Hardware Retailing October 2025

Going Pro

4 B2B Strategies to Unlock New Revenue Streams Page 20

Customer Experiences

That Engage All 5 Senses Page 26

See How Your Operation Compares in the Channel Page 32

Smart Training Smarter Teams

RetailWise is NHPA’s new AI-powered micro-training program, built exclusively for independent hardware, paint, and lumber retailers. Designed for today’s fast-paced retail environment, RetailWise delivers 52 professionally scripted, two-minute video lessons that fit seamlessly into your store’s daily rhythm — no long classroom sessions or complicated schedules required.

100% DEVICE ACCESSIBILITY

RetailWise can be accessed across multiple platforms including, mobile devices, desktops and in-store screens. COURSE CATEGORIES:

Have Questions? Contact Cody Goeppner at cgoeppner@YourNHPA.org.

Going Pro

4 B2B Strategies to Unlock New Revenue Streams Page 20

Customer Experiences

That Engage All 5 Senses Page 26

See How Your Operation Compares in the Channel Page 32

“Going with Midwest Fastener has truly made a difference for our hardware store. Their products are consistently reliable, which means our customers are always satisfied and keep coming back. Beyond the quality, their program has genuinely simplified our inventory and made our fastener aisle so much easier to shop. It’s a partnership that’s clearly boosted our sales and made our daily operations smoother. We couldn’t be happier with Midwest Fastener.”

Frank Tropepe, Owner, Deerfield Ace Hardware

Exceeding Expectations. One Fastener Destination at a Time!

HEADQUARTERS

1025 East 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement, paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Ned Green, Weider’s Paint & Hardware, Rochester, New York

EXECUTIVE VICE CHAIRMAN

Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ash Ebbo, Clement’s Paint, Austin, Texas

Christian Herrick, Randy’s Do it Best Hardware, Jackson, Virginia

Michelle Meny, Meny’s True Value, Jasper, Indiana

Michael Sacks, FLC Holdings, LaGrange, Texas

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

Jody Kohl, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033

800-888-1817; Fax: 715-341-4080

NHPA CANADA

SUPPLY-BUILD CANADA

Rebekah Doerksen, Executive Assistant Direct: 204-953-1692 | Cell: 204-990-3536 Toll-Free: 1.800.661.0253 ext. 103 102-226 Osborne St. N. Winnipeg, MB R3C 1V4

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, gcscs8@gmail.com

COMING IN NOVEMBER

EXECUTIVE STAFF

PRESIDENT & CEO

Bob Cutter

CHIEF OPERATING OFFICER

Dan Tratensek

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES

David Gowan

VICE PRESIDENT OF CONTENT

DEVELOPMENT & PUBLISHER

Scott Wright, swright@YourNHPA.org

CONTENT AND PRODUCTION 317-275-9400, editorial@YourNHPA.org

MANAGING EDITOR

Tighten Those Margins

With the economy in a seemingly constant state of change, retailers are looking at the operational areas where they can find savings big and small to manage and protect margins. Hear from retailers who share their best practices to preserve margins through cost management, pricing strategies, operational efficiency improvements and other methods.

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Hardware and Paint Association, 1025 East 54th St., Indianapolis, IN 46220. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $110/year. Single copy $7. The Annual Report issue can be purchased for $30.

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

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

All editorial contents © 2025 North American Hardware and Paint Association. No editorial may be reproduced without prior permission of the publisher.

REPRINTS: For price quotations, contact the Editorial Department at editorial@YourNHPA.org. Printed in the U.S.

Lindsey Thompson, lthompson@YourNHPA.org

MANAGER OF MARKETING & PARTNER RELATIONS

Austin Vance, avance@YourNHPA.org

NEWS & DIGITAL EDITOR

Jacob Musselman, jmusselman@YourNHPA.org

CONTENT DEVELOPMENT COORDINATOR

Annie Palmer, apalmer@YourNHPA.org

LEAD GRAPHIC DESIGNER

Autumn Ricketts

MARKETING & DESIGN SPECIALIST

Olivia Shroyer

PRODUCTION & DESIGN ASSISTANT

Samantha Mitchell

MARKETING & DIGITAL CONTENT ASSISTANT

Cassie Reed

SALES & PRODUCTION ASSISTANT Freda Creech

SALES

REGIONAL SALES DIRECTOR Jordan Rice jrice@YourNHPA.org | 217-808-1641

SENIOR BUSINESS DEVELOPMENT REPRESENTATIVE—WEST COAST Renee Changnon rchangnon@YourNHPA.org | 217-621-7363

ASSOCIATION PROGRAMS 800-772-4424, NHPA@YourNHPA.org

DIRECTOR OF EDUCATION & TRAINING Cody Goeppner, cgoeppner@YourNHPA.org

TRAINING MANAGER & EDITOR

Jesse Carleton, jcarleton@YourNHPA.org

OPERATIONS COORDINATOR—ADVANCED EDUCATION & TRAINING Amy Hayes, ahayes@YourNHPA.org

No strings. Just firepower for your store. Turn up the heat with our retail-ready grill partners.

Breaking Into B2B

As retailers look to differentiate in a tight market, many are looking to launch or enhance B2B programs. Hear from retailers who share how their B2B programs have expanded their reach, deepened customer relationships and unlocked new revenue streams without adding square footage.

Data-Driven Results

The data is in for the 2025 Cost of Doing Business Study. An industry standard for over 100 years, this study has helped countless retailers measure their business and find those key areas to focus on for growth—see how it can help yours.

Connected Living

Secondary homeowners are buying smart home tech at three times the rate of primary owners, making them a key market for automation and security products. Discover how to tap into this market.

OPERATIONS Good Sense Customer Service

Going beyond just a friendly smile and helpful employees, a customer experience that engages all five senses can help create a loyal customer following. See real-world examples from inside and outside the channel on appealing to smell, taste, touch, hearing and sight.

Service Runs in the Family

It’s a family affair in this month’s Helmets to Home Improvement feature, which includes two honorees—Michael Wallace and John Wallace—brothers and colleagues at Wallace Distribution Company.

CATEGORY SPOTLIGHT Smart Home Success

Although the statistics show smart home products are gaining popularity, retailers are facing challenges getting customers to actually buy them. See one retailer’s best practices to promote these products effectively. 26

TAKING CARE OF BUSINESS

CONNECTIONS Send Dan a Message dant@YourNHPA.org

Dan Tratensek

“You have to continue to find opportunities to invite customers into your store. Events, clinics, parties, promotions…whatever it takes to drive traffic should all be part of this plan.”

FROM THE ASSOCIATION

Bring Them in the Door

NOW THAT THERE IS a distinctly crisp chill in the air, leaves are beginning to darken and the subtle smell of pumpkin spice lattes is wafting through the air, it’s time for homeowners, like myself, to start thinking about prepping their house for winter’s imminent arrival.

Luckily, my wife and I have subscribed to our local HVAC company’s “service membership.” This membership entitles us to have a service rep come to our house four times each year to do a maintenance check. We fully realize that this “membership” is more about them getting four guaranteed opportunities to come to our house and try to sell us something, but because we get our filters changed and vents cleared, we agree to the compromise.

I bring this up because these HVAC companies have identified that more customer interactions equals more opportunities to sell something.

This is a pretty basic business formula, so it shouldn’t be surprising to anyone who sells for a living. Unfortunately, for those of us in the home improvement retailing industry, data continues to show that you are getting fewer and fewer opportunities to actually interact with your customers.

NHPA’s 2025 Cost of Doing Business Study came out last month and one of the most concerning bits of data it revealed was that transaction counts yet again declined for hardware stores.

This sinister trend has been taking place since the pandemic and shows little sign of abating.

The data also shows that transaction size has held steady or slightly increased during this same time frame, suggesting that consumers are making fewer trips to stores but potentially buying more while there.

Here’s the problem: every time a customer comes into your store, you have the opportunity to sell them something or sell them more than they might have originally intended to purchase. Fewer visits means fewer transactions and fewer opportunities.

This single metric should be among the most alarming trends retailers need to examine. The simple fact is that footsteps drive business and the increase we see in transaction size, while encouraging, does not offset the lost opportunity costs of slower traffic and fewer transactions.

Part of the solution can be found from our friends in the HVAC business. You have to continue to find opportunities to invite customers into your store. Events, clinics, parties, promotions…whatever it takes to drive traffic should all be part of this plan.

What you can’t do is sit back and do the same thing you’ve done in the past and just hope that it starts working. You should know what your transaction count is and how it has historically changed. You should monitor it on a weekly, if not daily basis, to see how it fluctuates and gauge the impact of any efforts you make to influence it.

The decline in transaction counts should be setting off alarm bells for retailers and serve as a call to action. The dire consequences of not reversing this trend should also be clear and send shivers down your spine that aren’t caused by cold autumn air or an HVAC system in need of service.

