s mana EO Kevin gement sty Hancock le on Page 52.

HARDWARE RETAILING | November 2019

By Renee Changnon, rchangnon@nrha.org

Navigating New England NRHA Road Trip Highlights Northeast Retailers

xploring new places, seeing how locals interact with one another, trying new cuisines—there are many reasons people love to travel. Now imagine taking that love of travel and a passion for telling the stories of independent home improvement retailers and mix them together. This summer, I had the opportunity to combine my passions for travel and storytelling

on the road trip to retailers throughout New England for the North American Retail Hardware Association (NRHA). Over the course of five days, I drove more than 1,400 miles, visited 13 retail operations and saw some beautiful sites along the way. In the next few pages, take a look at highlights from the road trip and learn lessons from the businesses I visited during the adventure.

For even more insights from the NRHA New England Roa

rip, listen to my podcast,

ell Me More…” Visit TheRedT.com/pod to hear in-depth interviews with Josiah Gates of Aubuchon Hardware, Kevin Hancock of Hancock Lumber and a recap episode from the entire trip.

November 2019 | HARDWARE RETAILING

Connecticut

t, eam at Hemlock Hardware in Fairfield, Connecticu a and y welcomed me with a sign out front was so kind. few store associates gave me a tour of the operation.

Steward’s Hardware Co. in Clinton, Connecticut, is a staple in its community. usiness provides excellent customer service and is known for its funny telev ision commercials.

On my way through Connecticut, I mad e a quick pit stop for coffee on the Yale University campus. I snapped a few photos and took a brief tour around the histo ric grounds.

HARDWARE RETAILING | November 2019

Maine

Portland, Maine, locals say they can get everything they need at Maine Hardware. mpany has carved out its own distinct brand with its product mix, service and merchandising.

My co-worker Kevin Trehan joined the While in Maine, we visited the most photographed lighthouse in the world: Portland Head Light. It’s so picturesque, I felt like I was stepping into a postcard.

Ha ncock L umber has 10 reta il loc in Ma ine a n ations d Ne w Ha m pshire.

trip to record podcasts and take photos.

November 2019 | HARDWARE RETAILING

Rhode Island Adler’s Design Center & Hardware in Providence, Rhode Island, is celebrating

y made 100 years in business this year. celebratory signage and fun merchandise irts and reusable bags, which were displayed throughout the store. For more

about Adler’s, see Page 34.

American Made & Profitable For Over 80 Years

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

HARDWARE RETAILING | November 2019

Adler’s offers customers large paint swatches for a better idea of the color.

Vermont

Check out TheRedT.com/den for a profile on this unique operation!

ont, make sure to visit If you ever find yourself near Cabot, Verm enjoy music and drinks! Harry’s Hardwa re & The Den to

Woodstock Ace Home & Hardware tailors its products to each community.

November 2019 | HARDWARE RETAILING

Massachusetts

owner In Boston, I visited Backstage Hardware and met are store, Jim Robichau. In addition to being a full-line hardw it’s also a theatrical supply business.

I visited several Aubuchon Hardware locat ions, which has more 200 in the Northeast! mpany is using technology in many ways, like introducing buy online, pick up in store offerings.

Norfolk Hardware & Home Center is celebrating 85 years in business. y celebrated with a complete remodel and plan to host events, sales and demos througho ut the next year.

HARDWARE RETAILING | November 2019

New Hampshire

primary focus of East Coast Lumber in East Hampstead, New Hampshire, is providing remodeling resources. business features a full hardware store and design showroom.

Edmund’s A ce Hardwa re in Antrim owns who , Finethy Chris met I ire, N Hampsh ew Hampshi In Gilford, New , re, had that New England hardware store and operates Gilford True Value. charm! carries a variety of products, like seed, feed, hardware and more.

November 2019 | HARDWARE RETAILING

The Sound of a Leader Maine Retailer Empowers Team to Find Their Voice

n 2010, Kevin Hancock had a lot on his mind. As the chairman, president and CEO of Hancock Lumber, a seventh-generation family business that employs over 500 people, he was focused on navigating the operation through the recession. On top of the everyday stresses of leading his business through the lagging economy and searching for new ways to make processes more efficient, he began struggling with something he used every day at work and at home—his voice.

