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Serving Hardware, Home Center & Building Material Retailers

Light the Way Brighten Up Exteriors With This Niche 74 Don’t Be Spooked by Dead Inventory 84

VOLUME 215 • ISSUE 4 • OCTOBER 2018 • HARDWARERETAILING.COM

The return of 10 lists! Start counting!

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Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.” Bobby Fuller l Fuller & Son Hardware, Arkansas l An Orgill customer since 2002

Why We Like Working With Orgill: • Competitive pricing • Deep discounts and new items at the Dealer Markets • Personal relationships

Watch the video to learn how buying from Orgill makes Fuller & Son more successful!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com Digital_Fuller & Sons_Single Page.indd 1

8/28/18 9:30 AM

Light the Way Brighten Up Exteriors With This Niche 74 Don’t Be Spooked by Dead Inventory 84

and rest easy knowing that your business information is always safe.

YOUR DATA, CONFIDENTLY PROTECTED. www.ECiSolutions.com/RockSolidMAX

RockSolidMAXInfo@ECiSolutions.com

VOLUME 215 • ISSUE 4 • OCTOBER 2018 • HARDWARERETAILING.COM

800.588.5128

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Serving Hardware, Home Center & Building Material Retailers

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How is the nation’s largest hardware store planning for growth? The answer may surprise you.

Zach Coblentz | Hartville Hardware | Hartville, Ohio

Hear their story on Dec. 6. Attend the 2018 State of Independents Conference on Dec. 6 in Chicago to discuss growth opportunities in the independent home improvement industry. The daylong event will include brand new research led by economic and industry experts as well as success stories from high-performance retailers like Hartville Hardware. The event is free for retailers to attend, but seating is limited.

2018 STATE OF INDEPENDENTS CONFERENCE

CATEGORY

Shine a Light for Customers

More homeowners are opting to turn their outdoor spaces into first-class entertainment destinations. As the lighting category evolves, Hardware Retailing checks in with two retailers who shed light on how businesses can make the most of their outdoor lighting selection.

42 SPECIAL SECTION Return of the 10 Lists 10 Lists are back! Find Hardware Retailing’s latest collection of informative, inspiring and instructional 10 lists to boost your business. From 10 Ways to Boost Employee Morale and 10 Things to Never Say to a Customer to 10 Retail Lessons From Toddlers and 10 Habits of Successful Retailers, these quick-hit lists have everything you need to help your operation finish 2018 on a total winning streak.

THE

spoga+gafa Shines The outdoor living event spoga+gafa drew attendees from across the world in September. Take a look at the innovative products and exciting trends that are showcased at the world’s leading outdoor living market.

Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . New Products 36 . . . . . . . . . . . . . . . . . . Checkouts 92 . . . . . . . . .Newsmakers/Calendar 94 . . . . . . . . . . . . . . . . . . Last Word

On the Cover

ISSUE

At Girard’s Ace Hardware, Lighting and Furniture, illuminating customers on outdoor lighting options is a special interest for owner Joe Girard. NRHA photo by Kelsey Truex

HARDWARE RETAILING | October 2018

Xienna Arlanza – Assembler

Built in America. Believing in America.* STIHL believes in the power of American manufacturing and our employees are proud to help rebuild our economy one Americanbuilt product at a time. We also believe in local businesses and that’s why for more than 40 years we have only retailed our products through servicing dealers like yours.

Because it’s real people, STIHL people, who help make STIHL the number one selling brand of gasoline-powered handheld outdoor power equipment in America.* To become a STIHL dealer: STIHLusa.com/Dealer

*A majority of STIHL gasoline-powered units sold in the United States are built in the United States from domestic and foreign parts and components. “Number one selling brand” is based on syndicated Irwin Broh Research as well as independent consumer research of 2009-2017 U.S. sales and market share data for the gasoline-powered handheld outdoor power equipment category combined sales to consumers and commercial landscapers. © 2018 STIHL

On the Web TRAINING

Basic Inventory Management Dive into the principles of inventory management to ensure your operation isn’t tying up money in needless orders. Learn why managing your stock is an invaluable component to every successful home improvement operation. Visit nrha.org/online-training to access the course today. Course Modules • Module 1: Introduction to Inventory Management • Module 2: Ordering • Module 3: Receiving • Module 4: Stocking • Module 5: Maintaining Inventory Accuracy • Module 6: Inventory Reporting • Module 7: Managing Slow-Moving and Discontinued Products

OPERATIONS

Extra 10 Lists There are more 10 lists than can fit in the pages of Hardware Retailing! Check out TheRedT.com/10-lists-2018 to get extra insight on ways you can strengthen your operation, meet customers’ needs and ensure your team is moving toward a single goal, all in an easy-to-digest format perfect for training and inspiring employees. • 10 Ways to Beat Amazon at Retail • 10 Projects Young Customers Need Help With • 10 Things Hardware Retailers Can Learn From Dollar Stores • 10 Ways to Use NRHA Research to Improve Your Business • 10 Podcasts Small Business Owners Should Listen To

10 Ways to Beat Amazon at Retail Battling Amazon can seem like facing Goliath, but independent retailers have many advantages when it comes to going up against the online giant.

NEWS

Guten Tag From spoga+gafa Check out a gallery of all the colorful finds at spoga+gafa 2018 and read more about what Hardware Retailing saw at the three-day event that drew visitors from around the world. View the gallery today by visiting TheRedT.com/spoga-gafa-2018.

10 Podcasts Small Business Owners Should Listen To Make your commute worthwhile by diving into 10 informative, entertaining podcasts. From economic news to hardware innovation, find your new favorite podcast today.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

HARDWARE RETAILING | October 2018

Independent Thinking

The Season to Get Involved t’s truly hard to believe that we are already heading into the fourth quarter of 2018. With only a few months left, we have already seen so much happen this year that it feels like we need to catch our breath. On one hand, we have seen a number of positive developments. The economy continues to gain strength; unemployment is low; and the housing market has remained steady. On the other hand, we still face some difficulties as an industry. Independent retailers are striving to develop a cohesive plan for e-commerce; the costs associated with operating a business seem to be increasing every year; and the issue of succession in our industry still poses a dire challenge. Any one of these challenges can provide a headwind to business owners trying to grow their operations, especially for the independent businesses that make up our segment of the channel. During these times of rapid change, know you are not alone. You have an association dedicated to helping you take advantage of market opportunities and solve operational challenges—the North American Retail Hardware Association (NRHA)! When I talk to retailers, manufacturers and distributors, and ask them what they know about NRHA, I often get an answer like, “Oh, you guys offer that online training,” or “You have that management certification program,” or “You publish Hardware Retailing.” While it is true that we offer a host of programs and services as part of NRHA, and we have been publishing Hardware Retailing for more than 100 years, we do so much more than just create, market and sell services or programs. While in many instances NRHA may be perceived as just a vendor of programs and services, your industry association can’t be defined that simply. We want to provide you with tools to help you succeed in your business, which include our training products, Retail Leadership Institute offerings, our magazine and exclusive research, like our Cost of Doing Business Study. (Read more about the study on Page 16.) Beyond these tools, however, we offer something that no other entity in this industry offers—the opportunity to bring together retailers of all wholesale affiliations, sizes and types to share ideas on common ground. We do this through the stories we tell in the magazine, the NRHA All-Industry Conference held each year in conjunction with the National Hardware Show®, retailer roundtables, the State of Independents Conference and through our efforts to connect retailers in countless ways. That’s why when you talk to retailers who have been involved with NRHA, who have attended these programs, have served on our board or have participated in roundtables, you get a much more complete picture of what NRHA offers. These retailers might mention some of the tools we offer when asked to define the association, but more often than not, they refer to NRHA based on the relationships it has helped them form with other retailers. Listen, we are all in this together. There will be good times and difficult times. There will be products and services the association creates that come and go. But one constant we can offer—and the one thing that makes NRHA so much bigger than the tools we create—is the relationships we help form, and this requires your participation in your association. We understand and embrace the concept that we are stronger together! I encourage you to do the same and get more involved in your association.

“We offer something that no other entity in this industry offers— the opportunity to bring together retailers of all wholesale affiliations, sizes and types to share ideas on common ground.

”

Bob Cutter, President and CEO

bcutter@nrha.org

HARDWARE RETAILING | October 2018

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Taking Care of Business

Falling for Top 10 Lists ell, it is officially fall, and that means it’s time to break out the sweatshirts, start rooting for the Bears and brew some strong coffee for those nippy mornings. Ah, my favorite time of year. There are a lot of reasons autumn is my favorite season. I was born in autumn; I met my wife in autumn; our daughters both have autumn birthdays; and Halloween and Thanksgiving are two of my favorite holidays. But in the last several years, there has been one more reason I like the fall. That’s right—it’s Hardware Retailing’s 10 Issue! Though my editors and designers who have to compile, write, edit and design all of the 10 lists for this issue might disagree with me, I just love the whole issue. I also like it because it gives me a reason to come up with my very own 10 list. So, without further pontification, let’s get into it.

Dan’s Top 10 Things You Can Still Do in 2018 to Improve Your Business

“It’s a great big world out there, and you’ll never be exposed to the full spectrum of new ideas if you just do the same thing year after year.

”

1. Get a copy of the Cost of Doing Business Study, and actually use it. This annual report from the North American Retail Hardware Association (NRHA) has all the numbers you need to start planning how to improve your business. 2. Let your family and employees know how much they mean to you. Let’s face it, we are all in this together, and all those long nights and hard days require patience with each other (and you), so be thankful for the help you get. 3. Plan transaction-builders for the holidays. Go out with a bang in 2018 and plan an add-on item sale for each week from November through Christmas. 4. Plan to attend one show or event you never have before. It’s a great big world out there, and you’ll never be exposed to the full spectrum of new ideas if you just do the same thing year after year. 5. Review your expenses. Now is a great time to try to tighten down all your business expenses. Even a few dollars here or there can make a big difference. 6. Create measurable growth goals. It’s budgeting season. Don’t just throw a number down and hope you hit it. Create a plan to reach your goals and then set benchmarks to measure those goals by. 7. Adopt another local business. Communities are tied together through their local businesses. Make a commitment this year to create a new relationship with, and support, another local business. 8. End one bad business habit. I know we get caught up with New Year’s resolutions, but pick one bad business habit you can end now! 9. Plan a party. Take a minute to have some fun with your employees and host them for a pizza party or cocktails after work. It will go a long way. 10. Get more involved with your association. There are 34,999 other independent retailers out there just like you who could all be stronger if you work together and share ideas, thoughts and best practices. Go online (nrha.org) or give NRHA a call (800-772-4424) to see how you can get more involved in your association!

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | October 2018

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CUSTOMER SUCCESS STORY

MILLER’S ACE HARDWARE

RockSolid MAX™ POS Software for Hardware Stores Keeps Independents Competitive with the Big Boxes

sk Kurt Miller about the impact RockSolid MAX™ hardware software has on his store, Miller’s, an Ace Hardware® in Pittsburgh, Pennsylvania, and the answer you get might well surprise you.

attitude to service. Also helping to drive top-line sales, Miller’s closest competitor, a local True Value® store, closed its doors two years ago. This makes Miller’s, Kurt claims proudly, the only real hardware store in Pittsburgh today.

Kurt is a huge fan or the RockSolid MAX point of sale software but what he has to say about the program’s key benefits has very little to do with any of the technology bells and whistles it might offer. For Kurt, it’s all about the changes it made for him and his people, as they made the transition from pen and paper to the cloud-based ERP solution built specifically for the hardware industry.