Dan M. Tratensek Chief Operating Officer

CONNECTIONS

Send Lindsey a Message lthompson@YourNHPA.org

Lindsey Thompson EDITORIALLY SPEAKING

“ The combination of nostalgia and wanting to do more than just buy stuff when we shop is why brick-and-mortar is still relevant today.”

FROM THE EDITOR

Here We Are Now, Entertain Us

EVEN THOUGH online giants like Amazon dominate the retail environment, it feels to me that the overall sentiment is that most people still prefer to shop in a brick-and-mortar location.

Spending a majority of my formulative days as a consumer in the 1990s, the shopping mall was not only a destination for buying crop tops, combat boots and chokers. It was a hangout, a place to spend time with friends and the perfect date spot.

Shopping before the internet was an experience. Show any millennial a photo of Hollister and they can smell the cologne wafting out of the doors, hear the pounding club music coming from inside and start squinting from the low, dark lighting that definitely created a vibe but made it impossible to actually shop. I still remember what it felt like to walk into a Toys ‘R Us and have all these toys out of their boxes and ready for me to play with. And don’t even get me started on the olfactory overload that was Bath and Body Works—the scent of Cucumber Melon still defines my teens.

The combination of nostalgia and wanting to do more than just buy stuff when we shop is why brick-and-mortar is still relevant today. Consumers don’t want to shop; they want to experience shopping.

This spirit of experiential shopping is still alive in a number of retailers. The girls’ basketball team I coached would have a tournament in Springfield, Illinois, every season and we would always have to make a stop at Scheels. Billed as a sporting goods and outdoor living store, Scheels is so much more. The Springfield location has a full-size Ferris wheel inside (yes, inside!), a 16,000-gallon aquarium, an arcade and a candy store. Our team would spend hours there in between games experiencing and shopping.

IKEA lets you try out the furniture before you buy and those room vignettes are not only fun but inspirational. When they were younger, I couldn’t get my kids out of the LEGO Store—they were so enthralled just looking at each of the LEGO sets fully built, not to mention the open bins of bricks available to create your own masterpieces.

The feature story on Page 26 shares more real-life examples from within and outside the independent channel of retailers engaging customers’ five senses to create a shopping experience worth remembering. It doesn’t take a full-size Ferris wheel to make a big impression; even those small aspects like fun background music or free food can generate memories and an experience that will make your customers return again and again.

Lindsey Thompson Managing Editor

Mission Retention

Engaging your employees beyond just the work they are doing is crucial to building morale and a culture of care. Learn more at hardwareretailing.com/mission-retention-tips.

Meet Jared

Jared Brown is a director with The Aubuchon Co. He has a degree in kinesiology and biomechanics from Miami University and came to Aubuchon in 2015 from the banking world. Jared grew up in Ohio and moved to Massachusetts in 2012, where he currently lives with his wife and daughter. At Aubuchon, he is involved in inventory planning and forecasting, margin management, retail pricing, process improvement and operations. Jared has been integral in streamlining and modernizing Aubuchon’s inventory management strategies after the company closed its distribution operations and transitioned to a supplier-based model.

Email jared.brown@aubuchon.com

LinkedIn Jared Brown

When the Streetlights Come On

Growing up, when the streetlights came on, you went home. Sometime around then was the last time I said goodnight to my friends and ran inside. I couldn’t tell you the date. I don’t know how old I was. No one announced it. It just ended.

Life is full of those unmarked endings. There was a last time a parent picked us up and carried us before we got too big. None of us knew it was the last time, or we probably would’ve held on a second longer.

Retail has its own versions of this experience: the last Sunday night a crew worked together before someone took a new job, the last time we ordered a fad, never to be reordered (fidget spinners anyone?), the last visit from a longtime customer who always chatted at the register. These moments are ordinary until they aren’t, and then they’re gone.

I don’t reflect on this for the sake of nostalgia alone. Teams run on motion—the next truck, the next promotion, the next conversion. Running at that pace is a strength, but if we never pause long enough to notice what’s good, we’ll have nothing banked for the hard week that inevitably shows up. Saying, “make your future self proud,” only works if you give future-you something to remember besides problems and punch lists. After all, as a friend reminded me recently, our jobs will probably not be listed in our obituaries.

Lately I’ve been trying to build memories on purpose. At a milestone, end of a project or end of a day, I try to notice what I’m proud of. I try to soak it in and take a mental picture. I’m not great at this and I wish I could do it more consistently, but that’s just not how I’m wired.

Why bother to reflect on these things? One day, when the chips are down and it seems all uphill, you can remember that you’ve done this before and succeeded.

I still don’t know the night the streetlights stopped deciding my schedule. I don’t know the last time my mom or dad picked me up and carried me. But I know this: I’m going to take a breath and a beat to look at a job well done, pat my team (and maybe myself) on the back and get back to work. Future-us will need it, and that’s reason enough to notice now.

Jared Brown Director The Aubuchon Co.

Update and Upgrade

Houzz shares the latest data on where homeowners are putting remodeling dollars at hardwareretailing.com/remodeling-2025

American Housing Survey Shows House Age and Value Drive Remodeling Activity

WHEN IT COMES TO what impacted home improvement spending in the last year, the Home Improvement Research Institute’s (HIRI) American Housing Survey 2025 found that factors like the age of a home and its current value drive spend. Homeowners of homes built in 2010 or later spent around $1,100 less on average than homes

built before 2010. Homeowners with homes worth less than $150,000 are spending more on home improvement, between 6% and 7% of their home’s value. The study also explored how spending breaks down by type of home improvement project, with interior and exterior projects accounting for 58% of all home improvement spend.

Improvement Spend by Year Built

Percent of Home Improvement Spend by Project Type

Delta and Franklin Brass bring you contractor-trusted hardware solutions with style designed to turn heads. Fast installs, top finishes, and quality that's built to spec and beyond. Count on Top Notch for fast shipping, expert support, and the products to keep your jobs moving.

Delta and Franklin Brass product o ering includes: GRAB BARS

TISSUE HOLDERS

TOWEL HOLDERS

TOWEL & ROBE HOOKS

NEW

Retailer Recommendations

Send a note to editorial@YourNHPA.org about products you can’t keep on the shelf. Include your name, your business name and why you love it.

Drip Coffee Maker

The Melitta Vision from Wabilogic is a programmable automatic drip coffee maker featuring a 12-cup borosilicate glass carafe, 180-degree swivel touch-control display that adjusts for right- or left-handed use, dual heating systems for brewing and warming, a transparent water riser tube with illuminated water-stage visuals and a compact design.

WABILOGIC | wabilogic.com

Paint Sprayer

The Wagner FLEXiO 1500 Sprayer is a compact, single-speed handheld HVLP sprayer equipped with the X-Boost turbine, offering adjustable spray width, flow and pattern controls. This sprayer features a Lock-N-Go quick-disassembly system, five cup liners and two interchangeable nozzles for versatile use on small-to-medium interior and exterior painting and staining tasks.

WAGNER SPRAYTECH | wagnerspraytech.com

Wall Sconce

The Graphic Wall Light is a minimalist light fixture crafted from graphite powder-coated metal with matte rubber accents, featuring a solid-metal hook that allows for an adjustable cross-curled pendant. This sconce is available in steel, brass or smoked bronze finishes.

BUSTER + PUNCH | us.busterandpunch.com

Infused Almond Oil

The Garlic Infused Almond Oil from Fresh Vintage Farms is a small-batch, cold-pressed almond oil infused with garlic, produced without chemicals or high heat to preserve natural flavors and nutrients. This oil can be used for cooking while adding a subtle garlic flavor to dishes.

FRESH VINTAGE FARMS | freshvintagefarms.com

Firearm Lubricant

The FP-10 Lubricant is a compact, single-use firearm cleaner, lubricant and protectant packaged in 0.5-ounce bottles, designed for professional armorers and competitive shooters, ideal for quick maintenance and retail displays. Each bottle offers a precise application of FP-10’s advanced formula, which reduces friction, protects against rust and corrosion, removes fouling and helps eliminate malfunctions.

SHOOTER’S CHOICE | shooters-choice.com

Insulated Bowl

The Vacuum-Insulated Large Serving Bowl from served is a three-quart, stainless steel, copper-lined bowl. This bowl features a patented, silicone-sealed, double-walled Tridan lid and can keep food cold for over four hours and hot for over three hours.

SERVED | shopserved.com

Wire Mesh Cutter

The WMC80 Cordless Wire Mesh Cutter is a lightweight, battery-powered cutting tool designed to cut wire mesh in less than one second. It features a safety-shielded blade, an auto shut-off power save and is compatible with Max batteries.

MAX USA CORP. | maxusacorp.com

Pet Gazebo

The Pet Gazebo from Win World International Trade is a modular, octagonal kennel built from galvanized steel panels and topped with a weather-resistant, vented canopy for shade and protection. Its tool-free design sets up in minutes and can be connected with additional units to create larger enclosures or divided spaces. Suitable for extra-large dogs, it includes a drop-down window for easy feeding and access and the compact layout makes it ideal for backyards, patios or travel.