Prescription for Change “When I would go to talk, all the muscles in my throat would spasm, squeeze and contract,” Hancock says. “My voice got very broken and weak; it was hard for people to even hear me. It felt like a major athletic feat to push out a few short sentences.” After visiting a few doctors, Hancock was diagnosed with spasmodic dysphonia, a rare neurological disorder that affects only speech and has no known cause or cure. According to Hancock, his initial diagnosis set him in a tailspin and had him questioning how he would be able to lead the company. “At the time, I wondered what good could a CEO be who couldn’t talk all the time,” he says. “I had to quickly learn how to lead differently. When it’s difficult to talk, you come up with strategies to talk less to protect your voice. The strategy I ended up developing was to answer a question with a question.” By asking his associates questions when they approached him with their own queries, he not only salvaged his voice, but he also gave his team the power to lead and make decisions at Hancock Lumber. “Initially I only saw my vocal condition as a limitation, but at some point it hit me—this is actually a gift. It’s an opportunity and invitation to do something very different in terms of leadership.”

HARDWARE RETAILING | November 2019

Allowing Everyone to Lead Once Hancock began seeing the positive impact his new leadership style had in his employees, he says he realized Hancock Lumber would continue to move forward with a culture that encouraged every person to lead. “What gave me a sense of purpose was that this was a chance to make the voice of all of our employees stronger and give them more opportunities and more power to fix the problems they saw and knew how to fix,” he says. “It’s how I think about leadership today. It’s all about creating a safe culture where everybody can say what they really think.” As the business moved in this direction, Hancock says the focus shifted to teaching management to change the way they worked with associates as well. For example, he says they had to train management new styles of communication, like listening to understand and not to correct. “When our associates knew they would not be judged or redirected when they said something, they started sharing what they actually thought,” Hancock says. In addition to having sit-down conversations with their managers, employees completed surveys and then break out into groups to solve the issues they brought up in the surveys. Now, Hancock Lumber is celebrating its sixth year in a row as a company considered a Best Place to Work in Maine. In large part, Hancock says this recognition boils down to a variety of factors, including this different way of doing business. “The perspective of a company is the collective view of everybody who works there,” Hancock says. “Once you get that out in the open and make that shift, you can really do some pretty special things.”

Directly across the street from the Hancock Lumber home office in Casco, Maine, is the Casco Sawmill. Check out a behind-the-scenes shot of our sawmill tour on the cover!

Hear more insights from Hancock Lumber chairman, president and CEO Kevin Hancock on the “ ell Me More...” podcast at TheRedT.com/pod.

mpa ny has seven kitche n design showrooms to inspire cus tomers.

November 2019 | HARDWARE RETAILING

By Kate Klein, kklein@nrha.org

Retail in Hand Mobile Apps Serve, Entertain Shoppers

et’s say a DIYer named Shelby wants to make some home updates. She’s trying to imagine her bathroom with a new color scheme and thinks fresh curtains and a stylish coffee table would upgrade her living room’s look. Shelby decides to start her shopping with the device in her hand. She opens an app on her smartphone and snaps a picture of her bathroom. Within minutes, she’s tried 10 different paint colors on the walls in the photo she took. Plus, she’s having fun. A quick look at her local hardware store’s app tells Shelby paint rollers are on sale and she still has $80 left on her gift card. So, she plans to shop local because she knows she can get the paint she wants, save money and show a local retailer some love. Then she heads to her living room and begins scrolling through products on the Target app. The app lets her try out furniture, rugs and curtains in the room virtually through her phone’s camera. For customers like Shelby, apps offer an expanding array of features that provide a personalized shopping experience. Read on to learn from retailers who use mobile apps to engage customers before they leave their homes and what your operation could gain by developing your own app.

HARDWARE RETAILING | November 2019

Personal Service, Greater Loyalty Customers have long been walking store aisles with their eyes on their smartphones, checking out competitor pricing, comparing product features and creating project shopping lists. One of your jobs has been prying shoppers away from their phones by offering store experiences they can’t find in a giant home improvement warehouse or online store. You’ve provided project know-how, friendly customer service, niche products and creative in-store events. But your competitors have only gotten better at wooing your shoppers, and they’re entering customers’ homes, offices and daily commutes via their smartphone screens. Then, the big retailers are getting the shoppers to go to physical stores after tinkering with the apps. Did you realize you could do the same?

“Keeping up with

technology helps draw people in and helps people understand we’re on top of our game.