But growth is something no business can ever take for granted. Kurt recognized that if Miller’s was to make the most of it’s current opportunities and position itself for continued prosperity, it was time—indeed, it was long past time—to bid farewell to pen and paper and move management of the company into the 21st century.

Miller’s in an outstanding example of the independently owned and operated hardware store’s continuing ability to compete against the toughest big box competition. The company is more than 130 years old; Kurt represents the fifth generation of the Miller family to work in the store, which today is co-owned by his father, Steve, and uncle, John. Business has been good for the Millers of late. While there’s The Home Depot®, as well as Lowe’s® and Busy Beaver Building Center® all just a 20-minute drive away, Miller’s has been growing nicely thanks to the support of a loyal customer base that values its “whatever it takes”

MILLER’S ACE CHOSE AFFORDABLE ROCKSOLID MAX POS SOFTWARE Kurt spent about three months carefully researching the various software options available to Miller’s and one program, he says, came out a clear winner: RockSolid MAX, a POS system for small businesses, from ECi Software Solutions. The program’s low price was a major factor behind that decision, he says candidly. But that was just one of the reasons for choosing the RockSolid MAX hardware store POS system. “Our top priorities were point of sale, inventory management and a direct interface with Ace,”

Kurt reports. “RockSolid MAX performed great in each of those areas.” Also a big plus, he points out: the program’s cloud-based platform meant Kurt and his team wouldn’t have to worry about maintenance on a store-based server or managing backups. Even though Kurt himself had no specialized computer training, responsibility for a successful implementation was in his hands. “I knew I had a lot to learn, no just about the program itself but even the basics—how a point of sale system works, and so on,” he recalls. It was a situation that potentially could have been disastrous. Only it wasn’t. “We got excellent support from RockSolid on the implementation,” he reports. “Our situation was a little different from most of the conversions they worked with since we were automating the business totally from ground zero but they were very willing to accomodate our situation and adjust to any

special requirements we might have. And even after we went live, the implementation specialist we worked with would call me in his free time to see how we were doing and answer any questions I might have. RockSolid MAX provided a level of support that was very much above and beyond what I expected.”

THE HARDWARE-STORE-SPECIFIC SOFTWARE DELIVERED BENEFITS IMMEDIATELY Once the program was up and running, the benefits started showing up almost immediately. Switching to new software can be daunting task for just about any business. For the Miller team— which was moving from a manual, paper-based system and had only limited IT resources within the company itself—the stakes were particularly high. But Kurt says, RockSolid MAX has more than lived up to expectations.

GET PROTECTION IN THE CLOUD! RockSolid MAX™ cloud-based software for hardware stores and home centers protects your data from fire, natural disaster, or cyber attacks. With automatic backups to the cloud, you will save time and rest easy knowing that your business information is always safe. YOUR DATA, CONFIDENTLY PROTECTED. www.ECiSolutions.com/RockSolidMAX

RockSolidMAXInfo@ECiSolutions.com

800.588.5128

NRHA News

NRHA Launches New Inventory Management Course nderstanding your inventory is a critical component of your overall profitability, says North American Retail Hardware Association (NRHA) training manager and editor Jesse Carleton. If retailers don’t have an accurate, up-to-date picture of the products on their shelves, Carleton says, they could be losing money due to missed sales and frustrating customers in the process. “Inventory is likely your biggest asset and also your biggest cost. Failure to manage it effectively can be a drain on your profitability. It will also impact your customer service,” he says. With developmental support from Josiah Gates, vice president of product at Aubuchon Hardware, and Jason Budman, who works on human resources and store operations for Cole’s Hardware, NRHA is now launching the all-new Basic Inventory Management course for NRHA Training Members. Spanning seven modules, the course provides a high-level overview of inventory management strategies and best practices. The online course is aimed at owners and managers, and it can be completed in about an hour. Carleton says all retailers can benefit from reviewing their inventory management practices. “When you have a reliable inventory management system, you can spot inventory issues quickly,” he says. The course in Basic Inventory Management is available to NRHA Training Members. Visit nrha.org/online-training, or call Marci Taschler with NRHA Member Services at 317-275-9421 to learn more.

The course provides a high-level overview of inventory management strategies and best practices.

HARDWARE RETAILING | October 2018

Course Modules Module 1: Introduction to Inventory Management The course starts with an overview of why proper inventory management is important to the overall profitability of a business. Module 2: Ordering This module offers an overview of the purchase order and several tools retailers can use for refilling stock levels, such as velocity codes and sales history. Module 3: Receiving The next module reviews the receiving process with an explanation of manual and blind receiving. Module 4: Stocking This module offers best practices retailers should follow when stocking and maintaining their inventory. Module 5: Maintaining Inventory Accuracy This module overviews the basic ways retailers count their inventory and some of the factors that influence the accuracy of their records. Module 6: Inventory Reporting The POS system is a critical part of proper inventory management, and this module discusses some of the common reports a POS system can generate. Module 7: Managing Slow-Moving and Discontinued Products This module offers an overview of how to manage slow-moving inventory, excess inventory and discontinued products.

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NRHA News

2018 Cost of Doing Business Study Now Available f you’re looking for a tool to compare your operation’s performance to typical and high-profit home improvement businesses, NRHA has what you need. The study is available for purchase for $499 at nrha.org/codb. If you participated in the study, you will receive a copy of the study in the mail. Compiled using financial data from approximately 1,000 independent home improvement stores in the U.S., the study sheds light on facts and figures that can help retailers make better business decisions to improve their bottom lines. Conducted by NRHA for more than 100 years, the Cost of Doing Business Study is divided into separate sections for hardware stores, home centers and lumberyards, giving readers a direct look at the data that affects them most. Before diving into the study, take a moment to review a few important metrics that can help you evaluate your operation against typical and high-profit businesses.

Average Transaction Size

Payroll

Understanding your average transaction size is fundamental for business owners. Your business’s average transaction size is the total sales over a period of time divided by the total number of transactions in that same period. Average transaction size is one of the three main ways retailers can grow their top-line sales, so understanding your specific transaction size data is critical to expanding profits and running your business effectively. Use the Cost of Doing Business Study to see where you stand.

Payroll is the total cost of owner and employee salaries, insurance payments and benefit plans. Finding the right balance between paying employees’ wages and maintaining a healthy profit is an important task for independent retailers. Business owners can compare their store’s payroll against industry averages by dividing payroll costs by net sales. Evaluating payroll on a regular basis and comparing your figures against industry averages is a key way to stay on top of your financials.

HARDWARE RETAILING | October 2018

Gross Margin Return on Inventory (GMROI) You can use your GMROI to determine what your margin is for every dollar you spend on products. To find your business’s GMROI, divide your gross margin dollar value by your at-cost inventory value, and then multiply that number by 100. This figure enables you to watch for slowing sales in products and departments. GMROI is a figure independent retailers can use to compare departments’ performance against one another at specific points in time, or across a span of time.

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NRHA News

3 Reasons to Attend the State of Independents Conference n Dec. 6 in Chicago, NRHA is hosting the fourth annual State of Independents Conference. This year’s event focuses on growth in the independent channel, using industry-specific research to showcase the current state of the channel. It will also feature insider insights from industry experts and retailers telling their own success stories. The State of Independents Conference is the only industry event that brings together voices from throughout the channel. It provides retailers an opportunity to share their successes and their challenges with manufacturers and vendors and allows those valuable industry partners to learn how to enhance relationships with retailers. Learn how you can grow your operation at this year’s conference. Independent retailers attend for free! Get more information and register at nrha.org/soic.

2 3

This event is specific to your business. NRHA understands that time spent outside the store needs to be valuable. The research and information presented at the State of Independents Conference is about the independent home improvement industry, and it’s information you need to prepare your operation for growth in the year ahead. The presenters are retailers like you. Retailers from two distinct independent operations will take the stage to talk about their approaches to growth. Zach Coblentz, division manager of Hartville Hardware in Hartville, Ohio, and Elliot Greenberg, owner of JC Licht in Chicago, will discuss how their operations have evolved and how there is always more room to grow. The attendees are your peers and your channel partners. The State of Independents Conference brings together channel members from across the industry. Take time to connect with other attendees to find out what’s working in their businesses, what’s new and how all channel partners can work together toward growth.

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Trends Employees Are Key for Happy Customers Prices and product quality are a big deal to consumers, but positive interactions with employees are also highly important for keeping them loyal, according to research from PwC. Accounting and consulting firm PwC, also known as PricewaterhouseCoopers, surveyed 4,000 U.S. consumers about customer experiences. Approximately 80 percent of the study participants ranked efficiency, convenience, helpful employees and friendly service as most important for good experiences with a business. On the flip side, nearly 60 percent of PwC’s survey respondents say they would stop doing business with a company they love if they have multiple bad experiences. The customer experience problems that would be most likely to end their loyalty to a business have to do with employees— bad attitudes, unfriendliness and lack of knowledge.

Applied to Retail Good employees are among your best assets for retaining customer loyalty, so hiring carefully and training well should always be more important to you than getting new people hired quickly. Visit nrha.org/online-training for help from the North American Retail Hardware Association (NRHA). Your busiest seasons, when you’re relying the most on part-time or temporary help, may seem like bad times for careful interviewing and thorough training. However, your employees can make or break customer loyalty, so each customer interaction is important. That means every employee’s people skills and attitude toward their work matter, no matter how long they work for you. Take the time to host group interviews to see how friendly, engaged and polite prospective workers are when interacting with each other. When hiring, keep in mind that friendliness and good attitudes can be more important in an employee than product knowledge or prior work experience.

Bad Experiences Erode Customer Loyalty PwC asked consumers how many bad experiences would cause them to stop doing business with a company. About 60 percent say it would take multiple instances, and nearly 20 percent would ditch a company after one.

17%

Would stop doing business with a company they love after just one bad experience.

Source: PwC Future of Customer Experience Survey 2017/18

HARDWARE RETAILING | October 2018

Which of the following would stop you from doing business with a company?

1 2 3 4 5

Bad Employee Attitudes

Unfriendly Service

Company Isn’t Trustworthy

Employees Aren’t Knowledgeable

Inefficiency

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“We have the Mighty Mug

out on display for customers to test, and it stays upright even when empty. It gives us something unique you don’t often find in hardware stores.

”

—Cody Potter, Cornerstone Ace Building Center

1 “CasusGrill is great for tourists flying in from out of town. You can have the fun of grilling without all of the equipment. —Jim Strope, Palmetto Ace Hardware

1. Spill-Proof Mugs

2. Biodegradable Grill

Mighty Mug products feature patented SmartGrip Technology, which is designed to adhere a mug to a flat surface and prevent it from tipping over when bumped. However, it will release its grip when picked up. The bottom of the mug creates an airlock to remain attached to the flat surface.

The CasusGrill is an eco-friendly grill designed to cook food and then disintegrate on its own or be thrown in a campfire for disposal. The one-time use grill weighs just over 2 pounds and uses bamboo charcoal, which produces 50 percent less carbon dioxide emissions. The grill is ready to cook food in 5 minutes and provides an hour of cooking time.

Mighty Mug themightymug.com

”

HARDWARE RETAILING | October 2018

CasusGrill USA 512-660-4111 or casusgrillusa.com

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

“Because Uuni ovens get so

hot, it opens up a lot of cooking options you can’t find in other cooking products. It can also cook steaks and lots of other meals other than pizza.

”

—Scott Herrema, Columbine Ace Hardware

3 “CordCollars bring new life to worn cords. The multicolor pack makes identifying cords easy, and the collars remind users to pull from the band, not the cord.

