Hardware Retailing September 2019

Serving Hardware, Home Center & Building Material Retailers

DISTRIBUTOR PROFILE SERIES

A Path Ahead PRO Group Gives Retailers Tools to Succeed

Presenting a Special Data Supplement

Page 37

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VOLUME 217 • ISSUE 3 • SEPTEMBER 2019 • HARDWARERETAILING.COM

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A Path Ahea

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Page 37 Get a quote today.

Offering health, dental, eye and life insurance coverage, there are several options available through NRHA. Learn more by contacting cbigi@msn.com, or call 888-201-7408.

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

The NRHA Health Insurance Plan provides retailers with a realistic solution to offer benefits to employees.”

VOLUME 217 • ISSUE 3 • SEPTEMBER 2019 • HARDWARERETAILING.CO

Bob Chiesa | President & CEO | Custom Benefits Insurance Group Inc. FOR MORE INFORMATION, GO TO CBIGI.COM/NRHA-PROGRAM

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DISTRIBUTOR PROFILE SERIES

A Path Ahead PRO Group Gives Retailers Tools to Succeed

Presenting a Special Data Supplement

Page 37

Page H1

VOLUME 217 • ISSUE 3 • SEPTEMBER 2019 • HARDWARERETAILING.COM

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Headquarters OUR MISSION

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

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

@nrha_official North American Retail Hardware Association @nrha_official

EXECUTIVE STAFF

EDITORIAL, DESIGN AND PRODUCTION

PRESIDENT AND CEO Bob Cutter

EXECUTIVE VICE PRESIDENT AND EXECUTIVE EDITOR Dan Tratensek

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD TJ Comstock, Northwest Hardware LLC, Billings, Montana EXECUTIVE VICE CHAIRMAN Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin DIRECTORS Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina David Dishke, Grand River Home Hardware, Caledonia, Ontario SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN Megan Menzer, Newton’s True Value, Cherryvale, Kansas

MEMBER SERVICES TRAINING MANAGER AND EDITOR Jesse Carleton, 317-275-9418, jcarleton@nrha.org RETAIL OUTREACH COORDINATOR Renee Changnon, 317-275-9442, rchangnon@nrha.org EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

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

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

The next issue of Hardware Retailing will be a blast— the 10 lists are back. From how to be a small business hero to what tools you need in your toolbelt, we’re kicking it up to 10.

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

SALES AND MARKETING VICE PRESIDENT OF SALES AND PUBLISHER Kevin Hohman DIRECTOR OF MARKETING AND COMMUNICATIONS Whitney Daulton MIDWEST REGION MANAGER Brad Lyons, 317-275-9424, blyons@nrha.org NORTHEAST REGION MANAGER Lowell Huffman, 317-275-9443, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 317-275-9409, noconnor@nrha.org CONTACT NRHA SALES 136 N. Delaware St. #200, Indianapolis, IN 46204 Fax: 317-275-9400 CANADA John Magner, 500 Queens Quay W., #101W Toronto, ON M5V 3K8 416-598-0101 x220; Fax: 416-598-9191, jmagner@yorkmedia.net

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

SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141 816-561-5323; Fax: 816-561-1249 AR, KS, LA, MO, NE, NM, TX

HARDWARE RETAILING | September 2019

Get Ready To Be Wowed

MANAGING EDITOR Melanie Moul

PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA

2

COMING IN OCTOBER

CIRCULATION, SUBSCRIPTION AND LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665 CIRCULATION DIRECTOR Richard Jarrett Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year.

Canada $75.00 year. All other countries $100.00 year.

(Air Mail $60.00 year additional). Single copy $7.00.

The Annual Report issue can be purchased for $30.00.

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

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

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

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

Contents SEPTEMBER 2019 | VOLUME 217 | ISSUE 3

The Vilegis have reset several departments in Middleburgh PRO Hardware, and each reset has resulted in 20 percent increases in sales.

60 CATEGORY SPOTLIGHT

The Hot and Cold of It Learn from two retailers, including Jason Wright of Wright Hardware Co., how you can support customers in need of an HVAC tuneup.

70 MERCHANDISING

37

DISTRIBUTOR PROFILE

PRO Group

Find out more about how PRO Group has grown in recent years from president and CEO Steve Synnott, and learn more about PRO’s diverse marketing initiatives. Also, meet Heather and Rich Vilegi, co-owners of Middleburgh PRO Hardware in Middleburgh, New York, who are finding success using PRO’s programs.

High Performance Retailing

H1 NEW PUBLICATION

Introducing a New Resource High Performance Retailing wants to help you become an informed, more knowledgeable business operator. Each quarter in the pages of Hardware Retailing, dive into industry-specific articles on operational efficiencies, category trends and timely data.

What Went Wrong Give your merchandising some fall flair. Review some best practices for creating an endcap that will draw in seasonal customers, not repel them.

Departments 06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 12 . . . . . . . . . . . . . . . . .NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 22 . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 74 . . . . . . . . . . . . . . . . Newsmakers 78 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Middleburgh PRO Hardware co-owner Heather Vilegi finds success with PRO Group.

Photo by Kelsey Truex

4

HARDWARE RETAILING | September 2019

On the Web VIDEO

Don’t Run Hot and Cold See how your business can strengthen its HVAC product and service assortment. Jason Wright of Wright Hardware Co. explains how your team can turn up the heat on stone cold HVAC sales at TheRedT.com/hvac.

49%

of customers hire HVAC repair techs because they can’t do the work themselves.

Source: Home Improvement Research Institute

DISTRIBUTOR PROFILE

In the Market for Retail Success To help retailers reach new customers, compete in their markets and capture sales, PRO Group unites tried-and-true marketing strategies with the latest digital innovations. For a closer look at PRO Group’s multiplatform marketing options and information on how its Achievers Club brings hardworking retailers to new locales, visit TheRedT.com/pro-marketing.

PODCAST

Now Streaming

PRO Group on the Go Serving classic home improvement stores, lawn and garden centers, farm supply centers and more, PRO Group’s base of retailers is diverse and driven. Learn more about the people who use PRO Group’s resources to expand their reach.

Gladly Putting Out Fires Franklin Cloninger, general manager of Triangle True Value Hardware and Rental, discusses how his work with the local volunteer fire department and social media help his operation connect more to the community.

Listen at TheRedT.com/tell-me-more.

Good Neighbors: Read how PRO Group employees find new ways to volunteer locally at TheRedT.com/pro-volunteer.

Big Step Forward: Learn more about Grandview Lumber’s new building and its e-commerce portal at TheRedT.com/pro-grandview.

CONNECT WITH US

@HardwareRetailing @hardwareretail

6

HARDWARE RETAILING | September 2019

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Independent Thinking

A Culture Shift

W

“Without a complete

commitment to a culture shift at the top, it’s simply an exercise in futility.

”

hat does it take to change the culture in an organization for the better?

A retailer recently asked me that question at a roundtable I moderated.

It’s a fair question, but one without easy answers.

Without a doubt, it takes leadership’s willingness to make a departure from the day-to-day and not only go through, but lead, the process of change. Without a complete commitment to a culture shift at the top, it’s simply an exercise in futility.

However, it also requires buy-in at nearly every level in the organization to make it work initially and stick for the long haul.

You begin to understand the magnitude of the shift required to take place when talking with a second- or third-generation owner trying to undo the my-way-or-the-highway culture instilled by their parents. What most of them say is this attitude may have worked in the past, but it no longer works with today’s workforce.

Then there are the companies that go through the process of developing the mission, vision and values statements, many with good intentions, then hang the posters up in the break room where the carefully crafted words become nothing more than part of the room’s decor. Don’t get me wrong, it’s critically important to go through a formal process with your team to develop these culture-changing components. It’s just that so many companies give the words lip service for a while, but then fail to give them life.

So back to the initial question: How do you change a company’s culture for the better?

It takes a lot of ongoing hard work, dedication and leadership to not only foster the company culture you desire, but to maintain it. The key word is “ongoing.” The best place to start, in a way that gets everyone that matters involved, is with an interruption to the mundaneness of business-as-usual. And it usually works best if it comes from the outside.

One method I’ve seen that can be a great place to start enhancing a company’s culture is by having everyone in the organization take an assessment, such as the DiSC profile assessment. DiSC is given by an outside facilitator who administers the taking of the assessment and schedules time to come into an organization and talk to everyone about their personal results, and what it can potentially mean to the organization as a whole.

We’ve administered DiSC in both the NRHA Retail Management Certification Program and in the Foundations of Leadership Program for years. I’ve seen firsthand how the students begin to understand that everyone has different personalities and communication styles, and it takes all types to make an organization work in harmony.

The real aha moments come when staff members start to understand why they might not relate to or work well with others who have naturally conflicting personalities and communication styles to their own, and then learn how they can improve these interactions.

What the retailers who have been through this process with their staff members say is it provides a common language from which to begin working more effectively together.

This leads to the creation of a better, healthier culture, which ultimately leads to a better customer experience, which is what we all want.

Later this fall, NRHA will be offering the DiSC assessment to our membership, as well as on-site facilitation and analysis of the process. It could be the start of a culture shift that is headed your way that brings those mission, vision and values statements you’ve worked so hard on, or perhaps forgotten about, to life.

If you’re interested in learning more about this new offering, give me a call at 317-275-9417, or send me an email to swright@nrha.org. It might just be the start of developing the culture you’ve always wanted for your company.

Scott Wright, Executive Director, Retail Leadership Institute

swright@nrha.org

8

HARDWARE RETAILING | September 2019

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Taking Care of Business

Change Is in the Air

T

“We are thrilled to

have Kevin back at NRHA, and we are excited about all the insights and experience he brings to the team.

”

here is a line in one of my favorite songs that is actually a well-trod old French saying, “The more things change, the more they stay the same.”

I’ve been thinking about this aphorism quite a bit lately as our team here at the North American Retail Hardware Association (NRHA) and Hardware Retailing has been undergoing some changes.

Just like with any business, every once in a while you have to make some changes in order to shake things loose and move forward. This could mean switching up your team, it could mean adding or eliminating programs or offerings, or it could just mean finding a new way to approach the market.

For us, it has meant some changes here at the magazine and association.

For the last decade or so, I have served a dual role with the magazine and the association. On the magazine side, I worked as publisher while also handling duties for the association in my role as executive vice president.

While these responsibilities certainly kept my plate full, they also spread my time rather thin. Add to this the fact that Bob Cutter, NRHA’s president and CEO, was still splitting a good bit of his time overseeing some of the sales and outreach functions for both the association and the magazine, and you may understand that we were all trying to keep a lot of proverbial plates spinning at once.

We knew a change had to come. And as I started this column, sometimes change doesn’t always mean stepping into completely unfamiliar territory.

So, effective with this issue, we are welcoming a new(ish) publisher to our Hardware Retailing team and a new(ish) vice president of sales to our association.

Many of you may know the individual we have tapped for these roles. His name is Kevin Hohman and he is no stranger to NRHA. In fact, Kevin has worked for NRHA twice in the past 20 or so years. First as a territory salesman for us and then returning to the association to help run our sales and publishing operation.

After leaving NRHA, Kevin spent time running a small publishing operation in St. Louis; working for Progressive Grocer magazine; and most recently working with a company that provides data and insights within the e-commerce landscape.

For Hardware Retailing, Kevin will be doing what a publisher typically does— overseeing our sales and marketing team as well as many of the business aspects of running this magazine.

In his role for NRHA, Kevin will be tasked with building our sales and outreach team and working to find ways to strengthen relationships between retailers and other channel partners.

We are thrilled to have Kevin back at NRHA, and we are excited about all the insights and experience he brings to the team.

As far as I’m concerned, I will still have plenty on my to-do list: overseeing the strategic editorial direction for Hardware Retailing and all of its properties, directing industry research, speaking at industry functions and traveling to retail events throughout the year.

So while you may see a new(ish) face in the pages of the magazine every once in a while, and you will surely see Kevin at upcoming industry events, you can still expect to see me around. Hopefully you’ll also notice a lot of new and exciting things from NRHA as well. And that’s change we can all get excited about.

Dan M. Tratensek, Executive Editor

dant@nrha.org

10

HARDWARE RETAILING | September 2019

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NRHA News

CTL University Puts NRHA Training to Work

W

hen the leaders at Clarence Thomas Ltd. Home Center (CTL) in Fish Bay, Tortola, British Virgin Islands, made the decision to invest in their employees by offering online training, they had no idea how popular the training program would become.