”

—Jacob Buckingham, Bucks & Bolts Hardware & Outfitters

Bucks & Bolts Hardware & Outfitters in Blossvale, New York, has offered its customers a store mobile app for two years. When he was attending his distributor’s buying show a few years ago, Bucks & Bolts store manager Jacob Buckingham learned about a company that creates custom mobile apps for independent businesses like his. He and his team realized an app would offer solutions for Bucks & Bolts in two areas: customer loyalty and promotions. It would also allow the independent store to use technology to be more competitive with other businesses in the area. “The biggest thing I strive for here is to stay current,” Buckingham says. “The younger generation especially wants to go to a store that’s fresh and relevant. Keeping up with technology helps draw people in and helps people understand we’re on top of our game.” The app is a customer service tool that offers frequent interactions with shoppers without leaving home. In fact, one of the app’s most popular features is a spin-to-win game that some customers play daily to win small prizes, such as a screwdriver or bottle of windshield wiper fluid, which they have to pick up in the store. The game has grown store customer counts.

Bucks & Bolts Hardware & Outfitters in Blossvale, New York, has used a mobile app for two years to improve its rewards program and grow customer interactions with the store.

November 2019 | HARDWARE RETAILING

“As businesses try to

What You Can Do

connect with customers, I think this is one of the better, low-cost methods. —Jacob Buckingham, Bucks & Bolts Hardware & Outfitters

”

People pop into Bucks & Bolts weekly to redeem their free prizes, and once the shoppers are in the store, they typically buy other products, too. “Offering as many services as we can, including a mobile app, helps people feel more comfortable in the store,” Buckingham says. Bucks & Bolts needed to simplify its customer loyalty program. Because the app is easy for the store to customize, Buckingham says it has been a convenient solution. The app has saved the store time and money, costing less to maintain than Bucks & Bolts’ prior customer rewards program, Buckingham says. It also collects important analytics, such as how frequently users shop at the store. The Bucks & Bolts app connects to the store’s POS system to track customer purchases, rewards points, gift certificate balances and any free products shoppers win through the spin-the-wheel game. Buckingham can track the data the app collects, and customers get the benefit of viewing individual, personalized versions of much of that information. In addition, customers can view special offers and use digital coupons on the app instead of clipping paper coupons and having to remember to bring them to the store. They can also earn rewards by referring friends to the app. Bucks & Bolts can also use push notifications to alert customers to sales or send coupons if customers haven’t been to the store in awhile. And the app provides custom reports that Buckingham checks monthly to track the number of people downloading the app, which features are most popular and how often they use it. Buckingham monitors the app like he would a website, checking to make sure the information on it is up to date and relevant. The customer rewards part of the app alone has made the price of the app worthwhile, growing customer interactions while saving time employees used to spend on managing the rewards program in house. “The app is a service that could benefit any business,” Buckingham says. “The return on investment has made it well worth it. As businesses try to connect with customers, I think this is one of the better, low-cost methods.”

HARDWARE RETAILING | November 2019

Mobile apps are a crucial tool that many retail stores use to connect with customers. And they are more accessible than you may think.

Bucks & Bolts The Bucks & Bolts mobile app is fully customizable and allows the store to manage its customer rewards program and collect customer data. • Customers and Bucks & Bolts staff can see the total year-to-date spending and rewards points earned for each customer. Customers earn a point for every dollar spent. • The app offers several ways customers can win prizes. There is a spin-to-win game, a place to check in to the store and a spot to refer friends by entering their email addresses. • The app gives the store promotional opportunities also. There is a tool in the app that allows Bucks & Bolts to promote special deals on products or send coupons to customers.

What the Big Boxes Are Doing Large chain retailers, including home improvement giants Home Depot, Lowe’s and Menards, are expanding the uses for their mobile apps. Many of the app features are similar, while others are more creative. Learn about some of what they’re offering so you can stay aware of how your competitors are using technology to improve customer service.

Home Depot

Target

The Home Depot app provides accessibility features, such as voice product search, and tools for making in-store and online shopping more convenient.

Target’s mobile app provides an array of features, including mobile payment options, store location information, online shopping and augmented reality.

• Shoppers can virtually place product images in a home when a customer views portions of the room through a phone camera.

• Customers can shop for products by theme, such as “Back to School” or “On to College.”

• The app uses Apple Business Chat to answer customer questions live.

• The app allows users to see products, such as furniture, in 3D pictures.

• The app allows shoppers to save notes and products to digital lists.

• The augmented reality tool, See It in My Space, lets customers view furniture, drapes, lamps and rugs in the home using a smart device camera.

