Serving Hardware, Home Center & Building Material Retailers
In The
Hunt
Taking Aim at the Hunting Category 70
Restore Your Core Categories 46 VOLUME 211 • ISSUE 4 • OCTOBER 2016 • HARDWARERETAILING.COM
Retailers Use Business Skills in Government 60
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Standing Up to the Competition Orgill Allows Our Business to Shine!
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Cook's Home C C Center_Single.indd S 1
9/16/16 / / 1:44 PM
In The
Hunt
Taking Aim at the Hunting Categor
Stay connected wherever you are. Now Hardware Retailing magazine has a companion. Meet the HR Mobile App, which gives you access to the latest industry news and Hardware Retailing’s online exclusives including photo galleries, videos, quizzes and selling guides. Don’t have time to read while you’re on the run? Save your favorite articles on the app and access them later. Find HR Mobile in Google Play and the Apple App Store, or go to www.hardwareretailing.com/hr-mobile.
VOLUME 211 • ISSUE 4 • OCTOBER 2016 • HARDWARERETAILING.COM
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Serving Hardware, Home Center & Building Material Retailers
In The
Hunt
Taking Aim at the Hunting Category 70
Restore Your Core Categories 46 VOLUME 211 • ISSUE 4 • OCTOBER 2016 • HARDWARERETAILING.COM
Retailers Use Business Skills in Government 60
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stores thrive. You’ll be able to pick up some tips on displaying products in tight places, getting rid of dead products quickly and making the most of every inch of your retail space, no matter the size. You also won’t want to miss a story spotlighting some of the newest innovations in cordless power tools and offering insight into selling those products.
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1
Headquarters Staff
PUBLISHING
NRHA MISSION
The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. FEATURED BOARD MEMBER
PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek
COMMUNICATIONS
136 N. Delaware St. #200, Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: www.nrha.org HEADQUARTERS STAFF PRESIDENT AND CEO Bill Lee
DIRECTOR OF COMMUNICATIONS Whitney Daulton ASSOCIATE EDITOR Liz Lichtenberger ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein LEAD GRAPHIC DESIGNER Lynnea Chom
CONTROLLER David Gowan
GRAPHIC DESIGNER Graeme Haase
EDUCATION
WEB DEVELOPER Kevin Trehan
DIRECTOR OF MEMBER SERVICES Allison DeWitt, 317-275-9414, adewitt@nrha.org TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org
PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar
MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org
SALES AND PRODUCTION ASSISTANT Freda Creech
MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9435, kstokes@nrha.org
CIRCULATION
RETAIL LEADERSHIP INSTITUTE
CIRCULATION DIRECTOR Richard Jarrett
EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9430, swright@nrha.org
CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES
DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org
PHONE 314-432-7511 FAX 314-432-7665
NRHA VENDOR PARTNER VENDOR INTEGRATION MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org
SALES VICE PRESIDENT OF SALES Bob Cutter
SECOND VICE CHAIRMAN
Greg Schlecht, president and owner of Greg’s True Value in St. Francis, Wisconsin, was elected to the NRHA board in 2012. His hardware career began in 1970, and he grew into management roles before buying his store in 1996. WHY DO YOU THINK COMMUNITY INVOLVEMENT IS IMPORTANT? The shop-local movement grows because of community involvement. It’s important as an independent retailer to be involved, because it shows you give back and care about the community you are in. I think it’s something all retailers should do in some way.
NATIONAL SALES MANAGER Lowell Huffman
NRHA BOARD OF DIRECTORS
MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, Ill. 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com
CHAIRMAN OF THE BOARD James Cabirac, Kief Hardware, Cut Off, Louisiana
STATE AND REGIONAL ASSOCIATIONS
WEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, Ill. 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com
EXECUTIVE VICE CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas
MICHIGAN RETAIL HARDWARE ASSOCIATION Patrick Harrington, 603 S. Washington Ave., Lansing, MI 48933; 517-394-1710; Fax: 517-394-6754
NORTHEAST REGION MANAGER Brian Ziff, 17 Cutler Knoll, Watertown, Conn. 06795; 203-509-0125, Fax: 317-275-9406, bziff@nrha.org
FIRST VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana
MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080
GREAT LAKES REGION MANAGER 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9400, Fax: 317-275-9403, sales@nrha.org
SECOND VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin
SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org
THIRD VICE CHAIRMAN Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois
NRHA CANADA NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; 416-489-3396, mike@hardlines.ca
PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, or 97305 (UPS,FedEx); P.O. Box 17819, Salem or 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; Alaska, Idaho, Ore., Wash. SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; Ark., Kan., La., Mo., Neb., N.M., Texas
CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net
Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, Ind. 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices. POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2016 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.
2
GREG SCHLECHT
HARDWARE RETAILING | October 2016
DIRECTOR Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts DIRECTOR Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina DIRECTOR David Dishke, Grand River Home Hardware, Caledonia, Ontario DIRECTOR Steve Fusek, Fusek’s True Value, Indianapolis SECRETARY-TREASURER Bill Lee, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Adam Busscher, Picton Home Hardware, Picton, Ontario
Expanding to reach our fullest potential in our rapidly growing market.
That’s how we define success.
Bruce Shelton
Capps Home Building Center
Located near 500 miles of lakeshore in the scenic Blue Ridge Mountains, Capps Home Building Center has long served the area’s professional contractors. A Do it Best Corp. market analysis identified an untapped opportunity to grow the retail side of the business. Using the RetailSTART!® program, Capps expanded from 8,800 to 18,000 square feet of retail space, adding a beautiful home décor showroom and a well-stocked lawn and garden department. The expansion better serves contractors and has attracted more DIY customers, leading to a 25 percent jump in retail sales. Capps is a great example of how Do it Best Corp. serves our independent member-owners with a wide range of menu-based programs and services to help them reach their fullest potential for continued success. Tell us how YOU define success. Call us today at 888-DO IT BEST (364-8237).
Take a closer look at Capps Home Building Center at independentsdoitbest.com
independentsdoitbest.com
Contents OCTOBER 2016 | VOLUME 211 | ISSUE 4
60 CURRENT EVENTS
70
CATEGORY SPOTLIGHT
Stocked and Loaded
Many home improvement retailers have made an art of turning their stores into destinations for hunters and anglers. Their stores carry a range of products for hunting season, as well as items for customers who see hunting and fishing as ways of life year-round.
46 OPERATIONS
Restore the Core Get an insider’s view of what it took for Wilco in Oregon to revitalize its paint department. Then learn to apply those steps to assess and improve your business’ core categories.
How did Wilco revive an underperforming department? In a nutsell: By conducting research, determining primary wants and needs, planning how to differentiate and then assessing the results.
Doing Double Duty Retailers discuss what they have learned from serving in elected and appointed government positions. They also share what they think small business owners have to offer when they’re active politically.
80 RETAILER PROFILE
When Past and Present Meet Kelloggs & Lawrence has been a staple in Katonah, New York, since it was founded in 1887. With pride in its history and a focus on unique products, it continues to evolve.
Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 26 . . . . . . . . . . . . . . . New Products 36 . . . . . . . . . . . . . . . . . . Checkouts 82 . . . . . . . . . Newsmakers/Calendar 86 . . . . . . . . . . . . . . . . . . Last Word
On the Cover Jon McGehee, manager of the sporting goods department at Reedsburg True Value in Reedsburg, Wisconsin, makes a good business out of serving customers who view hunting and fishing as ways of life . NRHA photo by Graeme Haase
4
HARDWARE RETAILING | October 2016
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Deep “V” Jaws Open wider for better grip on pipes and more Grip Zone – Non-Marring Gentle Grips Concave rubber grip area won’t mar chrome pipes Unique Tooth Design Angled teeth provide more torque with less effort Exposed Steel Handle Tips For reaming, prying, and tightening tub drains www.CrescentTool.com
More Innovative Tools From ®
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• Spring-loaded, stainless steel blades • Full-length steel blades extend through handles for strength to cut heavy materials
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On the Web
16.8% is the rate at which paint sales grew after the reset.
RETAILER DATA
FREE RESOURCE
Individual Store Growth Performance Data
Hometown Halloween
After reading about how Wilco turned around the paint department in several of its stores, go to TheRedT.com/store-results to find more data about each store’s individual performance.
POLITICAL ADVOCACY
Retailer Talks Local Government Involvement In an online exclusive at TheRedT.com/stine-qa, Dennis Stine, CEO of Stine Lumber, answers questions about his political involvement, shares insights on balancing business and politics and gives advice to retailers looking to get politically involved.
“I may not see a deer all day, but being in the woods and in nature is refreshing and relaxing.” –Bob Cutter NRHA vice president
TE! A OC V AD
CONSUMER Q&A
Insights From a Hunter Avid hunter and NRHA vice president Bob Cutter sat down with Hardware Retailing to share insights on the hunting category from a consumer perspective. Visit TheRedT.com/hunting-qa to read what Cutter looks forward to each season, his hunting essentials and how his go-to independent stores have won his business.
6
HARDWARE RETAILING | October 2016
A dollar spent at your store generates 97 percent more local economic activity than a dollar spent at a big-box store. Spread the word in your community this season with NRHA and Independent We Stand’s Halloween-themed shop-local signage package. Download this resource for free at TheRedT.com/ halloween-signage.
This series of lessons on topics such as selling skills, merchandising, product knowledge and operations is geared toward all levels of employees. Visit nrha.org/freetraining to download this month’s lessons, selected in honor of National Fire Prevention Month.
1 Video: Installing and Maintaining Smoke/CO alarms
2 Video: Basic Fire Safety at Home
SOCIAL MEDIA LINKS
@hardwareretail facebook.com/HardwareRetailing
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Our full line of ADFORS wall finishing tapes includes both FibaTape® self-adhesive fiberglass mesh tapes and innovative FibaFuse® paperless drywall tapes. From Ultra-thin to Extra Strength, FibaTape is loved by DIYers and professional contractors alike!
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These revolutionary tapes are designed to be easier, faster and stronger than standard paper joint tape while also delivering excellent value and performance.
Independent Thinking
Recognizing Industry Leadership
I
n September 2013, the inaugural class of the NRHA Retail Management Certification Program met. For six months, this group of students learned and worked together, meeting at NRHA three times during their class term. Together with their business owners, each student planned a business improvement project that they would execute during their time in the class. Since 2014, 111 students have earned their retail management certificate. Perhaps most significantly, a conservative estimate places the ROI of the business improvement projects at over $6 million returned to the students’ businesses! The program works and is developing more confident, knowledgeable young business leaders who can contribute to their companies’ growth.
An Industry Coming Together
“If you’re a retailer
we encourage you to consider investing in the future of your business and your key people by using this program.
”
With tuition of $12,500 plus the expense of three trips to Indianapolis, the program could cost close to $20,000, a significant investment for any retailer. We understood early on that scholarships would play an important role in the program’s long-term success. At this point, we reached out, and industry-leading companies responded. Leaders from these companies recognized the value of this program in sustaining the future of the independent channel that they depend upon for their own success. Since 2014, 46 scholarships have been awarded to students by these companies. Among these companies are manufacturers, distributors and allied organizations; and we’d like to recognize them here:
Manufacturer Scholarships
Distributor Scholarships
• Benjamin Moore • Fulton Corporation • Hyde Tools • Intertape Polymer Group • Simple Green • Stanley Black & Decker • TRIMACO • The Wooster Brush Company • Worthington Industries/ Bernzomatic
• Blish-Mize • Bostwick-Braun • Do It Best • Home Hardware • PACOA • PRO Group • Wallace Hardware
Other Scholarships • National Hardware Show® • NRHA
In each of these companies, key people stepped up to champion the program and became personally involved by serving on the program’s advisory board and spreading the word among their network of industry friends. We thank each one of these people; this program would not have succeeded without their help! If you’re a retailer, we encourage you to consider investing in the future of your business and your key people by using this program. If you’re a manufacturer or distributor, consider supporting our independent retailers by becoming a scholarship provider. To learn more, contact me at any time or visit nrharmcp.com. It’s an investment in all of our futures!
Bill Lee, President and CEO
blee@nrha.org
8
HARDWARE RETAILING | October 2016
Stay Posted
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®
8" and 5" Strong-Drive SDWS TIMBER Screw © 2016 Simpson Strong-Tie Company Inc. SSTM-SDWSGRD16
Taking Care of Business
Keeping Your Eye on the Core
O
“The truth is the core category’s sluggish performance likely represents a much larger impact on sales than the success of a burgeoning niche.