Initially, the program was started by CTL Home Center’s marketing and IT manager David Thomas, but he quickly realized it was critical to have a dedicated staff member to manage the program.

He turned to human resources assistant Xaveria Fredericks to lead the program, which they call CTL University, and it has since become a key driver for staffwide training and employee growth.

Hardware Retailing spoke with Thomas and Fredericks to discover what makes training successful in their operation.

They offered their tips on how other retailers can mimic their success in training, whether they’re in a training slump or have decided to start a training program for the first time.

Read these three key training tips from CTL Home Center and read the full conversation about the success of CTL University at TheRedT.com/ctl-university.

During an associate’s shift, they train for roughly 20 minutes, but many have taken it upon themselves to continue their progress outside the operation.

“It’s not unusual for them to do work on their own time,” Fredericks says. “It’s not expected, but it proves to us that they really enjoy the opportunity to train.”

Designate a Training Manager

Create a Program

“When we first started using NRHA’s online training, I was leading it in addition to my other responsibilities in the company,” Thomas says. “I knew we needed someone who could really focus on running the training program.”

Fredericks says scheduling training times ensures the salesfloor is covered and everyone gets a chance to learn, new and seasoned employees alike.

Thomas selected Fredericks to run the training program because she is thorough and diligent about follow-through.

12

Empower Employees to Learn

HARDWARE RETAILING | September 2019

“A longtime employee who was already great completed the entire course,” Fredericks says. “You can see the difference in his workflow and attitude since graduating.”

NRHA News

Discover 4 Benefits of the NRHA Vision Process

A

s a former general manager of seven home improvement centers, Kim Peffley knows the importance of creating a resourceful team and establishing a culture that supports its success. Now as an NRHA Vision Process consultant, she helps teams understand how their culture dictates their success.

The Vision Process program is an in-store organizational development program that aims to establish core values to bring cohesion, clarity and confidence to home improvement employees at every level.

“I took part in the Vision Process as a store manager, and it brought an incredible amount of structure and organization to our system,” she says.

Vision Process consultants like Peffley guide retail teams through four separate stages of improving overall company culture by establishing core values; aligning company vision and values; standardizing procedures and evaluating the results of the teamwide improvement process.

Peffley says home improvement retailers should know that each Vision Process program is completely customized to a retailer’s individual needs. By adapting to specific culture needs, the Vision Process becomes an integral part of understanding and improving culture.

Wondering if the Vision Process is right for your business?

Learn more about the ways it benefits teams and how you can bring it to your operation at nrha.org/vision-process.

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HARDWARE RETAILING | September 2019

1. Personalized paths improve culture.

3. Core values guide teams to success.

The main goal of the program is to improve workplace culture through on-site visits from the Vision Process team.

Peffley says visits help everyone understand the specific culture of a retail environment and how it can be improved.

During on-site visits, the team reviews or establishes core company values. Peffley says the values are used to guide management and associates toward a single goal.

“Being in the store helps us customize our program to a company’s specific needs,” she says. “We get to meet staff and get a true sense of the culture.”

“Retailers can use core values in many different ways.

From hiring to motivating staff, these values become the new language of the company. Establishing unique core values is a big part of how we drive the culture.”

2. Vision Process keeps teams honest.

4. Best practices improve productivity.

The Vision Process team visits retail locations four times a year to ensure the process is running smoothly.

Peffley says these visits help business owners and store associates keep sight of long- and short-term goals.

Implementing teamwide best practices is a critical part of the Vision Process. Peffley says protocols for cleaning, training, communication and other operations tasks save time and ensure everyone is on the same page.

“These visits really encourage follow-through. We also check in on progress with emails and phone calls, but visiting in-store is a crucial part of the process.”

“These best practices set an example of how things should be done. If you establish and then follow best practices, your whole team can work as one.”

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NRHA News

See Highlights From NRHA at the IGC Show

L

ast month, four independent-focused events landed in Chicago. The 2019 Independent Garden Center Show took over a new venue at McCormick Place. At that event, the National Hardware Show® co-located the Independent Home Improvement Show, and NRHA co-located two events to explore new trends in the lawn and garden category.

On the first day of events, the 2019 State of Independents Midyear Review featured exclusive data about the state of the independent home improvement industry and retailer perspectives on their garden operations.

“Attending shows like this one and spending time looking for the next great items is one way we serve our customers,” says Sara Carpenter, president and landscape designer of Steve’s Ace Hardware in Dubuque, Iowa.

“We’re looking for simple things that solve our customers’ challenges in their homes and in their gardens.”

On day two, retailers attended the 2019 NRHA STIHL Foundations of Leadership Conference, which highlighted the benefits of leadership development training and industry networking. Instructors from the NRHA Retail Management Certification Program presented information

on leveraging independence, creating a desirable workplace and how to serve through leadership.

Visit TheRedT.com/nrha-at-igc for a full event recap and to browse photos from the IGC Show floor, the Independent Home Improvement Show and both NRHA events.

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Trainer’s Corner: Constructive Criticism

W

ith a variety of personalities in your operation, it’s important for your team members to know how to share constructive criticism in a positive, effective way. Use this new Trainer’s Toolbox with your store managers, supervisors or your entire staff and walk them through exercises that will help them learn how to deliver good and bad news and receive it themselves.

Download the activity at nrha.org/trainers-toolbox.

Visit nrha.org/training to become an NRHA Training Member for more training opportunities.

More Team-Focused Resources • Foundations of Leadership. If you want to expand your assistant manager’s communications and leadership skills, consider enrolling them in this 16-week online leadership development course.

Learn more at nrha.org/fol.

• Team Building. Put your team’s skills to the test with this two-person communication exercise.

Access it at nrha.org/team-building.

September 2019 | HARDWARE RETAILING

17

THE DO IT BEST FALL MARKET

It all happens

We understand, you’ve got a business to run—your time is precious. That’s why we load every action-packed minute of the Do it Best Fall Market with opportunities to grow your business and lock in exclusive savings.

SM

Gain insights on the latest retailing trends with our Merchandising Preview and all-new Core Solutions assortments. Discover innovative new products in our Launch Zone and New Item Gallery. Save big at our Sneak Peek. And talk one-on-one with Do it Best staff, member-owners and industry experts. By the end of the weekend, you’re ready to start working on practical, immediately actionable steps to build your business.

Plus, you’ll have opportunities to experience everything Indianapolis has to offer. Top restaurants, big city shopping and nightlife, and plenty of family-friendly attractions. No matter what inspires you, there’s something for everyone in Indy.

Join us at the Do it Best Fall Market—it all happens here! » 2019 Do it Best Fall Market | Indiana Convention Center, Indianapolis | October 18–21 For registration information, contact 888-DO IT BEST or sales.support@doitbest.com

“The Do it Best market is so full of opportunities for you to grow your business that you simply can’t afford to miss it.”

Dan Starr President & CEO

Trends

Sponsored by HIRI | HIRI.org

Getting Smarter The U.S. smart home market is growing quickly. In fact, the Home Improvement Research Institute (HIRI) projects that the market will more than triple in size from 2018 to 2022.

Five years ago, safety and security devices were the biggest draw for people to start buying smart home products. Today, consumer electronics is now the top-selling category by far, HIRI’s research shows.

Consumer electronics include smart speakers, such as Amazon’s Alexa, and smart appliances.

Percent of products sold through each type of seller.

70%

62.7%

60% 50%

Other includes insurance companies, general contractors and specialty companies

40% 30% 20%

13.3%

11.5% 10.2%

10%

1.2%

1.1%

0%

s ie ilit s Ut er ld ui eb m m te Ho ys -S le s tip or ul at M per O

Learn more about HIRI and access market sizing and category data by joining HIRI at HIRI.org.

er th O y rit r cu de Se rovi P

il ta Re

Surveyed retailers continue to sell more smart home products to consumers than any other channel, though homebuilders who incorporate smart products into their projects are becoming increasingly common.

HIRI predicts that the builder channel will grow rapidly from 2018 to 2022 as a route for smart home products to go to market, with a compound annual growth rate of 61.7 percent.

Top Routes to Market for Smart Home Products in 2019

Top 3 Smart Home Categories in 2019 Percentages represent projections of the total volume of products expected to be sold.

20

Consumer Electronics

50.5%

Lighting and Controls

19.9%

Safety and Security Devices

16.3%

HARDWARE RETAILING | September 2019

Source: State of the Smart Home, Home Improvement Research Institute, 2019

WE CAN GET YOU THERE People don’t just have tinting requests—most days they have questions too. They need tools that deliver the kinds of results that are expected from a professional or that can make them appear like today wasn’t a first-time painting experience. Wooster Ultra/Pro® Firm paintbrushes bring success to every-day painting jobs. If your customers are counting on professional painting results—tell them that Wooster is the way to get there.

The Wooster Brush Company ¥ woosterbrush.com ¥ 800.392.7246

New Products

“Within 10 seconds,

Q-Bond is rock hard on any type of surface. I would say I get 90 percent of sales just from demonstrations.

2

”

—Matthew Boswell, Kabat’s Ace Hardware

1 “This is one of those items

I never thought we’d sell, then we ended up selling through them all, and people came back asking for more.

”

—Rich Vilegi, Middleburgh PRO Hardware

22

1. Extra Strong Adhesive

2. Light-Up Bucket

Q-Bond is an ultra-strong adhesive that can adhere to most metals and most plastics. It is 100 percent chemical resistant, temperature resistant up to 356 F and can withstand pressure up to 1,300 PSI. Once cured, which occurs within 10 seconds, it can be sanded, painted, powder coated, drilled and tapped, and it is also flexible on rubber, such as belts and gaskets.

Q-Bond has a two-year shelf life and is warrantied up to its lifespan.

The BRITE BUCKET is a 5-liter capacity bucket that includes a 200 lumen removable COB puck light in the base. Users can illuminate the contents of the bucket or carry the bucket to use as an area light. The light has two settings, low and high, and can last for up to six hours on low. It also features an SOS setting that lasts for eight hours. It comes with three AAA batteries. The BRITE BUCKET also collapses for easy storage and transport.

Q-Bond USA qbond.net or dbarachie@gmail.com

NEBO Tools nebotools.com or 800-255-6061

HARDWARE RETAILING | September 2019

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

“Once customers use

Quick Dams, they come back and buy more. This is the only product we can find, other than sandbags, that works.

4

”

—Matthew Boswell, Kabat’s Ace Hardware

3 “These Oatmeal Greeting

Cards have been a great draw in our area. Some customers come into the store specifically to get the cards.

”

—Taylor Koch, Taylor’s Do it Center

3. Flood Barrier Quick Kits by Quick Dam contain flood bags and barriers in a high-visibility orange bucket or duffel bag. The buckets include a watertight screw-top lid. The kits are made to absorb, contain and divert problem flood water. Quick Kits come with a variety of bags and barriers. They are easy to transport and deploy, and the products are water activated and reusable.

Refills are available to purchase separately.

Quick Dam quickdams.com or 888-761-4405

4. Funny Greeting Cards Oatmeal Greeting Cards has been known for its unique, colorful graphics and humorous content since 1978. The cards are made in the U.S. on recycled paper with vegetable-based ink. The cards include a free display and free freight.

Oatmeal Studios oatmealstudios.com or 800-628-6325

September 2019 | HARDWARE RETAILING

23

New Products

5

6

BEYOND THE CURRENT

Save 5% on your order.

Make an appointment today!

True Value | Chicago, IL | Oct 3 - 6 United Hardware | Minneapolis, MN | Jan 10 - 12 Mid States | Phoenix, AZ | Jan 21 - 23 True Value Spring Market | New Orleans | Feb 14 - 16 Orgill Spring Market | Orlando, FL | Feb 27 - 29

Scan the QR Code or go to halexco.com/shows.cfm

5. Drip-Controlling Caulk Gun The Irion-America LLC eXcePt series caulk gun features a rubber-coated handle and trigger, an antirust and scratchproof barrel and a built-in tip cutter. The adjustable drip-control technology is activated by a switch on the handle and can be turned on and off while laying a bead. eXcePt series products can hold 310 ml or 10 ½ fluid ounce cartridges and sausages and cartridges up to 600 ml.

Irion-America 610-656-9784 or irion-america.com

6. Tabletop Game The Tiki Toss Desktop Edition is inspired by a traditional island game that asks players to attempt to latch the ring onto the hook. It can be displayed on coffee tables, bartops, kitchen islands, desks and other surfaces. The game is available in bamboo and chrome finishes.