WIN WORLD INTERNATIONAL TRADE | winworldintl.com

Insulation Panels

ECOCELL batts and blankets from Nu-Wool are cellulose-based insulation panels, available as batts or blankets. Made from at least 70% recycled fibers and designed for easy, tool-free installation, ECOCELL batts and blankets are code-compliant, Class A fire rated and suitable for wall cavities, basements, crawlspaces or other areas where framing or drywall isn’t desired.

NU-WOOL CO. | nuwool.com

Plumber’s Caulk

The Hercules Silicone Plumbers Caulk from Oatey is a professional-grade sealant that adheres to a variety of surfaces, including wood, glass, porcelain, tile, concrete, grout, metals and most plastics. It creates a flexible, durable, UV-resistant and waterproof seal that resists mildew, cracking, crumbling and shrinking.

OATEY | oatey.com

SHAPING AMERICAN CRAFTSMANSHIP

SINCE 1932

INDEPENDENT, FAMILY-OWNED, AND TRUSTED

Since 1932, our family has been shaping the future of the welding and metalworking industry—right here in the USA. As a third-generation, family-owned business, we aren’t just a leader in the market; we helped invent it. Our founder’s groundbreaking innovations set the standard for excellence, reliability, and progress, and that legacy drives us forward every day.

Tape Measure

The Shockforce G2 NITE from Crescent Tools is a 17-foot tape measure with a wider and thicker blade that has a protective coating. The tape measure is drop tested from 120 feet and has a diamond-coated end hook with a redesigned belt clip, making attaching and releasing from a tool belt easier.

CRESCENT TOOLS | crescenttool.com

Push Spreader

The 85-lb Push Spreader from Agri-Fab features a welded-steel frame, 10-inch pneumatic tires and a three-sided adjustable deflector kit designed to cover up to 14,000 square feet with a 10-foot spread pattern for applying fertilizer, seed or ice melt.

AGRI-FAB | agri-fab.com

Vehicle & Trailer Connectors

Hitch Accessories • Electrical Connectors & Boxes • Poly Dump Carts • Lawn Rollers • Lawn Sweepers

• Tow-Behind Tine Rake Dethatchers

Inverter

Portable

Dual Fuel

Tri Fuel

Tractors

Forklifts

Lawn Mowers

OPERATIONS

Ground Up

Retailers share their best practices for how to get started in the B2B side of operations at hardwareretailing.com/B2B-start

Where Business Meets Business

Turn to B2B to Unlock New Revenue Streams

BY LINDSEY THOMPSON

One of the best ways to diversify your audience and differentiate your business is through business-to-business (B2B) sales. When you think of B2B, you probably picture outside sales teams making cold calls, and while that method is successful for many, retailers are finding success beyond traditional outside sales teams. Whether you’re looking to build B2B from the ground up or just evolve existing B2B programs, these four best practices can steer your strategies to success.

1 Build Relationships

When it comes to building any area of your operation, developing positive relationships is key, but even more so in the B2B segment, as busy pros often want and need those extra touchpoints and involvement. As the third-generation owner of Hardware Sales based in Bellingham, Washington, Ty McClellan’s

operation is unique in that 70% of the business comes from online sales. Of the 30% of business done in the store, 70% is B2B business.

Hardware Sales launched its B2B segment in the logging industry, selling cables, chokers and other related products, and then branched into hardware B2B and moved to retail from there. In all segments of the business, relationships have been key to success, but nurturing those connections has been crucial to the B2B side.

“Face to face in relationships is everything,” McClellan says. “Customers having your salesman’s cell number in their pocket and knowing they can rely on that relationship is huge.”

As a lumberyard with contractors and homebuilders making up a large part of its customer base, Valley Ace Hardware in Westcliffe, Colorado, has always had B2B as a part of its DNA.

“Face to face in relationships is everything. Customers knowing they can rely on that relationship is huge.”

—Ty McClellan, Hardware Sales

Sales + Service

Hardware Sales owner Ty McClellan (far right) and his industrial sales team go above and beyond for B2B customers.

Built on Service

At Valley Ace Hardware, B2B sales are deeply ingrained in the operation’s culture.

“Focusing on B2B isn’t a new initiative, it’s how we’ve continuously operated. In fact, about half of our business today is B2B,” says Sarah Handy, who co-owns Valley Ace Hardware with her husband Jeremy Handy. “That’s not just a number; it reflects how deeply embedded we are in supporting local builders, contractors and businesses. Our motivation has always been simple: when our business customers succeed, our whole community grows stronger.”

Jay Donnelly, owner of Flanagan Paint & Supply with five locations in the St. Louis Metro area, says B2B makes up nearly 80% of his operation’s audience and is focused on contractor sales, which has grown thanks to purposeful engagement with those pro audiences.

“When I got into this business, the first thing my dad taught me was to make friends with customers, so I don’t know anything else,” Donnelly says. “We push our team and our salespeople to lean into friendships and be

100% relationship driven to align with our best-in-class product and offerings. Our biggest competitors don’t want friendships because they want to be able to replace their people overnight. But building relationships, that’s our strength.”

2 Offer Convenience and Efficiency

Along with strong relationships, pros, contractors and other B2B audiences require efficiency in their businesses to be successful and demand that from retail partners.

At Hardware Sales, McClellan says the industrial sales team put several systems in place to provide an extra layer of convenience for B2B customers, including a software program where each customer can access the quantity they buy on a regular basis, the current price and what is in stock. When the outside sales team visits customers on-site, the customer can place orders directly with the salesperson.

Hardware Sales also has a fulfillment program—vendor maintained inventory (VMI)—in place where it will keep products stocked at B2B customer locations, from a warehouse to a shop to a long-term job site, McClellan says. The team works with each B2B customer on what products to stock in the VMI and establishes maximum and minimum numbers for each product.

Inventory in the VMI is not billed until inventory items are removed. The VMI is inventoried by an assigned Hardware Sales sales team member once or twice a week, depending on the need, and inventory is replenished based on use from the previous visit.

This program allows employees of these B2B customers to grab what they need after morning meetings and head right to the job site rather than having to come into the store, saving time and improving their bottom lines. The VMI program keeps staff on the job, reduces travel to and from the supplier and limits tasks, touches, steps and delays that distract from a customer’s job site needs, McClellan says.

“If pros are in my store shopping, I love that, but that’s not efficient or profitable for them,” McClellan says. “The more efficient we can be to provide the inventory they need, the better we can serve customers. When they are away from the job, it costs them money. We build those relationships and let them know how we can make them more efficient.”

For Valley Ace Hardware’s B2B customers, quality service and convenience aren’t just nice to have—they’re essential. Handy says the operation’s B2B program is built around making customers feel valued at every step, with each business account paired with a dedicated team member who acts as a partner, not just a salesperson.

“For example, with our custom homebuilders, we don’t just supply materials. We sit down with them early in the process, help plan bids and map out a project timeline so everything runs smoothly,” Handy says. “Our B2B audience ranges from custom builders and contractors to property managers and local businesses, all of whom rely on us to anticipate their needs and deliver solutions that make their work easier.”

3 Go Above and Beyond

As those pro relationships grow and evolve, being able to go the extra mile can mean a lot in keeping those relationships strong.

When customers ask for an item that Hardware Sales doesn’t carry, the outside sales team works with the inside sales team to procure it.

“We might not know what it is or where to find it, but we always take the opportunity to go above and beyond,” McClellan says. “Recently, a customer wanted three truckloads of certified weed-free straw. We didn’t say, ‘No,

we don’t have it,’ but instead said, ‘Let’s go find it.’ Being that resource and having a team that doesn’t get scared and will dig underneath those rocks to find whatever customers need can go a long way.”

Every day, Handy and the team at Valley Ace Hardware prove to customers that they exist to go above and beyond to serve customers by offering competitive pricing, maintaining strong inventory and making their success the operation’s success.

“We don’t just sell products; we stand beside our builders and contractors, even meeting with their clients to explain the value of the materials being used,” Handy says. “And we stay connected long after the project is complete, ensuring homeowners are just as confident in those products as the builder who installed them. That level of dedication is what sets us apart.”

That willingness to go the extra mile is also how the operation attracts new business—their reputation for service precedes them. New customers often come because they’ve heard that Valley Ace is not just a hardware and building supply company but a trusted partner committed to helping them deliver quality and peace of mind.

Valley Ace Hardware proves it’s dedicated to B2B customers with a fully dedicated B2B team, an entire Pro Desk section within the store complete with its own entrance, pro parking and space for meetings and training. Pro team members are trained specifically in homebuilding and are equipped to offer services like site visits, equipment rentals, blueprint takeoffs and reliable delivery. The outside sales team takes it a step further by focusing on certifications and additional product training, particularly in installation.