• Professional customers can get pro-specific special offers and bulk purchasing options.

• Users can create and manage gift registries and shopping lists.

• Customers can use the app to take photos of a product, and the app will identify the items and recommend similar products.

• Through the app, shoppers can scan barcodes to check for special offers on products or view more information about the items.

November 2019 | HARDWARE RETAILING

Merchandising Makeover

By Jesse Carleton, jcarleton@nrha.org

Stop the Chaos Can You Restore Order to This Display?

he dump bin is a fairly simple concept. Grab a big container and dump a lot of product in it. NRHA’s 2016 Merchandising for Profit Study found products placed in a permanent dump bin have an 86 percent sales lift over their regular place on a shelf. Customers associate this type of display with bargain merchandise, making dump bins ideal for impulse buys. With a display that’s easy to create and will sell a lot of merchandise, what could go wrong? A barrelful. Look at the photo below and you’ll see a dump bin in chaos.

HARDWARE RETAILING | November 2019

Look at the display here, decide how to fix it and then check out the next page to review a few merchandising best practices. Then, look around your own operation and see if you have any dump bin displays spiraling toward mayhem. Have your employees try the exercise, too. The more they know about maintaining displays, the more they can help you keep order with the merchandising in your business. If you missed any of the merchandising exercises in this series, go to the Fix Your Merchandising Trainer’s Toolbox at nrha.org/training.

2 1

1 Clear the Confusion Dumps bins create a sense of urgency. Customers may think the product and price you’re offering won’t be around for long. To heighten that sense of urgency, it’s important to have clear, well-maintained signage. If it gets torn or wrinkled, replace it. Poorly maintained signage creates a bad impression for the rest of the salesfloor. Even if you’re not offering a special price, dump bins, by nature, compel shoppers to buy more than other types of merchandising.

2 Product Is King Take away anything that distracts from the product. Dump bins easily attract trash or stray products, so all staff should make a regular habit of picking out what doesn’t belong. Generally, depending on their size, the best dump bins hold a single product at a time. Since nearly all shoppers pass by strategically placed dump bins, you also want to choose products that have broad appeal and customers might use every day.

3 Keep It Fresh The product in this dump bin is starting to disappear. If you run low on whatever you’re selling in a dump bin display, swap it out for something different. It’s also a good idea to regularly rotate the products. If customers get accustomed to seeing the same item in the dump bin, the merchandising will start to lose its effectiveness. Showing a full bin also helps enhance your price image, as customers tend to equate large quantities of product with lower prices.

4 Find What’s Lost This display took a wrong turn on the way to the main aisle. In order to be effective, a dump bin should be in a heavily trafficked part of the store, not a back corner. Good places include power aisles and service counters. Being strategic about the location will boost sales. Sometimes the location will determine the products you place there, as you might want to suggest an add-on sale. Sometimes you just want to surprise customers with something they don’t expect.

November 2019 | HARDWARE RETAILING

Newsmakers

HIRI Presenter Highlights Industry Opportunities

t the 2019 HIRI Insights Summit, a two-day research conference in Chicago presented by the Home Improvement Research Institute (HIRI), industry analysts and home improvement executives gathered to discuss the health of home improvement in the U.S. To start the event, Nino Sitchinava, Ph.D., principal economist for Houzz, a leading platform for home remodeling and design, presented an update on the home improvement market. Learn three takeaways from her presentation you can use to strengthen your operation. 1. Weather is a major driver of home improvement projects. In her keynote address, Sitchinava explored the ways natural disasters impact home improvement. While many may believe hurricanes are the main drivers of home repairs, Sitchinava pointed to other extreme weather events like midwestern flooding in 2019 as the cause behind many current home repairs and renovations. She presented data revealing that between 1980-1989, only three natural disasters caused more than $1 billion in damage each. In 2018 alone, 14 natural disasters have caused more than $1 billion in damage each. A recent Houzz survey of renovating homeowners indicates that one in eight home improvement tasks is done to remedy damage from inclement weather. 2. Older homes are ready for their tune-ups … and they might be costly. Data shows 61 percent of homes constructed between 1990-1999 are undergoing improvements and repairs. On average, homeowners are electing to complete 2.6 projects for these homes. About 57 percent of homes built before 1940 were renovated between 2016-2017. Sitchinava says many of these homes have had so many previous renovations, hence the lower rate of projects compared to the 1990s. However, renovations on older homes are more likely to go over budget. For homes built between 1921 and 1940, 18 percent of home repairs went at least 25 percent over budget. 3. The home improvement market growth is expected to remain positive. Sitchinava says home improvement rates may slow in the years ahead, but they are expected to stay positive. According to the HIRI Market Growth estimates, in 2009, just a year after the housing crisis, the home improvement market experienced a -9.3 percent drop. However, the home improvement market growth is strong 2017 saw a 6.5 percent growth rate year over year, and the market is projected to grow by 4.1 percent in 2019. HIRI data suggests home improvement market growth may fall to 3 percent in 2020, but remain positive until 2023.