Mellow Militia 800-409-7098 or playtikitoss.com

24

HARDWARE RETAILING | September 2019

7

8

WITH AUTO-SHUT-OFF PROTECTION

GLOW

The Ultimate Water Removal Tool for Every Home!®

Exclusive discount when you set an appointment!

7. Fingerprint Lock The Pro-4 Secure Touch Lock personal lock uses fingerprint technology to ensure that only registered users can access locked possessions.

The locks can store up to 10 fingerprints.

The battery lasts up to three months and can be fully charged within one hour. It is water resistant and safe when dropped from up to 1.2 meters.

Pro-4 Tactical 248-809-2129 or orders@pro-4marketing.com

Ace Fall Show | Atlanta, GA | Sept. 6 – Sept. 8 True Value Fall Reunion | Chicago, IL | Oct. 3 – Oct. 6 DoIt Best Fall Show | Indianapolis, IN | Oct. 18 – Oct. 21 United Hardware | Minneapolis, MN | Jan. 10 – Jan. 12 Mid States Rendezvous | Phoenix, AR | Jan. 21 – Feb. 2 Scan the QR Code or go to waynepumps.com/shows

8. Drywall Level The Kapro Tools 773 Magnetic Stud Layout Level features magnetic stud slots at 16 inches and 24 inches for installing wood and metal studs.

The aluminum profile includes two breakproof, solid acrylic vials and a milled surface with rare earth magnets. The Plumbsite® dual view provides more accurate plumb leveling than a standard plumb vial.

Kapro Tools Inc. 920-648-2900 or kapro.com

September 2019 | HARDWARE RETAILING

25

9

10

Simplify Your Retail Business

9. Hands-Free Truss Spreader TrussLox is a hands-free spreader bar that self-sets and secures trusses 24 inches on-center while workers remain tied to the outside walls. TrussLox is secured onto a truss on the ground, and a crane lifts the truss onto the roof section where TrussLox temporary spreader bar snaps into place.

TrussLox 406-601-3681 or trusslox.com

Contact an Epicor expert today epicor.com/HWHC-HR | eagle@epicor.com | 1.888.463.4700

10. Concrete Planer The 5-inch SJSII™ Compact Concrete Planer Kit with Dust Extraction Shroud and Diamond Cup Wheel by Makita is made for concrete finishing, smoothing floors and concrete seams, concrete material removal and surface coating removal. The four-spring suspension system keeps the shroud flush with the surface during movement.

Makita 800-462-5482 or makitatools.com

26

HARDWARE RETAILING | September 2019

11 11. Laundry Pretreatment Spray Charlie’s Soap prespray stain remover’s formula treats stains without fading colors.

Nontoxic and biodegradable, the spray removes stains from any fabric and is safe if it dries on. The product comes in a 16-ounce spray bottle.

Charlie’s Soap 800-854-3541 or charliesoap.com

Scan for more Information!

September 2019 | HARDWARE RETAILING

27

New Products

12 12. Shaker-Inspired Shingles The DaVinci Select Shake by DaVinci Roofscapes® features the look of real cedar shake taken from natural wood profiles.

It is available in 8- and 10-inch widths, is 22 inches long and has a 5/8-inch thickness.

The 10-inch-wide pieces have a simulated keyway to give the appearance of 4- and 6-inch width shakes placed together. The tile design of DaVinci Select Shake allows for faster installation than previous DaVinci single and multiwidth products. The shingles come in eight color blends, including Autumn, Chesapeake, Mountain, Tahoe, Weathered Gray, Aged Cedar, Black Oak and Mossy Cedar.

DaVinci Roofscapes 800-328-4624 or davinciroofscapes.com

No NMP, No Methylene Chloride!

AVAILABLE AT PARTICIPATING ACE & TRUE VALUE STORES

BLUE BEAR PAINT STRIPPER With Safenol™ • Removes Multiple Layers of Coatings in ONE Application • Low Odor Formula • Non-Caustic & Eco-Friendly www.franmar.com

28

HARDWARE RETAILING | September 2019

1-800-538-5069

13 13. Expandable Storage Bag The LUMEHRA FlexBag is a multipurpose, all-season, indoor-outdoor bag for camping, sports, travel, organization and other activities. The bag is expandable from 12 to 15 inches and is portable, lightweight and sturdy. It can be used either horizontally or upright. The LUMEHRA FlexBag can be kept in the home, camper, SUV or garage for storage and easy organization. The neoprene cover is removable, machine washable and water and mold resistant.

LUMEHRA info@lumehra.com or lumehra.com

LONGEST LIFE. BEST PERFORMANCE.

OSCILLATING MULTI-TOOL ACCESSORIES Titanium Nitride (TiN) coated blades repel heat for longer life, reduces friction for better performance and its high hardness prolongs the life of the cutting edge.

Learn more at imperialblades.com

New Products

15 14

14. Striking Tools The True Temper AMES Cos. Inc. striking tools line features 45 tools, including sledgehammers, axes, mauls, picks and mattocks. The tools feature handle overstrike protection to help prevent handle damage and breakage; comfort grips on fiberglass handles; and reengineered head-to-handle connections to increase retention and tool life.

Our magnets attract customers and profits.

AMES Cos. Inc. 800-393-1846 or true-temper.com

You can rely on over 40 years of experience and 250 products to support your continued success.

Let us show you how the retail power of magnetic attraction can work for you.

15. Wireless Food Thermometer

Call 888.293.9190 or visit magnetsource.com/retailsupport

magnetsource.com

Your Best Source in the Magnetic Field

30

HARDWARE RETAILING | September 2019

The meat° it® is the only wireless cooking probe that can be used in the oven, stovetop or outdoor grill, open or closed. The wireless device helps users monitor the internal temperature of their cooking food.

It alerts users if meat is overcooking and when food is almost finished cooking.

Mastrad mastrad-paris.us

16 17

16. Valved Plunger With its patented VersaFlange™, a pliable cone, the VersaPlunge plunger conforms to nearly any toilet bowl opening. VersaPlunge has a relief valve in the handle to minimize overflow, and its accordion-style bellows allows users to apply additional force without risking splashback. The end can also be rolled into a flat bottom to clear sinks, tubs and other drain openings.

General Pipe Cleaners 800-245-6200 or drainbrain.com/versaplunge

At Mi-T-M, we pride ourselves on building mighty, damn good equipment. It’s what sets us apart from our competition. When you purchase equipment with the Mi-T-M name on it, you are buying dependable equipment that is designed, built, and tested by good people. Mighty. Damn. Good.

17. Desk Cable Organizer The Mockett underdesk wire manager kit includes two cable troughs that snap together. It is 16 ¾ inches long and has open-ended modular sides to add extension pieces as needed to fit to a custom table length. The cable tray is attached to two fastener arms that mount to the underside of a desk.

Mockett 800-523-1269 or mockett.com

www.mitm.com 800-553-9053

Air Compressors | Air Compressor/Generator Combinations Air Compressor/Generator/Welder Combinations | Portable Generators Cold and Hot Water Pressure Washers | Wet/Dry Vacuums | Jobsite Boxes Portable Heaters | Water Pumps | Water Treatment Systems

September 2019 | HARDWARE RETAILING

31

Exceeding Expectations. One Fastener Destination at a Time!

“Crescent Ace Hardware sees our customers as our most valuable commodity. As their needs changed, we saw an opportunity with Midwest Fastener to expand our fastener department and to also meet the ever increasing needs of those customers.”

-Joel “Barney” Wienecke, Co-Owner -Two of Crescent City Ace’s avid Midwest Fastener fans -Steve Rosenberger, Department Manager

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

800.444.7313

fastenerconnection.com

Checkouts COMMUNITY RELATIONS

Hardware Store on a Mission

A

local pastor had a tall order for Dave Umber, owner of Umber’s Do it Best Hardware in Fort Wayne, Indiana.

The pastor asked Umber to stock his store in three days with enough tornado relief supplies for nearly 300 people to buy in 90 minutes. He also asked Umber to open early on the upcoming Sunday morning to accommodate members of his church, Avalon Missionary Church.

A tornado had destroyed a church building in Ohio, and Avalon Missionary Church was eager to help the Ohio congregation recover.

Umber said yes, despite the tight turnaround. He also decided to offer a 10 percent discount on all tornado relief purchases.

“You can’t turn down an opportunity to help others,” he says.

The pastor provided a list of cleaning supplies and other products the Ohio church needed. Umber called his distributor to ask about making an unusually large order on short notice.

He had eight hours to work with employees to estimate how many products to buy and then submit the order.

Umber also had staffing needs to address. He needed workers on hand to unload and sort about 2,000 more products than a typical delivery and then serve a crowd that would cram the 10,000-square-foot store.

When Sunday came, the store had more than twice as many employees on the salesfloor as usual. The church members showed up en masse, buying everything on the list, plus some.

“We’ve had large promotional events, but we had months to plan,” Umber says. “None were as intense as this.”

The pastor asked Umber to stock his store in three days with enough tornado relief supplies for nearly 300 people to buy in 90 minutes.

Avalon Missionary Church members flocked to Umber’s Do it Best to buy shovels and other products for a church in need.

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

Have an idea? Contact Kate Klein at kklein@nrha.org to have your story considered for publication.

34

HARDWARE RETAILING | September 2019

THE SIMPLE

SEDGE

SOLUTION SEDGE STOP FROM GORDON’S ™

®

Sedge Stop™ Nutsedge Weed Killer offers season-long control of sedges and kyllingas, plus control of select broadleaf weeds.

Sedge Stop can be used on listed warm- and cool-season turfgrass species, and a 2-lb. shaker can covers up to 500 square feet.

• Granular formulation reduces drift • Innovative shaker can for easy application • Dependable season-long control • Display and POP materials available

TRIANGLE-SHAPED STEM PROMINENT MID-RIB

Give your customers the simple solution to sedges and kyllingas: Sedge Stop! *State registration pending. Check with your sales representative for availability.

FOR MORE INFO, CONTAC T GORDON’S® AT SALES@GORDONSUSA.COM Always read and follow label directions. Sedge Stop™ is a trademark and Gordon’s® and logo are registered trademarks of PBI-Gordon Corporation 07/19 05765

Checkouts

Customer Service: Fun Grill Delivery Jason Haley, owner of Ace Hardware of Clarkston in Clarkston, Michigan, personally delivers most of the grills his store sells. Delivery has gotten more fun with the use of a van he and his team named the Hambulance. The vehicle has pictures of cooking meat on all sides, and Haley recently added a sound machine that makes animal noises.

Operations: Signs of an Impactful Discount Jackson Center PRO Hardware in Jackson Center, Ohio, uses a rebate to compete with Menards’ 11 percent mail-in rebate. When cashiers deduct the discount from each purchase, customers react like everything in the store is on sale, manager Deron Yingst says.

“ The Hambulance has become a bit of a mascot for us.”

—Jason Haley, Ace Hardware of Clarkston “Restore It Don’t Strip It!”

September Shows:

• Restor-A-Finish is a unique finish-penetrating formula that restores wood finishes while blending out minor scratches, blemishes, and abrasions • With a simple wipe-on, wipe-off process, most finished wood surfaces that seem to need a complete refinishing job can be restored in a few minutes • Removes white heat rings and water marks, sun fade, oxidation, smoke damage, etc.

• Available in Neutral, Maple-Pine, Golden Oak, Walnut, Mahogany, Dark Walnut, Dark Oak and Ebony Brown

Eliminates white heat rings, water marks, sun fade, oxidation, smoke damage, etc.

36

HARDWARE RETAILING | September 2019

Community Relations: Love and Water When an elderly man disappeared from his home near Allison’s Ace Hardware in Lottsburg, Virginia, search parties combed the community to find him.

Employees at Allison’s Ace offered free bottled water to searchers, who eventually found the man safe.

HARDWARERETAILING.COM

SPECIAL PROFILE ON PRO GROUP

PRO Group Buying Power and Retail Solutions

Serving Hardware, Home Center & Building Material Retailers

2019

DISTRIBUTOR PROFILE SERIES

A Common Goal PRO Group Unites a Diverse Distributor Network

T

he list of retailers buying from PRO Group’s distributor network includes home improvement stores, nursery outlets, lawn and garden centers, farm supply centers and even a few veterinarians.

While these retailers all serve their various niches, they all have a common need for better buying power, competitive pricing and easy marketing solutions.

That’s what PRO has to offer.

Headquartered in Denver, PRO Group is a marketing and merchandising organization that includes 73 distributors with a combined sales volume in excess of $6 billion.