“This ensures we’re not just supplying materials but also providing the expertise that helps our business customers work more efficiently and with confidence,” Handy says. “Ultimately, our staffing model reflects our philosophy: B2B deserves its own dedicated attention, and we’ve structured our team and resources to deliver exactly that.”

For over 40 years, Ned Green, owner of Weider’s Paint & Hardware, has been a part of the independent channel, and during his tenure in the industry, he has always worked to find ways to grow and differentiate. His operation has three locations in western New York, with B2B sales making up 25% of sales at one of his locations and 16% of sales companywide.

Green strives to exceed expectations every day, but one instance sticks out to him. A customer came into Weider’s on a Sunday at closing time. Rather than turning him away, Green welcomed him into the store—lights off and all—and he bought 18 cans of spray paint and rented the striping machine. When the customer returned the striping machine the next day, he told Green how impressed he was with the extra level of service Green offered. That customer is now a $100,000-a-year customer.

The Right Answer

Flanagan

Paint & Supply employees are trained to say “Yes” to customers.

“It wasn’t an overnight deal, but helping them out and going above and beyond just that one time was the start of a long-term relationship,” Green says.

Donnelly says he has trained his staff to do everything they can to serve customers and avoid saying, “No.”

“I always put myself in the shoes of my customers, and when a vendor tells me no, it can be aggravating and makes me want to move on,” Donnelly says. “A lot of your corporate stores are not going to bend over backwards, so that’s what moves you forward in the business-to-business category.”

4 Let Your Value Proposition Shine

Building relationships, offering efficiency and going above and beyond are steps any operation can take to grow B2B businesses, but it’s also crucial for retailers to lean into the unique value propositions each offers to B2B audiences.

Green’s B2B program at Weider’s Paint & Hardware is fully tailored to what his local market needs, which includes leaning into smaller manufacturers and property management companies.

“We tend to be something a little different for each of them,” Green says. “We are finding what it is that makes a difference to them, finding that value proposition.”

For Weider’s, success is found in smaller B2B clients and being able to solve problems. Looking at the products it sells to B2B customers, Weider’s can match price close to 70% of the time. From there, it’s that extra layer of service and meeting customers where they are that gets the operation business. Green says he asks the customer about their pain

points and looks for ways to make each customer more efficient, whether it is offering delivery, repair or another helpful service.

“If it’s all about price, then that’s going to be problematic, but for us, it’s trying to find a value where they feel comfortable with price,” Green says. “It’s finding that solution, which is what we tend to be good at, to get you in the door. You solve the problem and one thing leads to another and you’ve gained a new customer.”

For McClellan, Hardware Sales’ value proposition is being a one-stop shop. The store has about 80,000 different SKUs in its inventory and is selling through several channels at once—brick-and-mortar, online and B2B.

“If you’re hitting all those lines, then you’re really moving through some volume, and you’re growing your business in the right direction,” McClellan says. “It helps you with profitability, because you’re selling in every sector you possibly can then. And if we can find other sectors where those products fit, then we start getting a lot of overlap in those products and next thing you know, you’re able to buy in mass volumes, getting costs down.”

Punctuality has also been a key differentiator and value proposition for the sales team at Hardware Sales. The team has won numerous jobs just by getting their bids out in a timely fashion—typically within 24 hours.

“Punctuality today is not what it was 20 years ago. Customers are passing on those other companies because they don’t get the bids in on time,” McClellan says. “We strive to be punctual and utilize customers’ time efficiently.”

Stay Loyal

Rewarding B2B customers through pro-only loyalty programs and appreciation events keeps them engaged and spending. Learn more at hardwareretailing.com/B2B-loyalty.

Offering services has brought in a number of additional B2B customers to Flanagan Paint and the revenue that comes with them, Donnelly says. The operation has been doing pump and spray equipment repair for nearly 40 years and employs an excellent small engine repair employee who has expanded into other areas, namely lawnmowers.

“Now we’re also doing zero-turn mowers and getting additional business from facilities that previously wouldn’t buy paint from us,” Donnelly says. “But now that we’re doing all their yard equipment, they’ve opened the door to us, and now we’re selling them paint.”

Adding value to B2B customers by utilizing technology sets Valley Ace Hardware apart. Beyond benefits like streamlined communication, Handy says the team actively promotes its business partners. The company features them on its website, which has become the community’s go-to directory for trusted local contractors, from plumbers and masons to landscapers and builders.

“That free listing gives them visibility and credibility and many have gained new clients because of it,” Handy says.

Valley Ace Hardware also promotes business customers through in-store TVs, in its quarterly newsletter and on social media. Enhanced exposure is available in Valley’s Pro Directory, where marketing dollars are tied to sales with the company. The sales team will report back the results to B2B customers as an added value for their loyalty.

The key to keeping all of these extras managed is using a customer relationship management tool, Handy says, which allows them to communicate directly with customers based on their business type and makes newsletters and outreach far more relevant. Quarterly newsletters include building trends, economic reports on commodity pricing and invitations to “Builders and Brews” events, which are quarterly gatherings that combine vendor-led product knowledge with networking.

“At the end of the day, our B2B program is about relationships. We succeed when our customers succeed, and that means investing in their businesses as if they were our own,” Handy says. “Whether it’s through personalized service, innovative marketing tools, community events or just showing up when they need us most, our focus is always on adding value and earning their trust. B2B isn’t a side of our business—it’s at the heart of what we do, and it’s what allows us to keep serving and strengthening our community for years to come.”

Above and Beyond

At Blackhawk Hardware, customer experience is for all ages. Learn more at hardwareretailing.com/blackhawk-hardware OPERATIONS

A Delight for the Senses

Engage Customers Through Each of the 5 Senses

Sight. Smell. Taste. Touch. Hearing. Every day, we rely on our five senses to navigate and experience life. Forward-thinking retailers are also turning to the five senses to engage with customers in their stores and keep them coming back, moving from offering just customer service to providing a positive customer experience.

BY LINDSEY THOMPSON

A longtime factor that has set independents apart from the big-box retailers is their ability to provide a high level

of customer service to customers, says Dr. Rob Mathews, executive director of the Entrepreneurial Leadership Institute at Ball State University. And while that is still important, customer service has evolved beyond greeting a customer when they enter the store, answering their questions and getting them out the door with the items they need. Customer service also means creating a memorable experience that keeps the customer coming back and creates the right environment that encourages sales.

Stats to Support Customer Experience

Dive into these stats at hardwareretailing.com/experience-stats to see how customers’ expectations are continually evolving.

“Customers are looking for those things that they can’t necessarily define. It’s a feeling they get when they shop with you, it’s all those little sensory touches and the environment you create,” Mathews says. “Restaurants and companies like Disney figured this out a long time ago—customers like surprises and the thrill of discovery.”

When it comes to creating a positive customer experience, Mathews says touchpoints are key.

“Really good companies will analyze 10, 20 or even 30 times the number of touchpoints than companies that don’t offer a good experience,” Mathews says. “And our industry might be more Dollywood than Disney with a more family feel and local emphasis, but those touchpoints are still critical to building loyal customers.”

As you consider what touchpoints make the most sense to create a memorable customer experience in your operation, look for ways to appeal to one or more of the five senses. Keep reading for examples from within and outside the independent home improvement channel on ways to harness the power of our senses.

Taste a Good Experience

While many independent home improvement retailers sell food, customers don’t often get to experience those wonderful tastes in the store. Operations that offer food tastings, free food samples and other tasty treats can keep customers in the store longer for more browsing and hopefully more buying. Popular options for in-store food include popcorn, coffee and slushies. Cooking demos from grilling and cooking vendors are also an easy way to integrate taste (and smell) into the customer experience.

Benedict’s Home & Garden: During the dead of the harsh Northeast winter, Benedict’s Home & Garden in Monroe, Connecticut, brings in freshly picked citrus fruits from Florida and California. The selection includes California navel oranges, Florida juice oranges, Indian River red grapefruit and clementines.

Smell More Than the Roses

The strongest of all the senses, smell can turn customers away or keep them shopping in your store. Utilizing scent marketing, the art of incorporating scents into your brick-and-mortar shopping experience, can keep customers in your store longer, make them want to buy more and drive them to return again and again.

According to research by Mood Media, 75% of all emotions generated every day come from smells, and we experience a 40% improvement in mood after being exposed to pleasant scents. Though almost two decades old, the stats are still relevant—a 1990 Smell and Taste Institute study found that scent marketing increased the desirability to buy Nike shoes in 84% of subjects, and those customers were willing to pay 10% to 20% more in scented environments for products they desired.

Abercrombie and Fitch: The clothing company pumps in one of their own fragrances into each of the stores.

Victoria’s Secret: The lingerie and beauty retailer changes the scent in the store when it launches a new fragrance.