”

—Courtney Belew, Logan Hardware

3. Pizza Oven

4. Charging Cord Protector

The Uuni Pro Outdoor Oven can cook a pizza in 60 seconds and sear steaks and cook stews in an outdoor space. The oven can cook with wood, charcoal, pellets and gas. It can also cook with a pellet burner or gas burner, which are each sold separately. The oven heats up quickly, reaching 932 F (500 C) in 20 minutes.

The CordCollar™ Cord ID and Protection is designed to protect the most sensitive parts of a computer cord and make it easy to identify cords from one another. The covers reinforce cable ends where they bend more often and can fray. The bright colors help differentiate various cords. CordCollars stretch to fit most charging cords, and the packs include an installation tool.

Ooni sales@ooni.com or ooni.com

Nite Ize 800-678-6483 or niteize.com

October 2018 | HARDWARE RETAILING

New Products

5. Locking Tape Measure

6. Cold Brew Coffee Maker

The Auto Lock Tape Measures line of tape measures by Crescent/Lufkin® automatically lock in an extended position until a release button is pressed. The tape measures have a Hi-Viz® orange case that increases visibility and comes in three styles: a 25-foot standard, a 25-foot magnetic and an 8-meter metric. The magnetic style has dual magnets in the end hook.

The GCM6850 Cold Brew Coffee Maker produces cold brew-style coffee in 10 minutes. It features four brewingstrength timers (light, medium, bold and concentrate) and a chill cycle circulates coffee over an ice basket to keep the brew cold and ready to drink.

Apex Tool Group 866-907-9716 or lufkintool.com

HARDWARE RETAILING | October 2018

Gourmia 888-552-0033 or gourmia.com

7. Stain-Removing Products

8. Furniture Leg Covers

Emergency Stain Rescue (ESR®) products are designed as on-the-go cleaning products for a variety of stains. Emergency Stain Rescue comes in bottle or wipe form for general stains. Chateau Spill® Red Wine Stain Remover is designed for wine accidents, Miss Mouth’s Messy Eater® can be used on stains made by children and Road Spill® is designed as travel wipes.

Clear Sleeve™ Floor Protectors prevent damage caused by moving furniture across hard flooring. The transparent, flexible sleeve forms to the size and shape of chair or table legs, eliminating the need for adhesive. The cushioned felt tip dampens noise and distributes weight evenly for better furniture wear. The sleeves are available with brown and beige tips.

Emergency Stain Rescue 512-815-3297 or hatestains.com

Expanded Technologies 888-654-7720 or expandedtechnologies.com

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

redlionproducts.com

October 2018 | HARDWARE RETAILING

New Products

10 9

9. Polished Chrome Power Grommet The slim, round design of Mockett’s recessed power grommet maintains a low profile with the surface level of a desk or counter, elevating to just 3/8 inch. Installation includes drilling a 3-inch hole, inserting the grommet from above and hand-tightening a locking ring from below. The configuration can be customized with USB ports. Doug Mockett & Co. 800-523-1269 or mockett.com

10. Air Compressor Sponsored Product The Whisper100™ Silent Air system has been paired with new programmable smart air technology designed to increase energy savings and decrease noise pollution. Users can program the date and hours of operation and set PSI ranges, RPMs and the time to drain water from the compressor tank. Emax Compressor 866-294-4153 or emaxcompressor.com

HARDWARE RETAILING | October 2018

Original Since 1977 ROOF SNOW REMOVAL SYSTEM

11 11. Circular Saw Blades The Marathon® circular saw blade product line from Irwin Tools features a heat-resistant coating, venting and expansion control slots that contribute to higher control and user confidence. The blades have welded carbide teeth that are 25 percent stronger, which ensures blade longevity. Thicker plate design aids in tracking, while the wedge shoulder design reduces resistance. Irwin Tools 800-464-7946 or irwin.com

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

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Add Avalanche Original to Your Winter Lineup. Learn more about our Retailer support services at: Avalanche-Snow.com/Retailers

Avalanche-Snow.com

800-378-3088 /XPD[ FRP

October 2018 | HARDWARE RETAILING

New Products

MIGHTY POWERFUL | RELIABLE | PORTABLE THE BRAND YOUR CUSTOMERS WILL ASK FOR BY NAME

12. Field Dressing Knife FieldTorq® knives are designed to field dress large hunting game quickly and cleanly. The knives avoid cutting into the animal’s organs while also avoiding sharp areas where hunters could injure themselves. The hook blade can be sharpened and each knife comes with the Torq Assist™, which aids in cutting through bone. FieldTorq Knives 855-729-2900 or fieldtorqknives.com

13. Travel Mug The 10-ounce Chloe Traveler features a smooth ceramic drinking surface with double-insulated walls to keep warm beverages like coffee and tea hot longer. The bamboo lid comes with a splash-resistant slider, and the mug fits into car cup holders. The Chloe Traveler is BPA-, lead- and phthalate-free.

2600 PSI Cold Water Pressure Washer Made in

USA with Globally Sourced Components

www.mitm.com 800-553-9053

Mi-T-M manufactures: Cold & Hot Water Pressure Washers • Air Compressors Portable Generators • Air Compressor/Generator Combinations Air Compressor/Generator/Welder Combinations • Wet/Dry Vacuums Jobsite Boxes • Portable Heaters • Water Pumps • Water Treatment Systems

HARDWARE RETAILING | October 2018

Aladdin aladdin-pmi.com

14 15 STRAP, BUNDLE, ORGANIZE 14. Decorative Kitchen Tools The Typhoon Living Range product line includes an assortment of storage bins and utensils made from coated steel and bamboo sourced from sustainable forests. The storage bins range from 1-quart canisters to a 7.7-quart bread bin, and the design style is also applied to utensils and a stovetop kettle. Typhoon Living Range products come in three colors—blue, cream and putty. Typhoon Homewares 866-598-0309 or typhoonhomewares.com

15. Safety Goggles Torser safety goggles are electrically insulated and have an anti-fog coating to keep vision clear during use. They are rated in splash, droplet and dust tests, and the lens is abrasion-, chemical- and UV-resistant. The goggles have three lens options: clear, light gray and gray. Pyramex 800-736-8673 or pyramexsafety.com

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

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

See our video and more at

ONE-TIE.COM 262.563.6133

October 2018 | HARDWARE RETAILING

New Products

/&156/& 4 )"37&45 16. Retail Plant Display

:PV SF HPJOH UP -07& PVS /BUVSBM 0SHBOJD 1SPEVDUT

The Tilt-Top Display System puts plants at a 15-degree slant to improve product visibility by an average of 27 percent. The displays are available in 12- and 24-inch heights and in 36-, 66- and 96-inch lengths. The tables require no tools to assemble and can be converted from tilt display to bench display. Structural Plastics 800-523-6899 or product.spc-retail.com/tilt

17. Professional Refrigerator

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

For everything you grow! 32

HARDWARE RETAILING | October 2018

The 30-inch Glass Door Refrigerator Column offers professional-grade cooling abilities for home kitchens. The interior LED lighting and glass door allow users to see their supplies without opening the door. The refrigerator can be paired with a 30-inch freezer, a 30-inch wine column or another fridge for side-by-side installation. The refrigerators are available in stainless steel along with five color options. True Manufacturing Co. 888-616-8783 or true-residential.com

18. Color-Matching Tool

19. Countertop Sink/Dishwasher

The ColorReader by Datacolor is a portable tool that can find the closest paint color match to an existing wall, trim or inspiration across all major paint brands. The Bluetooth-connected device works with a smartphone app to identify, coordinate and share colors. ColorReader can be used by homeowners and DIYers as well as paint professionals.

The Streamline Hoods Sink/Dishwasher Combo is top-mounted and comes with a complete accessories package, which includes a draining basket, sealing tape, mounting clips, waste fittings and overflow plastic pipe. The sink bowl material is 304 brushed stainless steel and the dishwasher’s electrical rating is offered in 220 volts, 50 hertz. The sink’s bowl volume is 12 ¼ gallons.

Datacolor 609-528-1307 or colorreader.datacolor.com

Streamline Hoods 866-764-7630 or streamlinehoods.com

STRONG. POWERFUL. PROFESSIONAL GRADE. Sika offers a full line of Professional Grade sealants, adhesives and concrete repair products for the Home Center, Hardware, Lumber, Masonry & retail locations and outlets. • • •

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Enter to WIN! A $500 American Express® Gift Card Two chances to win: May 31 & Oct 31, 2018

Enter now at: usa.sika.com/retailcontest NO PURCHASE NECESSARY. VOID WHERE PROHIBITED BY LAW. Winner will be chosen by random drawing; odds depend on number of valid entries. Prize subject to terms and conditions of issuer. Eligibility and other restrictions apply. See Official Rules at www.usa.sika.com/retailcontest. Sponsored by Sika Corporation, 201 Polito Avenue, Lyndhurst, NJ 07071. Third party marks used for prize identification only. October 2018 | HARDWARE RETAILING

“Not only are our customers more happy with our selection, but

the Midwest Fastener remodel is a major improvement to our store.” Darek Barnes, Owner - Garden of the Gods, Ace Hardware Colorado Springs, CO - pictured: Jennifer Ferrini, Store Manager

Exceeding Expectations. One Fastener Destination at a Time!

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

800.444.7313 fastenerconnection.com

Checkouts EVENTS

Close Down the Block he Mazzone Pumpkinfest has been bringing delight to residents on its block for 14 years, but the event didn’t always need the entire block. The event started with just a few tables in front of the Brooklyn location of Mazzone Ace Hardware, a neighborhood staple since 1950 that now has three locations. The event held the first week of October brings joy to local residents and raises money for local causes. “The entire event was designed around giving kids and families something fun to do,” owner Matt Mazzone says. “I took over the business in my 20s right out of college, married my wife and started a family. You start thinking about those things when your life changes.” What started as a few pumpkins to paint and a popcorn machine on the sidewalk has given way to tables stretching down the block with pumpkins and decorating supplies as well as vendors that also contribute to the fundraiser. Since becoming an Ace business five years ago, Mazzone has collected donations in the name of the Children’s Miracle Network and proceeds have gone to Cohen Children’s Medical Center on Long Island. “We’re dedicated to keeping the funding local, because everything about this event is fostering community ties in our corner of this city,” Mazzone says. “We’ve had families that have been affected by life-threatening diseases come up to us at the event and talk about how much Pumpkinfest means to them.” Depending on the weather, the one-day event can draw up to 3,000 people, Mazzone says, and it consistently raises around $10,000 for its fundraising partners.

Mazzone Ace Hardware’s annual Pumpkinfest celebration closes an entire block outside its Brooklyn location. Last year, each of its three locations competed in a pumpkin decorating contest, and attendees voted on their favorite designs.

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

HARDWARE RETAILING | October 2018

Keep your customers from being left out in the cold.

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

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

Checkouts

COMMUNITY RELATIONS

Rounding Up Support hen store manager Mitch Turner gives his customers the opportunity to give to a local charity, he often ends up doing more than just raising a few dollars for a good cause. He’s raising awareness and lending support in ways that go far beyond the donation. Turner’s store, one of eight Hagan Ace Hardware stores in northern Florida, gave more than $1,400 this summer to the local chapter of PACE Center for Girls, a nonprofit organization that provides support services for young women. To raise the money, cashiers asked customers if they would like to round up their transactions to the nearest dollar. The store matches the donations from its customers, and Turner sends all the money to the PACE Center. But Turner also realized that the more customers knew about the PACE Center, the more likely they would be to round up their spare change. He helped the center

design some flyers to post around the store to help customers learn more about how the organization helps local young people. “This is the third year we’ve helped the PACE Center,” Turner says, noting that support has been growing. “Once the local community learns about what an organization does, they are more likely to give to it.” Turner says that even though the local PACE Center is just down the street from the store, he didn’t know much about it until the secretary of the organization came into the store to get some keys cut. “Once I learned more about the organization, I decided it was something I wanted to support,” he says. And now that Hagan Ace Hardware is supporting the organization, other businesses have joined in. “One of our customers who owns his own business and some other local companies started to support the center after hearing about it from us,” he says. “We’ve been able to help spread the word and help this great cause.”