Distributors are combined into divisions, including PRO Hardware, GardenMaster and FARM MART. In this section, read what PRO provides its members and how retailers are using those programs.

Table of Contents 39 . . President & CEO Steve Synnott 40 . . . . Middleburgh PRO Hardware 42 . . . . . Kentucky Mine Supply PRO 43 . . . . . . . . . . K+K Veterinary Supply 44 . . . . . PRO’s Marketing Programs Extra, Extra! Online Exclusives

This special section on PRO Group is published by Hardware Retailing magazine, which holds and reserves all copyright on the content contained herein.

This special Hardware Retailing supplement is part of a yearlong series profiling the home improvement industry’s distributors.

38

HARDWARE RETAILING

To read about PRO Group and their programs, visit TheRedT.com/pro-group.

To read additional retailer profiles, visit TheRedT.com/pro-profiles.

DISTRIBUTOR PROFILE SERIES

EXECUTIVE Q&A

Managing Growth New Members Increase PRO Group’s Reach Hardware Retailing (HR): The recent acquisition of Reliable Distributors was a big change at PRO Group. What value does it bring to PRO? Steve Synnott (SS): Reliable Distributors Inc. was a group based out of Chicago that specialized in the farm, ranch, pet, agriculture and animal health categories.

The acquisition added 42 wholesalers to the PRO Group network, bringing the total number of distributor members to 73. They were a wonderful fit for PRO because of the addition of significant geographical breadth in Alaska and Hawaii and the western half of the continental U.S. The energy and enthusiasm of the new distributor members have propelled PRO’s advertising and promotional products to a new level, and the meetings and trade shows have generated the best feedback from attendees we have ever received. The acquisition also resulted in PRO becoming a more significant channel partner to manufacturers by removing costs and combining the purchasing clout of our member distributors. Finally, we have found that former Reliable members have a lot to contribute in group meetings by sharing best practices, and they have also gained great insight from long-standing PRO members.

HR: Have there been any other major changes at PRO Group over the past few years?

SS: PRO has recently recruited several bright and talented individuals. The company’s culture has always been one that embraces entrepreneurial ideas and concepts, and this environment has fostered giant advances in our social media presence, online branding and advertising activities, and in-store, point-of-purchase signage creativity.

We are proud of the contributions the team has made by listening to retail store owners and responding with solutions that have real relevance to the customer input we received.

Our team also engages various areas of the company, such as member distributor sales, purchasing and marketing.

We have tried a few programs that failed, but we used those lessons to create more auspicious, market-driven plans that have proven to be effective. Those plans have included refining and improving the PRO mobile program that delivers exclusive coupons and deals and converting the company’s legacy mainframe operating systems to real-time online information that is easily accessed by the entire customer base.

HR: What are some of the challenges facing the home improvement industry and how are you helping members face them?

SS: The e-commerce giants such as Amazon and the online resources of Home Depot and Lowe’s continue to present a major challenge to the independent sector of the home improvement industry. PRO has leveraged its purchasing strength to deliver stronger buys, more timely promotions along with merchandising tools and assortments. We have also improved the online content available to independent retailers. Digital resources are designed to tie in to print and mobile advertising, creating a robust marketing program to reach a wide audience base. In addition, value-added services help independent retailers manage their own online presence and gain access to tools to make their brick-and-mortar stores stand out. Above all, PRO Group has encouraged retailers to entice new customers with unique store experiences and knowledgeable staff that can provide individualized project and product information not available in an online environment.

HR: What do you want customers to think of when they hear PRO Group?

SS: I want customers to think of PRO as the best resource to build the success of independent retailers, distributors and the manufacturers who serve us all.

“Above all, PRO Group has encouraged retailers to entice new customers with unique store experiences and knowledgeable staff.

”

Steve Synnott President and CEO After working for PRO Group for more than 20 years, Synnott purchased the company in 2012 from its founders, the Cosgrave family. He oversees PRO Group’s network of 73 distributors serving all 50 states.

HARDWARE RETAILING

39

DISTRIBUTOR PROFILE SERIES

RETAILER PROFILE

Business Reboot Middleburgh PRO Hardware Helps a Town Rebuild

I

n 2018, Middleburgh PRO Hardware received its town’s Business of the Year award, an honor giving tribute to a business with an extraordinary history of supporting its community. Rich and Heather Vilegi, store owners, have never faltered in giving back to Middleburgh, New York, especially when a flood inundated the town and their store eight years ago. At the same time, they’ve continued to make improvements to their business, creating more value for their customers and investing in the future of the local economy.

This year, the couple and their team of employees received another award. The Bostwick-Braun Co., based in Toledo, Ohio, named Middleburgh PRO Hardware its 2018 Retailer of the Year. This year, PRO Group recognized the business as its National Paul L. Cosgrave Memorial Award Winner. The award is presented annually to a PRO Hardware business in recognition of its superior commitment to the principles and ideals of effective hardware merchandising set forth by PRO Group founder Paul L. Cosgrave.

40

HARDWARE RETAILING

Community Lifeline A second-generation retailer, Rich purchased the hardware store from his parents in 2003. Having grown up in the business meant he was well acquainted with the demands of running a retail operation, but a big test of his mettle came in August 2011. Hurricane Irene sent heavy rainfall inland, flooding many small towns, including Middleburgh.

The surge of floodwater reached 3 feet, damaging businesses on the town’s main street, including the hardware store.

As the Vilegis and their employees worked to clean up the mess in their store, they kept the business open. Area residents desperately needed generators, water heaters and other supplies in the wake of the disaster.

During those first few days after the flood when the power was out, Rich sold a lot of merchandise on credit, trusting people would pay him later. He arranged for extra orders from his wholesaler supplier Bostwick-Braun. He even used a trailer as a temporary salesfloor while his own was being restored. The store never closed during and after the flood.

DISTRIBUTOR PROFILE SERIES

The ordeal brought the town closer together, and it’s a spirit the Vilegis continue to foster. They always participate in community events and have raised thousands of dollars during raffles and other fundraisers to benefit local nonprofit organizations, including the local fire department and a youth organization. The store is always a hub of activity. In many ways, it’s the community gathering place.

Vintage Meets Modern As they were recovering from the flood, the Vilegis did more than just return to the status quo. In the years since, they took gradual steps towards expanding and improving the business.

One of the unique features of the store is its old-fashioned charm. The wooden floors (which managed to survive the flood waters) have been there since the store opened in 1888. Scattered throughout the store are antiques, either hanging from the ceiling or serving as merchandisers, such as jars of locally produced honey atop a vintage stove. Upstairs, there’s a 1950s-era Chevy truck with the store’s name emblazoned on the door.

But while they love antiques, the Vilegis are also always looking for ways to bring modern ideas to the store.

One indication is how they’ve been gradually resetting the salesfloor to make it easier to shop. Long narrow buildings that are common in Middleburgh are notoriously difficult to merchandise. Working with their distributor, the Vilegis created a plan to begin resetting departments to increase product visibility and add endcaps.

“Resetting the store allowed us to bring in new products and let people see more of what we have,” says Heather.

“We also increased our shelf space. Whenever we reset an area, that department’s sales will pick up 20 percent or more.”

Earlier this spring, they expanded their lawn and garden department and are planning on adding a convenience selection of lumber.

“We don’t like people having to leave town for their hardware needs,” says Rich. “If we don’t stock something and I hear a customer ask for it a time or two, then it’s automatically stocked and on our shelves.”

Another recent addition is signage created by PRO’s merchandising team.

“The PRO signage definitely makes the aisles more clearly marked,” says Heather. “PRO has helped make our store more shoppable.”

Most recently, they’ve started creating a website for the store and are undertaking a digital marketing campaign using tools available to them from the PRO Group, including PRO’s mobile coupons. Rich hopes this digital investment will help the business connect with a younger generation of shoppers and diversify its customer base.

The mainstay of marketing is still the monthly circulars from PRO. The Vilegis have a high degree of flexibility over what they put in each circular, and PRO provides additional signage they can use in the store to reinforce each sales event.

“It’s really easy to do more for the store with PRO flyer customization,” says Heather. “They connect with the merchandising in the store, so it really helps sales.”

Those marketing tools, says Rich, have gone a long way to creating a favorable price image for the business.

When customers see the ads, they realize they’re not sacrificing price for the convenience of shopping in town.

“Customers like seeing what’s on sale in the circulars,” says Rich. “They might think small stores can’t match big-box prices, but when they see the sales in the circulars, it’s phenomenal. PRO pricing makes us look better and keeps customers coming back.”

“It’s really easy to do more

for the store with PRO flyer customization. They connect with the merchandising in the store, so it really helps sales.

—Heather Vilegi, Middleburgh PRO Hardware

”

The Vilegis connect with their customers online through PRO’s mobile-exclusive coupons program.

HARDWARE RETAILING

41

DISTRIBUTOR PROFILE SERIES

RETAILER PROFILE

A New Direction Kentucky Mine PRO Hardware Supply Taps the Consumer Market

C

hange and diversification are key to long-term growth for any company. That’s true even for a company that for the past 100 years has been focused on one segment of the market.

Since 1917, Kentucky Mine Supply Co. has sold mining supplies to coalfield operations around Harlan, Kentucky.

While the coal business still accounts for the majority of the company’s sales, lately, president and general manager Mark Bushnell has been courting a new customer base.

In 2015, he overhauled the salesfloor to be more consumer friendly and has refocused his marketing strategy.

“This has been a process of gradually reinventing ourselves,” he says. “We are still very active in selling to the mining business, but I knew, with the decline of the coal industry, if we didn’t diversify and reinvent our business, we wouldn’t make it.”

The hard work has been paying off. Sales increased 15 percent in 2016 and has increased steadily ever since.

Recently, the company received Wallace Hardware’s 2018 PRO Retailer of the Year award. The company was also named a Paul L. Cosgrave Memorial Award Finalist.

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HARDWARE RETAILING

Today, customers walking into the store, which now goes by the name Kentucky Mine Supply PRO Hardware, see 2,400 square feet of traditional retail, with modern shelving, endcaps and all of the core hardware categories.

Bushnell also knew that a comprehensive marketing strategy would be critical to start getting a new set of customers through the door. That’s where he leaned heavily on the PRO Group’s resources. Bushnell has been using their circular advertising program to tell the community around him that he is now DIY friendly. Inside the store, he’s used the department and aisle signage from PRO to simplify the shopping experience.

Appealing to a new customer base has also meant getting the store online. He is creating a website and a Facebook page and will start promoting PRO’s mobile coupons.

“PRO has helped me put together a marketing program that includes circulars and statement stuffers, along with posters I can use in the store to promote sale items,” he says.

“We pride ourselves on customer service, but know pricing is also important. PRO’s pricing, especially on the circular items, keeps us competitive.”

DISTRIBUTOR PROFILE SERIES

RETAILER PROFILE

Diverse Offerings K+K Veterinary Supply Taps Into PRO Group’s Buying Power

K

+K Veterinary Supply may seem an unlikely partner for a distributor known for hardlines sales.

But diversifying into hardware categories is a critical part of the strategy company founder and president Kenny Lipsmeyer is using to create value for his customers.

The purchasing power and vendor diversity he finds at PRO Group have helped him grow a stronger business.

Lipsmeyer started K+K Veterinary Supply with the help of his brother, David, and another business partner in 1988 as an animal health products distributor. At that time, the company, headquartered in Tontitown, Arkansas, was one of nine similar distributors within just a few miles of each other.

To differentiate his business, Lipsmeyer offered outstanding customer service and a strategy of selling to a wide customer base. He saw opportunity in feed and farm supply stores, veterinarians and drug stores.

“We knew we had to diversify if we wanted to be competitive, so we focused on pet and equine and then got more into hardgoods,” he says.

As Lipsmeyer received requests for farm and hardware products, it made sense to join forces with another distributor. In 1996, he partnered with Reliable Distributors, a company with connections to the vendors he needed.

The strategy worked. Soon, K+K expanded from three employees and a handful of customers in four states, to 138 employees with nearly 1,700 retail customers in 14 states. The company has expanded its distribution facility three times and in 2002, built a second location.

Over the years, all of those eight competitors selling in Lipsmeyer’s same area have closed. As a result, K+K has gained seasoned sales representatives with established customer relationships.

After Reliable Distributors merged with PRO Group in 2016, Lipsmeyer now has access to more vendors than ever before. He relies on PRO Group to help him with those critical decisions about vendor selection and pricing so he can continue to focus on his core business of animal health.