”
n the cover of this issue, you probably noticed Jon McGehee of Reedsburg True Value taking aim with his trusty bow and arrow. While Jon is an avid hunter himself, this month’s cover image was selected to draw (no pun intended; OK, maybe a little) attention to our feature story on the emerging hunting and outdoor category that so many home improvement retailers are finding success with. From bows and arrows to clothing and deer urine (you read that right), home improvement retailers are adding hunting and outdoor products to their shelves as the hobby continues to grow in popularity. This is certainly the case at Reedsburg True Value up in Wisconsin, where more and more hunters are getting ready to hit the woods this month as the season begins. Learn more in the story on Page 70. Hunting and outdoors is just one of the many niche categories that home improvement retailers have embraced lately as a means to attract traffic to their stores, expand their sales opportunities to new customers and exploit opportunities in their markets. For you, it might not be hunting, but there are likely other niche categories you can focus on to achieve all these same goals. And while it’s highly important to find new ways to energize your business, remember that in the rush to find new and exciting products outside the sphere of home improvement, you cannot lose focus on your core categories. Even if you add hunting supplies, Christmas collectibles or an assortment of pottery wheels, your customers identify and judge you first and foremost as a home improvement retailer. If you fail to live up to your customers’ expectations in the core categories, you stand to do more harm than good to your business. That’s not to say a good retailer can’t both pay attention to core category performance and explore unique niche areas. But sometimes retailers can get caught playing with a shiny new toy and forget to pay attention to the core categories that brought them to the dance. It’s easy to get excited about the success of a recent niche addition, even if that niche represents just a small percentage of overall sales for the store. At the same time, it can be easy to turn a blind eye if a core category is only slightly underperforming. The truth is, the core category’s sluggish performance likely represents a much larger impact on sales than the success of a burgeoning niche. That’s why we also spend some time in this issue focusing on how retailers can revive core categories that may not be performing to expectation. On Page 44, we look at one operation that identified subtle yet serious performance issues within its paint department. Through some solid research, planning and a commitment to improve performance, this retailer was able to revamp this department and improve nearly every performance metric within the category. Our story will provide you details about how this retailer identified the problem, developed their plan for improvement, implemented and then measured their progress. We also provide some useful questions you should ask yourself when examining category performance. So while you are busy sourcing Indonesian incense for your housewares display or craft-brewed ginger beer for the checkout lane, just don’t forget the important role core categories play in your operation.
Dan M. Tratensek, Publisher
dant@nrha.org
10
HARDWARE RETAILING | October 2016
SOMETIMES FORTUNE
SMILES UPON YOU.
OTHER TIMES IT SIZES YOU UP AND NODS.
Not just any product can be a Cat® product. And not just any business can be a Cat Home & Outdoor Power Authorized Sales and Service Center. We’re entering the portable generator market because we believe, as the global brand synonymous with power and durability, we’re uniquely suited to build a generator like no other. We’re out to be the best in the industry and we’re looking for partners who share that attitude. If you think you have what it takes. If you’re prepared to be an extension of the Caterpillar legacy – one of durability, reliability and raw power – we’d love to hear from you. Visit cat.com/jointheteam.
RP5500
RP7500E
RP6500E
© 2016 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow”, the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
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NRHA News
NRHA Offers a Fresh Take on Selling Skills with Updated Course
C
ustomer service has long been one way independent home improvement retailers differentiate themselves from their competitors. For many years, retailers have turned to a North American Retail Hardware Association (NRHA) training course to teach employees the basics of selling skills. Now, that course has an exciting new look, as NRHA recently released a refreshed version of its Basic Training Course in Selling Skills. “At NRHA, we are always developing new training content, but we also want to ensure our current material is up-to-date and relevant to our members,” says Allison DeWitt, NRHA director of member services. “The updated Selling Skills course has a new look and feel, with features that will engage learners, allowing them to retain more information and apply their learning directly to their role in the store.” While the content of the refreshed course is largely the same, it gives learners a new experience designed to increase learning and retention. It uses photos, audio narration and interactive elements to guide students through each module, allowing them to learn at their own pace and engage the content in a new way. For example, the module on engaging customers allows students to choose how they would respond to a particular customer, and then learn why or why not that was the best response. “These are the basics every employee needs to know to deliver top-notch customer service,” says DeWitt. “This course is ideal for the new hires, but also a great refresher for long-time employees.”
Modules Include: • The Elements of Good Selling • Making a Good First Impression • Different Customer Types • Meeting Customers’ Expectations • Engaging the Customer • Dealing With Customer Complaints • Providing Product Knowledge • Overcoming Objections and Closing the Sale • Telephone Skills • Add-on Selling
14
HARDWARE RETAILING | October 2016
“These are the basics
every employee needs to know to deliver top-notch customer service.
”
—Allison DeWitt, NRHA director of member services The Selling Skills course is a perfect fit for NRHA’s Basic Training suite of courses, which includes the Basic Training Course in Hardware Retailing and the Basic Training Course in Building Materials Retailing. Students have access to a printable study guide, and can take a 50-question test to gauge their proficiency. Training managers can easily monitor each student’s scores. For those already using NRHA’s training, the transition to the new course will be easy. Students can begin using the new course immediately. Trainers will not need to re-register students or create new passwords. All current login information remains the same. Students will access the course through the “members only” section of nrha.org. The Basic Training Course in Selling Skills is available now for NRHA members in the U.S. and Canada. If you’re not an NRHA member, you can sign up at nrha.org, or contact Kamille Stokes at 800-772-4424 or kstokes@nrha.org.
NRHA News
Happy Hometown Halloween
P
umpkins and candy and decorations—Oh my! While your customers are completing their seasonal DIY projects and shopping for fall and Halloween decor, make sure to remind them how their purchasing decisions impact your local community. Do your customers know that a dollar spent at a locally owned home improvement store will generate 97 percent more local economic activity than a dollar spent at a big-box store? To help you spread the word in your town, NRHA and Independent We Stand created a Halloween-themed shop-local signage package that uses data from the Home Sweet Home Study. This study examines the financial impact on a community when dollars are spent at a local home improvement store versus a big box. This free, downloadable toolkit includes posters, shelf talkers, bag stuffers and more. To download, visit TheRedT.com/halloween-signage. To read the full Home Sweet Home Study, visit TheRedT.com/HSH-study.
New NRHA Partnership Offers Payment Services
N
RHA and Payment Alliance International (PAI) have created a partnership to provide retailers with new credit card processing and payment services opportunities. A leader in electronic payment processing solutions, PAI currently serves over 70,000 ATMs and 85,000 retail businesses with a variety of payment solutions and educational opportunities. PAI is the latest organization to join NRHA’s growing business services offerings, adding to the already established Member Insurance, NRHA Health Insurance and RxCut Prescription Savings Card programs designed to provide retailers with alternative solutions to common business needs. Through PAI’s program, retailers are provided a detailed charge comparison analysis to see how the program helps benefit their bottom line, as well as access to the most up-to-date payments technology. “NRHA is thrilled to provide another business service alternative that directly aligns with the association’s mission to help retailers become better, more profitable merchants,” says Bill Lee, NRHA president and CEO. “Cost-effective and reliable credit card and payment solutions are an important part of the independent home improvement retailing business, and we look forward to offering retailers new opportunities in those areas via PAI.”
To learn more about the PAI program and the offerings available through this partnership, visit www.GoPAI.com/nrha.
October 2016 | HARDWARE RETAILING
17
Net Operating Profit for High-Profit Stores vs. Typical Stores
NRHA News
10%
Typical 9.2%
Financial Benchmarking Tool Now Available
K
nowing how you measure up to industry financial averages is crucial for evaluating your business. To help you with financial planning for business expansion, NRHA has once again compiled financial data from more than 1,000 independent home improvement stores to complete the 2016 Cost of Doing Business Study. Instructions on how to access the industry’s only inclusive benchmarking study are available at TheRedT.com/2016-codb. The graph to the right illustrates profits for typical and high-profit stores based on data from this year’s study. The full study shows the variation between income statements from stores performing at different levels, explaining why high-profit stores outperform the rest. To further illustrate the metrics presented in the study, NRHA has created retailer case studies, best practices and videos. Learn more about average transaction size at TheRedT.com/transaction-size, and visit TheRedT.com/ payroll for resources on understanding payroll.
High-Profit
8%
7.5%
6% 5.2%
4%
3.8%
4.1% 3.7%
2%
0% Hardware Stores
Home Centers Lumberyards
Source: 2016 Cost of Doing Business Study
E1 1-PART EPOXY FLOOR PAINT
n New Low VOC 50 g/L formula. n Can be tinted. Carry one SKU and get endless colors.
n Extreme water resistance, color retention, durability and chemical resistance. n New eye catching packaging design.
Visit us at www.ugl.com or call 1-800-845-5227 to see how we can partner with you to create a successful UGL dealer program.
18
HARDWARE RETAILING | October 2016
Your Complete Power Source for 30 Years!
• Extension Cords • Bulk Wire • Household Cords • LED Work Lights
• Halogen Work Lights • GFCI's • Temporary Power Boxes • String Lights
One Flexon Plaza • Newark, NJ 07114 (800) 327-4673 • uswireandcable.com
STOCK AVAILABLE TO SHIP FROM OUR NJ & CA WAREHOUSES! Visit U.S. WIRE & CABLE at this year's STAFDA show in Atlanta! • November 6-8. (BOOTH #'s 1835 / 1837)
NRHA News
State of Independence Conference Once Again Free for Retailers
W
hether you’ve had a strong year in your business or faced some challenges, it’s always nice to know how other retailers in the industry are performing, what their plans are and what other members of the channel are doing to help you succeed. To help you gain these kinds of insights, NRHA is once again making its State of Independents Conference in Chicago free for retailers to attend. This one-day event is produced by NRHA and sponsored by the National Hardware Show® and will be held on Dec. 8 at the Hyatt Regency O’Hare. While the event is free for retailers, pre-registration is required as free seating is limited. This is the only event in the industry that focuses solely on providing attendees with information and insights into how independent home improvement retailers are performing, the challenges they face and their opportunities for growth. The event, which is going into its second year, brings together retailers, manufacturers and distributors to listen to presentations, network and share ideas about how the industry is performing and where it is headed.
“The conference is a great
place for retailers to learn about how other independents are performing and what their plans are for growth.
”
—Dan Tratensek, NRHA vice president “The State of Independents Conference has a broad appeal to all channel members but it is a great place for retailers to learn about how other independents are performing, what their plans are for growth and to network with other retailers and representatives from across the home improvement channel,” says Dan Tratensek, NRHA vice president. For more information about the Conference, to view the agenda or to register, visit TheRedT.com.com/soic.
Trends
Home sales and home prices were up in the second quarter of 2016, but other economic indicators didn’t look so good in the U.S. Consumer confidence, as reported in The Conference Board’s Consumer Confidence Index, dipped 1.5 percent year over year, expressing a decreasing optimism about the state of the economy.
Total Existing-Home Sales 6.0
Existing-Home Sales (in millions)
Consumer Confidence Lags in the Second Quarter
The Purchasing Managers’ Index also decreased, but continued to read above 50, which means the manufacturing sector is still growing. And housing starts were flat, with no increase above the second quarter of 2015.
5.5
5.0
4.5
4.0
J
2015
A
S
O
N
D J
F
M
A
M
2016
Months
Consumer Confidence and Manufacturing Drop in Q2 ECONOMIC METRICS
DEFINITION
Housing Starts (in thousands)1
The number of new residential single-family and multifamily homes that have begun construction, using seasonally adjusted rates.
Consumer Confidence2
The level of optimism that consumers express about the state of the economy, shown through saving or spending money.
Existing-Home Sales (in millions)3
Number of completed sales involving existing single-family homes (single family, townhomes, condos and co-ops) at an adjusted annual rate.
Existing-Home Price (in thousands)3
The median price for all existing housing types.
Purchasing Managers’ Index (PMI)4
The health of the manufacturing sector based on measuring new orders, inventory levels, production, supplier deliveries and the employment environment.
PERCENTAGE CHANGE
0% 1,156
96.2 94.8
-1.5%
5.3 5.5
$228 $240
52.6 51.8
Source: U.S. Census Bureau 1, The Conference Board 2, National Association of Realtors 3, Institute for Supply Management 4 HARDWARE RETAILING | October 2016
Q2 2016
1,156
Numbers derived from the average of April, May and June data.
22
Q2 2015
3.8%
5.3%
-1.5%
J
ROBBIE HAS PLENTY TO SMILE ABOUT … now that he’s with OUR co-op
Business is booming since Robbie left the other co-op behind to join our family. Although he’s proudly independent, Robbie never rides alone. Our team at True Value® is always at his side. We offer Robbie sound business solutions and resources to ensure his future growth and profitability. We fuel his success. Today, Robbie has real relationships with folks who care. He no longer feels like “just another number.” After all, Robbie is family.
FREEDOM TO RUN HIS STORE HIS WAY WITHOUT INTERFERENCE
Robbie proudly shares the business results he achieved as a member of our co-op. (Your individual results will vary.)
CUSTOMER COUNT
MARGIN DOLLARS
INCREASED 9%
$
TRANSACTIONS
INCREASED
68,000
IF YOU VALUE WHAT WE VALUE GIVE US A CALL AT 1-888-291-7229 TrueValueCompany.com
PROFITS INCREASED
39%
2015
“Midwest was our choice for our new store. We have what we need for our customers and don’t turn anyone away. The dual-slide racks have allowed us to add more items and display them in the right spot.” - Ricky and Cody Miller, Owners, Miller Ace Hardware, Louisville, KY
For your very own fastener destination, contact Glen @ 800-444-7313 x 120
800.444.7313
fastenerconnection.com
New Products
“Today’s customer is very
conscientious. They want ecofriendly, reusable items, and Luci lights offer that. The solar-powered light is long-lasting and well-made. —Diana Tyler, Kelloggs & Lawrence
”
1 2 “Our customers with kids love
these reusable, BPA-free plastic juice boxes. They can wash and reuse them, plus they won't leak and are dishwasher safe. —Diana Tyler, Kelloggs & Lawrence
1. COLLAPSIBLE SOLAR LIGHT
2. REUSABLE JUICE BOXES
The Luci Outdoor 2.0 is the newest, most versatile Luci light to hit the market. It has more light settings, is brighter and is longerlasting compared to the previous generation of lighting from Luci Outdoor. It has an adjustable bottom strap so users can attach it anywhere without requiring an extra hook. The product is lightweight, waterproof and durable. It collapses down to just 1 inch, providing room for all outdoor needs. It's completely solar powered and is a clean, reliable source of light. The product has four modes. It contains a charge level indicator and a high-efficiency solar panel and weighs just 4.4 ounces.