Hagan Ace Hardware store manager Mitch Turner presents a check to representatives from the PACE Center for Girls. After the presentation, he gave them a tour around the store.

HARDWARE RETAILING | October 2018

Checkouts

COMMUNITY PARTNERSHIPS

A Book for the Ages t Roselawn True Value Hardware in Roselawn, Indiana, a piece of regional history sits on the shelf by the registers. Several years ago, community members from three area towns—Roselawn, Thayer and Shelby—came together to compile the first 100 years of the area’s history into a book. “I sat in on the committee meetings that helped determine the content,” says store manager Daren Padgett. “It was a great opportunity to learn so much about the history of our area.” The book covers the early years, back to 1882. It showcases marriages, families, businesses and the development of the area through 1982. Padgett volunteered to sell the final copy of the book in the store. The books sell for $50 each, and all the money goes to the local trustee to be invested back into the towns. Padgett says in the first year, they sold out of the first run, about 200 copies. “People love to look through it and find their family members and learn a little about what life was like back then,” he says. “We will keep selling them as long as they’re available.”

Customers at Roselawn True Value Hardware can peek into history in the pages of this book that covers the region’s first 100 years.

ALL HOUSEHOLD LUBRICANTS ARE

NOT ALIKE. FiendOil™ works from -65˚ to 400˚F. So wherever metal meets metal - bikes, guns, doors, hinges, garage, latches, handles and more – FiendOil performs. Now offering distribution to independent retailers at an MSRP of $7.99.

EVENTS

Runnings for a Cure ctober is National Breast Cancer Awareness Month, and for customers who shop for their home, farm and outdoor needs at any of 41 Runnings locations in seven states, the annual Ladies Night is linked with a special cause. The event has run for nine years, and this year, the company has chosen to do something a little different. In previous years, Runnings stores in Minnesota sold pink company-branded buckets for $2 each. Customers received 15 percent off all the items they could fit in the bucket. For each bucket sold, Runnings donated $1 to breast cancer benefit organizations in each store’s local area. This year, Runnings stores all over the country participated in the annual fundraiser, says Dennis Jensen, director of marketing and e-commerce for Runnings. “We offered 20 percent off clothing and footwear and 10 percent off everything else,” he says. “We also sold red Runnings cinch bags for $1 that included coupons. All the money raised from the sale of the bags will go to local breast cancer awareness organizations.” Jensen says donating to local organizations is a crucial part of the fundraising event. Since the event began, close to $100,000 has been donated to awareness organizations. “What’s really important is that we’re a grounded organization that’s community involved,” he says. “It’s important that the funds stay in the communities where we serve.

Runnings stores across the country hosted an annual Ladies Night event to raise money for local breast cancer awareness organizations.

THIS ISN’T AN APPLES-TO-APPLES COMPARISON. RESCUE!® Reusable Fruit Fly Traps come with an all-natural attractant that’s much more concentrated than our fruit-shaped competitors. With a design featuring smaller holes to keep fruit flies trapped and the precise shade of red that attracts them, it’s proven to work eight times better than the competition.

Learn more about the science behind every trap at rescue.com.

October 2018 | HARDWARE RETAILING

THE

E U S IS

elieve it or not, another year has passed, and Hardware Retailing has developed another set of 10 lists in a convenient package. We understand how challenging it can be to find time to sit down to read a magazine, so these lists are created with retailers in mind. They cover relevant industry issues, and they get to the point, so you can get back to the salesfloor. We balanced our coverage across various aspects of your business. From how to keep your business safe and what you gain shopping your competitors, to what never to say to a customer and lessons you

HARDWARE RETAILING | October 2018

can learn from toddlers, there are valuable takeaways for retailers in every part of the industry. Not only are these lists beneficial for owners and managers, but they can also be great training tools for other staff members. When you’re finished reading the issue, pass it on to another member of your team or choose your favorite lists to read at the next company meeting. Consider sharing 10 Habits of Successful Retailers or 10 Essential Elements of Customer Service with your department heads or assistant managers to give them an edge on their professional development.

The connected home isn’t a fad; it’s a new way of life for many of your customers. Check out the 10 types of smart home products your customers may be buying somewhere else.

44 . . . Ways to Boost Employee Morale 46 . . . . . . . . . . . Smart Home Products to Sell in 2019

48 . . . . . . . . . . . Slam-Dunk Retail Tips From Basketball

50 . . . . . .Retail Lessons From Toddlers 52 . . . . . . . . . . . . . . Steps to Keep Your Operation Safe

54 . . Reasons I Love Local Businesses 58 . . . . . . . . . . . Things to Never Say to Review this list to be sure you know how to protect every aspect of your operation, including your staff, your customers and the business itself.

a Customer

60 . . . . . . . . . . . .Reasons to Scope Out Your Competitors

64 . . . . . . . . . . . . Ways to Prep for Your Succession Plan

68 . . . . . . . . . . . . Essential Elements of Customer Service

SOLD

72 . . . . . . . Habits of Successful Retailers

Want More? A succession plan shouldn’t be something you scramble together right before retirement. Use this list to help you plan ahead and choose the right person to take over your operation.

Hardware Retailing editors had too many 10 lists to fit in the pages of the magazine! For even more quick hits and business tips in lists of 10, visit TheRedT.com/10-lists-2018. For a flashback into previous years’ lists, visit TheRedT.com/10-list.

October 2018 | HARDWARE RETAILING

Ways to Boost Employee Morale

etailers everywhere continually express concerns about finding and retaining quality long-term employees. While there are definitely expectations that employees should meet, there are ways you as an employer can help bridge the gap between providing “just another job” and a path to a career. Helping your team enjoy their work can create a committed staff, but that doesn’t need to mean spending on costly perks. Review this list of inexpensive ways to boost morale in your operation so your employees know they are appreciated.

Be specific when you say “thank you.”

Vague appreciation can sometimes seem as though it isn’t genuine. If the whole team works together to meet a sales goal, tell them how their achievement helped the business. When an associate leads a customer through an entire sale, explain how excellent service helps the operation compete in your market.

Dawson’s True Value

Host employee appreciation events. Regular employee appreciation events can make a difference in morale, especially during busy seasons. Host after-hours events in the store so you don’t need to spend money on renting a space. At these events, call attention to employees who have exceeded expectations throughout the year.

Let the team create an employee recognition process. Use a process to honor the standouts on your staff, whether it’s peer nominations for employee of the month or the staff voting on a list of possible rewards for high-performers. When you engage the group in recognition, it helps everyone feel like a closer team.

4 Offer unique benefits.

2 44

Set your business apart by offering uncommon perks, such as paid birthdays off. Learn how you compare in compensation and benefits in the North American Retail Hardware Association’s 2017 Employee Compensation Report at nrha.org/employee-comp.

HARDWARE RETAILING | October 2018

Invest in training. Consistency in performance will help your operation run smoothly no matter who is on shift. Investing in training doesn’t mean spending a lot of money. Visit nrha.org/free-training to access dozens of free training resources to get your program up and running.

Be consistent with employee reviews.

During the training process, explain each employee’s job responsibilities and show new associates how they will be evaluated when the time comes. Download the form to help you get started at nrha.org/employee-eval.

Praise them in public; correct them in private.

Whether it’s a shout out on the bulletin board or applause at the company meeting, public praise is important. The opposite is also true. Corrections should be made as soon as possible in one-on-one meetings with the appropriate supervisor.

9 Listen to concerns. Employees want to know there is someone who is open to hearing concerns or suggestions. Be sure managers know what to do when an employee brings a concern to their attention. Make time during reviews for them to provide feedback on your performance and make an effort to address legitimate feedback.

HPM Building Supply

Get the team involved in the business.

Share with the whole team how meeting everyday goals helps the business achieve larger milestones, and encourage them to offer suggestions for process improvements.

Utilize team-building exercises. At the beginning of each day, bring the group together to remind them of the day’s tasks. Incorporate a team-building exercise, like everyone sharing one way they’re going to help contribute to the day’s goal. For inspiration, watch the video at TheRedT.com/team-building.

October 2018 | HARDWARE RETAILING

Smart Home Products to Sell in 2019

till trying to understand smart devices? In a category that is still relatively new to the market and that seems to change constantly, it may be difficult to know where to start. While it may be tempting to wait until you see more customers willing to pay for the technology, you don’t want to miss out on a sales opportunity. And when it comes to choosing the smart home devices to stock, you have plenty of choices. To help you sort them out, here are 10 items to help you start the smart home category.

Security Camera This device will likely be part of a larger security system that works with other devices. When selling kits, talk about the benefits of self-installed home security systems, which tend to cost less than professionally installed ones.

Locks

Lightbulbs

Smart door locks can include a whole list of features, such as remote unlocking if someone in the family forgets their key and geofencing that locks the door when you get a certain distance away from the home (in case you forget).

Users can connect with bulbs remotely to dim them, change their color or turn them on and off. This is one of those products you need to see to believe, so consider setting up a floor demo so shoppers can see it in action.

Thermostats Energy savings is a big selling point for many smart home devices. Smart thermostats can increase the energy efficiency of a home by creating heating and cooling cycles based on the homeowner’s daily schedule.

HARDWARE RETAILING | October 2018

Electrical Plugs

Lighting Controls

Users can control whatever is connected to a smart plug via their device. Some plugs are low cost and are good starter devices for people new to the smart home idea. Try placing these plugs in impulse areas to encourage sales.

Smart controls allow users to control their lights via voice or a mobile app. They also hold potential for energy savings. This is a good item to show home builders, remodelers or DIYers who want to upgrade their homes.

Smoke Detectors One of the benefits of a smart smoke detector is the ability to alert homeowners of a fire when they’re away. Customers may be more likely to buy one if they understand the many ways it can make their home safer.

Wireless Speakers Bluetooth speakers come in a range of price points and styles. Try merchandising them as an impulse item near the checkout counter or place them near the grills around tailgating season as an easy add-on sale.

Garage Openers

Grill Accessories

A smart garage door opener lets users check the status of their garage door and open and close it even when they’re not home. Since garages offer easy access to the home, security will be a big selling point for this device.

Smart grill thermometers allow users to monitor the temperature of the meat via a smartphone and then receive an alert when it’s finished. This tool will help even those who are unsure about their grilling skills get perfect results.

October 2018 | HARDWARE RETAILING

Slam-Dunk Retail Tips From Basketball

he National Basketball Association is about to tip off its regular season in just a few weeks. After an offseason full of player swaps, game planning and preparation, each team is ready to get back on the court and begin its quest for a championship. The same work that goes into preparing for a season can be applied to your business, so we compiled these 10 winning tips that you can learn from basketball to implement in your operation.

Scoring Isn’t Always King Players who drop 30 points get lots of publicity. But what about other NBA statistics? We’re not all meant to be scorers. Some people are better at passing the ball or grabbing a rebound to help their team. Each player and employee has their own strengths; it is up to the leaders of the team to identify and capitalize on them.

Have a Salesfloor General A floor general is a player on the court running the offense and defense the coach has planned. They’re often referred to as an extension of the coach. As the leader of your business, it’s important to trust your employees to execute your game plan. Putting the ball in the hands of the right person is often more effective than a coach who tries to do everything and be everywhere.