“PRO will scrutinize their lines before K+K adds a vendor to their warehouse, so we know we are getting what will benefit our retailers,” he says. “Because they’re purchasing in larger quantities, PRO is also able to add a lot of value beyond what a vendor could do if we were just buying for a few of our customers. PRO has also given us access to probably three times as many vendors as we had before, which has given us more opportunities to offer new inventory to our customers.”

From its headquarters in Tontitown, Arkansas, K+K Veterinary Supply serves retailers in 14 states.

HARDWARE RETAILING

43

DISTRIBUTOR PROFILE SERIES

DISTRIBUTOR SERVICES

Go PRO With Marketing Distinctive Approach Crosses Multiple Platforms

T

raditional advertising combined with the latest tools in digital media give PRO Group a comprehensive marketing program to help retailers promote their businesses. Regardless of the media used, PRO emphasizes ease of use and integration across the platforms.

The foundation of PRO’s print marketing program is a four-page circular. Retailers can choose the corporate version, with a set of preselected advertised items, or customize it to have complete control over the circular’s branding and the products on the page. Retailers create the circulars online using PRO’s user-friendly web portal.

To accompany the circular, PRO helps carry the theme established in the circular into the store with endcap signage, window banners and price cards.

YOUR PARTNER IN PAINT.

Mobile-exclusive coupons are one unique feature of PRO’s marketing. Customers sign up by text and instantly receive mobile coupons to their local PRO Hardware store. Each month, those users will get several discounts, including deals available only through the mobile program.

Also online, retailers can take advantage of a monthly email marketing program, a library of how-to videos and a wealth of customizable templates and images.

“Everything we offer is a la carte,” says Shari Kalbach, vice president at PRO Group. “Retailers choose the programs they want. We want to be the marketing arm of their business, giving them tools to market effectively while giving them the freedom to use what works best for their business.”

To learn more, visit TheRedT.com/pro-marketing.

Grow your business with a partner who gets results. PPG Paints has the product selection, color resources and project expertise you need to achieve success.

Visit ppgpaints.com to learn more.

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HARDWARE RETAILING

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

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

Fall 2019 V1

H1

Close Connections Digital Strategies to Reach New Customers Page H4

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

Contents Fall 2019 | Volume 1 | Issue 1

Features

H6

High Performance Retailing

H6 High Performance Retailing is a collaboration between the North American Retail Hardware Association and The Farnsworth Group. Both organizations are committed to helping the home improvement industry prosper with relevant, informative and timely data.

Building a New Mindset More than a decade after the national housing crisis, home construction remains a mixed bag. Grant Farnsworth, director of business development for The Farnsworth Group, discusses the many factors influencing the industry.

Robert Dietz, chief economist of the National Association of Home Builders, offers his perspective on future trends.

Executive Vice President and Executive Editor, NRHA Dan Tratensek, dant@nrha.org Senior Partner, The Farnsworth Group Jim Robisch, jrobisch@thefarnsworthgroup.com

H12 Leaps and Bounds Jeremy Melnick, owner of Gordon’s Ace Hardware, considered many ways he could expand his business, but decided acquisition was the best path forward. Learn how his acquisition strategy not only netted new retail space, but also new customers and opportunities.

H12

Online Exclusive High Performance in Action High Performance Retailing goes far beyond the pages of this magazine.

Visit HPRmag.com/join-us for an exclusive video with Dan Tratensek as he outlines the magazine’s mission.

H2

High Performance Retailing Fall 2019

Editorial, Design & Production Managing Editor Melanie Moul, mmoul@nrha.org Project Editor Todd Taber, ttaber@nrha.org Copy Editors Kate Klein Hans Cummings

Departments H3 . . . . . . . . . . . . . . Foundations H4 . . . . . . . . . . . In Conversation H14 . . . . . . . . . . . . Springboard H15 . . . . . . . Between the Lines

Market Research Analyst, The Farnsworth Group Amy Theophilus, atheophilus@thefarnsworthgroup.com

Senior Designer Lynnea Chom Production Manager Nancy Vondersaar

Sponsorship Opportunities

66% of customers prefer to be in contact with brands via messaging over any other medium.

Source: Twilio

Vice President of Sales and Publisher Kevin Hohman Northeast Regional Manager Lowell Huffman, lhuffman@nrha.org 317-275-9443 Southeast Regional Manager Nick O’Connor, noconnor@nrha.org 317-275-9409 Midwest Regional Manager Brad Lyons, blyons@nrha.org 317-275-9424

Foundations

Driven by Data Timely Information Is Essential For High Performance Retailing any have said, “Information is power.” But in today’s marketplace, which is changing at light-speed pace, current and accurate information is even more important and powerful than ever before.

Businessman Mark Cuban’s expansion on this quote drives home and even strengthens the original message. “Information is power, particularly when competition ignores the opportunity to do the same.”

Today’s retail realities are different than in decades, years and even months past. Retailing is more challenging today, taking place not only in your brick-and-mortar base, but also online and in the minds of consumers. Today’s retailers must deal with new generations of customer segments, new products, stronger competition and select an array of media choices to reach customers.

Applying tried-and-true strategies from the recent past might help you realize quick fixes or short-lived gains. However, these strategies are based on outdated information. In no way will these dated strategies ensure high performance results or long-term growth and future success for your operation. To achieve these ends, you need reliable, accurate and timely data to drive your business forward.

The Farnsworth Group is proud to partner with Hardware Retailing and the North American Retail Hardware Association to present High Performance Retailing, a new joint publication that uses actionable, current data to present new success strategies for retailers.

To achieve higher revenue and greater profits, we believe it is critical to integrate up-to-date market information into your strategy planning and learn how your retail peers are finding new paths to profits.

The Farnsworth Group’s overall industry data will provide a solid framework of information as you refine your business’s plan for retail success. High Performance Retailing will provide relevant insights, information on emerging retail trends, and data on opportunities to reach new customers with each quarterly installment.

Wondering how data can truly enrich your business? Visit nrha.org/codb for the results of NRHA’s annual Cost of Doing Business Study to see the tangible differences between typical and high performing retailers.

Be on the lookout for new installments of High Performance Retailing each quarter to help you find new strategies and solutions to guide your business to new summits of success.

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To achieve higher revenue and greater profits, we believe it is critical to integrate up-to-date market information into your strategy planning.

Jim Robisch Senior Partner, The Farnsworth Group jrobisch@thefarnsworthgroup.com

Fall 2019 High Performance Retailing

H3

In Conversation

Staying Top of Mind Using Digital Strategies to Grow Closer to Customers inding ways to grow closer to customers is paramount for independent home improvement operators. By establishing a more personal connection with customers, retailers can solidify their reputations as must-shop destinations.

F

Zach Williams says how home improvement products are marketed, found and sold is rapidly changing.

Companies like Netflix and Airbnb were able to leverage customer curiosity and erode companies like Blockbuster Video and countless hotel chains.

High Performance Retailing spoke to Williams about the ways independent retailers can combine new technology, social media outreach and time-tested customer service to grow closer to customers and become a trusted home improvement partner.

High Performance Retailing (HPR): According to Venveo’s data, 97 percent of all sales begin online, but only 6 percent actually take place over the internet. What does that fact reveal about modern home improvement customers?

Zach Williams (ZW): The reality is, before customers even visit a store, they’re much more educated than they used to be. They’re researching products far in advance of purchasing and they’re starting online to gather that information.

You have to think about how you’re positioned, what’s being said about your business online and the information you provide. If you’re not active in that realm, then most likely you’re losing sales.

H4

High Performance Retailing Fall 2019

Zach Williams is the founder of Venveo, a digital marketing firm that focuses on bringing new marketing strategies to building supply manufacturers. In his role, Williams is constantly scouting the digital landscape to find new opportunities for Venveo’s customers.

66% of customers prefer to be in contact with brands via messaging over any other medium.

Source: Twilio

HPR: What can retailers do to stimulate interactions and grow closer to their customers?

ZW: For retailers, it’s important to ask two marketing questions.

One: How do I increase people’s awareness of my business and the products and services I offer?

Two: How do I turn that awareness into action and get someone to actually convert to a sale? For business owners, if you get someone in your store, the chance they will buy a product increases.

If I were a retailer and my goal were to get an online visitor into my store, I would need to be sure I offer not only the products and services that my community needs, but also the ability to be found by potential shoppers. Retailers need to make being found online one of their core competencies. One of the simplest things they can do is create a Google Local listing. This feature ensures your business has a map listing whenever someone searches for it to drive in-store visits.

HPR: You also recommend growing closer to customers through conversation—both digitally and in stores. How can retailers accomplish this?

ZW: One thing we’re seeing with real estate is that people are beginning to look for homes without actually even

talking to a person. People don’t want to talk to people they don’t know, but they are willing to talk to technology because it almost feels like there’s a barrier. A customer might have questions about your products and pricing, and those are both things that can be quickly addressed via chat.

One simple way to use a chatbot for your website is to think of the top five most common questions your customers have about your business and services. Either create a chatbot that answers these questions directly on your website, or train members of your staff to be online and answer questions from customers.

Chat features are an efficient way to provide easier access to basic business information to help motivate in-store visits. If you add a chat feature to your website, you’ll most likely see an increase in overall customer satisfaction and employee productivity because of these resources.

Disrupting the Disruptors Williams says there are three main ways to ensure your business stays aware of shifting customer preferences and isn’t caught off guard by emerging retail trends.

Conversation is the new lead.

Find new ways to share basic business details. Through chatbots or mobile apps, give customers the information they need.

HPR: How can independent retailers best compete online, even against retail giants like Amazon?

Value is the new currency.

ZW: I think the biggest thing retailers can do is provide service and value that Amazon and other large online retailers cannot.

Williams says retailers can create valuable online experiences for customers. Consider launching a DIY blog, recording how-to videos or contributing to podcasts.

The name of the game in winning more sales right now is reducing friction. Friction can come in many forms. Amazon reduces friction by making it super easy to buy something wherever you are and get it to your doorstep in a day or two. You may not be able to have an online store that competes with Amazon, but you can surely reduce friction in the areas of education, customer service, logistics, delivery, follow-through and other valuable parts of your offering that will continue to expand your reach within your local market.

Community is king.

Retailers understand their communities in ways big boxes never will. Leverage that relationship to act quickly to meet community needs reliably.

Fall 2019 High Performance Retailing

H5

A Place to Call Home Understanding the Forces Influencing U.S. Homebuilding

ome improvement stores are places of possibility.

Every aisle, each shelf and all transactions your team earns bring individuals and families one step closer to living in the space of their dreams.

Understanding the intersection of home improvement retail and residential construction can be critical to a retailer’s long-term success. By knowing the disparate factors that drive homebuilding rates and influence new construction and renovation, you can determine what your business needs to do to capture sales from residential construction teams and the average DIYer this season and in the years to come.

In its first quarterly installment, High Performance Retailing takes a deep dive into the metrics and measurements affecting U.S. homebuilding. Grant Farnsworth, director of business development for The Farnsworth Group, leads readers through the social and economic factors shaping current homebuilding.

Robert Dietz, chief economist of the National Association of Home Builders (NAHB), gives independent retailers the information they need to draw new sales from construction crews.

H

H6

Macros of U.S. Homebuilding To get a more detailed look at the factors affecting current U.S. homebuilding, Farnsworth points to several macro drivers that give retailers a broad view of national housing trends.

One of the key factors impacting housing is the rate of household growth, a metric that combines the headship rate (the percentage of people who are heads of households) with census population projections.

Farnsworth says to support a healthy housing market, the annual formation of 1.2 million to 1.4 million households is critical.

From 2000-2005, just under 1.4 million new households were created on average annually.

This figure dropped heavily in 2008, the beginning of the Great Recession, to just 400,000 new households.

Farnsworth says roughly 1.5 million new households were formed in 2018, a positive sign that suggests a healthy demand for current and future residential construction projects.

Home values themselves have a major effect on residential construction.

Farnsworth says rising home values have pros and cons for the market.

High Performance Retailing Fall 2019

Home Truths of Housing From 2008 to 2018, the median value of new homes in the U.S. has increased by

40.2% From 2017 to 2018, the household growth rate rose by

39.2% In 2018, the average national mortgage rate rose to

4.5% In 2018, the national unemployment level for construction workers was just

6.0% Sources: National Association of Realtors, U.S. Census Bureau, Joint Center for Housing Studies of Harvard University, Freddie Mac, U.S. Bureau of Labor Statistics

Fall 2019 High Performance Retailing

H7

“With more new households, new and existing home values are going up like crazy,” Farnsworth says.