Nino Sitchinava is the principal economist at Houzz, which counts more than 40 million unique monthly visitors and more than 1.5 million active home professionals. Her background includes a Ph.D. in economics and she has prior experience with economic consulting, including business and litigation.

HARDWARE RETAILING | November 2019

Upcoming Events November 10-12 STAFDA Annual Convention & Trade Show Nashville, Tennessee

19-21 Distribution America & PRO Group Inc. 2020 Executive Planning Conference St. Petersburg, Florida

December 5 NRHA 2019 State of Independents Conference Indianapolis

January 10-12 United Hardware Buying Market Minneapolis

21-23 Kitchen & Bath Industry Show and NAHB International Builders’ Show Las Vegas

February 7-10 Do it Best Spring Market Indianapolis

14-16 True Value Spring Reunion New Orleans

27-29 Orgill Spring Market Orlando

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

UNITED STATES Retailers at Blish-Mize Fall Buying Market Seek New Products, Educational Opportunities Blish-Mize hosted its Fall 2019 Buying Market in late September, and retailers came to the event in search of deep deals and solutions to enhance their operations heading into the fall and winter seasons. With strong retailer attendance, including more than 40 first-time attendees, retailers got to see the latest from vendors, hear company updates and learn about Blish-Mize programs and sit in on educational sessions.

Ace Hardware Presents New Initiatives at Fall Convention Ace Hardware Corp. presented a new growth plan and promoted new initiatives at its fall convention in Atlanta. The co-op announced Higher Ground, which includes goals for increasing customer satisfaction and growing sales. The sales growth goal for the prior plan was 3.7 percent, but according to vice president of retail development Andy Enright, the Higher Ground goal is 5.5 percent.

Despite heavy midwestern flooding, Jonathan Mize, company president and CEO, says that business is strong and has grown 6 percent since 2018.

Do it Best Launches New Website Do it Best recently launched its new company website, in an effort to offer an informative and user-friendly experience to a broad range of audiences. The new site—doitbestonline.com— serves as an informational hub and key gateway for current and prospective co-op members, prospective employees, vendors and the public with an intuitive design and concise content. It combines three previous company websites to serve all audiences.

CANADA

New Hires Add to Home Hardware’s Merchandise Team

Expansion of Canac’s Distribution Network Keeps Pace With Retail Expansion

Home Hardware Stores Ltd. has made two important additions to its merchandise team, as it continues to round out its buyers on both the hardlines and building materials sides. The company appointed Ron Krochuk as merchandise manager of forest products. Krochuk has 25 years of experience in forest products, including positions at Lowe’s and Home Depot as a national lumber merchant. On the hardlines team, Rob Szekszer has joined Home Hardware as director of merchandise hardlines. Szekszer, who was previously with Canadian Tire Corp., will be responsible for leading the management teams in the electrical, appliances, HVAC, automotive and general merchandise categories.

Canac has acquired a 1 million-square-foot property adjacent to its Drummondville, Quebec, distribution center, just days before it wraps up work on an expansion that will double its previous size. The current phase of the expansion takes the facility from 350,000 square feet to 560,000 square feet. Representing a $15 million investment, the project has allowed the creation of about 40 new jobs.

Canadian home improvement chain Canac operates 24 stores and employs more than 2,300 people. It offers more than 20,000 products for DIYers and pros. Want to Read More? For the full story on these briefs, head over to TheRedT.com/1119-news. To read the Canadian briefs, visit hardlines.ca/hardwareretailing. For the latest independent home improvement news, interviews, trends and videos, visit hardwareretailing.com.

November 2019 | HARDWARE RETAILING

Last Word

Serving, Then and Now

ardware Retailing is honoring veterans who put lessons they learned in the military to work serving customers in the industry.

Veteran retailers and employees, including those featured on this page, will be honored in a Veteran’s Day photo tribute at TheRedT.com/veterans-day.