Sustainable Juice Boxes from UncommonGoods are BPA- and phthalate-free, and designed to allow users to fill them with the juice or another beverage of choice. The juice boxes are lightweight and durable, with a stainless steel hinge, lockable latch and silicone seal. The leak-proof design allows drinks to be taken on the go.
MPOWERD, INC. 844-676-9373 or www.mpowerd.com
26
”
HARDWARE RETAILING | October 2016
UNCOMMONGOODS 888-365-0056 or www.uncommongoods.com
RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.
4
“We’ve been selling TENZI for
about two years now. You can show people how to play in seconds. It’s a fun and fast-paced dice game for any age.
”
—Jim White, Boyne City Hardware
3 “These mugs are so hilarious.
There are sweet, sentimental and sarcastic phrases on them. Plus, they go to a good cause—fighting ovarian cancer.
”
—Greg Smith, Mitchell Hardware
3. DICE GAME
4. DECORATIVE COFFEE MUG
The game TENZI is a dice game designed for a group of two or more players. Each player chooses a different colored set of dice. Players hold all ten dice in their hands and all roll when someone says, “Go.” Each player chooses the number they want to roll for, and once they roll that number and set those dice aside, they keep rolling all remaining dice until they show the same number. The first player to get all ten dice to match shouts “TENZI” and wins the game. Each game includes 40 dice (ten each in four different colors) and a rules sheet.
That’s All.® 16-ounce ceramic mugs were created as a testament to the power of laughter and simple truths. There are more than 40 mugs available with sweet phrases and funny comments. The mugs are dishwasher- and microwave-safe. Additionally, a portion of the proceeds are donated to the fight against ovarian cancer. THAT’S ALL.® 800-572-5248 or www.sb-designstudio.com
CARMA GAMES 203-622-8117 or www.tenzi.com
October 2016 | HARDWARE RETAILING
27
New Products
5
6
5. RECHARGEABLE FLASHLIGHT
6. PAPER TABLE RUNNER
Sponsored Product
Table runners by Hester & Cook are versatile paper table runners that can be cut to fit the length of any table. These runners are perfect for decorative entertaining and easy cleanup. Hester & Cook runners come in a wide variety of themes and colors, are made from recycled content and are designed and manufactured in the U.S.
The MAG-TAC LED rechargeable flashlight is an advanced lighting tool. It is powered by a high-capacity lithium iron phosphate rechargeable battery, and is engineered for a long service life. Along with solid build quality and performance, it comes with a detachable pocket clip, four mode selections and a USB-powered mountable charging base. With a 2.5-hour charge time, the charging base can be powered by the 12-volt adapter or 120-volt converter.
HESTER & COOK 615-736-2892 or www.hesterandcook.com
MAG INSTRUMENT, INC. 909-947-1006 or www.maglite.com
The brands you know and trust for skin care solutions. • Brand recognition drives consumer confidence • Product performance keeps customers coming back
Stock your store with GOJO Scrubbing Towels » SIMPUL™ Nozzle Technology delivers: • Consistent saturation from the first towel to the last • One wipe per pull, which helps control waste » Extra-large towel absorbs heavy grease and grime » Use on hands, arms and surfaces — no water needed ®
TO LEARN MORE, explore www.GOJO.com or call 800.321.9647.
CELEBRATING 70 YEARS! Made in the U.S.A. © 2016 GOJO Industries, Inc. All rights reserved.
28
HARDWARE RETAILING | October 2016
8
7 7. KNIFE/SHARPENER COMBO PACK
8. LED LIGHT PROJECTOR
The Responder/Blademedic combo pack from Lansky Sharpeners ensures users always have a sharp knife at hand. The kit combines Lansky Sharpeners’ bestselling everyday carry knife with a top-of-the line sharpener. The 7-inch Responder knife weighs 6 ounces, and has a nylon handle. The Blademedic features diamond, ceramic rods, carbide tips and mini ceramic benchstone sharpening elements, all included in one tool.
The LED Team Pride Light Projector is the perfect way for customers to display their favorite sports team’s logo, both inside and outside. Weather-resistant, the unit projects over 25 feet and operates with a light sensor that turns the display on at night and off during the day. The light projector comes with a tripod for use indoors and an extra long garden stake for outdoor use.
LANSKY SHARPENERS 800-825-2675 or www.lansky.com
FABRIQUE INNOVATIONS 815-342-6367 or www.fabriqueinnovationsinc.com
WE’VE ALWAYS BEE N
STRAIGHT WITH YOU. THIS IS NO TIME TO CHANGE. THERE IS NO REQUIREMENT FOR ALL OUTDOOR STRUCTURAL FRAMING APPLICATIONS TO BE TREATED TO GROUND CONTACT RETENTION LEVELS,
BECAUSE IT’S NOT NECESSARY. Products treated to above ground retention levels are still recognized by the IBC ® and IRC ®building codes for Deck Joists and Support Beams.
Visit treatedwood.com/options to learn more.
New Products
10
9 9. FIELD SPRAY
10. THERMAL IMAGE CAMERA
ScentLok Liquid Alloy™ Technology is uniquely engineered to help eliminate a wide spectrum of odor compounds, as well as combat unwanted airborne odors while hunting. The field spray fights odor-causing bacteria and is fragrance-free and made in the U.S. ScentLok Liquid Alloy™ Technology is a great way to elevate a user’s scent control regimen, and is a proven choice for hunters.
The Seek™ Compact thermal image camera weighs less than 0.5 ounces and plugs directly into an iOS or Android smartphone device for instant connect-and-detect convenience. The camera provides powerful thermal insight with a 206-by-156 sensor and a 36-degree wide field of view. The camera allows users to track energy inefficiencies in the home, including drafts from windows and doors; insufficient insulation; hidden water damage; and plumbing and electrical issues.
SCENTLOK® TECHNOLOGIES 844-257-9505 or www.scentlok.com
SEEK THERMAL 844-733-4328 or www.thermal.com
PEACE OF MIND. WHEN YOU PURCHASE INSURANCE, YOU ARE BUYING THE PROMISE OF A SERVICE THAT YOU HOPE TO NEVER NEED. NO ONE EXPECTS TO HAVE A MAJOR LOSS. WHEN A LOSS DOES HAPPEN TO YOU, WHETHER IT BE AN AUTO ACCIDENT, WEATHER-RELATED DAMAGE, OR A LARGE FIRE, WE UNDERSTAND THE URGENCY TO GET YOUR BUSINESS BACK TO OPERATING AT FULL LEVELS.
MEET MIKE. Mike Lent is the Vice President of Claims at PLM/ILM. With over 26 years working in the commercial insurance industry, he has an extensive background in multi-line claim handling and management. His team’s experience and industry knowledge of wood-related businesses allows them to know what’s important and what’s not to settle your claim fairly and on a timely basis. Working with a claims staff with access to vendors with extensive backgrounds in the wood industry means that they can assess damages and recommend payments faster. Their goal is to be there in your time of need and to get you up and running as quickly as possible. Let Mike, his team, and PLM/ILM make what goes wrong, right again. PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY MAIN 800.752.1895
30
HARDWARE RETAILING | October 2016
WEB WWW.PLMILM.COM
Ed Niewinski, Bob Belt, Mike Lent, Fran Santoro and Tony Sciarrino
12 11 11. SPORT EARMUFFS
12. PROTECTIVE DOG VEST
The Impact® Sport Earmuffs from Howard Leight by Honeywell protect hearing by automatically shutting off amplification and blocking continuous noise. The leatherette headband adjusts for a secure fit, and the slim, comfortable ear cup allows for full clearance when handling a firearm stock. Impact Sport Earmuffs conveniently fold for storage and travel. Featuring a 22-noise reduction rating, these electronic earmuffs are available in several patterns and colors.
The Elimitick dog vest provides the safety and protection a dog needs while in the field or woods on a hunt. It features a collar sleeve and adjustable straps for a custom fit. The vest protects the dog from ticks (including those that carry Lyme disease), thick brush and sharp sticks. Constructed of 100-percent polyester, the vest is quiet, odorless and machine-washable.
HOWARD LEIGHT BY HONEYWELL 800-430-5490 or www.howardleight.com
LEGENDARY WHITETAILS 800-875-9453 or www.deergear.com
SELF-FUSING SILICONE TAPE IRON GRIP® Silicone Tape is a self-fusing, repair tape that conforms to any surface while providing a water-tight seal. Silicone Tape creates a chemical, moisture-resistant barrier that fixes leaky pipes, hoses and insulates frayed electrical wires. It is easy to remove, leaves no sticky residue and protects from corrosion. Ideal for marine, automotive, plumbing and household applications, plus many more!
• 700 PSI • -85°F to 500°F • 300% Stretch • Insulates up to 8,000 volts
Repairs/insulates electrical wires
Repairs loose or leaky plumbing
Creates a firm grip on handle
Wrap hoses for an airtight seal
TM
i tape with
888-474-8273 | info itape.com October 2016 | HARDWARE RETAILING
31
New Products
13 14 13. PROFESSIONAL-GRADE BLOWER
14. CHRISTMAS TREE SCENT
The DEWALT 12-amp handheld, professional-grade corded blower is built for jobsite conditions and eliminates the extra steps necessary with gas-powered equipment. Construction pros can use the DEWALT 12-amp handheld blower in roofing, jobsite cleanup, surface preparation, clearing sidewalks and parking lots, equipment cleanup and landscaping applications.
The ScentKeeper™ from Ulta-Lit Technologies fills rooms with an authentic Christmas tree scent. Six fragrant ScentKeeper pinecones containing 100-percent pure pine fragrance oil are included in a package, along with hooks to conveniently hang the fragrant cones around the home, office or store. The product may be used on a tree or holiday decoration as well.
DEWALT® CORPORATION 800-433-9258 or www.dewalt.com
32
HARDWARE RETAILING | October 2016
ULTA-LIT TECHNOLOGIES, INC. 888-858-2548 or www.ultalit.com
15
16
15. NATURAL LOG PLANTERS
16. KEY COIN DISPLAY
Surreal™ planters are American-made and molded from actual oak and birch logs and hand painted to resemble organic material. Durable yet lightweight, the planters are UV-resistant for fade-free performance and are fully weatherproof. The natural design keeps plants cooler on hot days and provides insulation from colder temperatures. Surreal planters are backed by a lifetime manufacturer’s warranty.
CoinKey is a handcrafted unique blank key that displays old American coins. The key display is offered in sizes of KW1 and SC1, accommodates nickels and dimes, and is available to copy for a wide range of consumers. CoinKey utilizes real historical American coins dating back as far as 1885. You can request personalized dates, as these would make great birthday or wedding gifts.
SURREAL™ PLANTERS 877-431-4433 or www.surrealplanters.com
COINKEY 917-207-1364 or www.coin2key.com
WWW.YAKTRAX.COM 1.866.YAKTRAX
WINTER TRACTION FOR ALL YOU DO
©2015 Implus Corporation. Yaktrax® is a registered trademark of Implus Corporation. 8.15
New Products
17 Starrett Power Tool Accessories and Hand Tools
http://starrett.co/2cnCQ1n
Watch the Video! starrett.com
Your name depends on ours...
18
17. ILLUMINATED WATER BOTTLE The HYDRA SmartBottle from HydraSmart is a portable bottle that is manufactured with ‘smart’ features. These features include a Bluetooth speaker, a lighting system, a safety fastener, a sleeper app and a speakerphone. The HYDRA SmartBottle also comes with a built-in recharge dock, hidden storage area and non-spill lid for easy portability. It is available in several colors. HYDRASMART www.hydra-smartbottle.com
18. WINE BOTTLE CANDLES
What company is a cut above the rest?