“In our industry, we get excited when we see high home value and high equity. That means people can take that equity and put it back in their home through renovation projects or even buy a new home.”

But there’s a costly catch to rising home values, Farnsworth says.

“The negative side, however, is that prices are getting so high, on average, that it’s impacting affordability and who can enter the housing market,” he says. “With home values so high, the country is massively underbuilt and underserved on entry-level price point homes.”

One factor influenced in part by home value is housing affordability, a metric that measures whether the typical family earns enough income to qualify for a mortgage on a typical home.

“Based on historical standards, housing affordability is really good

right now. The average person can afford the average home. But that rate is the lowest it’s been in 10 years,” Farnsworth says.

Farnsworth calls home sales a mixed bag for modern home construction.

Census data shows existing home sales were down year over year for the first time since 2014. That decrease may be attributed to low home inventory, increases in rental properties and low household formation.

“Most home sales are occurring at affordable price points, which is great news. But luxury home sales are down, and overall inventory is down.

So once a home goes on the market, it usually sells quickly, but then again, we don’t have enough supply to meet potential demand,” Farnsworth says.

A Question of Confidence Confidence levels among construction professionals and homeowners are key facets of the U.S. residential construction market, Farnsworth says.

Median Home Value Prices New Homes

Existing Homes

350

$323.1

$325.3 $317.2

Price in Thousands

$307.8 300

$294.2

$261.6 $248.8

$249.4

250

$235.5 $223.9

200 2015

2016

2017 Year

Source: U.S. Census Bureau and National Association of Realtors

H8

High Performance Retailing Fall 2019

2018

Jan-19

“Almost across the board, we’re seeing strong optimism and security both on the contractor side and consumer side,” he says.

Consumer confidence is currently high, which indicates spending may remain stable for the foreseeable future. In the months following the Great Recession, consumer confidence levels plummeted to just 38 points. Now, more than a decade removed from the housing crisis, consumer confidence levels remain buoyant at 131 points.

Builder confidence, measured by the NAHB, is another metric that fell dramatically during the housing crisis and in the years following it.

As of 2013, the metric has begun to rise. Currently, the figure is 65 points, which represents a favorable outlook on future home sales.

Confidence among contracting professionals is currently high, The Farnsworth Group data indicates.

The current figures are strong, but remain flat year over year.

“For contractors, business is good,” Farnsworth says. “In some cases, we see contractors turning down 8 to 10 percent of the work that comes through their door.”

A Knock at the Door The U.S. homebuilding industry is affected by a number of factors. From the national levels of housing inventory to labor rates and material prices, home construction is not an island.

Currently, the supply of available homes is increasing. This metric represents the number of months it would take for the current inventory of available homes to sell, given the current pace of home sales. Historically, around six months indicates a healthy rate. As of January, this metric was 6.6 months.

This rise could be due to the fact that as home prices climb, fewer homebuyers are able to afford to enter the market. However, homeownership itself is also beginning to rise after its 20-year low at the beginning of 2016.

Confidence in Getting New Business in the Next 6 Months (0 represents not at all confident, 10 represents extremely confident.

Arrows indicate change from previous results.)

Remodeling Contractors

8.7

Exterior Contractors

9.0

Mechanical Contractors

8.8

Finish Contractors

8.8

Landscape Contractors

8.8

“Homeownership rates had been a hot topic in the last few years, but we’re seeing those increase slightly and come back to historical levels and where we anticipate them to stay for the next few years,” Farnsworth says.

One of the major barriers to increasing home ownership is affordability, which represents a matrix of factors, Farnsworth says.

“Labor, material and land prices are all rising,” he says. “The reason there are too few affordable homes is that homebuilders have yet to figure out how to build them and remain profitable. It’s kind of a perfect storm of costs preventing entry-level construction.”

Labor costs and tariffs play a critical role in the housing market, Farnsworth says. As material costs rise, so do home prices.

This begins a cycle that bars prospective homeowners from entering the market.

Source: HomeAdvisor/Farnsworth Group Index, Q3 2018 and Q1 2019

Fall 2019 High Performance Retailing

H9

Recently, the North American Retail Hardware Association (NRHA) surveyed more than 200 independent retailers to determine their views on recent tariffs.

Notably, 67 percent of surveyed retailers believe tariffs on products entering the U.S. will have a negative effect on their small businesses. More than 91 percent of retailers have seen product prices rise as a result of tariffs.

The national skilled labor gap is also affecting home construction, Farnsworth says. As fewer younger people enter the industry, crews are getting smaller and unable to work as quickly or on as large a scale as they would like. This fact causes labor costs to rise as crews seek to work quickly and efficiently.

“The labor shortage is affecting not just the construction industry, but also tech and health care and so much more,” he says. “Construction unemployment is at the same low level as it was at the last construction peak, and we’re building about 700,000 fewer homes. We just don’t have the bodies.”

—Todd Taber

Who Are the Homeowners?

36.4%

U.S. Housing Starts This figure is climbing but remains below levels seen before the housing crisis.

Number of Housing Starts in Thousands

1,500

1,006

1,112

1,174

1,282

of U.S. residents under 35 own a home

1,318

1,200

70.1% of 45 to 54 year olds own a home

900

600

74.8%

300

of 55 to 64 year olds own a home

0 2014

2015

2016 Year

Source: U.S. Census Bureau

H10 High Performance Retailing Fall 2019

2017

2018 Source: U.S. Census Bureau, July 2019

Homebuilders Have Their Say As the chief economist for the National Association of Home Builders (NAHB), Robert Dietz stays abreast of shifting home construction trends and the industry.

He spoke with High Performance Retailing to explain

how U.S. homebuilders view current homebuilding conditions, what home improvement retailers can do to earn business from professional builders and how his association believes homebuilding will fare in the future.

Home construction is slightly lagging in 2019.

The NAHB represents more than 140,000 construction professionals. Dietz says that many of the association’s members reported “a slow start” to 2019.

“At the end of 2018, there was an increase on interest rates to just above 5 percent,” he says. “That impact was strong enough to take the wind out of the sails of the housing market, and we reached a 10-year low on housing affordability. The consequence is that construction of single-family homes has lagged.”

Homebuilders want high performance retailers to help them save time.

Dietz points to the skilled labor shortage as one of the most important aspects of home construction in 2019.

“With the labor shortage, getting timing lined up correctly for large projects is key for home builders,” Dietz says. “One of the things we tell building suppliers is if you have products that can save time on the work site, that product is likely to have a market premium due to the fact the labor shortage remains a limiting factor on the volume of projects that can be finished.”

NAHB is cautiously optimistic about future homebuilding trends.

Thanks to low mortgage rates hovering around 4 percent, a healthy labor market with unemployment at just 3.7 percent and more millennials entering into homeownership and steadily positive builder confidence, Dietz sees good signs for U.S. home construction ahead.

“We’re going to have to play some catch-up, but there is some cautious optimism among homebuilders, and we expect something of a rebound before the end of 2019,” Dietz says.

Fall 2019 High Performance Retailing

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The Growth Goal Inside the Acquisition Strategy of Gordon’s Ace Hardware

ergers and acquisitions are powerful forces in home improvement retail. The rate by which they’re completed has risen by 58 percent in the U.S. in the last decade, and in 2017, the total of all such deals amounted to $1.9 trillion, according to the Institute for Mergers, Acquisitions and Alliances.

For many home improvement retailers, acquisitions are the quickest ways to grow their footprint and reach new customers. Jeremy Melnick, owner of Gordon’s Ace Hardware, viewed acquisitions as the right path forward for

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his operation. Discover how he decided the time was right to acquire businesses and how he merged staff members into a cohesive, powerful sales force.

Seizing the Opportunity Gordon’s Ace Hardware was founded in 1950 in downtown Chicago. Until 2005, the business fluctuated between one and two stores. In 2006, Melnick was approached by the owner of a four-store chain within Melnick’s market. He was looking to retire and offered to sell the locations to Melnick.

“You have to review the situation and determine what’s best for your business.

H12 High Performance Retailing Fall 2019

We opened a ground-up store on Orleans Street in Chicago in 2005 and were looking for ways to grow even more,” Melnick says.

“Those four stores surrounded my existing stores, so it made sense to build on the market they already had.

It wasn’t always pretty, but we went from one store to six in essentially 18 months.”

Searching Outside Melnick says one of the most important aspects of his acquisitions was seeking external advice, from his co-op, financial experts and retail peers.

“Ace was extremely helpful,” he says.

“They put together multiple pro formas and because they had experience with chain operations and growth strategies, they were able to advise me on a lot of financial and operational areas I didn’t even know to ask about.”

Another important component of successfully acquiring four new businesses was drafting a buy-sell agreement with a trusted lawyer.

“Any time we had questions after the closing, we could refer to that document where everything was spelled out in black and white,” he says.

He also conferred with other business owners who had scaled their operations to fine-tune his approach.

We’ve had good and bad experiences— sometimes people leave automatically, sometimes people recognize the opportunity to grow and act on it.

‘A Zone Defense’ As Melnick merged businesses and stayed afloat during a national economic downturn, he relied heavily on his existing management personnel and key associates from the acquired stores who stayed on through the acquisition.

“When you’re a single location, you can see everything in one shot,” he says. “When you expand, you have to use your management team to divide and conquer. With six stores, it became a zone defense.”

Melnick went from managing 12 employees to as many as 50. Though that influx was daunting, he says it also brought new employees with new skills he could depend on. He relied on one of his most trusted existing team members to manage inventory and entrusted two managers from the acquired business for human resources tasks.

“Evaluating the strengths of the existing employees was really important in the transition,” he says.

“I had to put my faith in people, who I didn’t know well at the time and merge our existing processes.

That was the key to our success and the key to overcoming the economic hurdles of 2008.”

Reaping the Benefits As the dust settled, sales grew and Gordon’s Ace Hardware increased its overall service area. The transition also motivated his staff to update the company’s employee handbook to more clearly define its goals and values. Additionally, Melnick says the acquisition brought new opportunities for employees at all levels.

“Ask anyone who’s acquired businesses, and there are always changes,” he says. “We’ve had good and bad experiences—sometimes people leave automatically, sometimes people recognize the opportunity to grow and act on it.”

—Todd Taber

—Jeremy Melnick, Gordon’s Ace Hardware

Fall 2019 High Performance Retailing

H13

Springboard

The Ad Agency 3 Changes Retailers Should Know About Google Ads or many small business owners, Google Ads is a powerful component of their marketing strategy.

Retailers can create their own digital ads and target them precisely to their intended audience, allowing a sharper ad focus than other methods. But the platform is always

F

Gallery Ads Present New Possibilities Previously, the Google Ad network was largely based in text, but with Gallery Ads, advertisers can now incorporate brand-specific imagery into their ads.

Gallery ads display as a carousel, allowing advertisers to place four to eight images at the top of the search results page (SERP). On average, campaigns that use Gallery ads experience a 25 percent uptick in user interactions, Google says.

Bumper Ads Leave an Impression One of the benefits of Google Ads is its ability to serve ads on YouTube, the world’s most popular video platform.

Many advertisers have been unable to find the time and resources to create unique video ads specifically for YouTube, but Google’s bumper machine streamlines the process. It can transform any video shorter than 90 seconds into a 6-second bumper ad primed for placement on YouTube, offering advertisers a high-impact way to bring their ads to life.

adding new features and regulations, so retailers must stay on top of new Google Ads capabilities. At its Marketing Live event in May, Google representatives outlined the new Google Ads features that can help business owners advertise their products more effectively than ever before.

Patio Furniture Sale at Joe’s Hardware Ad www.joeshardware.com Joe’s Hardware

1 of 5

1

DIY Paint Projects Watch Later

Share

2

Local Campaigns Promote Community Investment Implementing a marketing campaign to your specific region just became much easier. Local campaigns will now feature semi-automated functions that enable brick-and-mortar advertisers to place ads across Google SERPs, maps, YouTube and Google’s Display feature. Google optimizes ad delivery through its properties to prioritize displaying your ad to local shoppers.

H14 High Performance Retailing Fall 2019

3

Between the Lines

The Cash Clash Analyst Says Cashless Retail Legislation Is Unnecessary ashless retail remains a divisive topic, a recent report from Bloomberg confirms.

In the article, some retailers say that by eliminating cash transactions, they provide quicker service, enabling employees to focus on customer service and complete more transactions.

Opponents say it disenfranchises low-income customers or those with poor credit. According to Bloomberg, more than 24 million U.S. households have a bank account, but also use money orders, check cashing or payday loans.