Box Out and Rebound Not everything will go your way in the workplace. It’s important to be able to block out the negatives of your day. Look for opportunities to bounce back. There are 48 minutes in an NBA game and 8 hours in a full workday. Often, rebounding leads to a fast break and points for your team. Each hour, minute and possession are important for a team’s success.

Repetition, Again and Again Developing skills isn’t something that just happens with age or experience. Even the best players practice their craft every day. You should encourage your employees to continue their professional development, whether it’s going to your distributor’s market, attending a networking event or seeking other training opportunities. Repetition helps prepare you to handle challenges in a professional way.

HARDWARE RETAILING | October 2018

Trust the Process Success is a project that’s always under construction. Remind yourself and your team that the only way to become retail champions is by consistently following the correct processes.

Fouling Out NBA players get six fouls before fouling out. What does your employee policy look like in terms of firing an ineffective or disruptive employee? How many opportunities does your policy allow and what are the grounds for letting someone go? Be sure your team understands the rules of the game to lead to a win.

Create Your Own Super Team There’s a phenomenon in the NBA of successful players leaving teams to enter free agency. Many are motivated to join other superstars on another team to win a title. Store owners should find and build their own superstar team of employees that they can count on to run the business when they’re not around or busy elsewhere.

Scout the Competition Coaches often evaluate their opposition’s strengths and weaknesses. They look for opportunities to put their own team in the best position to succeed. Independent retailers are in a constant battle against their competitors. Do the legwork and look into your surrounding competition to compare your operations. Do you offer competitive pricing, vast product selection and superior customer service? In what areas are your competitors lacking? Improve those to lead your team to victory.

Always Be Communicating When you watch an NBA game, you hear constant chatter between teammates about their next moves. This communication is critical to pull out a victory. The same goes for your salesfloor. Your employees must stay in constant communication, aware of customers in the store and areas that need attention to ensure everything is running smoothly. Encourage your employees to share their struggles and their triumphs.

Make Halftime Adjustments Strategies don’t always go according to plan. In basketball and in business, it’s important for the coach or manager to recognize weaknesses or flaws and make the necessary changes to correct the course.

October 2018 | HARDWARE RETAILING

Retail Lessons From Toddlers By Kate Klein, kklein@nrha.org

Keep a short memory.

y favorite 2-year-old boy says “Wow!” more than anyone I’ve ever met. Ducks in the yard, beads the size of pinheads, electrical outlets and shadows mesmerize him. Take some cues from him and other tiny members of Hardware Retailing employees’ families (pictured here). Read this list to discover how you can better your operation by demonstrating the awe, kindness, curiosity and resilience that come more naturally to toddlers than adults.

A toddler forgets a tantrum or lost opportunity quickly, and so can you. Don’t fret over disappointments or let arguments fester for days or years. Even without resolution, you can move on without bitterness. You won’t thrive if you’re focused unforgivingly or anxiously on the past.

Learn by imitating. Mimicry is one of the fastest ways children learn. They watch adults and older kids, often modeling what they do and say after the people around them. You can learn by imitating, too. Other business owners have plenty to teach because they have more, better or different experiences. Visit peers’ stores, ask questions and mimic what they do well.

Learn from bumps and bruises. Experimenting and trying to learn new skills can bruise a forehead or burn a tiny finger, but children learn important lessons from mishaps. Painful results don’t mean your time was wasted. You may need to give up and try another approach or scrap an expensive project. Learn from every mistake you make instead of trying to forget it or continuing to do what’s harmful to your business to save face.

HARDWARE RETAILING | October 2018

Always stop and pet the puppy. Encountering a dog can turn a 2-minute walk across a sidewalk with a child into a 15-minute meet and greet. Slowing down to meet people and pets is important for customer service. Petting the puppy can help you move from, “How may I help you?” to “I’m really glad to know you.”

Be expressive.

Say you’re sorry.

Toddlers don’t care who knows when they’re excited, and genuine excitement is infectious. Be sure to show your enthusiasm about new products or promotions. The opposite is also true. Cynicism and discouragement can be as infectious.

A child’s “I’m sorry” is cuter than your apologies, but your words can have the same impact. Be quick to apologize first if you’ve made a mistake. Take responsibility, make things right and you’ll earn respect from customers and employees.

Choose amazement. Fluffy cats and glittering jewelry thrill small children, who help adults resee the world with awe. Sharing experiences that wow you, employees or customers will connect you deeply.

Notice people. Love your family best. Toddlers know who they love most. So do you. Family dynamics can get complex and tense when you work together, but don’t ever let business be more important than love.

Tots often spot people who wouldn’t stand out to adults and can convert a shy person into a grinning peek-a-boo player. Everyone is valuable. Pay attention and you’ll see incredible inventiveness and kindness in normal people.

Be curious. Children are fascinated when they notice changes in their environments, such as new board books or childproofing devices. Cultivate your curiosity about what’s new in retail so you and your business are adaptable. You’ll swiftly identify needed changes when you’re looking for them.

October 2018 | HARDWARE RETAILING

Steps to Keep Your Operation Safe

n an instant, an accident or unexpected event can injure employees and customers. Mike Marr, technical resource consultant from the Ohio Bureau of Workers’ Compensation, has more than 30 years of experience in safety management and offers tips on how business owners can safeguard operations.

According to Marr, store safety is a teamwide priority that requires constant vigilance to keep inventory, customers and employees safe. Every team member plays a role in ensuring the salesfloor is free of dangers. Read his 10 tips to avoid in-store injuries and ensure your business is safe, fun and welcoming.

Slips and Falls

Marr says slips and falls are some of the most common sources of injuries. Make sure your employees are well-trained on using ladders safely in the store, and never allow customers to climb them. Be sure employees watch for objects that may block hallways and items that could trip shoppers, like electrical cords or hoses.

2 Cellphone Injuries Marr says injuries stemming from smartphone distractions are on the rise. While it may not be possible to police your customers on smartphone use, be sure to remind your employees that cellphones should be used as tools to help customers find products and information, not as a way to distract themselves while on the clock.

Overexertion

Marr says overexertion is a common source of workers’ compensation claims. Provide ample opportunities for breaks, especially in hot weather or when your team is completing physically demanding work.

Rental Policies

4 52

HARDWARE RETAILING | October 2018

If your business offers rental equipment, provide detailed instructions on how to properly use it, Marr advises. Invest in training to ensure employees follow protocol to keep your business, employees and customers safe. Work with a legal professional to craft a waiver that releases your business from liability.

Winter Weather Ice and snow can be major obstacles to keeping employees and customers safe. As winter weather arrives, your team should quickly clear parking lots, sidewalks and the entryway. Even a small amount of ice can cause an accident that may imperil your business.

Software Updates

It’s important to safeguard your business’s computer systems. Be sure to regularly update your software, including operating systems and anti-virus programs, to ensure you’re protected from online threats.

Exposure

Many hardware stores have chemicals that could be dangerous if ingested or inhaled. Be sure that these products—chlorine, solvents and hardware like nuts and bolts—are stored safely. When employees use them, be sure they have the required training to apply them responsibly.

Seasonal Employee Training Under certain circumstances, giving seasonal employees work that requires safety supervision or giving instructions to keep customers safe is fine. But be sure you arm those seasonal employees with safety training so they can do their jobs effectively and protect customers.

7 Safety Equipment

Falling Objects

Marr says unsteady objects or insecure storage could lead to injury-causing accidents. Frequently check your shelving to ensure it’s sturdy and in good condition, and be sure everyone knows how to safely stock and store merchandise.

You probably already stock safety equipment, but are your employees using it? Providing protective eyewear, gloves and safety vests is an investment that safeguards your employees for years to come, Marr says.

October 2018 | HARDWARE RETAILING

Reasons I Love Local Businesses

Employees help small businesses stand out.

By Renee Changnon, rchangnon@nrha.org

ou most likely strive to spend your hard-earned money at other independent businesses. You understand that shopping locally supports your family, your employees and your community. While shopping local seems like a no-brainer to you, the average person likely doesn’t have the same understanding of the benefits of shopping local that an independent retailer does. Instead of getting upset when people you know buy nearly everything from Amazon or your longtime customers still stop at the big-box stores to scour the deals, you can educate shoppers on why they should follow your lead and shop local. As the profiles editor for Hardware Retailing, I spend a lot of time listening to the stories that make each of your businesses unique. I’ve also spent time visiting you in your stores and your communities for the stories I write. This list is based on what I’ve learned about the benefits of shopping local businesses through those conversations. Share this list with your customers, friends and family to spread the word about the positive impact shopping small can have locally.

Employees love working for small businesses so much that they wear their work shirts around town, talk to their neighbors about the latest deals and alert their friends when new positions open up. This enthusiasm helps drive business and interest.

Fusek’s True Value Hardware

Carpenter Bros. Hardware

Family comes first. One of the coolest things about local businesses is that many of them celebrate family ownership and value the personal lives of their staffers. Retailers can shape their company cultures so that working with and serving their neighbors make long days and busy seasons worth the stress.

HARDWARE RETAILING | October 2018

Your money stays local. Shopping at locally owned home improvement businesses generates twice as much local economic activity than shopping at big-box stores. This fact gives shoppers even more of a reason to shop local. For more shop-local data and marketing materials, visit TheRedT.com/shop-local.

4 Independent businesses create a sense of belonging. Whether a retailer promotes unique events or invites local groups to host monthly meetings in the store, independent businesses bring people together and give them a sense of connectedness and community.

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Reasons I Love Local Businesses

5 Every store has its own personality and charm. Unlike a chain store that looks the same as nearly every other location in the country, independent stores are unique and tell authentic stories about the people who own and work in them.

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Independent retailers support their neighbors.

The food and drinks taste better.

Independent retailers give back to their communities through service and supplies, such as helping after natural disasters or donating to public schools.

Many independent stores sell specialty food and drinks. Whether they offer unique snacks or operate restaurants, they provide local eating and drinking experiences that are extra satisfying.

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Events are fun and build relationships. Events create a buzz and allow staff to build relationships with customers. Plus, they connect retailers with community leaders who value local businesses.

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The products are extra cool.

Staff members are friendly and knowledgeable. The people at independent operations make me feel welcome. I don’t feel like just another shopper when employees treat me like a friend they want to help. Approachable teams set independents apart.

Local businesses give shoppers the feeling they can discover hard-to-find products. The items displayed on an independent retailer’s shelves have additional meaning when retailers choose them with the local shopper in mind.

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Things to Never Say to a Customer

ndependent retailers regularly state customer care and service as a strength and distinguishing characteristic for their industry. While customer service is a keystone for an independent retailer to beat big-box stores in the minds of their customers and sustain a healthy business, retailers must walk the walk as well. Training can instill the tenets of customer service into employees, but habits from everyday life and an unawareness of how customers react to certain behaviors can still creep into employee interactions with customers. To get ahead of these potentially reputation-damaging situations, Hardware Retailing developed this list of 10 things employees should never say to a customer. Also, visit nrha.org/free-training to check out sales associate training tips from the North American Retail Hardware Association’s Trainer’s Toolbox series.

“This has never been an issue before.” Whether it is a customer bringing in a return for an item that didn’t work or someone bringing a complaint about store services to you, this kind of phrase immediately puts the customer on the defensive. Acknowledge the issue at hand and explain what efforts can be made to either resolve the complaint or find an alternative solution.

“Please hold.” People understand there are things happening around whomever answered the phone, but shutting a caller down immediately with a “please hold” will sour a customer’s day. Instead, greet the caller as you’ve been trained, engage with the topic of their call and ask for their patience.