Singapore Airlines: The airlines commissioned its own signature scent, which flight attendants wear as a fragrance, is infused in the hot towels and is wafted through the cabin.

Benedict’s Home & Garden sells fresh citrus during the cold winter months to provide a taste of summer.

Customers are looking for those things that they can’t necessarily define. It’s a feeling they get when they shop with you, it’s all those little sensory touches and the environment you create.”

—Dr. Rob Mathews, Ball State University

Flamingo Road Nursery: Boasting the Flamingo Cafe and Market, Flamingo Road Nursery in Davie, Florida, serves up pizza, sandwiches, fudge and ice cream alongside plants, flowers and other home and garden necessities. Customers can take their food and drink purchases and wander the nursery and store, encouraging leisurely browsing.

Henery Hardware: Human customers aren’t the only ones who can enjoy a tasty treat. At Henery Hardware in Deer Park, Washington, furry friends are given plenty of attention and a yummy dog treat.

Touchpoints That Matter

As a brick-and-mortar store, it’s easy for customers to see and touch all the products, but appealing to the sense of touch involves more than just getting products out of boxes. Offering immersive experiences inside and out of the store not only brings customers in, but brings them back.

Anderson’s Garden Center: Part garden center, part boutique, part restaurant and full experience, Anderson’s Garden Center in Virginia Beach and Newport News, Virginia, has three farm-to-table restaurants, live music and play areas for children. Customers of all ages can enjoy several activities that involve fun touchpoints, including an arcade, mini golf and outdoor playgrounds.

The Flamingo Cafe at Flamingo Road Nursery offers up lunch options and sweet treats for customers.

Henery Hardware gives out dog treats and lots of love to furry friends who pay a visit to the store.

Anderson’s Garden Center allows customers to enjoy a variety of activities, including an outdoor playground.

Sound Decisions: Getting In-Store Music Right

Retail operations should be sure any music playing in the store has been legally licensed. Retailers cannot use a personal music platform like Apple Music or Spotify to play music because of licensing rules. To legally play music in a retail store, the business needs a public performance license from performing rights organizations (PROs) like ASCAP, BMI and SESAC, which are typically sold as annual blanket licenses covering the PRO’s repertoire. Several companies—like Soundtrack, Sirius XM and Rockbot—offer options for businesses.

B&B Hardware: Just one example of many independent retailers who welcome pets into the store and have their own furry store mascots, B&B Hardware in Milan, Illinois, is home to Henry the yellow Labrador. Store owners RJ and Helen McDaniel have even implemented “Henry Recommends” signs around the store for different products, including his favorite dog toys, treats or other products.

Keim Home Center: At Keim Home Center in Millersburg, Ohio, the 125,000-square-foot store features interactive shower displays, kitchen and bath vignettes and a customer millwork and hardware flooring section, allowing customers to feel and see before they buy.

“Hear” for Good Time

What your customers hear while they shop can also impact how long they stay and how much they purchase. When it comes to what customers are hearing in your store, background music makes the biggest impact. According to a study by MRC Data, customers spent almost 60% more time in the store when any kind of music was playing. Another study in 2024 by TrendCandy found that 92% of businesses find that the right music that fits the store’s vibe leads to longer stays and higher customer spend.

When it comes to choosing music for your stores, it should match your brand, be appropriate for your audience of shoppers, reflect the mood of the store and be played at a suitable volume level. Your store’s soundtrack should also be rotated out regularly to keep employees and customers from getting bored with the music options.

B&B Hardware in Milan, Illinois is home to Henry the yellow Labrador, who serves as the store’s mascot.

At Keim Home Center, customers can also touch the different types of wood available for purchase.

Starbucks: The music played in each Starbucks location is a curated playlist that creates a cozy and welcoming environment and matches the time of day and store ambiance.

Albertsons: The grocery chain combines music with marketing in stores. In general, every hour, the background music is 50 minutes of music and 10 minutes of ads for the chain and for products sold in the stores.

Set Your Sights on Experience

What your customers are seeing in your store is one of the most important aspects of the shopping experience. You want to go beyond your customers just being able to see the products you want them to buy—you want to create an aesthetic shopping experience with beautiful decor, thoughtful displays and a clean and organized space for shopping.

Kraynak’s: While all the senses are engaged at Kraynak’s in Hermitage, Pennsylvania, the operation’s Santa’s Christmasland and Easter Bunny Lane are a feast for the eyes. Santa’s Christmasland is a 300-foot avenue that features artificial Christmas trees each with a unique decor scheme surrounded by scenery and life-like animated characters. Easter Bunny Lane offers the same experience but with 300 feet of Easter decor.

Solenberger’s True Value Hardware: To improve customer experience, Solenberger’s True Value Hardware in Winchester, Virginia, installed TVs near the front registers that run in-store advertising and share specials, services and video content.

Solenberger’s True Value Hardware uses TVs throughout the store for advertising and entertainment.

Kraynak’s provides a holiday wonderland that is a feast for the eyes no matter your age.

RESEARCH

Success Starts Here

Purchase your copy of the 2025 Cost of Doing Business Study and begin benchmarking your business for future success. Learn more at YourNHPA.org/CODB

STAYING ON PAR

HIGHLIGHTS FROM THE 2025 COST OF DOING BUSINESS STUDY

The 2025 Cost of Doing Business Study presents the North American Hardware and Paint Association’s (NHPA) annual financial and operational profile of independent hardware stores, home centers, lumber and building materials (LBM) outlets and paint and decorating outlets.

This study assesses the financial performance of home improvement retailers who graciously submitted confidential financial reports for fiscal year 2024 to NHPA. The study presents composite income statements and balance sheets plus averages for key financial performance ratios.

The data is segmented for hardware stores, home centers, LBM outlets and paint and decorating outlets. In each segment, data is presented for the typical store, for high-profit stores, for single-unit and multiple-unit companies and for sales volume categories. In addition, there is a five-year historical trend for typical stores in each segment, including paint.

Retailers can use this data to measure their own performance against industry averages. The data develops benchmarks retailers can use to establish financial plans to improve profitability.

Methodology

The annual Cost of Doing Business Study is made possible through the cooperation of hardware store, home center, LBM outlet and paint and decorating outlet owners and managers throughout the U.S. who provide detailed financial and operational information on their individual companies.

Questionnaires were mailed to a sampling of hardware stores, home centers, LBM outlets and paint and decorating outlets in the U.S. to collect detailed financial and operational information for 2024.

The analysis in this report is the result of extensive review by NHPA. All individual company responses are completely confidential.

Most of the figures in this report are medians. The median for a particular calculation is the middle number of all values reported when arranged from lowest to highest. The median represents the typical company’s results and is not influenced by extremely high or low reports.

To determine high-profit stores, all participating companies were ranked based on operating profits. The high-profit companies in each segment are those that make up the top 25%. The figures reported for each of the high-profit segments represent the median for that group.

While reviewing the numbers on the following pages, it is extremely important to note that each year, this report contains figures from a different sample group of stores. That means overall figures have the potential to vary widely from year to year based on the respondent group of stores participating each year. We use year-to-year comparisons to illustrate general trends over time, not to draw specific year-over-year conclusions.

In this year’s study, 1,082 independent home improvement stores participated, which represents a 1.3% decrease from the prior year, but is the fifth highest since the study began.

To purchase the 2025 Cost of Doing Business Study, visit YourNHPA.org/CODB

90

48 out of 50 states participated

NEW STORES PARTICIPATED

1,082 PARTICIPANTS IN THE 2025 STUDY

5th highest participation in history

1.3% DECREASE VS PRIOR YEAR

EDUCATION A New Way to Train

Another helpful tool from NHPA, RetailWise offers micro-training videos that allow you to train smarter, not harder. Learn more at YourNHPA.org/retailwise

Hardware Store Highlights

O Sales Per Customer of $39 is an all-time high

O Profit Before Taxes of 4.7% dropped for the third year in a row but is the fifth highest on record

O Gross Margin After Rebate of 42.6% is the highest since 2016

Home Center Highlights

O Comp Sales were down 1.18%

O Inventory Turnover (2.0) and Sales Per Inventory (2.9) are the lowest levels ever recorded

O Typical store Gross Margin After Rebate of 32.4% is the same as the prior year

LBM Outlet Highlights

O Comp Sales were up 1.57%

O Purchase Rebates of 2.0% is the highest ever recorded

O Sales Per Employee of $521,494 is the third highest since the study began

Paint Outlet Highlights

O Owners’ Salary (0.4%) is the lowest since the paint segment became part of the study

O Comp Sales were down more than any other segment at 2.22%

O Employee Headcount is up +2, the highest level since 2020

Hot Topics Highlights

O E-Commerce and Delivery: Average percentage of sales online across all segments was 2% and the median was 1%

O Inventory and Loss Prevention: Shrink expense as a percent of sales across all segments was an average of 1.7% and median of 1%

O Staff and Wages: Employee Turnover across all segments was at an average of 28.4% and median of 27%

Key performance metrics separated by store type so you can gauge your operation’s performance against industry standards including: What’s Inside

O Average sales per customer

O Annual customer count

O Sales per employee

O Inventory turns

O Total payroll expenses

O IT & communications expenses

O As a percentage of assets...