Innovation Rules 34
HARDWARE RETAILING | October 2016
Using the best environmentally responsible ingredients, Rescued Wine repurposes wine bottles by creating new life in the form of a candle. Recycled wine bottles are collected, cleaned and cut by hand. Then eco-friendly soy candles are made with fragrances inspired by wine. Rescued Wine gives back to animal rescue groups by donating a portion of the candle sale proceeds. RESCUED WINE 530-587-7947 or www.rescuedwinecandles.com
19
NAL O I S S E F PRO H STRENGT
20 19. SNOW BLOWER The Snow Joe® is a cordless, self-propelled, battery-powered snow blower equipped with motor-driven wheels which are capable of covering large, uneven areas. The Snow Joe moves snow faster and farther by first collecting the snow with an auger, followed by an impeller fan that powerfully discharges snow through a chute. This rechargeable blower's batteries provide 30 minutes of quiet, self-propelled run time. The Snow Joe carves a swath 24 by 8 inches wide, moving 600 pounds of snow per minute, pushing nine tons on a single charge. SNOW JOE 866-766-9563 or www.snowjoe.com
20. GLAZED PORCELAIN FLOOR TILE Ege Seramik proudly introduces ARYA, a fully polished, rectified glazed porcelain tile collection produced using today’s most high-definition inkjet techniques. It offers the richness of Calcutta Marble tile without the additional care and maintenance. Ege Seramik’s cutting-edge, inkjet technique creates a realistic look of natural marble. ARYA’s sleek look is ideal for both residential and commercial applications. EGE SERAMIK 678-291-0888 or www.egeseramik.com
Quickly dissolves hard water and rust stains. Great for removing soap scum and calcium build-up. For use on bathroom and kitchen surfaces without scrubbing. Size: 32 oz. ORDER TODAY:
1-800-247-5102
Ext. 262
WHINK PRODUCTS COMPANY www.whink.com
Checkouts UNIQUE DISPLAY
Customers Are All On Board With This Display
W
hen customers walk into Gladieux Do it Best Home Center, they are greeted by the usual hardlines offerings, outdoor power equipment and pet supplies—as well as one niche customers might not expect. That unique niche is a model train department, complete with a display that includes a scale replica of the store. Ron Gladieux, Jr., president of the company, says the unique niche started with his father. “My father was always in to trains, so when we opened our new location in 1999 and had some extra space to work with, we decided to use it to put in a model train department—something different and unique.” A few employees built a train display to add to the department, working on it a little at a time and using materials from the store’s lumber department. They also constructed the scale replica of the store to go along with the display. “We decided to build it so that when we go to train show, others at the show could identify our store with our display,” Gladieux says. “The guys who made it even sawed the composite sheets to make it look like the siding on the side of our building—it was pretty neat.” He says they go to two or three train shows each year and bring the display with them to each, and even take it to some fundraising events. Gladieux says the train display is a hit with customers, and especially with kids who come in to the store with their parents to shop. “The kids always want to see the trains. It’s a good hobby, and a lot of people are still involved in that hobby.”
The train display, complete with a scale replica of Gladieux Do it Best Home Center, is a popular stop for the store’s youngest customers. The staff also takes the display to train shows a few times each year.
Looking for creative ways to engage customers? Whether it’s promotions, merchandising, special events or unique advertising, we cover it here. Have an idea? Contact Liz Lichtenberger, llichtenberger@nrha.org, to have your story considered for publication.
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HARDWARE RETAILING | October 2016
Indie Award Winners: John and Doug Howard, Howard Brothers Hardware
of the Year? s s e in s u B t n e d ’s Next Indepen a c ri e m A u o y Are
. y r o t S r u o Y Tell Us * . s e z i Pr Win $10,000 in m IndieBiz Award.co
*PRIZE PACKAGE CONTAINS $5,000 CASH AND $5,000 EQUIVALENT OF PRIZES. ENTRIES (“NOMINATIONS”) CLOSE 11/13/2016. SEE WEBSITE FOR DETAILS.
Checkouts
COMMUNITY RELATIONS
Projecting a Successful Community Event
“H
ow can we use the wall?” That was the question on the mind of general manager Daniel Buzzell at Midland Ace Hardware and Sports. The large, blank, white outside wall of the store would be a good place for a mural, as many retailers have done with the sides of their buildings, but Buzzell had another idea. The wall would make a good movie screen and also offer an opportunity to draw the community together and promote more nightlife in downtown Midland, Michigan. It didn’t take long for that idea to take shape. Buzzell collaborated with a local organization dedicated to promoting and investing in downtown Midland. He got a few local businesses to help sponsor the event, and Movies on Main premiered this past August on Wednesday evenings after dark. Buzzell invited the public to set up their lawn chairs in the store’s parking lot to watch a family-friendly movie projected on the side of the building. While the movie was free to the public, Buzzell still had some costs to cover, so he solicited help from neighboring businesses. “I picked up several sponsors for the movie so we weren’t footing the entire bill,” he says. “They each got a spot at the
beginning of the movie to talk about their business. Some of the businesses sponsoring the event are also our customers, so this has helped us reinforce those relationships.” Costs for showing a movie to the public includes a license fee (a fee based on the number of people attending the movie showing) and the rental of a projector—a total of about $800 per event. He also had to bring in a portable bathroom, since most nearby businesses, including his store, were closed during movie time. The only advertising he did was through Facebook, which helped drive traffic to the store’s page. Given that each of the four movie nights Buzzell hosted this year averaged 100 people, and that they generated excitement among his customers, he considers the idea a success. In the future, though, he hopes to find ways to drive traffic into the store. “This year was a test run to see if it’s something we want to do in the future,” he says. “This wasn’t a retail driver as much as it was a community event. Next year, we’d like to look for more business opportunities, such as offering some of our impulse items, like snacks and drinks, for sale. There are also a lot of younger people in town who don’t realize we’re a locally owned business, and this gives us another way to promote that.”
Daniel Buzzell made use of the large parking lot and white wall on the side of Midland Ace Hardware and Sports to show movies to the public last August. The event encouraged the community to come together and received the support of local business people.
38
HARDWARE RETAILING | October 2016
TM
Checkouts
UNIQUE NICHE
Virginia Retailer Has This Niche in the Bag
L
ike many areas in the south, Virginia Beach, Virginia, is home to a community of avid cornhole players who join leagues and participate in tournaments. And when players start asking where they can get a set of boards or replacement bags, the answer is typically “Taylor’s Do it Center.” With 11 locations in Virginia and North Carolina, Taylor’s Do it Center has a well-established niche selling everything someone needs to play cornhole, the bag-toss game. Materials include boards, bags and a few other accessories, such as scorecards. Tom Townsend, advertising manager at the store, says the stores buy the boards from a local woman who, along with her husband, makes the boards and is active in organizing cornhole tournaments around the city. “It’s been a good relationship for us,” he says. “We’re often a sponsor at those tournaments, so that helps us get our name out there. Then when someone asks her where to go for cornhole boards or bags, she sends them to us.”
Magnets attract profits. Increase impulse sales with the industry’s top-selling magnet product line for home, office, garage and jobsite.
Learn more about the advantages of being a Magnet Source® Retailer at magnetsource.com/hr
40
HARDWARE RETAILING | October 2016
Selling blank boards gives employees at Taylor’s Do it Center the opportunity to sell add-on sales in the paint department.
Townsend sells the boards blank, which gives employees the opportunity to point customers to the paint department to show them how they can paint and finish their boards. While there are many local places to buy cornhole boards, what draws customers to Taylor’s is the quality of the product and the amount of advertising dedicated to it. “Our boards are built to tournament specifications,” Townsend says. “We promote them in most of our advertising, and it’s easy for people to get them at any of our 11 locations.”
Checkouts
COMMUNITY RELATIONS
A New Life For Dead Inventory
S
ome stores get rid of dead inventory by having liquidation sales, or putting products in a dump bin or on a clearance table at the front of the store. Woods Hardware doesn’t have room for that. With a 1,500-square-foot salesfloor, when items aren’t selling, they have to move quickly. Matt Woods, COO of the Cincinnati, Ohio, business, has found a way to quickly move that dead inventory while helping out the community—by donating it to a local charity. Donated products are sold at a discount, and proceeds go to help those in economically depressed areas of the city. “The charity is run by a father-son team that uses the proceeds to help ex-offenders or those who are down on their luck, and help rehabilitate them,” Woods says. “We donate anything and everything we can. They get a lot of donations from the big boxes and from Amazon, too. “It’s a good way for us to get rid of that inventory and also help those who need a hand,” he says. To learn more about Woods’ operation and how he makes the most of a small salesfloor, see the November issue of Hardware Retailing.
Matt Woods of Woods Hardware donates dead inventory to a local charity that helps those down on their luck.
Wash the day away. ®
THE IN2ITION TWO-IN-ONE SHOWER. Use the integrated showerheads together or separately to get water where you need it most. Another way Delta is more than just a shower.
©2015 Delta Faucet Company
For a demo, visit deltafaucet.com/in2ition
42
HARDWARE RETAILING | October 2016
YOU REALLY CAN HAVE THE BEST OF BOTH WORLDS PRO Hardware offers the progressive retailer the best of both worlds with traditional marketing – circulars, coupons, statement stuffers and digital marketing – web and facebook ready promotions, email specials, mobile coupons, QR codes. PRO has a program to reach both the traditional shopper and the online consumer.
O G Digital
Learn more about the PRO Hardware program by contacting Shari Kalbach, Managing Director, at 303.792.3000 or shari.kalbach@pro-group.com.
The Bostwick-Braun Co. Toledo, OH • 419.259.3600
Find us online at www.prohardware.com
Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650
PRO HARDWARE DISTRIBUTORS: Horizon Distribution, Inc. Yakima, WA • 509.453.3181
BUILDING THE SUCCESS OF AMERICA’S INDEPENDENT HARDWARE RETAILER SINCE 1953 Vendor Partners:
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By Scott Wright, swright@nrha.org
Restore the Core Taking Progressive Measures to Revive a Key Department
I
n any typical home improvement store, there are generally six or seven core hardlines departments that do the “heavy lifting” of generating sales and gross margin dollars for the entire store. These departments typically include hardware and fasteners, electrical and lighting, plumbing and heating, hand and power tools and accessories, paint and sundries and lawn and garden. While stores may have additional niche departments, these six core categories are really what drive customers to home improvement stores. And within each of these core departments are core categories that are the key profit drivers. For example, liquid paint is generally the top-performing category within the paint and sundries department, comprising roughly a third of departmental sales, according to past research from the North American Retail Hardware Association (NRHA). So when sales start to wane or shift in one of these key areas, it can become a major issue for any business. But how do you handle it? What steps do you need to take? Read on to learn how one company took drastic measures to revitalize his paint department, and turn to Page 56 for tips on how you can assess the core departments and categories in your store to keep them in tip-top shape.
Understanding the Changes Before you can develop any plan of action, you need to address flagging sales in a core department. It could be many things, including, but certainly not limited to,
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HARDWARE RETAILING | October 2016
Wilco turned its underperforming paint department into a market leader category. In the following pages, learn how you can do the same if you have a core category that needs a turnaround.
October 2016 | HARDWARE RETAILING
47
market changes, an undesirable product selection or new competition. Some changes are simply the result of an evolving marketplace. For example, consider some of the changing government regulations in core categories such as lawn and garden chemicals and oil-based paint, where key ingredients have been banned by the Environmental Protection Agency. While you may not have thought about its long-term impact, think for a minute about the phase out of incandescent bulbs and the move to longer-lasting options like LED light bulbs will have on your store. On one hand, today’s LED bulbs, at current pricing levels, generate a lot more sales and gross margin dollars per unit sold than their incandescent counterparts. But, while that’s the case now, the Alliance to Save Energy, a nonprofit coalition of business, government, environmental and consumer leaders advocating for enhanced energy, predicts the price point of LEDs will “drop drastically in the coming years as demand increases.” It wasn’t that long ago that incandescent bulbs were hot promotional items at hardware stores and were featured on the front pages of circulars from coast to coast. They drove traffic to independent stores. LEDs now last up to 25 times longer than incandescent and 10 times longer than fluorescents. And while they are no doubt better for the environment, the tradeoff at retail will likely be a negative effect on
overall store traffic, and fewer footsteps in the electrical department. It’s not just changing regulations that can affect core department performance, either. Sometimes market forces are responsible. Consider trends in the power tool category back in the 1990s and early 2000s, when many independents completely abandoned their assortments due to overwhelming price and competitive pressure from the big boxes. While we’ve seen the return of this category to the aisles of many independent stores today, the assortment strategy was forever impacted as a result. Like maintaining physical fitness, there are no easy fixes or magic pills you can take to revitalize an “out-of-shape” core department or category. It takes working out the issues that are responsible, and a solid plan for continuous improvement. That was the strategy that store manager Michael Potter, merchandise manager Trent Ricksger and district manager TJ Colson, three management employees from Wilco, examined as part of their Business Improvement Project while attending the NRHA Retail Management Certification Program (RMCP) in 2013. Their project focused on revitalizing sales and profitability of the company’s paint and sundries department, and this is a comprehensive account of what they did, and the results of their efforts.
Pictured at their RMCP graduation ceremony (from left) are Will Barnhart, Wilco district manager and RMCP sponsor; Merchandise Manager Trent Ricksger; Store Manager Michael Potter; and District Manager TJ Colson.