C

Retailers should decide what’s best for business.

Cashless retail may be more marketing than mainstay.

J. Craig Shearman, vice president of government affairs public relations at the National Retail Federation, says the organization believes retailers should make their own decisions. Cashless bans enacted in New Jersey, Philadelphia, San Francisco and other locations are largely unnecessary, he says.

“These laws are really a solution in search of a problem because cashless stores are relatively uncommon, and many businesses prefer cash to avoid credit card transaction fees,” he says.

Shearman says much of the focus on cashless retail has been due to a few high-profile companies experimenting with cashless payments.

“There have been a few isolated examples, but it’s not something that we’re seeing at most major national chains or at most mall stores.

That’s not to say some retailers won’t experiment with it in the future—the payments landscape is evolving all the time—but it’s not an industrywide trend at the moment,” he says.

Payment Method by Transaction Size (In Stores 2018) 100%

7%

6%

Cash is almost universally accepted, and most retailers are always going to accept cash. We don’t foresee that changing in the near future.

8%

Percent of transactions made by method

20% 26%

40%

34% 41% 30%

18% 22%

25% 2%

31%

30%

Cash

16%

49%

4% 33% 16%

Check

10%

16%

10%

6%

0% $0-$9.99

—J. Craig Shearman, National Retail Federation

$10-$24.99

$25-$49.99

$50-$99.99

Credit Debit/Pre-Paid

$100 and More

Other (Electronic, Mobile)

Source: Federal Reserve Bank of San Francisco

Fall 2019 High Performance Retailing

H15

No Need to Vent Keeping HVAC Customers Cool With Depth of Inventory and a Focus on Service

C

ertain departments in hardware stores attract customers more easier than others. Who doesn’t want to look over the latest smoker for the backyard or the most advanced drill for the toolbox? But a category like heating, ventilation and air conditioning (HVAC) is more about necessity than it is selling your customers on the latest trends.

There are a broad range of HVAC components that retailers can stock, whether they serve the casual DIYer who needs a new air filter or the professional HVAC servicer who installs new units. Some retailers may even take on the service or installation role themselves as a complementary business to their hardware operation.

That is the case in Colfax, Indiana, where Jason Wright serves as vice president of Wright Hardware Co., a group of family businesses in the area. The family operates Wright Hardware, an independent hardware store. They supply heating propane gas to homes and businesses and offer repair services on HVAC equipment.

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HARDWARE RETAILING | September 2019

Debbie Supply in East Rochester, New York, started as a wholesale plumbing supply business for area plumbers. The family operation eventually evolved to focus more on heating and air conditioning equipment in addition to hardware. Owner Mark Barbero has been in the business since he was a teenager, initially working on the company’s HVAC service crews before taking over management of the store.

While servicing HVAC equipment is often a job for a professional, independent home improvement retailers who specialize in the category can be a vital resource for professionals and DIYers. Retailers who provide any combination of HVAC services, products and knowledge can lead customers to rely on their local home improvement store for HVAC supplies and information.

Heat Up Your Product Mix When it comes to HVAC, there are certain hard boundaries for what DIYers shouldn’t do.

Knowledgeable retailers can educate their customers about the HVAC servicing they can do themselves and when to call a professional.

Watch This To hear Jason Wright from Wright Hardware Co. talk about the HVAC projects DIYers can tackle, visit TheRedT.com/hvac.

September 2019 | HARDWARE RETAILING

61

In addition to having the supplies for professional HVAC technicians in stock in the store, Wright Hardware Co. also operates its own HVAC service company.

62

HARDWARE RETAILING | September 2019

For example, the refrigerant chemicals present in many air conditioning units can pose risks to consumers who attempt DIY repairs, and in some places, it may be illegal to handle them without proper certification. DIY repairs on heating units can also be dangerous if a home is using natural gas or propane to generate heat.

Wright Hardware and Debbie Supply either have in the past or currently employ certified HVAC service technicians.

That service remains a large part of Wright Hardware’s overall business, while Debbie Supply now prioritizes referring customers to trusted service technicians.

Operating both a hardware store and an HVAC repair service means Wright often leans toward recommending his company’s own repair technicians, but the company also works with customers who want to complete their own projects and maintenance to keep their homes safe and comfortable. In any case, stocking air filters for heating equipment is a must, Wright says.

Barbero points to his selection of air filters as a major contributor to Debbie Supply’s reputation as an HVAC supplier. Barbero examined the HVAC equipment brands that were most popular at the local wholesale stores where professionals shop for units.

With that information, he was able to stock the corresponding filter brands and have enough in each variety to fit any local need.

In addition to HVAC-specific products, Wright also recommends retailers stock products that can improve home climates without turning on the AC or heat.

He suggests spray foam insulation as a key product for keeping a home warm in the winter.

Both Wright and Barbero agree that with most HVAC equipment becoming digital, diagnosing equipment isn’t as much of a problem. Yet repair work is still a task for professionals in most cases.

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“In older units, a homeowner might have been able to change a belt drive and oil the motor, but there have been so many changes that it’s gotten beyond most customers’ skill sets,” Wright says. “We carry a lot of equipment for pros looking to handle repairs, but those parts aren’t designed for someone just hoping to open up a heater and find a problem.”

Wright Hardware offers service plans to help consumers stay on top of equipment maintenance.

A technician visits twice a year to check HVAC equipment, change air filters and clean the unit. Should the unit require more involved repairs, customers receive a discount on those supplies. Technicians who source from Wright Hardware get a wholesale rate, which means the customer gets a good price on those products, too.

Going Pro Having a broad selection of replacement parts for HVAC units across several brands means you can appeal to service professionals and DIY customers taking on their own repairs.

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Given the challenging nature of HVAC repairs, Debbie Supply gears most of its retail product availability toward maintenance items like air filters. The business also serves local contractors with the equipment they would need when out on a service call, these including ignitors, electric blower motors and transformers.

Debbie Supply distinguishes itself by having the right equipment for every job. There are nearly 60 different ignitors in stock to fit the rating exactly for different heaters.

For other equipment, such as electric motors, Barbero says there are models on the market that will fit up to 80 percent of heaters.

He suggests retailers look for these kinds of universal items if they are considering going deeper into the HVAC category.

“We learn a lot about product selection from both homeowners and contractors,” Barbero says.

“What brands are they seeing in the field? Which air filters work best with those brands and models?

That’s how you build a reputation and keep customers coming back.”

Continued on Page 68

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2 Resources to Help Customers With Climate Control The North American Retail Hardware Association (NRHA) regularly develops tools and resources you can use to train your staff to help customers with climate control. Read the highlights of two resources here, which are part of the Trainer’s Toolbox series. Then download the guides and the

accompanying Trainer’s Notes at nrha.org/trainers-toolbox.

While you’re there, you can also learn more about becoming an NRHA Training Member to further prepare your staff to answer questions customers may ask about climate control, their HVAC systems or other home improvement projects.

Fireplace Safety FAQs As the cool weather comes in, more customers may come to you with questions about how to get their fireplaces ready for winter.

This guide leads sales staff through common questions about how to prepare their fireplace for more regular use.

Bring It to Them In addition to making this resource available for your staff to review, consider hosting a fireplace safety event with your local fire station.

Invite customers to learn the basics of fireplace safety from local firefighters and include giveaways and raffles, such as carbon monoxide detectors and fireplace screens. Have certified fire extinguisher inspectors on-site so customers can rest assured they have safety precautions in place before they light a fire.

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HARDWARE RETAILING | September 2019

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Selling Caulks and Sealants Another common way DIYers stay comfortable is to seal their windows and doors. This guide will help your staff become familiar with various types of caulks and sealants.

Bring It to Them Allow customers to try different caulk guns to find the one they like best. Be sure to ask how and where the caulk will be used to recommend the right product for their project.

Before the Sealant Sells: 3 Questions to Ask

1

Where will the caulk or sealant be applied?

2

What type of surfaces will be bonded or caulked?

3

How much stress or movement will be placed on the joint?

Some types are for indoors only. Others are made for surfaces that are prone to a lot of moisture, such as in a kitchen.

If the customer is caulking a smooth surface such as tile, make sure the caulk is suitable.

Some sealants are more flexible than others.

If the surface may be subject to a lot of movement, recommend a silicone-based product.

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“Our technicians have specific training because they need to be competent repair technicians, but we’re all here to serve the customer.

”

—Jason Wright, Wright Hardware

Continued from Page 64

Debbie Supply has earned its HVAC reputation by stocking the variety of supplies that a wholesaler would have while also providing the customer service of an independent retail location.

“A wholesaler is going to charge you a fee just to open the doors on a weekend,” Barbero says.

“We have everything a pro needs to repair an air conditioner or a heater, so even if we’re a few dollars more than a wholesaler might be, we’re the more attractive option for a quick supply run.”

Wright Hardware has acquired deep inventory reserves by devoting its HVAC department to products from a single manufacturer. Since Wright has just one lineup, every piece of equipment in the store is designed to work together, making it easier to service equipment and to stock the retail store.

“We like to remain loyal because that develops a relationship with the company and it makes the job easier for our technicians,” Wright says. “They’ve worked on the same equipment countless times, so they get very proficient at it.”

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HARDWARE RETAILING | September 2019

There are a number of ways to develop skilled employees in the HVAC category, from initial certification to ongoing training.

Trade organizations dedicated to the heating or air conditioning trade offer certifications, Barbero says. After Debbie Supply employees earn the required certifications, the company then relies on local wholesale supply companies for annual training to keep its employees up to date on new features for products or best practices when dealing with HVAC equipment.

One resource that has helped Debbie Supply employees assist customers is a flowchart Barbero found online. The chart walks employees through questions to ask customers about their HVAC equipment. As the customer answers

Wright Hardware Co. staffers are trained to serve customers first.

each question, it offers either another test for more information or the likely diagnosis. Using this flowchart, employees can help a customer in the store or even over the phone.

(Visit TheRedT.com/hvac-chart to download of this resource.)

“It’s important to stay current on the equipment, which is why each year I send our people to our wholesaler’s training sessions.

But there are certain skills that are more about helping the customer and figuring out their needs than technical knowledge,” Barbero says.

Wright Hardware often recruits its technicians from area community colleges and vocational schools. These centers grant the necessary technical certifications, and Wright Hardware oversees any specific training for the equipment it stocks once an employee is on board.

Wright Hardware has four technicians as well as three employees devoted to propane gas delivery and four dedicated to the hardware store. The entire staff is trained on customer service and the POS system, Wright says, to keep the staff as well rounded as possible.

“We’re big on helping each other out and being able to step into whatever role is needed,” Wright says. “Our technicians have specific training because they need to be competent repair technicians, but we’re all here to serve the customer, whether on a service call or on the salesfloor.”

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September 2019 | HARDWARE RETAILING

69

Merchandising Makeover

By Jesse Carleton, jcarleton@nrha.org

Ghastly Sights Can Your Team Revive This Endcap?

S

oon (if you haven’t started already) it will be time to decorate for fall festivities. The endcap on the left is appropriate to the season. It also might give you the creeps, but for all the wrong reasons. Instead of an engaging display that draws in customers, disorganization has left this one lifeless.

Do you have any suggestions for resurrecting it?

This year, Hardware Retailing is challenging you to improve your merchandising. Look through the displays in your store and see if you can spot the ones that need cleaning up. Then, use this exercise to help you recall some of the basic tenets of good merchandising. Decide what is wrong or what could be improved and then see Page 72 for one option for cleaning it up. Let your employees give it a try, too.

There are many reasons an endcap might decay into disarray. One reason is that you might not have a plan for regular maintenance. A good endcap maintenance plan should include someone assigned to regularly making sure everything is in order.

It also should include a plan for rotating each endcap, generally once a month. If endcaps always have the same items and start to look like every other aisle in the store, customers might overlook them. When that happens, you are wasting a valuable merchandising opportunity.

As some of the most looked-at displays in your store, endcaps are a prime venue for displaying new products and promotional pricing. They can also highlight some of the unique items you have to offer. Coordinate what you put on an endcap with the seasons to give the shopper a sense of urgency to buy. As with all displays, creativity will help your endcaps stand out, but it won’t make up for a messy construction or dirty shelves.

70

HARDWARE RETAILING | September 2019

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1 The Abandoned Shelf Having an empty shelf anywhere in the store can make a bad impression on customers. It gives them the idea that you are low on inventory and might not have what they need. But having an empty shelf on a prominent endcap is a particularly wasteful use of space. As a general rule, if you are running low on whatever product you are promoting on an endcap, it’s time to rotate that product out and bring in something new. Then, assign someone to keep an eye on it throughout the day to keep it full. Also, if shelving is starting to look dirty, clean it or give it a new coat of paint.