O Inventory

O As a percentage of sales... And more!

O Accounts payable/receivable

HOW TO USE THE STUDY

The Cost of Doing Business Study presents financial and operational data for you to evaluate your business and plan strategic changes. Here are ways you can use this report.

• Determine your expenses as a percent of sales and calculate your balance sheet as a percent of total assets. Compare your numbers to the study results for both typical and high-profit stores.

• Don’t look at percentages alone. Compare your real-dollar expenditures as well.

• Compare your results with key profitability and productivity measurements summarized.

• Compare your numbers to stores of a similar size. Don’t limit your comparison to one type of store. Defining hardware stores, home centers, LBM outlets and paint and decorating outlets is practical for statistical purposes, but your store may have attributes of more than one type.

• If your numbers differ significantly, determine the cause. Then develop a plan to bring your numbers more in line with high-profit stores.

“The CODB allows retailers to see direct results between their income statement and balance sheet versus the rest of the industry. They can use the ratios included in the study to guide a plan for revenue growth and to help cut expenses.”

Dave Gowan, NHPA Chief Financial Officer

BROTHERS IN SERVICE

John and Michael Wallace Proudly Serve Their County and Channel

BY LINDSEY THOMPSON

With the vision to create a successful wholesale hardware business, W.B. Whittaker, S.M. Holtsinger and D.M. Wallace chartered the Whittaker-Holtsinger Company in 1922 in Morristown, Tennessee. In 1932, D.M.

became president, and in 1944, he changed the name to the Wallace Hardware Company, Inc. D.M.’s brother J.G. and his son John D. would follow as company presidents, and in 2008, John D’s son Doyle began serving in the role.

ASSOCIATION

An Honor to Serve

NHPA is sharing the stories of these hometown heroes in all of its media brands. Visit YourNHPA.org/veterans to read more about these honorees.

PAYING TRIBUTE

While there is no way to repay the sacrifices made by veterans of the armed forces, the North American Hardware and Paint Association (NHPA) recognizes that not only have these individuals made a lasting impact on their country, but they are also a prominent and positive influence within the home improvement industry.

To honor the ongoing impact military veterans make throughout the home improvement industry, in 2025 NHPA launched the Helmets to Home Improvement recognition program, with the National Hardware Show (NHS) as the program’s official founding sponsor and venue partner.

We need your help honoring these amazing men and women. Please visit YourNHPA.org/veterans to nominate a Helmets to Home Improvement honoree.

Michael Wallace joined the Army National Guard after graduating from high school in 2014 and served for six years.

John Wallace has been a member of the Tennessee Army National Guard since 2010 and appreciates having his wife Shannon’s support.

Nominate a Veteran

Help us honor those who have served our country and our channel. Visit YourNHPA.org/veterans to nominate a veteran from your business to be recognized.

Along with being a household name in the independent home improvement channel, the Wallace family also has a legacy of service in the U.S. military. The latest members of the Wallace family to serve in both the independent industry at Wallace Distribution Co. and the military are Doyle’s sons John Wallace and Michael Wallace.

John has been a member of the Tennessee Army National Guard since 2010, serving as a Blackhawk pilot out of the Medvac unit in Knoxville.

“I’ve always felt a strong sense of duty to serve the wonderful nation we live in,” John says.

Michael joined the Army National Guard after graduating from high school in 2014 and served for six years.

“We have a number of veterans in our family, so that has always made me want to join and serve,” Michael says. “Ultimately, I love my country, and I wanted to serve it.”

Michael drilled at 278 Cavalry Regiment headquarters in Mount Carmel, Tennessee, and trained as a “68 Whiskey,” which is the Military Occupational Specialty (MOS) code for combat medic specialist.

“When I was going in, I remember my mom was pretty worried, and she told my dad to help me pick a job in intel so I would be safer,” Michael says. “I was looking at those jobs and couldn’t see how I would ever use those skills again, but when I looked at the combat jobs, I thought those were skills I could always use, even if I didn’t become an EMT outside of the military. When my mom found out I had picked combat medicine, she was pretty mad at my dad, but it worked out.”

Service Goes On

The camaraderie and brotherhood that have come along with his time in the Army National Guard are John’s favorite parts of serving.

When it came to his time in the service, Michael says his favorite part was the routine, especially during training.

“You are definitely always tired at the end of the day and ready for bed, because you’re waking up early and you’re eating well and doing a ton of physical labor,” Michael says. “They squeeze a lot of activity in a short amount of time. For instance, it normally takes nine months to become an EMT basic but we did that course in two months.”

During his time in the Army National Guard, John has also been a part of the Wallace Distribution Co., currently serving as vice president of operations.

“My family has been serving independent dealers for over 100 years; it’s been an honor to step into that legacy and serve them as well,” John says. “As in the military, there is a deep vein of loyalty, trust and brotherhood within the independent hardlines market. Our market is filled with honest and hardworking people that support each other.”

Michael Wallace trained as a “68 Whiskey,” which is the Military Occupational Specialty (MOS) code for combat medic specialist.

John Wallace serves as a Blackhawk pilot out of the Medvac unit in Knoxville.

Unbreakable Bonds

Both Michael Wallace (above right) and John Wallace appreciate the relationships built during their time in the military.

While he loved his time in the military, Michael says he knew he wanted to serve and then move to what was next, which was back to the family business, where he had been working since age 11.

“Whether I was washing trucks out on the farm or helping give birth to baby cows, I’ve always had a part with the company,” Michael says.

Now he serves in the same sales territory in the Knoxville area that was his grandfather Doyle’s territory when he was Michael’s age. Michael’s uncle Lynn Dawson and John also did a stint in this territory. Beyond the medical skills he gained from his time as a combat medic, Michael has utilized other skills in his role in the independent industry, including punctuality, efficiency, leadership and more.

John has found that his military skills also cross over, and says his experience has given him better judgment for how to earn the respect of those following him, how to challenge teammates to reach their full potential and how to support his team in stressful times, like peak season during a show.

“In my time as an Army officer and pilot, I was able to serve alongside many remarkable and talented individuals.

In many ways, managing soldiers during military operations is much like managing teammates in a business, with lower stakes,” John says. “The military teaches servant leadership, leading from the front and a genuine care for your soldiers. I’m thankful to have that experience.”

Those experiences make military veterans a good fit for the independent channel, John says, as they have been tested under extreme amounts of pressure and responsibility, and this exposure and general broadening allows them to bring tremendous value to the organizations they serve.

“The military teaches many things, but I think that service members are generally going to understand how to contribute to a team, lead a team, work a problem from different perspectives, ignore the noise in a situation and get results,” John says. “I believe most service members are going to have experience with technology and administration that will aid them in areas they wouldn’t expect. I also think that specifically in the hardware channel, service members will fit right in with the hardworking and relationship oriented industry that we operate in.”

Peace of Mind

As consumers prioritize safety and convenience, learn how to stock products that address both needs at hardwareretailing.com/home-security

SECOND HOME,

SMART HOME

TAP INTO A NEW MARKET FOR SMART HOME PRODUCTS

Provided by the Home Improvement Research Institute

Smart home technology continues to expand its footprint in U.S. households. New insights from The Home Improvement Research Institute’s (HIRI) 2025 Secondary Homes Report reveal that secondary homeowners are significantly outpacing primary homeowners in both recent and planned purchases of home automation and security products.

Secondary Homes Lead in Smart Product Purchases

Secondary homeowners are three times more likely than primary to have smart home or security tech.

Around 15% of secondary homeowners reported buying smart home or security tech, which is three times the rate of primary homeowners at just 5%. When the research assessed purchase intent for the next 90 days, that gap persisted. Around 16% of secondary homeowners planned to make similar purchases, again three times the 5% of primary homeowners. These findings, based on data collected between May 2024 and January 2025, signal a robust market segment that retailers and manufacturers of smart home, automation and security products should not overlook—secondary homeowners.

About HIRI

The Home Improvement Research Institute (HIRI) is the only nonprofit organization primarily dedicated to home improvement research. The organization empowers its members with exclusive, ongoing home improvement data and information for making better business decisions. Members are the home improvement industry’s leading manufacturers, retailers and allied organizations. Learn more at hiri.org

A Desire to Protect Their Investments

Why the outsized interest from secondary property owners? One likely factor is the increased value secondary homeowners place on automation for convenience, security and remote control. These homes, often used seasonally, as rentals or for future retirement, benefit uniquely from features like smart locks, security cameras and environmental monitors.