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HARDWARE RETAILING | October 2016
The Challenge Wilco is not your typical home improvement retailer. With 18 stores throughout Oregon and Washington, Wilco’s niche in its competitive arena is that of a regional farm and home lifestyle destination store. It caters to a higher end clientele that includes consumers and hobby farmers living in suburban and rural markets throughout the region. These upscale customers value the quality products Wilco offers. In fact, “quality” is one of Wilco’s core values, and there is a tremendous emphasis placed on stocking quality products and providing quality service. While the retailer stocks a full-line hardlines assortment, overall hardlines sales account for just 15 percent of overall revenue. And sales in Wilco’s paint and sundries department only accounted for 1.6 percent of overall store sales in 2013. In contrast, many home improvement retailers in the industry rely on their paint and sundries department to generate between 8 and 12 percent of overall sales, according to past NRHA research. The problem at Wilco was that paint and sundries sales were flat in 2012 and 2013 during a period when overall store sales were growing at a double-digit clip. The department was clearly underperforming. Potter, Ricksger and Colson were tasked with two goals for their project. First, they had to find a strategy to bring departmental sales back in line with the overall store growth figures the company was experiencing. A departmental Space Productivity Analysis revealed Wilco was dedicating 400 square feet of salesfloor space (2 percent of overall square footage) to paint and sundries, but the department was generating just 1.6 percent of sales and showing no signs of growth. Second, Potter, Ricksger and Colson began researching and selecting a premium brand of liquid paint to help foster the same quality perception in paint and sundries that consumers have for other key areas of the store. Wilco’s strategy lies in finding categories of the store that complement each other from a competitive standpoint, according to Sam Bugarsky, Wilco’s Chief Operations Officer. “Big boxes don’t do garden well, and nurseries can’t do hardlines well, so the combination is key for us,” he says. Wilco’s merchandising strategy also includes stocking what they call “Market Leader” categories. “We want to have the best selection, the right pricing and some expertise in our Market Leader categories,” says Bugarsky. “We want to be known as a destination store for these categories, and we have about 20 or so that are consistent from store to store.”
“Big boxes don’t do garden well, and nurseries can’t do hardlines well, so the combination is key for us. —Sam Bugarsky, Wilco’s chief operations officer
”
So the plan for Potter, Colson and Ricksger was clear—try to find a way to turn paint and sundries into a Market Leader category for Wilco. (And, if that wasn’t possible, they would have to find a better use for the space.)
Cross-Country Research Trip The first step for the Wilco trio was to plan a cross-country trip to Aubuchon Hardware’s corporate office in Westminster, Massachusetts, in March 2014, for a meeting of the minds. Two Aubuchon employees had shared details about the recent reset of the paint and sundries departments in each of Aubuchon’s 107 stores. They also shared pictures of how they had
October 2016 | HARDWARE RETAILING
49
Wilco’s redesign of the paint department includes an “experience area,” where customers and paint consultants can sit down and pick colors or discuss decorating options.
integrated a store-within-a-store decor theme. Intrigued by the strategy, the trio wanted to see it firsthand. Aubuchon’s store-within-a-store included a full assortment of Benjamin Moore paint, using elements of the paint retailer’s signature decor theme. The space also featured tables and chairs at the entrance to the department to allow customers a place to sit down and consult with paint staff on everything from color and sheen to overall decorating project needs. It even included a TV monitor playing how-to videos or HGTV programming to position the space as more of an idea center than just a place in the store where paint is mixed. “We liked Aubuchon’s strategy of incorporating an experience area so customers can come in and feel more comfortable shopping, like at a professional paint store,” says Potter. And having integrated a store-within-a-store concept in Wilco’s lifestyle clothing department several years prior, and seeing dramatic sales increases as a result, Potter, Colson and Ricksger knew a similar concept could work in the paint and sundries department as well. Shortly after the meeting with Aubuchon, the decision was made to move forward with a more conservative version of a store-within-a-store. “We don’t generally invest much in store decor,” says Colson. “We keep it simple and neutral.
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HARDWARE RETAILING | October 2016
But we wanted to incorporate the paint decision area with decorative flooring and lighting to highlight the department.” The plan also called for keeping the size of the department within its existing 400-square-foot space. The Wilco team also liked the premium brand assortment strategy being employed by Aubuchon. “We knew we needed to have a premium brand to coincide with our overall focus on quality, and after our category managers completed their research, we chose Benjamin Moore as well,” says Ricksger. “One key factor we considered is that there aren’t a lot of Ben Moore dealers in the markets where we have stores. But we didn’t go into this project trying to make Ben Moore work; we went into it knowing we had to make a premium brand work.” The go-forward strategy would include adding the full line of Benjamin Moore liquid paint to the existing private-label paint assortment from Wilco’s co-op, which would be used to provide both entry- and mid-level pricing options.
The Training Component It was clear to Potter, Colson and Ricksger that their massive paint and sundries department reset project, which included eight existing stores, would address the five “Ps” of marketing and differentiation: product, placement, people,
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price and promotion. Since they had already identified the product (paint) and their trip to Aubuchon offered insights on placement, it was time to move on to the next major piece of the puzzle—people, and the training that was needed to tie it all together. The Wilco team knew they needed to make the investment in additional training for the re-launch to be successful, so they worked with their co-op reps and the training team from Benjamin Moore to develop a comprehensive curriculum they could use to train staff members to become not only paint experts, but paint and decorating sales consultants. “We knew if we were going to be investing in this major reset project, we needed to have someone on hand all day who could consult with customers and actually sell paint, not just someone who could mix up a gallon,” says Potter. “We needed to make sure everyone—from the store managers and hardware area specialists to PICs (people in charge) and sales staff members working in the department—would have the necessary knowledge to sell paint effectively.” The initial training curriculum included five hours of online paint training offered by Benjamin Moore, and another half day of in-store training offered by their co-op’s paint training specialists. Colson admits that up to this point,
they hadn’t been using all of the resources that were available to them. “Previously, we just trained our people how to mix paint. We didn’t regularly send people to the regional training sessions that were available to us, and we found that these sessions were very educational,” he says. “We eventually came up with our own fullday training session that also focused on selling sundries and other key brands within the department, because if we are going to be selling a $70 gallon of paint, our people better know why it costs this much,” adds Potter.
Pricing Strategy To develop a pricing strategy for the new premium assortment, the trio knew they needed to make the transition from paint being a lossleader promo item to bringing it in line with Wilco’s overall pricing strategy—which is to be competitive, but not the cheapest in town. “Previously we would only sell paint during a BOGO (by one get one) promotion,” says Colson. “I once heard that of the five Ps, you have to win at least three to be successful,” explains Ricksger. “We think we win at four of them, and that they are differentiating factors for us. We know we don’t win at price, but we’re confident that we are competitive.”
Paint & Sundries Department Reset Comp-Store Performance The key performance measurement used to gauge the success of Wilco’s retrofit was the growth rate of the department compared to the overall growth rate for the same-store group. Year-over-year department sales and gross profits grew at a rate more than double that of overall store growth.
2014
2015
Percent Change
Total Store Group
$70.66 million
$76.02 million
+7.59%
Total Paint Dept.
$1.07 million
$1.25 million
+16.82%
$397,379
$478,815
+20.49%
Sales:
Liquid Paint
16.8%
Gross Margin Dollars: Total Store Group
$24.49 million
$26.59 million
+8.57%
Total Paint Dept.
$395,993
$468,684*
+18.36%
Liquid Paint
$119,091
$160,540
+34.8%
*Based on eight existing stores that had pre- and post-department reset sales figures during RMCP project implementation.
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HARDWARE RETAILING | October 2016
The rate at which paint sales grew after the reset. That surpassed total store growth by 9.23%.
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A major component of Wilco’s paint department retrofit project was to add a premium liquid paint line that reinforces Wilco’s overall assortment strategy of carrying high-quality, high-end merchandise.
54
The focus was now on selection. With the addition of Benjamin Moore, Wilco now offered a variety of price points, ranging from $23 to $70 for a gallon of paint, with options covering all points in between.
saw sales spike from $187,000 to $210,000 in overall departmental sales, with just five months of results and very minimal marketing,” says Potter. “We saw the same thing in two other locations, so we knew it was working.”
Marketing the Reset
Return on Investment
The strategy to promote the new paint and sundries department called for starting at the individual store level until all existing stores were retrofit and uniform in appearance and assortment. As a store retrofit project would reach completion, the Wilco marketing team would post special messaging to social media to promote that change as a special store event to regular customers, highlighting the new premium brand offering. Special postcard mailings also were sent out, and free samples were provided at special events, such as the company’s popular Ladies’ Night. The full-scale promotion of the new department re-launch didn’t come until mid-2015, after all of the store retrofits were complete. At that point, store staff chose to highlight the new paint assortment prominently in circular ads. It didn’t take long to see results. “The first store we retrofitted was McMinnville in July 2014, and true comp numbers for that store for 2014 vs. 2013
Overall, Potter says the company spent between $13,000 and $16,000 per existing store to retrofit the departments. This included adding the new lighting and flooring, as well as general construction expenses. While the retrofits were taking place, Wilco opened four new stores with the new decor elements and assortment strategy in place. As with any major store project, coordination and communication with key vendors was a top priority, as Wilco received assistance on both equipment and product buybacks. Likewise, projects at existing stores were scheduled in conjunction with other full-store remodeling projects to minimize cost and store disruption. “Our major expense was the additional $120,000 we spent on liquid paint inventory to bring in Benjamin Moore, but it was a necessity to make the statement that we are really in this business,” says Ricksger.
HARDWARE RETAILING | October 2016
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Perform a Q&A Analysis For Optimum Core Performance Over time, the performance levels of the core categories and departments in your store may start to wane due to things like market shifts and product changes within the department. On at least an annual basis, you should ask yourself the following questions and potentially take the resulting actions to ensure these areas of your store continue to perform at optimum levels.
? Questions to Ask
56
Actions to Take
Are Trends Consistent? Are departmental sales patterns different from overall store sales trends? At Wilco, store sales were increasing at a double-digit, year-over-year pace. At the same time, paint and sundries sales had been flat for two years running. At this point, Potter, Ricksger and Colson knew it was time to find a way to bring new life into that department.
Head to the SPA Perform a simple departmental Space Productivity Analysis (SPA). Take the square footage of each core department in your store, convert it to a percentage of overall salesfloor space and compare this figure to the percent of sales and gross profits these departments generate. Wilco’s paint department was taking up 2 percent of salesfloor space, but only generating 1.6 percent of overall sales. It wasn’t pulling its weight.
Are Strategies Aligned? Wilco’s overall merchandising strategy in its five signature departments is to offer premium products to provide a shopping experience where customers can find the best quality products and service available. But before the retrofit, there wasn’t a premium brand of liquid paint available, nor were staff members trained to sell paint projects. This ran contrary to the company’s core values focusing on quality products and service.
Time for a Re-Alignment Whether a department’s performance is in decline or not, it’s a good idea to periodically assess your assortment strategy in each department to determine if it supports your overall merchandising strategy. Yes, there are times when you have to assort a department to take what the market will bear in regard to competitive situations, but don’t stray too far from your overall assortment strategy. Maintain this consistency, or customers will be confused.
Has My Market Changed? Ask yourself these questions: Has my customer count or customer makeup changed in a particular department? Has there been an overall sales decline in a core department due to a new competitor or changing residential patterns in your trade area? Or is there a new opportunity in a particular department due to a nearby construction project or new area business you can capitalize on?
Be Proactive! Constantly look outside the four walls of your store to stay abreast of changes in your trading area. Get your key team members involved in regular brainstorming sessions to look for solutions to potential problems that will affect sales in core departments. Or, ask the team to develop strategies to find opportunities to capitalize on the positive changes taking place.
HARDWARE RETAILING | October 2016
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A Call to Public Service Retailers Do Double Duty as Politicians
A
tumultuous, heated presidential campaign is at the forefront of U.S. politics right now, but some politically active retailers offer perspectives on government involvement that supersede parties and candidates. Sidestepping the widely debated topics of this election cycle, these store owners spoke with Hardware Retailing about what it means to spend time as public servants and what businesspeople uniquely contribute as political leaders. On the next few pages, you will hear from retailers who have found ways to juggle business, work in local and state governments, and make a difference. In this story, a political party chairman and a city alderman both share why they got involved in government,
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HARDWARE RETAILING | October 2016
how their business experiences have helped them be strong public servants and why it’s important for other independent business owners to be active politically. In this article, you will read Q&As with Jared Littmann, who is a store owner and serves as a local city alderman, and Jeff Cardwell, who doubles as a retailer and chairman of the Indiana State Republican Party. For yet another perspective on working both as a retailer and a politician, visit the TheRedT.com/stine-qa for an online-exclusive Q&A with Dennis Stine, president and CEO of Stine Lumber in Louisiana. Stine has served as a state legislator and as a financial officer who worked directly with the governor of Louisiana. Then, head to the Last Word on Page 86 to learn about business issues that six states will be voting on in November.
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Jared Littmann, owner of K&B True Value in Annapolis, Maryland, has spent the past five years in his current role as a city council member, which is also called an alderman. Littmann talks about his position, how his passions helped drive his political goals and more.