“If I had to guess …” We get it. You’ve been trained in session after session about being attentive to customers’ needs and looking to help them solve their problems. However, well-meaning assumptions or guesswork will leave customers feeling lost and unclear on if they have received the kind of advice or direction they expect from an expert in hardware. It’s OK to say you don’t know how to help the customer and lead them to someone who can.

“You ...” Separating the customer from your business makes the issue their problem. Don’t use phrases like, “You needed to come in before noon to receive that offer.” Instead, say, “I’m sorry, we had that offer available earlier today. Is there something else we can help you with?”

HARDWARE RETAILING | October 2018

“I don’t know why we do this, but …” Rentals, returns and delivery situations can all have policies attached to them. If a customer takes issue with a policy you disagree with or where you are unsure of the purpose, don’t let the customer know you are unclear about something they will be signing. Find someone more familiar with the policy and allow them to resolve the situation.

“That’s in Aisle 8.” Sometimes there’s too much happening in the store and you don’t have enough time to walk every customer directly to the product they need. However, you should strive to walk with customers to the aisle they need to find what they are looking for. Besides the personal attention, this also allows you the opportunity to suggest related products or look for an opening for add-on sales.

“Calm down.” “I don’t think you understand.” For many consumers, part of taking on new projects involves acquiring new tools and skills provided by independent retailers. However, you should always work to make the customer comfortable, and belittling their lack of knowledge on a subject will leave a bad taste in their mouth.

Almost every retail employee will, at some point, encounter a customer who is beyond the point of rational conversation. The cause could be something related to your business or your store could just be the venue for a customer’s venting. Try to empathize with the customer and don’t rise to the same level of anger or distress.

“We don’t have anything that can help you.” Customers want problem-solvers. When a customer comes in with a unique request or an off-the-wall project, don’t shut them down and send them packing. Take the extra time to find a customer a solution they can be happy with.

“#$@&%!” Don’t use swear words around customers. Just don’t. Remember that you’re on display for all customers while on the company’s time, and even if some language is OK around known and trusted customers and friends, it may make other customers uncomfortable or turn them away.

October 2018 | HARDWARE RETAILING

Reasons to Scope Out Your Competitors

o you know what your big-box competitors are up to? What are they good at? What don’t they do well? Regularly visiting other retail outlets should be part of your competitive strategy as you evaluate your prices, product mix, displays and promotions. Don’t just notice what competitors do poorly. Learn from their successes. Borrow ideas, such as moving a display or finding a unique way to present products. You might be surprised to hear customers say, “I didn’t know you sold this!” just because you’ve redone your merchandising. There’s much you can gain by keeping a close eye on your competition.

1. You may spot really great prospective employees.

3. You can find fresh inspiration for merchandising.

Walk through competing stores and pay attention to which employees greet you, offer to help or are sought out for their expertise. If their service wows you, slip them your business card. Let them know you think they would be great on your team. You’re paying them a compliment and recruiting.

Your staff may be great at merchandising, but no one is ever too good to keep learning. Visiting your big-box competitors monthly will help you see where they excel and what they do to improve over time. Don’t be afraid to mimic what works well for someone else.

2. You’ll notice if they’re imitating you.

4. You might get new ideas for in-store marketing and signage.

Big-box stores don’t get all of their store-level inspiration from corporate. You may discover your competitors are sending employees to your store to get ideas. Pay attention, and you’ll find new ways to one-up them. You’ll also know to tell your staff when they’re so good they’re being copied.

Pay attention to the directional signage, “hot buy” tags, shelf talkers, posters and checkout counter decals at a variety of businesses. Big boxes, artisan coffee shops and boutique clothing stores may use creative placement, eye-catching designs or clever phrasing that you could try at your business.

HARDWARE RETAILING | October 2018

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Reasons to Scope Out Your Competitors

5. You will be able to keep an eye on their pricing.

6. You’ll notice product areas they don’t have.

You can price products in your store more effectively if you’re consistently reviewing the prices in your competitors’ stores. You need to know how other retailers are pricing seasonal or big-ticket items that are price sensitive. Price-shopping will also show you where you’re underpriced and help you gain margin.

When you’re regularly visiting competing stores, you have the chance to look for ideas as small as creative clip strips or as large as the product varieties in entire departments. Staying aware of other stores’ product offerings can help you spot their weaknesses and notice opportunities for your operation.

7. You’ll learn how they do events. Some of your in-store promotional events may seem like great ideas until you realize your competitor has been doing the same thing for years. If they’re offering free birdhouse-building workshops for kids, then maybe you’ll be better off hosting a beekeeping class or giving away burgers fresh off your grills.

THE

COMPANY INC.

HARDWARE RETAILING | October 2018

8. You’ll stay aware of how they’re improving their customer service. If you go to competitors’ stores, you won’t assume every customer who walks into a box isn’t greeted, walked to an aisle and helped. You may realize your store’s customer service needs work because your competition is better than you thought.

9. You’ll spot interesting products you’ve never seen before. You probably rely on wholesalers to keep you informed on trending new products, but don’t stop there. Your competitors are testing out products frequently, too, and you will be a better resource to your customers if you’re up to date on what’s new.

10. You get to experience being a customer. If you visit a competitor’s store, you see firsthand what your customers experience. As a result, you’ll learn what your shoppers expect if they’re looking for project help at a big box and understand why they love the variety of products. View a competitor’s success as a reminder not to rest on your laurels.

Ways to Prep for Your Succession Plan

any independent home improvement businesses are passed down through generations, but you should have a plan no matter who is taking over. Hardware Retailing developed this list based on elements from a U.S. Small Business Administration course that addresses selling and succession planning for small businesses. For more information, visit sba.gov. To learn more about succession planning, visit TheRedT.com/succession-timeline.

4. Know your tax responsibilities. Check with your financial adviser, CPA or tax attorney about what you are responsible for when you exit your business and what your successor should expect in that regard. According to the SBA, there are several types of taxes that impact closely held family businesses. Ask your adviser about income taxes, gift taxes, the generation-skipping tax and the estate tax.

1. Consider your options. There may be more people who are interested in taking over your business than you think. If someone shows potential, talk to them about their career goals and their future with your business. It’s better to have too many options than to be stuck without any if your family members choose a different path.

5. Reach out to your wholesaler. 2. Meet with your financial and legal advisers. Be sure to let your attorneys, accountants and other business advisers know when you’re starting your succession plan. Not only is it good practice to keep them in the loop on large business decisions, but they can also help you manage the legal and financial adventures that come along with selling a business.

If you’ve done your research to sell your business and you think you’re out of options, think again. Your wholesaler is eager to help your business continue. Talk to your sales representative about your desire to exit your business. They can help you develop your exit strategy and potentially find another business owner who is looking for a new growth opportunity.

6. Evaluate your business relationships. 3. Perform a valuation. The SBA defines a business’s valuation as its combination of assets (cash, receivables, inventory, equipment and real estate) and its revenue stream (net profit over time). While some of these values are steady, other values fluctuate. Be sure you have an accurate representation of your business to present to potential successors.

HARDWARE RETAILING | October 2018

Consider your myriad business relationships as you start developing your succession plan. Maybe there are vendors you’re working with that don’t fit anymore, or perhaps it’s time to reconsider your financial institution. While it’s probable that these relationships will change with a new owner, if you’re already in the thick of it, you should consider how they are working for you right now.

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Ways to Prep for Your Succession Plan

7. Develop a forward-looking business plan.

8. Determine your role post-sale.

Outlining the potential growth opportunities for your business in the future could be a strong selling point, especially if you’re looking outside your family for the next owner. If you’re in the early stages of succession planning, look to the future to see how you can be ahead of trends to continue differentiating your business.

If you’re handing the business off to one of your children or another family member, you likely won’t be able to escape questions about the operation for long. Regardless of your relationship with the buyer, discuss with your successor what they need from you before your last day. It may be sensible for you to oversee operations for several months, or even years, before you officially hand over the business, depending on your successor’s knowledge of and experience in the operation and the industry.

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9. Know how to spend free time.

10. Plan ahead.

As highly anticipated as retirement is, if you don’t plan to use your time wisely, there is the possibility you could end up repeating the catchphrase of kids two weeks into summer vacation: “I’m bored.” If you’re used to spending your days in the business, determine before you leave what your pastimes will be so you’re not left wondering what to do next.

No matter what stage of your career you’re in, it’s never too early to start thinking about what the next generation of your business looks like. If you have a few years or more before it’s time to seriously consider retirement, talk to your advisers, your business partners and your family to start putting into place an action plan for succession planning. Looking ahead to your own retirement and considering your options will also help you check off the other items in this list so you’re well-prepared when the time comes.

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Essential Elements of Customer Service

n the September issue of Hardware Retailing, retailers discussed how superior customer service differentiates their businesses from competitors. But it’s important to remember that there are many elements that go into providing a great in-store experience for customers. Offering excellent customer service goes far deeper than ensuring

1. Boost customer service with a succession plan. A succession plan offers stability in uncertain times. Meet with trusted co-workers, legal and financial professionals to craft a plan that protects your operation.

your employees are friendly and knowledgeable and that you have a large selection of in-stock products. Consider how else you can fortify your operation’s reputation for service. Some elements may be visible to customers, while others take place behind the scenes. But all points are essential elements of strong customer service.

2. Ensure all team members understand the core of service. Some employees may not value your operation’s commitment to customer service as much as others. Be sure all your employees know your business’s core values and understand it is critical to give customers attention and care.

3. Immediately welcome customers with a clean store. It’s important to present your store in the best light. Be sure cleaning is a regular part of employees’ tasks. Whether it’s mopping high-traffic areas or keeping registers tidy, maintaining a clean store is key for impressing customers.

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4. Stay informed on industry news. Staying current with industry news should be a priority for business owners. Visit HardwareRetailing.com to stay connected with breaking news, exclusive interviews, emerging trends and current events.

HARDWARE RETAILING | October 2018

5. Find dazzling new products. Adding unique, unexpected items to your inventory is one surefire way to satisfy customers and attract new shoppers. Be sure to visit trade shows, wholesaler buying markets and other industry events to find the latest products. By stocking the right items at the right price points, you can increase sales and please customers.

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Essential Elements of Customer Service

6. Invest in training to make your employees experts. Access a suite of training resources from the North American Retail Hardware Association (NRHA) to keep employees up-to-date with product and project advancements. Visit nrha.org/online-training now!

7. Tell customers about savings. It’s important to compare your prices to competitors and communicate savings clearly and compellingly to your customers.

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8. Find unique ways to recruit. Retailers must take time to regularly search for new hires to enrich their businesses. Considering different interview procedures, including group interviews, can be beneficial to ensure you’re finding and vetting the best talent possible.

9. Use industry research to benchmark your business.

10. Manage your inventory to connect customers and products.

Knowing how national trends affect the channel is vital. Every year, NRHA publishes a variety of resources that shed light on how you can lower operational costs, offer competitive benefits programs, meet shifting customer preferences and stock new products. Learn more at nrha.org.

Whether you cater primarily to professional crews or make your bread and butter on sales to DIYers, ensuring your business stocks the right inventory is critical. When customers find the exact product they need, they’ll hold your business in high regard. Learn about best practices for managing slow-moving inventory on Page 84.

Habits of Successful Retailers

uccessful retailers have habits they build into their business practices that help them excel. Hardware Retailing checked in with Bobby Fuller and Jason Haley, past honorees from the North American Retail Hardware Association (NRHA) Top Guns program, to learn about the habits that make them successful. Top Gun honorees are high-achieving independent home improvement retailers who are excellent business operators and active contributors to their communities and the industry.