Rick Powers

Robert Bartleston

Raffaelo Cianfaglione

Handy Ace Hardware Mesa, Arizona Air Force: 1978-1982

Small Town Supply Gouverneur, New York Army: 1979-1982, 1986-1993

Norridge Ace Hardware Home Center Norridge, Illinois Marine Corps: 1979-1987

Arlo Becker

Maynard Kealiher

Brian Walter

Frontier Ace Hardware Apache Junction, Arizona Navy: 1960-1966

Crismon Ace Hardware Mesa, Arizona Army: 1965-1967

Burney True Value Hardware Seven Lakes, North Carolina Army: 1993-2015

HARDWARE RETAILING | November 2019

Ad Index

Ajax Wire Specialty Co. ...................................................................................... 48 www.ajaxwire.com; 855-966-2529

NRHA Retail Management Certification Program .............................................. 28 www.NRHARMCP.com

Apex Tool Group LLC ......................................................................................... 11 www.crescenttool.com; 800-650-8665

NRHA State of Independents Conference ......................................................... 38 www.NRHA.org/SOIC

Chapin Mfg......................................................................................................... 14 www.chapinmfg.com; 800-950-4458

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

Coles Wild Bird Products Co. ............................................................................... 7 www.coleswildbird.com; 877-426-8882

Rust Patrol.......................................................................................................... 49 www.rustpatrol.com; 803-396-8400

Delta Faucet Company ......................................................................................... 5 www.deltafaucet.com/in2ition; 800-345-3358

ShurTech Brands LLC ..................................................................................... 22 www.T-RexTape.com; 877-376-4827

Distribution America........................................................................................... 19 www.daonline.com; 704-940-4801

Simpson Strong-Tie Company Inc.................................................................. BC go.strongtie.com; 800-999-5099

Do it Best Corp.............................................................................................. IFC, 1 www.doitbestretail.com; 888-364-8237

U-Haul International.............................................................................................. 3 www.uhaul.com/hardware; 800-468-4285

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

Wastequip .......................................................................................................... 24 www.toter.com; 800-424-0422

Ironclad Performance Wear Corp....................................................................... 21 www.ironclad.com; 972-996-5664

Woodland ........................................................................................................... 25 www.pinecar.com; 573-346-5555

Jeske Company Inc. ........................................................................................... 20 www.jeskecompany.com; 800-677-3383

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

MetalTech Scaffolding........................................................................................ 23 www.metaltech.co; 800-363-7587 Midwest Fastener ................................................................................................ 9 www.fastenerconnection.com; 800-444-7313

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

2. Publication Number

Hardware Retailing Magazine

0 8

8 9

3. Filing Date

8 9

4. Issue Frequency

5. Number of Issues Published Annually

Monthly

13. Publication Title

6. Annual Subscription Price (if any)

15. Extent and Nature of Circulation

Contact Person

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

Telephone (Include area code)

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.)

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)

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

(4)

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

(1)

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

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

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

(4)

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

First Financial

300 Meridian St. Ste 1400, Indpls, IN 46204

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

c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4))

Managing Editor (Name and complete mailing address)

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

38,219

37,538

26,189

27,364

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

Editor (Name and complete mailing address)

Full Name

September 2019 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

9/13/19

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)

1,586

1,674

27,775

29,038

8,567

7,469

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

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

Total Distribution (Sum of 15c and e)

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

Total (Sum of 15f and g)

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

800

100

9,367

7,569

37,142

36,607

1,077

931

38,219

37,538

70.5%

79.3%

* 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.

■ I certify that 50% of all my distributed copies (electronic and print) are legitimate requests or paid copies. 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 2019 Date

9/13/19 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 2019 | HARDWARE RETAILING

Facts, Figures, Future Produced by the North American Retail Hardware Association and market research firm The Farnsworth Group, High Performance Retailing helps independent home improvement retailers prosper by providing relevant, actionable data.

High Performance Retailing Brought to You By Hardware Retailing and The Farnsworth Group

Homeward Inside the Factors Shaping 2019 U.S. Home Construction Page H6

Fall 2019 V1

Close Connections Digital Strategies to Reach New Customers Page H4

Building Scale How Acquisitions Can Strengthen Your Offerings and Team Page H12

Each issue features information to propel your business to new heights.

New marketing insights

Interviews with retailers

New Quarterly Resource!

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Get each installment of High Performance Retailing the moment it’s available by subscribing at HPRmag.com/subscribe.

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