Hardware Retailing (HR): How did you get involved in politics and why? Jared Littmann (JL): As long ago as high school and college, I’ve been interested in politics. I have been involved in campaigns and found the policy perspectives interesting. While politics involves fundraising and campaigning, I’ve been more interested in the public side, like legislation. I went to college for an environmental engineering degree and later I went to law school, with a focus on environmental law. After practicing law for a few years, I got into retail by getting into my in-laws’ hardware business. When a position opened for a city alderman, I applied and, thanks to my legal experience and business experience, I was selected as alderman for Ward 5 in the city of Annapolis. I ran for election after that one-year term was served and won a
four-year term. I have about 16 months left of this term. I have decided to not run again. HR: Why do you think independent business owners should get involved in politics? JL: First off, there is no doubt that getting involved in local government is time-consuming. And since business is also time-consuming, not everyone has the time to put into it. Running the business should remain a top priority, as well as family. However, if you decide you do have the time, I have zero doubt local politics has a great impact on the community. Local politics affects the local economy, affects the general feelings of the community and more. If you care about your community and feel you have something to offer to help it thrive, getting involved politically is a wonderful opportunity. HR: What do business owners uniquely contribute to government? JL: First and foremost, business owners generally have a better understanding of management and budgeting. Retailers have experience in payroll expenses, managing taxes and the different requirements for safety. Plus, by having business experience, you have a greater appreciation for how hard it is to generate revenue and maintain a happy population. HR: What skills from running an independent business make you well suited for government? JL: One of the skills that I bring is critical thinking. Being comfortable with numbers, accounting and budgeting is also important. Plus, being able to communicate effectively in person, through email and during city council meetings is a very important skill I bring.
In 2013, Jared Littmann is sworn in as an alderman in Annapolis.
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HARDWARE RETAILING | October 2016
HR: How do you recommend getting started in local government if retailers want to be advocates for business in their communities? JL: I think there are so many different ways to get started. There are two paths I would highlight. One would be local political parties. You don’t necessarily need to decide. You could attend events from Republican, Democrat, Green and others to determine who you best associate with. The other track is to figure out the issues you care about, like education and environmental issues. Get involved in the issues that matter to you. Meet with government officials and talk to people in government roles to share your concerns and issues.
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HR: In what ways has your involvement in politics made you a better retailer? JL: Being involved in politics has opened my eyes to people I wasn’t aware of before. It’s created new friendships and relationships and broadened my horizons. It’s also made me more aware of the issues facing local communities. I wasn’t aware of all the issues and how they affected my business before.
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YEAR
Jared Littmann has worked with, from left, Sen. John Astle; Mike Busch, Maryland speaker of the House; and Josh Cohen, former Annapolis mayor.
HR: How have you made your community better through your political involvement? JL: I think I’ve made my community better in various ways. I’ve consistently defended the cautious use of taxpayer money. I try to protect citizens’ money as if it was my own. I also think I’ve made a positive impact on education by introducing and passing legislation to help students in public schools. Another area I’m proud of is the work I’ve done to help protect natural resources and forests. I want to make sure we consider the impacts of decisions on our local environment. HR: In a divisive political climate, how can retailers be activists without hurting business? JL: The way I do that is by focusing more on the issues rather than the political parties. I try to think about if it’s good for local citizens, not about what political party it’s associated with. Before I was in politics, when people wanted to put signs up in front of the business, I said yes, no matter who the person was aligned with. Now I don’t post anything. I don’t want people to link my business to a political party.
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HR: What are some ways retailers can be active in local government, even if they aren’t interested in serving in elected positions? JL: Only a small percentage of people attend their city council meetings and talk to their local officials. But the few people who do go get to express their opinions, and we’ll listen. They have better access to making changes, and it’s a great way to get face time with your elected officials to let them know about an issue you have. You can also go and meet with people in governmental positions in the community, like the planning office or police department. Set up appointments to discuss concerns and share ideas. Joining a local business association, like a local chamber of commerce or rotary club, is another powerful way to be active in the local government. HR: What are the pros and cons of serving as an elected official while operating your own business? JL: The biggest con is the amount of time involved. It takes me away from business. And while I haven’t had a situation where a decision I’ve made would turn customers away, there is always that potential.
The pros outweigh the cons, however. The time is manageable; it’s like having a part-time job. This has allowed me to give more chances to various employees, letting them figure out how to accomplish goals. I’m not micromanaging, because I don’t have time to, and I trust and manage more efficiently that way. Plus, the community views me and my business in a reciprocal kind of way. People shop here to support a local business and they appreciate my position in city government. They like being able to talk to me about local issues when they stop by. HR: What advice would you offer a fellow retailer who is running for an elected position? JL: Be who you are. Whatever issues have gotten you as far as you have, those are the issues you should stand for. Don’t back something if your true interests lie somewhere else. You’ll be more successful with your own perspective. If you do run for an elected position, talk to your management and staff to share the impact that will have. This is an opportunity for more autonomy, but they’ll still have your support. Whatever they need, let them know you’ll be available to them, and that the business is still a top priority.
Jeff Cardwell, owner of Cardwell Do it Best Home Center in Indianapolis, is the current state chairman of the Indiana Republican Party. He began his political career in 1980 as a volunteer for the Ronald Reagan campaign.
Hardware Retailing (HR): Why did you get involved in politics? Jeff Cardwell (JC): In 1976, I started in the hardware business and building material business. The store owner at that time was heavily involved in the political cycle. He encouraged me to get involved. My grandfather had held political office, which influenced my interest in politics. My boss at the time was the reassurance that I needed to get more involved. They would always say, “Politics matter.” Everything is political, whether it’s church, family or politics. Politics is a part of everyday life. It was a time America needed change and a time that people felt that the American dream had died. Iran held our hostages. Unemployment and interest
rates were at an all-time high. There were a lot of tensions. The most important part of it is that you have an opportunity to make a difference. You can make your voice be heard on a platform when people are listening. And the time people are listening is during election cycles. Ronald Reagan led on national security and economic growth—issues that were of concern to me as a young person. I watched him get elected. I saw him take action, and soon I saw really good results. We saw interest rates and unemployment fall. Iran released our hostages. I thought my voice mattered. I felt that I made a difference. In the private sector, the free markets work best when government does its job of providing public safety and infrastructure. We are the economic engine that provides the government with the resources it needs for infrastructure and public safety. It’s our tax dollars and economic growth that fund local government and schools. HR: Why do you think independent business owners should get involved in politics? JC: A lot of times, the small businessperson wears many hats. They’re able to have a really
On behalf of the Indiana Republican Party, Jeff Cardwell nominates Donald Trump for president in July at the Republican National Convention.
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well-rounded perspective on what makes business thrive. As the political people develop policies, they need to understand the impact they have, positive or negative, on businesses and communities. You have people who have never owned a business and they have great intentions, but great intentions can have terrible results. Business owners, with their own personal stories, are priceless. It’s the experience of daily life and of working with people of all walks of life that can be the biggest assets to policymakers.
“I feel like every
In the 1980s, Jeff Cardwell worked with both of Ronald Reagan’s presidential campaigns. Seeing the changes Reagan led as president inspired Cardwell to continue being politically active.
hardware, home center and independent store owner should be involved, because the best way to predict their future is to create it.
”
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Experience matters. Private sector business owners matter, and nothing can replace their wealth of experience. Every business owner is involved in the political cycle, whether they want to be or not. They should make things happen instead of wondering what happened, after the fact. That’s where I feel like every hardware, home center and independent store owner should be involved, because the best way to predict their future is to create it, and they can create it by being involved. It’s important to be involved. Government has a really important role to play. Public safety, infrastructure and economic growth are all very important to our local businesses. HR: How do you make time to be politically active? JC: Passion is the fuel that drives the engine. You have to get involved in what you’re passionate about. You always find the time for the things that fuel your passion. Politics is my hobby, just like other people have hobbies and sports. The passion is the fuel
that motivates me, and it’s results that really develop that passion. When you’ve been involved in a campaign and see positive results, it encourages you to do more. HR: In what ways has your involvement in politics made you a better retailer? JC: It’s absolutely affected every aspect of my business. Communication is the key to success. Working together—that’s the economic growth that raises the tide for all boats. You can bet that in any community that’s successful, there’s good public-private communication happening. HR: How do you recommend that retailers be activists without hurting their businesses? JC: I think it’s all about the personal approach. It’s very important for people to see that you’re coming to the table with the greater good in mind, looking for solutions for your community. My business is located in a heavily registered Democrat area, and yet I’m a Republican. I found that it did not hurt my business at all.
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By Renee Changnon, rchangnon@nrha.org
Stocked and
Loaded How to Score Big in the Hunting Category
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all is an exciting time of year. People pack away their summer clothes in exchange for new outfits, kids head back to school and football returns. During this change in season, one pastime that has been around for thousands of years returns to prominence as well: hunting. For Jon McGehee, manager of the sporting goods department at Reedsburg True Value in Reedsburg, Wisconsin, deer hunting season is a time he looks forward to for both work and play. McGehee not only enjoys hunting in his free time, but he also makes his living helping other hunters who are just as passionate about the sport as he is. As a hunter, McGehee has the advantage of knowing what is needed for a fruitful hunt. Whether helping customers prior to the hunt, during a hunting trip or after their hunt is complete, he understands that to be successful
in the category, it’s important he has the right products, employee knowledge and appreciation for the sport. Yet establishing a well-rounded hunting department is about much more than just selling a few guns and ammunition. To capture the hunter’s business, you’ll need to take hunting from a niche to a major department built around a hunter’s lifestyle. In this article, Hardware Retailing spoke with three retailers, including McGehee, who have established their businesses as places for hunters to feel right at home. The following pages will provide you with an all-encompassing look at the hunting category, specifically regarding deer hunting. From the preparation a hunter takes before the season begins, to the skills they need and products they utilize during and after it is over, hunting is much more than a sport; it’s a way of life.
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Before the Hunt Stock Up On Scents, Lures and Goods
Charlie’s Hardware & Rental stocks a wide range of products, which feature scents and treats to create a pattern so deer return to a spot repeatedly.
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To provide customers all of the items they’ll need for their next hunting trip, McGehee dedicates 25 percent of Reedsburg True Value to the sporting goods department, featuring hunting gear like guns, archery equipment and accessories. “Hunting faded out a few years ago, but now I’d say it’s back almost in full force, as families and friends are getting back into the sport,” McGehee says. “For first-time hunters and those looking for new weapons, we offer both guns and the products needed for archery aside from the bows.” Depending on the state and county you’re in, the time leading up to deer hunting season is when hunters want to ensure the game is well-fed. Many hunters on private land set up equipment to film and track the animals, follow their patterns and have a clear picture of when and what time of day to look out for the animals they want to hunt. This technology can even allow hunters to play footage on their mobile phones. At Walker County Ace Hardware in Huntsville, Texas, feeders and items for baiting animals are common, because unlike hunting laws in other states, hunters can purchase and set up equipment to feed and bait deer, store owner Jimmy Harding says. “I have noticed the trend in the past few years that people are conscious about raising better deer. Feeding the deer all season, getting them protein to help with horn growth; all of this helps create a better quality of deer,” Harding says. Charlie’s Hardware & Rental, located in Mosinee, Wisconsin, frequently has updated inventory in the sporting goods department for the various hunting seasons that take place, explains department manager Brad Nenstiel. “We have over 100 to 150 firearms in stock at any time,” Nenstiel says. “As far as accessories go, we carry eye and ear protection, ammunition, scope guards and archery supplies.” Another product you should make sure to stock is scents, whether its deer attractants or cover-up scents. When it comes to deer, smell is their strongest sense, so having a selection of these offerings is key.
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For your customers’ first visits leading up to the hunting season, it’s important to hire and train employees to handle the influx of customers. Nenstiel says customers at Charlie’s Hardware & Rental have come to expect advice from employees. “I have experience as a firearms instructor and can help them through the purchase of a new gun, as well as showing them proper form,” Nenstiel says. “In our sporting goods department, Cindy is another expert who has been working here for
nearly 28 years and has lived in the area. She knows the best places to hunt in our area and can give out-of-towners advice.” An important skill Nenstiel says he and his fellow employees in the sporting goods department need is providing the best customer service to assist each and every person, from hunting experts to families bringing their kids in to pick out their first weapon. “The service we provide for different levels of hunting knowledge doesn’t change, but the questions we ask definitely does,” Nenstiel says. “You might have mom and dad bring in their son, so you’ll need to ask more questions, like what will you wear, stressing the safety that needs to be involved.” Since hunting is a very regulated sport, McGehee recommends all of his customers stay on top of the laws and remain informed. “I always recommend people carry at least two copies of the hunting guide with them,” McGehee says. “Every chance you can, page through it, because rules change, some quite rapidly. The whole point of educating yourself about the laws and rules is so you don’t infringe upon them, because you could take away the fun from hunting and wind up getting a huge fine.”
By staying informed yourself and keeping your customers and employees aware of the latest laws, you can protect your business and the customers you serve. In addition, McGehee believes having employees who have experience hunting has done a lot to help their business; however, those who don’t hunt are still able to assist and learn.
At Charlie’s Hardware and Rental, employees understand how to assist both experienced hunters and first-timers.
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A Licensing Location and Product Assistance
The hunting category stands out at Walker County Ace Hardware, with several mounted deer, turkey and other animals on display.
When a customer comes to Walker County Ace Hardware before hunting season begins, they can purchase their hunting accessories, as well as get their license and hunting tags. According to Harding, the business is a Texas Parks and Wildlife licensing sales agent, so customers come to them to make sure they are certified to hunt. The store even features mounted deer heads, hogs and even a bee hive on display in the hunting department. At Charlie’s Hardware & Rental, they no longer offer licensing, but that’s because the state of Wisconsin has made the process easy to take care of online. But the store helps hunters get their gear ready, specifically their optics. “While most people come asking us where to find the deer, we are also asked for assistance in regards to finding the best cartridge to use and getting optics set,” Nenstiel says. “We can keep them short and sweet, or we help a customer dial in how close to a mile they wantto hunt.”