I consider whether everyone benefits from a business deal. A deal isn’t honest or fair if it doesn’t benefit everyone involved, according to Fuller. For example, a contractor offered to paint a Fuller and Son store for a price so low Fuller knew the man wouldn’t make much, if any, money on the project. Fuller paid the painter more than his asking price.

I use courteous words. Fuller doesn’t believe in barking orders or threatening to fire employees. “If I want somebody to do something, I say, ‘Come help me do this.’ At the very worst, I say, ‘Would you do this for me?’” he says. “If you’re in a position of authority and you say, ‘Would you do this for me?’ it’s going to get a lot better reaction than a rude, ‘Hey, do this.’”

I work alongside my employees.

Bobby Fuller Fuller owns Fuller and Son Hardware, which opened in 1921 and now has six locations in central Arkansas. He operates the business with his sons, Jeff and J.R.

I stay busy at the stores. If business is slower, Fuller and his staff will straighten up shelves, blow leaves off the parking lot or clean the lumberyard. There is always work to do, and idleness is not an option. Fuller’s example rubs off on employees. “If the manager’s working hard, they’re going to help him,” he says. “I will never ask anyone to do anything I won’t do.”

HARDWARE RETAILING | October 2018

Leading by example is important to Fuller, and doing that means working side by side with his employees. That’s why he will ask workers to come help him with tasks more often than he asks them to do things for him. By continuing to work in the stores, Fuller knows what his workers face every day in their jobs and they know he values them.

I directly tell customers that my goal is to make them happy. When Fuller gets calls from upset customers, he pauses the conversations to say, “I want you to know this—when you get off the phone, you’re going to be happy.” He is generous with exchanges and returns because losing some money matters less to him than satisfying customers.

I work at least one full day per week on the salesfloor. Jason Haley Haley owns Ace Hardware of Clarkston in Michigan. He previously held leadership roles with CNRG Stores and Great Lakes Ace Hardware, and worked for Ace corporate for many years before that.

I make deliveries personally. Haley and his teenage sons deliver nearly every grill the store sells. “If you get to go to a customer’s home and make a connection with them, they become intensely more loyal to you,” Haley says. “When people deal with an owner, it changes their whole relationship with that business.”

When Haley opened his store in 2016, he knew he could get sucked into a growing amount of office work and lose touch with customers if he wasn’t proactive. “My goal is to work every Saturday on the salesfloor as an associate so I’m face to face with customers,” he says.

I debrief weekly with my business partner. Haley recommends retailers sit down weekly with their business partners or spouses to debrief from the workweek. He and Melanie set aside focused time on Sundays to discuss how business is going. They share feedback they received from customers and thoughts on how they can improve their store.

I work individually with new hires to instill company values.

I thank customers with handwritten notes.

Haley and his wife Melanie make sure one of them can spend an entire day working with every new employee. They believe instilling a positive company culture is paramount. So, they take a personal interest in developing these values in new hires, especially if the employees don’t have work experience.

When customers make large purchases, such as high-end grills, Haley personally handwrites and mails thank you cards after delivery. Because he has met the customers in person while making deliveries to their homes, Haley can add a personal touch to strengthen connections.

October 2018 | HARDWARE RETAILING

By Chad Husted, chusted@nrha.org

Illuminating the Outdoors Help Exterior Spaces Shine With a Variety of Lighting Options emember 2008? Homeowners were reeling from the Great Recession, and retailers were trying to figure out how they could make the most of a shrinking building market. As a result, consumers were cutting back in every form of discretionary spending.

As household budgets across the country tightened, many homeowners chose to entertain guests at home as a less expensive option says Joe Girard, owner of Girard’s Ace Hardware, Lighting and Furniture in Bourbonnais, Illinois. That trend has continued in the ensuing decade of economic recovery, and outdoor lighting options have grown more diverse and functional to match this trend. Homeowners continue to focus on how they can best take advantage of new options in outdoor lighting to beautify and secure their homes. The new oasis of the outdoor space has

HARDWARE RETAILING | October 2018

become an area that must be maintained just as much as interior spaces. According to the most recent Home Improvement Research Institute Recent Home Buyers 2016 Report, 77 percent of recent homebuyers intend to conduct renovation projects on their houses. Landscaping and cement work leads the list, while deck, patio and fencing place a close second in areas homeowners plan to improve. Deck and patio projects often require an investment in outdoor lighting to keep a home desireable in today’s market. To learn about the consumer expectations in the outdoor lighting category, Hardware Retailing spoke to two retailers who have made lighting and design a focal point of their businesses. These retailers shed light on the products customers are asking for, discuss how professional builders are designing the modern outdoor space and suggest how other retailers can make their businesses destinations for outdoor lighting.

October 2018 | HARDWARE RETAILING

Outdoor lighting covers a broad spectrum of product options, ranging from simple ground lights with solar panels to mark a path to ornate chandeliers illuminating grand outdoor living spaces.

“It could be solar lamps to light a pathway or post lighting along a retaining wall in a front yard. Customers want to see how these products work together.

”

—Joe Girard, Girard’s Ace Hardware, Lighting and Furniture A New Era in Backyard Design User trends and how homeowners utilize their backyards play just as much a role in the outdoor lighting category as product choices. For Kathy Chamblee, department manager at Warner Robins Building Supply Co. in Warner Robins, Georgia, the way homeowners use their outdoor space plays a major factor in how they are lighting it. “There are a lot of social influences on lighting, and that comes into play in how we’re using outdoor spaces,” Chamblee says. “Entertaining is not about ‘what’ so much as ‘why.’ A gathering of friends and family can happen in minutes, and consumers want products that are accessible but also multifunctional. You might have a bulb out, so now consumers want long-lasting LEDs. The uplight showcasing the fire pit is too bright, so now we have a dimmer installed.” In her position as head of the company’s in-house design center, Chamblee has seen the expansion of the outdoor living category and

HARDWARE RETAILING | October 2018

how lighting is integral to it. The increase in educational materials that illustrate how to make the most of an outdoor living space, from social media to home improvement TV programs, has fueled designers and their customers to think bigger and bolder about how a home can look and feel. Lighting isn’t only being used to make outdoor entertainment possible after nightfall—it’s also being added to accent home exteriors. Accent lights—both strong uplights for dramatic effect and softer options like gas lamps—can vary the curb appeal of homes. Girard sees consumers looking for different designs and product selections to accomplish multiple tasks. From lights intended for safety to fixtures that are purely cosmetic, he has focused on keeping his professional building customers stocked with what his customers want. “The options in lighting have gotten really diverse. Landscaping projects alone offer so many products that you have to keep up with the trends of product design and the tasks consumers want accomplished by their lights,” Girard says. “It could be solar lamps to light a pathway or post lighting along a retaining wall in a front yard. Customers want to see how these products work together.” That combination can draw on a variety of lighting products and options, he says. Homeowners are concerned with how lighting can affect curb appeal as well as safety, with different products offering different solutions.

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Lighting can be integrated into an assortment of outdoor furniture pieces and construction projects. Many products don’t need to be installed, but instead are just strung up and plugged in.

improving their outdoor spaces, there’s a push for more elegance, more vibrancy to reflect the choices they’ve made inside their home.

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—Kathy Chamblee, Warner Robins Building Supply Co. As a result, consumers may choose a softer light for areas under windows that play on the texture of the exterior of the home while also exposing an area that could be a security concern. Lights can both highlight architectural high points of a home’s exterior while making it less attractive to potential thieves, Chamblee says. Traditional lights in other areas, such as driveways, offer brighter options that provide more usable light. Modern touches include increasingly popular motion sensors with camera systems linked to a home’s Wi-Fi connection, which rounds out a security system. These lights cross over from strictly lighting and can increase the diversity of security options for retailers. Other ways to customize outdoor lighting are controlling the beam spread, or how wide a beam a light emits, as well as the brightness and intensity of a light. Having these options available allows a retailer to stand out as an authority in the category and make their business a destination, Girard says. “There are options now that can really tailor a home to what the buyer expects,” Girard says. “From a soft white bulb to daylight intensity, you’re changing the output entirely. It can change everything about an outdoor area.”

Changing the Spectrum Trends of what homebuyers want in one room can affect connected rooms and spaces, and that doesn’t change in outdoor living. “With homeowners improving their outdoor spaces, there’s a push for more elegance, more vibrancy to reflect the choices they’ve made inside their home,” Chamblee says. “This factors into the lighting fixture and bulb choice as well as smart home accessories. Our customers are constantly saying, ‘I’ve been wishing for a decade that my lights could do this.’ Now technology has caught up with consumer expectations.” Chamblee has seen a move toward rustic lighting that stays in line with other home trends, such as the farmhouse style. Slightly rustic finishes that give the appearance of being weathered are in high demand, but quality is still high on the wish list for consumers. Products must be able to hold up in outdoor conditions, with or without a covering over the light fixture.

Joe Girard, owner of Girard’s Ace Hardware, Lighting and Furniture in Bourbonnais, Illinois, says having a wide selection of bulbs will help build a retailer’s reputation as a destination for lighting.

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October 2018 | HARDWARE RETAILING

Outdoor kitchens and dining areas also call for special lighting options. Chandeliers and fans with lights can provide an in-home feeling despite being outdoors, while accents like pendants over a bar area provide light that isn’t an intense, centerpiece lighting fixture. “You have home improvement TV shows to thank for a lot of these trends toward the farmhouse look,” Chamblee says. “There’s a definite move to clean lines with lighting to play off the rustic feel of other design decisions.” Bulbs are also changing with the trends, with the combination of more LED options and a move toward fewer shades on bulbs and fixtures. Since options like Edison bulbs put out less intense light than incandescents, they don’t need shades over the bulb to focus the light or keep it out of a user’s eyes. Fixtures that leave the bulb exposed or don’t hide the bulbs remain popular. Girard has seen his customers leaning toward higher quality outdoor lighting options that also consider the design of the outdoor space. In the past, outdoor lights have been mostly made with plastic and designed to weather any storm while offering little aesthetic appeal. That’s no longer the case, he says.

“Anything big, bulky and plastic is on its way out,” Girard says. “Outdoor lighting has to add to the overall design of their space. If it’s going to be lighting an area where people will be spending time, then it has to be a strong fixture that can also hold up to the environment.”

Shining Brighter While offering the right products is necessary to earn business from customers improving their outdoor spaces, showing off that selection and keeping it updated for the incoming trends is just as important. An extra hurdle is that outdoor lighting, in most cases, will be viewed under interior lights or during daylight hours when most stores are open for business. Girard’s Ace Hardware has built an extensive lighting section that includes four wall panel displays dedicated to outdoor lights. Under the wall panels is a floor display designed to look like a mulch bed where post lights and shorter lighting options are shown and lit for customers to see. Allowing customers to see the options available, including the finishes on fixtures and how the bulbs are displayed, is a key merchandising decision for his lighting department.

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Girard’s Ace Hardware, Lighting and Furniture merchandises its outdoor lighting department with several wall displays for fixtures as well as a floor display for pole lighting. This allows customers to get a feel for how fixtures will appear in their own yards.

October 2018 | HARDWARE RETAILING

Warner Robins Building Supply in Warner Robins, Georgia, has assisted builders and homeowners in reinventing their outdoor spaces, including new lighting options.

Lighting made sense as a category to focus on, Girard says, because it complements the indoor and outdoor furniture lines available in his store. Having expanded so far beyond the typical hardware categories, Girard’s Ace Hardware can help customers make even more home design and decorating decisions in one location. “You can’t leave products like these in the box. Customers are making a design decision with outdoor lighting,” Girard says. “We can swap different bulbs into a fixture to show variations as well as give the customer a feel for how a light might look on their wall. You can’t get that from a photo.” Warner Robins boasts an outdoor living area that shows how it can assist customers with designing or updating their outdoor spaces. Having outdoor lighting on the showroom floor can help build the customer’s knowledge of the products, Chamblee says. However, she cautions retailers to not hang lights for display and call it a day.