2 Colorful Costumes These brown boxes are bland and hide whatever is inside.

When choosing what goes on an endcap, look for items with color that will catch shoppers’ attention. Many products have colorful, informative packaging that can be an effective sales aide. However, there are times when it’s better to put emphasis on the product. In these cases, take the item out of the box so customers can pick it up and examine it. Once they have it in their hand, the chance that they will buy it increases.

Leave the plain brown boxes in the storage room and put some color on the shelf.

3 Strangers in the Night Endcaps should not be a catchall for merchandise you can’t fit somewhere else in the store. Every item on an endcap should be related in some way, whether they are similar items or part of a project. You can also combine an advertised item with nonadvertised items to suggest something customers might not have otherwise seen.

Be on the lookout, too, for products customers may have left on an endcap that they decided not to purchase.

Returning orphan items to their proper home will keep displays clean and help with inventory management.

4 Extra Treats These baskets offer a creative twist on the standard sidewinder. They hold a few extra items customers might also be interested in when they’re looking at what’s on the endcap. Grouping similar items together or promoting the entire project will build the transaction size with add-on sales.

It will also reinforce the breadth of product you have available.

Unfortunately, there may be a lot of items customers don’t know you carry because they haven’t explored the entire store. Endcaps are one of the best ways to get them in front of customers and into the shopping cart.

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73

Newsmakers

Understanding Lumber Prices

Upcoming Events

D

September

avid Logan, director of tax and trade policy analysis for the National Association of Home Builders (NAHB), answered questions from Hardware Retailing about lumber prices and other concerns in the homebuilding sector.

6-8

Hardware Retailing (HR): Why are lumber prices lower this year compared to 2018?

David Logan (DL): To put it in context, lumber prices were coming off all-time highs as of June 2018. We’re talking about prices that were 20 percent above the record high that was set in 1997.

Prices had been propped up by numerous factors. It took a year and a half to get up there and then return to more typical levels. That natural momentum has more to do with the current price decline than trends with new home construction.

Ace Hardware Fall 2019 Convention & Exhibits Atlanta

HR: How do prices look now?

DL: Prices are about 40 percent lower than last June. When prices were skyrocketing, lumber mills were adding capacity to take advantage of the mega-high prices.

They were recording record-high profits. Since then, there’s been this increase in capacity without a corresponding increase in demand, and that has mainly driven prices down since last summer.

Prices rallied recently on the back of a moderately stronger housing market.

There were a lot of weather-related disruptions earlier in the year, so the spring season didn’t see the gains we typically see that time of year, but the weather-related issues dissipated, and when they did, the new-house market came back.

7-8

HR: What are the major issues impacting construction right now?

DL: The tariffs on lumber and the tariffs on Chinese goods have injected a lot of uncertainty into the market as far as investment goes. I’m hearing pretty frequently of builders getting bills from contractors that include a tariff-related line item.

The shortage of labor in our industry is still and has long been an ongoing concern and shows no sign of stopping. We’re looking at very few workers, lots of job openings, no one to fill them and higher wages. Increased wages are good for workers, but they also mean a higher cost to build and a longer time to construct new homes.

Affordability is the No. 1 issue for buyers and builders that’s really holding the market back. But the demand is there and interest rates are still low. Mortgage rates are still lower than last year.

6-8 Horizon Distribution Inc. HDI Trade Show & Conference Expo Yakima, Washington

PACOA Fall Market Flushing, New York

13-15 Monroe Hardware Fall Market Greenville, South Carolina

19-21 Blish-Mize Fall Buying Market Overland Park, Kansas

19-21 The Bostwick-Braun Co. 2019 Fall Dealer Market Toledo, Ohio

22-24 Home Hardware Fall Market St. Jacobs, Ontario

October 3-6

HR: What do you predict the rest of the year will look like for lumber sales and homebuilding?

DL: I’m expecting healthy growth. I think the housing market continues to see constrained but increased growth. The hallmark of the year will be uncertainty, and with that will be volatility on the price of almost everything. That’s largely because of tariffs and the on-again, off-again relationship the U.S. has with other countries in the geopolitical sphere.

True Value Fall Reunion Chicago

9-11 Wallace Hardware Co. Inc. Fall Dealer Market Pigeon Forge, Tennessee

18-21 David Logan is director of tax and trade policy analysis at the National Association of Home Builders. He has extensive experience with tax, budget, monetary, trade and housing policy. His prior roles include chief economist for the U.S. House of Representatives Ways and Means Committee and senior economist for the U.S. Congress Joint Economic Committee.

74

HARDWARE RETAILING | September 2019

Do it Best Fall Market Indianapolis Find more events online at TheRedT.com/calendar.

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

Fall Profitability Festival

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Dealer Market

Why Dealers Enjoy

Attending Our Dealer Markets Lots Of Good Deals “You get lots of good deals and I like talking to vendors to learn more about their product line.”

-Bub Miller, Miller’s Hardware, Mannigton, WV

See What’s New “We like attending the markets to see what’s new coming out and the latest displays. If you can buy what you need and save money it’s a good thing. We always take advantage of Bunus Buy Deals.”

-Jim Robertson, Charlotte Hardware, Charlotte, TN

Bub Miller

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Good Deals “We enjoy attending the House-Hasson shows. You get really good deals and it’s a good way to learn about new products. We started using the CipherLab for ordering at the market and that does save time.”

-Terry Embry, Caneyville Builders Supply, Caneyville, KY

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Newsmakers UNITED STATES True Value CEO Discusses Benefits of Strategic Investment The chief executive at True Value recently shared thoughts with Forbes magazine on how changes to the company have impacted the retailers it serves. In March 2018, True Value struck a deal with ACON Investments, effectively transitioning the company from its long-standing co-op model. Since that announcement, more than 500 retailers have joined the company, including Carter Lumber, which operates roughly 150 locations, Forbes reports.

Ace Hardware Names Benjamin Moore Its Preferred Paint Supplier Ace Hardware Corp. has named Benjamin Moore its preferred paint supplier. The paint company will increase its footprint in Ace Hardware stores and make its products available through an exclusive warehouse distribution program. Benjamin Moore will also assume responsibility for manufacturing Ace Hardware’s private-label paint brands.

Retailers with True Value have invested in new locations, remodeled their existing stores and grown their product assortments.

Lowe’s Details Plans for New Technology Hub Lowe’s has announced plans to construct a global technology hub in Charlotte, North Carolina. The company says that, once complete, the center will employ approximately 2,000 information technology workers to help “accelerate the … company’s technology transformation, serving as the epicenter for the team Lowe’s is hiring to modernize its IT systems and build future retail experiences.”

AD INDEX Ace Hardware........................................................... 63 www.acehardware.com; 630-990-6900

House-Hasson Hardware Company ......................... 75 www.house-hasson.com; 800-333-0520

Poo-Pourri ................................................................. 65 www.poopourri.com; 972-818-8200

Ancra Cargo.............................................................. 27 consumer.ancracargo.com; 800-626-8353

Howard Products Inc................................................ 36 www.howardproducts.com; 800-266-9545

PPG........................................................................... 44 www.ppgpaints.com; 800-441-9695

Apex Tool Group LLC ................................................. 1 www.crescenttool.com; 800-650-8665

Imperial Blades......................................................... 29 www.imperialblades.com; 800-743-9844

Rust Patrol................................................................ 62 www.rustpatrol.com; 803-396-8400

Big Green Egg ............................................................ 5 www.biggreenegg.com; 800-793-2292

Impress Art............................................................... 17 www.impressart.com; 631-940-9530

Sashco .................................................................. IFC www.TryCleanz.com; 800-767-5656

Bonide ...................................................................... 69 www.bonide.com; 315-736-8231

IPG............................................................................ 77 www.itape.com; 888-898-7834

ShurTech Brands LLC............................................... 67 www.T-RexTape.com; 877-376-4827

Coles Wild Bird Products Co. ................................... 71 www.coleswildbird.com; 877-426-8882

Ironclad Performance Wear Corp............................. 16 www.ironclad.com; 844-200-5664

Sika ........................................................................... 15 www.sika.com; 201-933-8800

Delta Faucet ............................................................... 3 www.deltafaucet.com; 800-345-3358

Lumax....................................................................... 64 www.lumax.com; 844-660-6876

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

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

Master Magnetics Inc. ............................................. 30 www.magnetsource.com; 888-293-9190

Stillwater Designs .................................................... 14 www.kicker.com; 405-624-8510

Dutton-Lainson Company.........................................66 www.dutton-lainson.com; 402-462-4141

Mi-T-M Corp ............................................................. 31 www.mitm.com; 800-553-9053

Taiwan Hardware Show 2019 .................................. 13 www.hardwareshow.com.tw; +886-2-2595-4212

Epicor........................................................................26 www.epicor.com; 888-463-4700

Midwest Fastener ............................................... 32-33 www.fastenerconnection.com; 800-444-7313

Wallace Hardware Co................................................. 9 www.wallacehardware.com; 800-776-0976

Franmar .................................................................... 28 www.franmar.com; 800-538-5069

NRHA Health Insurance Plan ................................... 79 www.cbigi.com/NRHA-PROGRAM

Warner...................................................................... 73 www.warnertool.com; 800-444-0606

Gordon’s ................................................................... 35 www.gordonsusa.com; 816-421-4070

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

Wastequip ................................................................ 68 www.toter.com; 800-424-0422

Halex......................................................................... 24 www.halexco.com; 800-749-3261

Orgill Inc. ............................................................80-IBC www.orgill.com; 800-347-2860

Wayne ...................................................................... 25 www.waynepumps.com; 800-237-0987

Hillman Group Inc....................................................... 7 www.mykeyhero.com; 800-242-9934

Pennsylvania Lumbermens Mutual Ins. Co.............. 72 www.plmins.com; 800-752-1895

Wooster Brush Company ......................................... 21 www.woosterbrush.com; 800-392-7246

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

76

HARDWARE RETAILING | September 2019

CANADA

BMR’s Stake in Lefebvre & Benoit Provides Entry to High-Rise Construction

Retailers Share Hottest Product Categories in Recent Survey

BMR Group has reached a deal to acquire a stake in Lefebvre & Benoit, a retailer in Laval, Quebec, selling construction materials to contractors and builders.

The two Quebec companies are members of the same buying co-op. They aim to combine their expertise to improve their offerings and drive growth across Canada. Where BMR’s stores provide retail hardware and building materials to DIY customers and contractors, Lefebvre & Benoit furnishes supplies for large industrial and multifamily residential building projects. Lefebvre & Benoit also has three locations in the greater Toronto area, specializing in residential roofing, industrial flooring and drywall.

Despite variable business conditions across the country in 2018, Canadian retailers saw growth in a range of product categories. A recent survey from Hardlines reveals some common areas of success for retailers. Paint, plumbing, fasteners, electrical and HVAC were areas of growth.

For hardware stores in five provinces, paint stood out as a category showing promising growth.

Want to Read More?

For the full story on these briefs, head over to TheRedT.com/0919-news. To read the Canadian briefs, visit hardlines.ca/hardwareretailing. For the latest independent home improvement news, interviews, trends and videos, visit hardwareretailing.com.

TAKE IT TO

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September 2019 | HARDWARE RETAILING

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Last Word

How Social Media Impacts Interviews

K

eeping your eyes out for potential new hires is critical for retail success. These days, you have many resources to help you determine if a candidate will be a benefit to your operation, including their social media profiles.

Applicants ! Some Want You to Look Some candidates expect employers to investigate.

“I think it’s becoming more common for serious job seekers to see their social profiles as an opportunity to show off parts of their personality their resumes might not,” Furtado says.

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HARDWARE RETAILING | September 2019

Stacey Furtado, global social media manager of hiring website Monster, says more business owners are screening applicants’ social accounts before interviewing or making a job offer. Get her advice on how social profiles can add extra insight for employers during the hiring process.

! Red Flags

Navigating the “If you do uncover something negative, you’re probably glad,” she says. “But for the most part, screening job applicants online should be a way to see people as their authentic selves. I think a lot of good can come through viewing people’s social profiles.”

! Protected Post?

Is That a

The Society for Human Resource Management says as long as workers are “engaged in a dialogue with each other” about working conditions, pay rates or management, their online speech is protected by federal labor law.

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