HIRI’s Recent Home Buyer and Seller Report found smart home and security upgrades are more common in the homes people move into (7%) than in the ones they sell (2%). While this data speaks to primary residences, it reinforces a pattern—homeowners prioritize smart investments where they plan to stay involved, whether living there full-time or managing the property from afar.

of secondary homeowners engage in a comparison of different products or brands 46%

of people upgrade their smart home systems, with security upgrades being most common after moving into a new home. 7%

Homeowners Invest Where It Matters Most

What drives these purchases? Homeowners say a mix of functional and aspirational reasons. Around 15% pointed to a desire to support new features, reflecting both lifestyle upgrades and practical benefits like energy management, safety and convenience.

Taken together, these data points tell a clear story.

Secondary homeowners represent a high-intent, high-investment audience for smart home and security products. Their properties, often used for vacation, rental income or future retirement, are being equipped to meet evolving expectations around convenience, safety and remote management.

For home improvement retailers and product manufacturers, this opens new opportunities. Smart thermostats, doorbell cameras, leak sensors and app-connected lighting are no longer niche. They’re fast becoming expected features, especially in homes with multiple occupants or shared usage.

Making Strategic Adjustments for Success

If you’re not yet a HIRI member, consider joining for enterprise-wide access to $1M+ annually in home improvement research. Learn more at HIRI.org/pricing.

With membership, you get access to quarterly U.S. Size of Market Reports and HIRI’s Bi-Annual Product Purchase Tracking Study. This comprehensive research covers a variety of items,

analyzing the purchasing behavior and preferences of homeowners across various building product groups and identifying factors most important for homeowners as they make product selections and purchasing decisions for their homes.

For additional insights, make plans to attend HIRI’s 2025 Home Improvement Insights Summit, October 22-23, in Chicago, which is open to non-members and members alike.

Learn more and register at hirisummit.com.

RESEARCH

Category Connections

Discover how smart home, HVAC and electrical systems work together in the retail space at hardwareretailing.com/smart-home-spending.

Smart Investments

HOW TO GET SMART HOME PRODUCTS FLYING OFF THE SHELVES

WBY ANNIE PALMER

ith more homeowners adopting energy efficient and cost-saving strategies for their homes, carrying a variety of smart home products is more important than ever. According to research from the Home Improvement Research Institute (HIRI) on homeowner trends in energy

efficiency, more than one-third of homeowners plan to invest in smart home systems and energy efficient appliances over the next five years. In the study, 38% of homeowners report that they are likely to adopt smart home systems and 18% say they are likely to purchase a home energy management system.

“Smart home technology has come a long way, and it’s about much more than just convenience,” says Cassie Pound, vice president and co-owner of Quality Heating, Cooling, Plumbing and Electric in Tulsa, Oklahoma. “Whether it’s a thermostat that learns your routine or a leak detector that helps you avoid costly damage, these devices are smart investments. They save money, protect your home and give you a clearer picture of how your systems are running.”

Although the statistics show smart home products are gaining popularity, many retailers are facing challenges in marketing them effectively and getting customers to actually buy them. Hardware Retailing spoke to one retailer who has discovered impactful ways to promote smart home products, and he shares his best practices to help other retailers find success in this category.

Integrate Into Traditional Categories

At Callbecks Home Hardware Building Centre in Summerside, Prince Edward Island, marketing coordinator Justin Doiron has found success selling smart home products within general categories of products, like lighting and thermostats.

Callbecks Home Hardware carries a range of smart home products, including smart locks, smart light bulbs and fixtures, switches, outlets, thermostats and appliances like air conditioners and dehumidifiers. Callbecks’ affiliated furniture store, Leon’s Summerside, also sells a wide selection of smart appliances alongside traditional appliances.

“We don’t have a dedicated section for smart home products in our store,” Doiron says. “Instead, these items are integrated throughout the departments where they naturally fit to encourage discovery.”

While smart home products aren’t a major selling category at Callbecks, customers often stumble upon these products while browsing. Customers don’t often come to the store specifically looking for a smart home item, but are exposed to the options available because these products are sold on the shelves next to traditional items.

Future of Smart Living

According to Fortune Business Insights, the smart home market reached $147 billion in 2025 and is projected to surpass $633 billion by 2032. Here are the top smart home trends to watch:

Smart Water Sensors

Detecting leaks, frozen pipes and preventing plumbing accidents, smart water sensors work around the clock to keep homes safe.

Smart Thermostats

Using AI technology, today’s smart thermostats can learn a homeowner’s daily routine and adjust temperatures throughout the day. Through geofencing, some smart thermostats can use a phone’s location to track if a customer is at home or not, setting the home’s temperature accordingly.

Smart Kitchen Appliances

From induction stoves that alert users if skillets are compatible with the burners to in-oven cameras, kitchen appliances are using AI to adapt to the rapidly changing smart technological space.

“It varies by department, but these products don’t stand out as a major traffic driver. Customers often discover and purchase smart home items alongside other hardware and household needs,” Doiron says.

Callbecks’ customer base ranges in demographics, age range and preference. Doiron says younger customers tend to be the main buyers of these products, but other generations have also started to latch onto tech-savvy solutions.

“Demand in this category has certainly been growing,” Doiron says. “As a business with over 125 years of history, we serve a multi-generational customer base, which makes the trend especially interesting to watch. Younger customers tend to be more technology-driven, but we also see many seniors embracing smart devices for the convenience and lifestyle improvements they offer.”

Employees at Callbecks Home Hardware educate customers on the cost-saving and eco-friendly benefits of smart home integration.

If you accepted or processed Discover credit cards between 2007–2023, you could be eligible to get a payment from a class action settlement.

**YOU MAY BE ENTITLED TO A SETTLEMENT PAYMENT**

To receive a payment, file a claim by May 18, 2026

WHAT IS THIS ABOUT?

A proposed class action settlement has been reached in three related lawsuits. The lawsuits allege that, beginning in 2007, Discover misclassified certain Discover-issued consumer credit cards as commercial credit cards, which in turn caused merchants and others to incur excessive interchange fees. The misclassification did not impact cardholders. Discover denies the claims in the lawsuits, and the Court has not decided who is right or wrong. Instead, the proposed settlement, if approved, will resolve the lawsuits and provide benefits to Settlement Class Members.

WHO IS INCLUDED?

The Settlement Class includes all End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a Misclassified Card Transaction during the period from January 1, 2007 through December 31, 2023. To view the full Settlement Class definition, including defined terms and excluded entities, go to www.DiscoverMerchantSettlement.com.

WHAT CAN I GET?

To receive a settlement payment, with very limited exceptions, you will need to file a claim by May 18, 2026 and/or provide additional information to the Settlement Administrator. Under the proposed settlement, Discover will make payments to eligible Settlement Class Members who submit valid claims. Discover has agreed to pay between $540 million and $1.225 billion plus interest in connection with this settlement. Your settlement payment amount will be calculated based on a variety of factors.

YOUR OTHER OPTIONS.

You can file a claim for a payment by May 18, 2026 and/or provide additional information. Alternatively, you can exclude yourself from the settlement by opting out, in which case you will receive no payment under this settlement and retain any right you may have to sue Discover about the claims in these lawsuits or related to the Misclassified Card Transactions. If you do not exclude yourself, and the Court approves the settlement, you will be bound by the Court’s orders and judgments and will release any claims against Discover in these lawsuits or related to the Misclassified Card Transactions. If you do not exclude yourself, you can object to or comment on any part of the settlement. The deadline to either exclude yourself or object to the settlement is March 25, 2026 Visit the website for information on how to exercise these options.

Emphasize Eco-Friendly Features

According to HIRI’s Generational Differences in Home Improvement Activity study, as homeowners age, factors like cost savings and comfort cause individuals to invest in smart home technologies. In the same study, the data showed that across all generations, customers prefer energy efficiency over sustainability and tech-advanced features when it comes to making home improvement decisions. Emphasizing the cost-saving features of these products that compliment the eco-friendly side of them can more effectively market these products. Doiron makes sure to do this when discussing smart home projects with customers.

“We make a point of highlighting anything in-store that’s innovative, unique or on the rise, and smart devices fall into that category,” Doiron says. “While these products are increasingly being seen as mainstream, we still emphasize their ‘smart’ qualities to ensure customers recognize the difference. Eco-friendly benefits—such as energy savings from smart thermostats or LED lighting—are definitely part of customer conversations and an important factor in their decision-making.”

Callbecks Home Hardware Building Centre appeals to customers' desire for cost-saving but innovative products.

RESOURCES

News to You

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INDUSTRY EVENTS

Fall Market Recap

Ace Hardware Retailers Explore Ways to Grow at 2025 Fall Convention

Over three days, Ace retailers from around the world convened in Chicago for the Fall 2025 Ace Convention. During the general session, attendees heard from company executives on Ace’s performance in the last few months and the priorities and focuses for the year ahead. As retailers walked the aisles of the market floor, sat in on educational sessions, met with vendors and service providers and attended the general session, a common theme running through convention was finding ways to differentiate and grow, even in challenging economic times.