Joe Girard (left), his wife, Nancy, and his son, Grant, manage daily operations.

HARDWARE RETAILING | October 2018

“We work with a lot of different manufacturers, and we find them by going to lighting shows and finding the next style we think customers will be drawn to.

”

—Joe Girard, Girard’s Ace Hardware, Lighting and Furniture “One thing I try to keep in the minds of the designers we work with is that lighting is a living and breathing organism,” Chamblee says. “You have to stay on top of the trends, and a lot of that is staying in touch with your distributor and the manufacturers themselves about what is coming to market.” Chamblee suggests keeping staple products like gas lanterns and uplights in stock, but to also be prepared with literature, catalogs and off-the-wall pieces to pique the interest of customers for all the lighting options you sell. One example she uses is a lightbulb she bought her daughter for Christmas.

It connects to her phone wirelessly and has a speaker to play music, but Chamblee wouldn’t have known about it if her daughter hadn’t seen it first on YouTube. “My experience with my daughter demonstrates how you have to stay on top of customer interests to stay on the trends,” Chamblee says. Another avenue for growing the outdoor lighting department is industry-specific shows. Because he sources his furniture from vendors other than his hardware supplier, Girard is already familiar with markets and trade shows outside of his primary hardware departments. Selling furniture has given him a strong perspective on how retailers can expand not just their lighting departments but any area of their stores. “We work with a lot of different manufacturers, and we find them by going to lighting shows and finding the next style we think customers will be drawn to. Lighting is like fashion—what was in style can go out very quickly,” Girard says. “We’ve built relationships with representatives of several manufacturers. They advise us on what their plans are as well as what they’re seeing in the market. When you have people helping you like that, it can make buying decisions a lot easier.”

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October 2018 | HARDWARE RETAILING

Process & Procedure: Dead Inventory

CLEARANCE

By Jesse Carleton, jcarleton@nrha.org

Move It Out How to Manage Unproductive Inventory eware of slow-moving inventory. It lurks in nearly every retail operation. Often called dead inventory, slow-movers are items that, for whatever reason, are just not selling. You know you need to get them off the shelves, but you also need to do everything else, such as help the next customer, write your next order and pay the bills. A few dead items sitting on the shelf never hurt anyone, right? The truth is, slow-moving inventory may be doing you more harm than you realize. The way you manage your inventory will affect the overall productivity of your business and the customer experience. In an age where online stores have made retailing more competitive, it’s more important than ever to have a product mix that is fresh and not burdened with unproductive merchandise.

HARDWARE RETAILING | October 2018

To help you tackle this issue in your own business, Hardware Retailing turned to Kelly Hollingsworth, who is part of a sister trio that directs operations at Griffin Ace Hardware, a business with three locations in southern California. Hollingsworth has been working full time in the family business for more than 25 years. As vice president of merchandising for all locations, one of her duties includes managing inventory. She analyzes unproductive inventory every month, making her company a good example of a business that has made purging dead items a smooth process rather than a dreaded project. On the following pages, we’ll look at how Hollingsworth handles the challenges that come with managing slow-moving inventory. Having a system of your own, and sticking to it, will keep your store alive with activity as products move off the shelf,

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rather than being a graveyard that keeps collecting dead products. In addition to reading this article, make sure those in a leadership position in your business have an understanding of the importance of the entire inventory management process. The North American Retail Hardware Association (NRHA) recently developed a brand new course in Basic Inventory Management. This online course offers foundational information about inventory management and some best practices to follow. Having this foundational understanding will be useful when tackling slow-moving inventory. For more information on the course, turn to Page 14.

Don’t Be Complacent Often the first barrier to purging unproductive inventory is finding the time to do it. It’s possible that while you know clearing slow-movers is important, but you may not think it’s urgent. With everything else there is to do around the store, it’s easy enough to put off hunting down those items that haven’t sold in a while.

Hollingsworth understands. “It’s not like the store isn’t going to function because you haven’t worked your dead inventory,” she says. “But your inventory is your biggest asset. There’s a lot of money attached to it, so it needs to be managed appropriately.” Poorly managed inventory will cause several problems for a business. Every item needs to earn its place. Low product turnover will impact your profitability. According to NRHA’s 2018 Cost of Doing Business Study (CODB), high-profit hardware stores have an inventory turnover of 2.7, a gross margin return on inventory of 194.3 percent and inventory per square foot of $52. If your numbers lag behind those, one of the reasons might be that too many slow-moving products are dragging down your profits. (For more information on this year’s study, see Page 16.) The customer experience will also suffer if dead items stay on the salesfloor too long. “Customers are shopping everywhere. They know the latest and greatest of what’s out there, and they expect to see it in our store,” Hollingsworth says. “But we can’t just add, add, add and never take away. We have to deal with dead inventory because we need to make room for what’s new.” Competing with online retailers includes offering an exciting shopping experience that engages the customer, which means having new products and a store that is easy to shop. In addition to working through your dead inventory, you need to be eliminating discontinued products and working with your suppliers to keep your product lines up to date. A store cluttered with outdated merchandise will quickly lose its appeal to shoppers. Each of the three Griffin Ace Hardware stores will complete as many as 12 category resets throughout the course of the year. When that happens, there’s the possibility of creating redundancies that will quickly take up shelf space and create confusion for customers. “Instead, our goal is to make the shopping experience easy,” Hollingsworth says. By regularly reviewing their product mix, they clear out duplicate items and keep the product mix simple. “We want to have the main brand coupled with a less expensive brand so shoppers have some options but not too many. Otherwise, we just frustrate customers,” she says.

Identify Slow-Movers

Department specialists at each Griffin Ace Hardware store designate slow-moving items to send to clearance.

HARDWARE RETAILING | October 2018

An occasional attempt at dealing with dead inventory is likely to result in frustration. The inventory list may be so long it feels it would take too much time to tackle. Rather, the best

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Key Inventory Performance Indicators

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approach is to make it a regular habit so it doesn’t take as much time, says Hollingsworth. For the past two years, she’s evaluated slowmovers every month. She starts by using an automated inventory maintenance tool that provides her with a monthly report showing her 100 items that are candidates for removal. That system makes it easy to find dead items, but most point-of-sale systems also generate relevant reports to show you items that haven’t sold within a certain time parameter. Setting that time parameter may differ among retailers. Hollingsworth has traditionally used two years as the cutoff date. If it hasn’t sold within that time, it’s time to clear it off the shelf. But she’s been considering getting stricter with that cutoff date, moving it up to one year and relying more on regular deliveries from her co-op’s warehouse to supply her with specialorder items. This process can help her still be the source for hard-to-find or unusual items without having them sit on the shelf collecting dust. Once Hollingsworth has the slow-moving inventory report, she next decides which items she wants to keep. There may be a temptation to keep more than you need to. It’s reasonable to ask, “If I want to be known as the ‘store that has everything,’ shouldn’t I still have a few of those slow-moving items?” It’s true that not every item is going to be a best-seller. Even if a certain size of drill bit doesn’t sell well, for example, it’s still important to carry it so you have a complete set of sizes. Hollingsworth says there is a certain set of those slow-moving items she knows she needs to stock. To identify those, she relies on specialists within each department who have a good understanding of what products are needed to complete a category. After generating and analyzing her list of slow-moving items, Hollingsworth sends it to the assistant store manager at each location. The manager then separates the list by department and sends it to the appropriate department specialist, who determines if the item is critical to the store’s product mix or if it can be set for clearance. Altogether, Hollingsworth says she spends about four hours per month working on the lists and preparing items for clearance. Her department specialists working on the salesfloor usually need a couple of hours each month to review the list, although it usually takes longer because they stop frequently to help customers. In reality, those few hours are a small investment compared to the benefits of having an up-to-date inventory.

Inventory Turnover

Gross Margin Return on Inventory (GMROI)

Inventory per Square Foot (Selling Area)

Typical

2.4

169.5%

$47

High-Profit

2.7

194.3%

$52

Typical

3.1

145.8%

$66

High-Profit

2.8

126.0%

$162

Typical

4.0

122.3%

$166

High-Profit

3.0

116.6%

$138

Here are three numbers from NRHA’s 2018 Cost of Doing Business Study that can help you measure the productivity of your inventory.

Items marked for clearance at Griffin Ace Hardware first get a red bin tag at their in-aisle location.

As you’re identifying dead items, be sure to ask, “Why is this not selling?” The answer may help you either make better purchasing decisions in the future or correct potential errors in your inventory system. Perhaps the item wasn’t a good fit for your customer base. Or it’s possible that the item in question was just in the wrong location on the salesfloor, and nobody bought it because they couldn’t find it. Or maybe there was an error in counting—your records show you have items on the shelf when in reality there are none. October 2018 | HARDWARE RETAILING

Finally, customers may not be buying a product because they believe it is of poor quality. Hollingsworth says anytime she brings in a new product, she will ask customers to let her know how the product works for them. “If we get a few customers telling us the product doesn’t work well or that it is of poor quality, we get rid of that right away,” she says. “We don’t want our reputation to suffer because of a product that doesn’t work.”

“The more time a dead item sits on the shelf, the more expensive it becomes.

”

—Kelly Hollingsworth, Griffin Ace Hardware

After sitting for 90 days in their home location in the aisle with no movement, clearance items get moved to a designated endcap.

HARDWARE RETAILING | October 2018

Clear It Out After identifying those slow-moving items, it’s time to send them out the door. Hollingsworth does that through a series of markdowns. First, she labels each clearance item with a red sticker on the bin tag at its home location in the aisle. Items start out at a 50 percent discount. If after a month, the item hasn’t sold, she marks it down to 75 percent the second month and 90 percent the third. If at any time during the mark-down period, clearance products begin to sell, they will stay at that level until they sell out. Leaving them in the home location has proven to be the best choice for moving those items quickly. Customers looking for that item are going to that location anyway and are likely to grab the marked-down item first. If, after getting marked down to 90 percent, and sitting for 90 days in the in-aisle location, the item still hasn’t sold, she moves it to an endcap specially marked as clearance. If the item still doesn’t move after another 30 days, she donates it to charity. While this system has provided Hollingsworth with a good guideline, her approach might differ according to category or store location. In her location in Santa Ana, California, she has a bargain zone where she will place all clearance merchandise instead of sending it to an endcap. She’s discovered that approach is more conducive to that location, which is in a lower income area than that of her other two stores. And there are plenty of ways to be creative as you’re unloading the items you don’t want. For example, Hollingsworth recalls one year where she purchased some chocolate bars at a market that didn’t sell as well as she’d hoped. “We found these high-end chocolate bars, and my sisters and I loved them,” she says. “But it soon became apparent people just weren’t going to pay $15 for a candy bar. We had a lot of this chocolate left over and ended up giving it to our employees as gifts for Christmas—before it had expired, of course.” Perhaps the most difficult part of clearing out dead inventory is resigning yourself to the fact that you will either break even or take a loss on those items. You’re not likely to get the price you wanted and you’re likely to get only a tax write-off if you donate it to charity. However, keeping it on the shelf will cost you more money in the long run because you’re robbing yourself of space where you could be selling something else. Get rid of it as soon as possible. “The more time a dead item sits on the shelf,” says Hollingsworth, “the more expensive it becomes.”

How is the nation’s largest hardware store planning for growth? The answer may surprise you.

Zach Coblentz | Hartville Hardware | Hartville, Ohio

2018 STATE OF INDEPENDENTS CONFERENCE