During the Hunt Items a Customer Might Forget The first hunt of the season prompts hunters to make another trip to their local retailer. Since it is such a busy time, retailers should keep well stocked. During deer hunting season, hunters must plan what they will wear to blend in to their surroundings, how they will mask their human scent from deer and much more. “I try to stress with people that the most important thing they should purchase in regards to scents are scent-eliminating products,” McGehee says. “This starts with your clothing and gear; you should wash your clothes in scent-free laundry detergent. There is also soap, body lotion, deodorant and even lip balm that is scent-free and makes it nearly impossible for deer to smell you.” At Charlie’s Hardware & Rental, the locals and returning hunters
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from out of state know to visit for anything they may have forgotten. “We try to be that one-stop service shop, but we make sure to keep the small-town feel,” Nenstiel says. “We have people who come from out of town and are excited to hunt but come in and maybe they need a new rifle or forgot something. We can usually get them what they need or at least order it and have it in the store in a few days, if they’ll be around.” Apparel is another item to consider when getting into the hunting category. Just as the accessories are seasonal, so is clothing. It is the first item a hunter will need depending on the weather and surroundings. So if your store offers the right type of clothing for warmer or colder weather, you’ll be able to help those passing through town to dress for the conditions.
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Source Products, Provide Help for Hunters At Reedsburg True Value, McGehee says he sees many customers from out-of-state who visit the store before the gun season begins to get a refresher course on how to use their weapons, so having knowledgeable employees ensures these individuals get some solid tips and advice before going out. “A lot of times, we have folks that come in from out of town or state who only pick up a gun once a year. We acclimate them with their weapons and tell them what kind of ammo they need,” McGehee says. Having personal experience hunting is a huge plus for retailers who decide to invest in the category, Harding says. He and his son Sean, who both work at Walker County Ace Hardware, are hunters themselves, so when a customer comes in to talk about their latest hunting trip or ask for product advice, they can back up their suggestions.
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“My son and I are hunters and during the season, it’s all we eat, sleep and breathe,” Harding says. “Many of our employees are also hunters, so they have the knowledge to help customers as well. It helps our customers recognize that if they come in with a question or two, we can guide them and help them have the best hunting trip possible.” For Jimmy Harding (left), owner of Walker County Ace Hardware, hunting is a pastime he shares with his son Sean (right) and grandson Colten (center).
Remember Paperwork is Key Retailers who sell weapons such as guns or crossbows cannot disregard attention to detail. At Charlie’s Hardware & Rental, Nenstiel says he uses a system of checks and balances to ensure a weapon doesn’t get into the wrong hands. “There are enough technical aspects to selling guns that you need to have someone who is able to fill out paperwork and not take it lightly,” Nenstiel says. “We do background checks, and I have turned people away before. The law states this is my right as a dealer to refuse service.” Reedsburg True Value also sells weapons, and according to McGehee, for retailers considering jumping into the hunting category, it’s important to know that selling firearms comes with serious responsibilities. “Paperwork is paramount; it’s the key to keeping your license,” McGehee says. “It’s not rocket science, but it is really important. As a retailer, you are the last line of defense between someone who should or should not have a weapon.”
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It’s also important to consider the products a customer will need after an animal has been killed. Reedsburg True Value employees know that half of what hunting is about happens after a successful hunting trip. The store sells items to help after the hunt, like “deer drags,” which are canvas drags that go over hunters’ shoulders and help them slide the animal to an area where
they can field dress it. McGehee says the store stocks products to make the end of a customer’s hunting trip a success. “We sell products like skinning knives, capping knives and knives you can use to butcher and field dress the animal,” McGehee says. “Then, we have the products our customers need to ensure their meat is well-preserved and ready to be processed.” The products your hunting customers will look for include vacuum sealers to seal the venison, beef jerky makers, sausage making kits and much more. To keep meat cool and free from bacteria, many hunters find it vitally important to invest in quality coolers. While Nenstiel says there are many people in the community surrounding Charlie’s Hardware & Rental who can process deer meat for hunters, he knows many customers want to do it themselves. “There are great folks you can pay to process your meat for you,” Nenstiel says. “I have been processing my own deer for many years. At the store, we sell hydrators, jerky cannons and other odds and ends.”
who shop the store will establish your employees as local experts. Walker County Ace Hardware is always bustling with activity when it comes to the hunting category. As the season is close to
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Once a hunt is complete, hunters may need a wide range of products to process their meat and to preserve it, like meat grinders and sausage-making kits.
wrapping up, however, they still have the information to help and intrigue customers. “We have a bulletin board at the service counter that a lot of people come in to look at,” Harding says. “We feature photos of the deer and other animals hunters in the area have harvested, allowing them a place to show off their hunt.” According to Harding, one of the most exciting things about the sport is that at the end of the day, it’s often just a game of luck. “With deer hunting, anybody can be lucky when they go hunting,” Harding says. “You can spend a lot of money and prepare, yet someone else can go out and stumble in the national forest and shoot a monster. Hunting is not limited to somebody with a bunch of money.” At Reedsburg True Value, McGehee says after a hunt, they have many customers who return to brag about their hunt and talk with others. “We encourage our customers to bring in photos after the hunt and we put it up on our brag board,” McGehee says. “I always joke about how our gun and ammo counter starts to look like a checkout line at Walmart, because people are piled up and down the aisles, all talking and excitedly sharing stories.”
Stay connected wherever you are. Now Hardware Retailing magazine has a companion. Meet the HR Mobile App, which gives you access to the latest industry news and Hardware Retailing’s online exclusives including photo galleries, videos, quizzes and selling guides. Don’t have time to read while you’re on the run? Save your favorite articles on the app and access them later. Find HR Mobile in Google Play and the Apple App Store, or go to www.hardwareretailing.com/hr-mobile.
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Events Bring the Hunters Back When the hunting season comes to a close, many avid hunters are not ready to let go of the fun quite yet. To keep their loyal customers happy and engaged even after the season ends, retailers who create a haven for hunters will stay busy. Walker County Ace Hardware has found a way to keep customers competitive and encourage them to return by hosting the Big Buck Contest for Walker County, which has become a tradition. “Years and years ago, my dad hosted the Big Buck Contest at our store, and eventually it got dropped,” Harding says. “However, about 15 years ago, we started hosting it again. We usually give away three main prizes.” The contest encourages both kids and adults to participate, and what Harding says is so cool about hunting is that it brings families together. During the hunting season, people come to the store with their animal tagged so that it can be judged for the Big Buck Contest. “Hunting has become a true family pastime,” Harding says. “Everybody gets together and has a good time; you can even take the kids. I enjoy going out hunting with my son and grandson.
If they have a good hunt, I enjoy watching as much as if I was the one to do it.” For hunters who shop and are loyal customers of Reedsburg True Value, although they no longer need to bring their game to the store after a hunt, many still do to show off what they got and tell stories, McGehee says. “After a hunt is over, people often come to our store, and it’s honestly like a parking lot party,” he says. “People tell stories, check out people’s deer and hang out. It’s a lot of fun.”
Q&A With a Hunter Are you looking for a consumer’s insights into the hunting category? Then read this in-depth Q&A with Bob Cutter, an avid hunter and NRHA’s vice president of sales, by visiting TheRedT.com/hunting-qa. Bob reveals the products he won’t go on a hunting trip without, what he has learned from hunting, what elements he thinks are most important for retailers to be aware of if they want to find success in the category, and much more.
By Renee Changnon, rchangnon@nrha.org
History, Great Service and Cool Products Kelloggs & Lawrence a Community Favorite Since 1887
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or residents of Katonah, New York, a trip downtown is like stepping back in time. And nestled in the heart of the downtown area is a store that mixes the nostalgia of the past with innovations of the future—Kelloggs & Lawrence. The business began as a hardware store in the 1800s and has evolved and grown to become a must-visit location. It was 1887 when Henry W. Kellogg purchased a hardware business in Katonah, and from that point to today, many changes have occurred, including the physical location of the building. Shortly after he took over the business, nearby New York City needed a reservoir system to supply it with water. Part of the project required flooding the original site of Katonah in the 1890s, so the town moved a mile south.
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In 1895, a new building was constructed for the hardware business, and it has remained at the same site ever since. The store has had many name changes over the years, but was eventually named Kelloggs & Lawrence in the early 1900s. The Kellogg family descendants have been a part of the business since 1887, and today, Jeff Kellogg is a manager, and represents the fourth generation to work in the store. In 1996, Bart Tyler and his wife Diana decided to go into the business, and Bart followed his lifelong dream of owning and operating the store, which he grew up visiting. On the next page, take a look at of some of the most popular areas of this traditional hardware store and its unique offerings, like outdoor clothing and fireplace goods. Then, visit TheRedT.com/kelloggs-lawrence to read a full profile on the store and to see photos from the early years.
A Spotlight On Hardware History Kelloggs & Lawrence has been a hometown hardware staple for residents of Katonah for more than a century. While the business has been owned and operated by Bart and Diana Tyler for the past 20 years, the store is still linked to the original founder, thanks to manager Jeff Kellogg. The history of the store is visible as soon as a customer walks in the door. In many ways, it has the vibe of a mini-museum, featuring a wall of interesting finds, like an old cash register, clippings from the store’s past, and photos of various individuals who had been a part of the business over the years. Aside from a wall of history from the business, many store artifacts are blended in throughout.
Outdoor Clothing, Fashion Flare For those who live in Katonah, Kelloggs & Lawrence is much more than a hardware store. Anyone who’s ready to venture outside on a hike or a camping trip or is simply looking for a new outfit is just as eager to visit the store. Diana and Bart decided to dive into the clothing category to augment their basic hardlines with new departments. “Over the years, clothing has become an important part of business for us,” Diana says. “We have taken up products from The North Face and other outdoor clothing brands, which is a big draw for our customers.” The Tylers take merchandising seriously in their clothing department and look for different ways to make customers feel invited to browse, try on clothes and search through the racks.
Warming Up the Hearth Another unique niche is the fireplace business. A passion for this niche helped the Tylers in their quest for the best quality products, allowing their customers to find at their store what they couldn’t find at a big-box. “After buying a hunting lodge-style home, we had fun picking out fireplace doors, tools and more,” Bart says. “We got in the business because there was no fireplace shop around us. “Now, we have become a fireplace destination where designers, architects and homeowners know they can find high-quality products,” he says. Today, the store offers screen-set fireplace doors and accessories like tool sets and screens. “Our clients appreciate quality products,” Bart says. “People value heavier-made, quality fireplace items.”
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Newsmakers
How Will Overtime Changes Affect Small Businesses?
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onsultant Roberto Castellón, whose areas of expertise include finance, access to capital and business operations, spoke with Hardware Retailing about national overtime law changes that take effect Dec. 1. Castellón works for a Florida branch of America’s Small Business Development Center (SBDC), which provides small business owners with free business consulting and low-cost training services. SBDC is a U.S. Small Business Administration resource partner. The new overtime rules come from the U.S. Department of Labor, and require that hourly employees earning less than $47,476 per year be paid time-and-a-half for any hours worked over 40 hours per week. To be considered salaried, or overtime exempt, an employee must earn $913 per week or more.
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Hardware Retailing (HR): How will the overtime law changes immediately impact small businesses? Roberto Castellón (RC): It’s not impossible, but it’s a tricky thing to labor over that on paper. I think most business owners are going to reach out to financial professionals or are going to go to their accountants. It’s going to put stress on them. It’s going to incur costs. I think, at the end of the day, payroll will increase across the board for everyone.
November
HR: How do you think most small businesses will react to this? RC: I think there are going to be a lot of conversions from salary to hourly wages. I think you’re going to have to hire new people. I think the best solution is to convert the folks to an hourly wage, and under no circumstances can anyone work more than 40 hours.
December
HR: What do you think the impact on small businesses will be? RC: There will be an increase in the payroll expenses and operating expenses. I think there’s going to be a shakeout. The ones at the bottom, that are barely holding on now, may close because it’s not worthwhile to stay in business. HR: What else can businesses do? RC: You do the best you can to minimize the impact. It’s going to affect retail in an inordinate fashion. I believe it’s going to have an effect across the board until prices go up. The issue is the transition from the day the law kicks into place, to when product price stability occurs. If you’re barely making it, there’s no space for you to absorb this cost. HR: What do you think the overall effects of the new regulations will be? RC: From a social perspective, I think it’s going to better the lives of a lot of people. Nothing ever works all bad or all good. We don’t know what’s going to happen, but any time government tweaks the economy, there are always issues. From the U.S. Department of Labor In May, the U.S. Department of Labor updated overtime regulations, which are intended to “extend protections to 4.2 million workers across the U.S.,” according to the federal agency. For more information, visit TheRedT.com/DOL-overtime to read the Department of Labor’s detailed answers to questions about the new overtime law changes. To view the final version of the rules that will take effect Dec. 1, visit TheRedT.com/overtime-finalrule.
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Upcoming Events
HARDWARE RETAILING | October 2016
17-19 2016 Distribution America/ PRO Group Executive Planning Conference Marco Island, Florida
8 North American Retail Hardware Association State of Independents Conference Chicago
January 5-7 World and Main Houston 2017 Spring Market Houston
6-8 United Hardware Spring and Summer Buying Market Minneapolis
10-12 The Kitchen & Bath Industry Show (KBIS) Orlando, Florida Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.