Do it Best and True Value Host First Integrated Fall Market

In just a short time, Do it Best and True Value are well on their way to becoming one with the fruits of both companies’ efforts evident in Indianapolis at the Do it Best and True Value 2025 Fall Market. The market saw a record-breaking 11,000 attendees, maxed out the space at the Indianapolis Convention Center and welcomed 155 new vendors to the market floor to share deals and discounts with attendees.

Home Hardware Stores Limited Recognizes Top-Performing Retailers

Kicking off the 2025 Home Hardware Homecoming event, which took place in Toronto, Ontario, Home Hardware Stores Limited announced the recipients of the annual Proud of My Home Achievement Awards, which covers 17 categories. Over the course of the event, dealer-owners connected with vendors who showcased new products and gained insights into the latest trends in the Canadian home improvement industry.

The Blish-Mize 2025 Fall Buying Market Brings Big Deals to Retailers

At its recent Fall Buying Market in Overland Park, Kansas, Blish-Mize provided its customers with show-only deals, new products and support amid economic headwinds. Concerns early on about travel difficulties and retailers being tied up at their stores didn’t slow attendance. With the increasing uncertainty around tariffs and pricing, the team at Blish-Mize has made its market into a must-attend event, offering pricing unavailable regularly.

To read the full market recaps, visit hardwareretailing.com/industry-news

Smart Training Smarter Teams

RetailWise is NHPA’s new AI-powered micro-training program, built exclusively for independent hardware, paint, and lumber retailers. Designed for today’s fast-paced retail environment, RetailWise delivers 52 professionally scripted, two-minute video lessons that fit seamlessly into your store’s daily rhythm — no long classroom sessions or complicated schedules required.

100% DEVICE ACCESSIBILITY

RetailWise can be accessed across multiple platforms including, mobile devices, desktops and in-store screens.

NETWORK Make a Plan Visit YourNHPA.org/cal to find more industry events online.

Hardlines Conference

October 21-22 | BANFF, ALBERTA

HIRI Summit

October 22-23 | CHICAGO, IL

House-Hasson Dealer Market

October 23-25 | SEVIERVILLE, TN

NOV

Orgill Winter Online Buying Event

November 3-16 | VIRTUAL

ISSA Show North America

November 11-13 | LAS VEGAS, NV

Hardlines Distribution Alliance Executive Planning Conference

November 18-20 | PONTE VEDRA BEACH, FL

Desperate Enterprises IBC desperate.com

Digger Specialties 5 diggerspecialties.com

Do it Best 3 fastenerconnection.com

Equip Class Action & Claim 48 epiqglobal.com

Forney Industries 17 forneyind.com

Gordon’s USA 19 gordonsusa.com

Great Northern Equipment 18 gnedi.com

Hardlines Distribution Alliance 49 hdaworks.com

House-Hasson 9 househasson.com

Jeske Hardware Distributors 52 jeskehardware.com

Knox Fertilizer 47 knoxfert.com

Leviton Manufacturing 7 levitonmanufacturing.com

NHPA RetailWise 51 YourNHPA.org/retailwise

Notch Distributors 13 topnotchinc.com

Buy a Store | Sell Your Business | Post a Job, Get a Business Valuation | Find a Lender and More

BUSINESS FOR SALE

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3.21 million

The main building is a total 27,213 sq. ft. of retail and warehouse space on 4 acres. The main bldg. was constructed in 1994 with additions constructed in 2002 and 2004.

Single story with 22’ clear height in 11,459 sq. ft. of lumber warehouse, three grade level doors and two dock height doors.

BUSINESS FOR SALE

Hoosick True Value

Location: Hoosick Falls, NY

Gross Revenue: $1.26 million

Price: $1.875 million

This opportunity offers a turnkey sale of a general hardware business located in northeastern Rensselaer Co., New York. The business serves five towns and southwestern Bennington Co., Vermont, and 25 miles east of Troy, New York.

SEEKING BUSINESSES

The Aubuchon Company

For our next acquisition, we are looking for:

• Single-store and multi-store hardware operations

• Located in northeast and southeast United States

• Store size of 5,000-30,000 ft 2

• At least $3 million in average store sales

SEEKING BUSINESSES

BUSINESS FOR SALE

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1.04 million

This historic home improvement and hardware store is a staple of its community and operates from its headquarters in the Kansas City Metropolitan Area of Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products.

BUSINESS FOR SALE

Albrights Hardware & Garden Center

Location: Allentown, PA

Gross Revenue: $1.9 million

Price: $800,000

Albrights Hardware is an established hardware store with strong neighborhood ties and has been a Lehigh Valley staple for over 50 years. The current owners have owned the store since 1992. Albrights serves its loyal customer base by providing quality products and exceptional customer service.

SEEKING BUSINESSES

Bolster Hardware

We are looking for:

• Geography agnostic

• With or without real estate

• Store revenues of $1.5M+

• We prefer to honor the family name and heritage in the local community by not changing the name

• We prefer to keep all employees as part of the acquisition

JOB LISTING

The Helpful Hardware Company

We are looking for:

• Single-store units in the southeast and multi-store groups with 3+ units nationwide

• Store size of 5,000 ft2-35,000 ft2

• Supplier agnostic

• Store revenue: $1.75M+

BUSINESS FOR SALE

Central Vermont Paint, Flooring and Decorating Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1.1 million

Full-service decorating store providing flooring, paint, window treatments, kitchen/bathroom remodeling, cabinetry product offerings, design assistance, specialized service, and professional installation.

BUSINESS FOR SALE

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

BUSINESS FOR SALE

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEEKING BUSINESSES

Gold Beach Lumber Yard

We are looking for:

• Single-store and multi-store hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

Randall Lumber & Hardware, Inc.

Position: Hardware, Ranch and Feed Department Manager

• Annual Salary: $48,000-$55,000

• Bachelor’s Degree or 5 years of experience in similar role preferred

• Strong leadership skills and creative thinking are a bonus

LAST WORD

EDUCATION

Training Levels Up

Find solutions for growing your business with the NHPA Academy for Retail Development. Learn more at YourNHPA.org/education/academy

Sell Smarter

BUILD AN OUTSIDE SALES PROGRAM THAT GENERATES REVENUE AND CUSTOMER LOYALTY

An outside sale program can lead to a lucrative and reliable stream of revenue for your company. It’s likely a program you’ll build slowly over time as your sales representatives

create long-term relationships with customers. Hardware Retailing gathered these best practices from experts in outside sales who have years of experience building successful sales teams.

ANTICIPATE NEEDS

The most effective salesperson helps customers solve problems. When you become a trusted adviser, you also begin to anticipate their needs and stay one step ahead of them as they start to talk about new projects they’re working on.

TALK ABOUT PRICE LATER

It can be tempting to get new customers by offering the lowest price. However, if you want to be in it for the long haul, sell value before you sell price.

Sales representatives who want to be successful need to have a firm grasp of product knowledge because that is how they will differentiate themselves from their competitors. Win customers by showing them ways you can save them money and eliminate mistakes.

SHARE IDEAS

Don’t walk away from a small sale because it could eventually turn into a larger customer. Focus on value and long-term potential rather than short-term success. Look for small wins to grow B2B sales.

Whether it’s reading an article in a trade publication, attending a roundtable discussion or chatting with a fellow retailer at a wholesaler market, take every advantage to build your knowledge of outside sales. Learn from your peers in the industry and establish a network of people who are willing to share ideas and best practices.

REFINE

YOUR ELEVATOR PITCH

Before approaching a new customer, learn as much as you can about them. Then, when you have the opportunity to talk to them for the first time, you can show them you understand their needs.

If you want personalized, professional advice in starting up your own outside sales team, look for an outside consultant to help.

HIRE A CONSULTANT

The 2025 Cost of Doing Business Study Is Now Available

Access the Industry’s Most Trusted Financial Benchmarking Report

NHPA’s 2025 Cost of Doing Business Study provides comprehensive financial data and benchmarking insights from independent hardware stores, home centers, LBM dealers and paint and decorating retailers across the U.S. Use the study to compare key performance metrics, identify cost-saving opportunities and plan for long-term growth with confidence.

Available insights include:

• Net and gross profit margins

• Payroll and operating expenses

• Inventory turns and GMROI

• Sales per employee and per sq. ft.

• High-profit store benchmarks

Ready to Make Better Business Decisions? Purchase the Study.

Cost of Doing Business Study

Uncover the data-driven lessons, practical challenges, and long-term insights that came from testing ESLs at scale. This case study goes deeper into what makes a retail “living lab” work and what you can take from it.

See how they did it.

Chris Clark General Manager of Germantown

Tailored Solutions, Unlimited Potential

Hardware

Memphis, Tennessee