Want your business to thrive? Focus on what you do best. Chances are, things like human resources, payroll administration and risk mitigation aren’t your passion and every minute you spend distracted by these tasks is a moment you can’t focus on doing what you love. On the contrary, your passion is running – and growing – your business. At Tilson, our passion is doing the things big and small that allow our clients to focus on doing what they love. We’re known as a professional employer organization (PEO) and provide human resources, benefits and a host of other services to small and mid-sized businesses. In doing so, we allow you to focus on your core business – while saving you time and money. Our benefits options keep you competitive as a business owner and the packaged Tilson solution gives big benefits to help you attract a qualified workforce. The combination of resources, integration of services, and benefit packages makes Tilson the right partner for hardware retailers. Tilson – Built to help businesses thrive.
“ Clients enjoy a 10% higher growth rate than companies who don’t work with a PEO.” Scott Hall Sr. VP of Business Development | shall@tilsonhr.com | 317.701.1200
Tilson Headquarters 1530 American Way, Suite 200 Greenwood, IN 46143 800.276.3976 | tilsonhr.com/nrha Currently Operating in the United States of America
Newsmakers
Lowe’s Asks Court to Intervene in Sale of Australian Business Woolworths, Lowe’s partner in an Australian home improvement business, found a buyer for part of their failed joint venture. However, the partners aren’t cleanly cutting ties. TheRedT.com/lowes-australia-court
Amazon and Lowe’s Partner on Smart Home Technology Retail competitors Amazon and Lowe’s are joining forces to make their technology work together in their customers’ smart homes. TheRedT.com/amazon-lowes-partner
Giving Generously After Louisiana Flooding The devastating floodwaters in Louisiana that killed more than a dozen people and heavily damaged thousands
of homes and businesses in midAugust inspired a flood of another kind. Residents, businesses, churches and other organizations joined together in an outpouring of generosity. TheRedT.com/louisiana-flooding
Ace Hardware Focuses on Building on Success Retailers stood in a packed line to get into the Ace Hardware Convention and Exhibits when the show opened, eager to look for new products and meet with other store owners. TheRedT.com/ace-fall-2016
Retailers Find New Ideas, New Products at Orgill Dealer Market From new products to concept stores to promotional areas, the Orgill Fall Dealer Market had a lot to offer retailers. The buying show took
The Johnny Jolter™ Professional Power Plunger is a professional tool for clearing toilets. It uses water, not air to clear clogged toilets fast. Made in USA and Assembled by Disabled US Veterans, the Johnny Jolter will grow your category margins by double digits simply by keeping it in stock. Available through the Ace RSC, item #4500179
¨
One Push! No Mess! Toilet Clear! K-CO Products,LLC • 30900 Rancho Viejo Rd. STE 150 San Juan Capistrano, CA 92675 • (949) 276-5252
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HARDWARE RETAILING | October 2016
place Aug. 25-27 at the Sands Expo Convention Center in Las Vegas. TheRedT.com/orgill-fall-2016
Quarterly Earnings Up for Big Boxes, Ace The Home Depot, Lowe’s and Ace Hardware each released their quarterly earnings reports for the second quarter of 2016, and all three showed sales growth. TheRedT.com/q2-earnings
J.C. Penney CEO Learned From Home Depot Former Home Depot executive Marvin Ellison is leading J.C. Penney’s turnaround, and the strategies he’s using look like lessons he learned from the home improvement giant. It’s working well—the store’s stock is up 50 percent. TheRedT.com/jc-penney-home-depot
Sears Is Getting Back in the Paint Business
CANADA
After four years’ absence from the market, Sears has decided to go back to selling paint. The company announced its plan after reporting a drop in net sales in the second quarter. Sears hopes paint will be a profit winner as it has been for other big-box stores, such as Lowe’s and Home Depot. TheRedT.com/sears-paint
Size of Gypsum Tariff for Western Canada Takes Industry by Surprise
Amazon’s New Delivery Fleet vs. UPS, FedEx Amazon has rapidly amassed its own delivery fleet of trucks and cargo planes, now competing with the companies that used to deliver millions of its boxes. As of August, the retailer owned 4,000 truck trailers and leases 40 jets. TheRedT.com/amazon-fleet
A ruling was made on Sept. 6 by the Canadian International Trade Tribunal to impose a tariff on drywall being sold in Western Canada. The tariff will effectively raise the price of drywall in the West by as much as 60 percent, which has created a furor among drywall distributors, home builders and contractors.
Ace Brand Gets Push for Independents at RONA Show This year’s RONA show featured more than just RONA. It also put the Ace banner, which RONA licensed for Canada two years ago, front and center. The annual show, held Sept. 1 at the Palais de congrès in Montreal, was the first one under RONA’s ownership by Lowe’s.
Executives at RONA Show Reaffirm Lowe’s Commitment to Independents With about 230 independent dealers in attendance, this year’s RONA show enjoyed the best attendance yet. And though it may not be the largest show in Canada by anyone’s estimation, the intimacy of the event ended up working in its favor.
Selkirk Home Hardware Manager Receives Scholarship for NRHA’s RMCP Course Wendy Lang, manager of Selkirk Home Hardware Building Centre, is the recipient of the Home Hardware NRHA Retail Management Certification Program scholarship.
For the full story of each of these briefs, visit hardlines.ca/hardwareretailing.
AD INDEX Ace Hardware ..........................................................11 www.myace.com; 630-990-6900
Hardware Retailing Mobile App ...............................78 www.hardwareretailing.com/hr-mobile
Pacsoft.....................................................................17 www.pacsoft.com; 800-554-6166
ADFORS Saint-Gobain ...............................................7 www.adfors.com; 800-762-6694
Howard Products Inc. ..............................................32 www.howardproducts.com; 800-266-9545
Paladin Data Corp. ...................................................39 www.paladinpointofsale.com; 800-725-2346
Ajax Wire Specialty Co.............................................84 www.ajaxwire.com; 855-966-2529
HSI.......................................................................... BC www.hardwaresuppliers.com; 800-334-5625
Pennsylvania Lumbermens Mutual Ins. Co..............30 www.plmilm.com; 800-752-1895
Allway Tools Inc. ........................................................21 www.allwaytools.com; 718-792-3636
Implus Corporation .....................................................33 www.yaktrax.com; 866-YAKTRAX
PRO Hardware ...........................................................43 www.prohardware.com; 303-792-3000
Apex Tool Group ........................................................5 www.apextoolgroup.com; 410-773-7800
IPG..............................................................................31 www.itape.com; 888-474-8273
Quikrete......................................................................57 www.quikrete.com; 404-634-9100
Big Green Egg ............................................................41 www.biggreenegg.com; 800-793-2292
K-CO Products LLC ....................................................84 www.kco-innovations.com; 949-276-5252
Sashco ................................................................... IFC www.sashco.com; 800-767-5656
Caterpillar............................................................12-13 www.cat.com; 888-614-4328
Kindling Cracker .......................................................64 www.gnedi.com/kc; 800-822-0295
Sears Hometown Store ...........................................15 www.ownasearsstore.com
Channellock Inc..........................................................1 www.channellock.com; 800-724-3018
Lincoln Products.........................................................61 www.lincolnproducts.com; 844-223-4770
Simpson Strong-Tie Co. Inc. ......................................9 www.strongtie.com; 800-999-5099
Coast Products Inc. ....................................................77 www.coastportland.com; 800-426-5858
Magna Industries Inc..................................................16 www.magna-insto.com; 800-969-3334
Starrett.....................................................................34 www.starrett.com; 888-674-7443
Cole’s Wild Bird Products Co...................................55 www.coleswildbird.com; 877-426-8882
Marklin Inc. ................................................................20 www.lgb.com; +49 7161 608-0
Stihl..........................................................................37 www.stihlusa.com; 757-486-9100
Compass Minerals ...................................................... 67 www.compassminerals.com; 913-344-9216
Master Magnetics Inc. ...............................................40 www.magnetsource.com; 888-293-9190
Stump Chunks .........................................................73 www.stumpchunks.com; 603-935-5405
Convenience Products ...............................................75 www.touchnfoam.com; 800-325-6180
Maxim......................................................................72 www.maximmfg.com/hrm; 800-621-2789
Sun Gro Horticulture ................................................79 www.blackgold.bz; 800-732-8667
Darex .......................................................................51 www.darex.com; 800-597-6170
Midwest Fastener...............................................24-25 www.fastenerconnection.com; 800-444-7313
True Value Company................................................23 www.truevaluecompany.com; 888-291-7229
Delta Faucet Company.............................................42 www.deltafaucet.com; 800--345--3358
MiTek Builder Products.......................................44-45 www.mitekbuilderproducts.com; 800-328-5934
UGL ............................................................................18 www.ugl.com; 800-845-5227
Do it Best Corp. .........................................................3 www.independentsdoitbest.com; 888-364-8237
Motorola .....................................................................63 www.acsradios.com; 800-248-5391
U.S. Wire & Cable....................................................19 www.uswireandcable.com; 800-327-4673
Dutton-Lainson Company...........................................64 www.dutton-lainson.com; 402-462-4141
NRHA Health Insurance ...........................................87 www.cbigi.com; 888-201-7408
Viance .........................................................................29 www.treatedwood.com; 800-421-8661
ECI Software Solutions ..............................................59 www.ecirocksolid.com; 800-588-5128
NRHA Tilson ............................................................83 www.tilsonhr.com/nrha; 800-276-3976
Wayne Water Systems ..............................................69 www.waynepumps.com; 800-237-0987
Epicor Software Corp. ................................................53 www.epicor.com; 888-463-4700
NRHA Training Resources .......................................... 68 www.nrha.org/freetraining; 800-772-4424
Whink Products Company..........................................35 www.whink.com; 800-247-5102
General Pipe Cleaners, Div. of General Wire Spring Co.......74 www.drainbrain.com; 800-245-6200
Old Masters .............................................................65 www.myoldmasters.com; 800-747-3436
Woodland Scenics......................................................76 www.pinecar.com; 573-346-5555
Gojo Industries Inc...................................................28 www.GOJO.com; 800-321-9647
Orgill Inc. .......................................................... 88-IBC www.orgill.com; 800-347-2860
*This index is provided for the convenience of our advertisers and readers. The Publisher assumes no liability for errors or omissions.
October 2016 | HARDWARE RETAILING
85
Last Word
A Quick Look What Business Issues Will Be on State Ballots in November?
W
age laws have inspired debate and concern all throughout 2016, and those conversations will continue into November’s general election. Multiple states will vote on proposed changes to minimum wage rules. A few states are considering other retail- or business-related issues, as described below. For some retailers’ perspectives on politics and public service, turn to Page 60.
Arizona
California
Colorado
If passed, Proposition 206 would increase the state minimum wage from $8.05 to $12 per hour by the year 2020 and require employers to allow workers to earn paid time off for every 30 hours worked.
Proposition 67 would modify the plastic bag ban, which requires stores to charge for shopping bags. The change would require money earned off the bags to be paid to the state’s Environmental Protection and Enhancement Fund.
South Dakota
Amendment 70 would increase the state minimum wage from $8.31 per hour to $12 per hour by the year 2020.
Washington
Amendment 69 would establish a statewide system to finance healthcare services and create new income taxes to fund the program.
86
Maine
HARDWARE RETAILING | October 2016
Question 4 would increase the state minimum wage from $7.50 to $12 per hour by the year 2020, and also increase the minimum wage of service employees who receive tips to $5 per hour.
Referred Law 20 would decrease the hourly minimum wage for nontipped workers younger than age 18 from $8.55 per hour to $7.50 per hour. Initiated Measure 23 would give businesses and nonprofits the right to charge fees for any service provided.
Initiative Measure 1433 would increase minimum wage from $9.47 to $13.50 per hour by the year 2020 and require employers to provide paid sick leave to workers.
In 60 days, you may need to make an important health insurance decision. Have you considered your options? Health insurance can be tricky, but the North American Retail Hardware Association is here to help. We offer an alternative program with a range of coverage options.
To learn more, please contact Bob Chiesa at 888-201-7408 or cbigi@msn.com.
Kelly Armstrong Cook’s Home Center New Mexico
“Working with Orgill, we have been able to grow our profits and expand our selection to keep customers shopping locally.”
Standing Up to the Competition Orgill Allows Our Business to Shine!
Goodbye, Big Boxes
New Ideas
“We know our service gives us an edge over the big boxes.
“We go to Orgill’s Dealer Markets to check out trends and
With help from Orgill we can sharpen our prices and expand
brainstorm new ideas. The new and unique products we find
our selection and run the boxes out of town.”
at the Markets, keep our customers coming back for more.”
A Fresh Perspective
Future Plans
“Our Orgill sales representative helped us find ways to
“Orgill’s Markets aren’t just about pricing and programs. We
enhance our selection and freshen up categories that had
were inspired to remodel our register area and front end of
lost their luster.”
the store based on a concept store we saw at the Market.”
For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140
use promo code: hr5 to receive 5% off all schlage residential orders through hsi’s web warehouse now through 10.31.16
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