Hardware Retailing March 2023

DISCOVER...

• Innovative Leadership and Ideas

• How to Stand Out in a Digital World

• Real-World Cybersecurity Lessons

• How to Streamline Operations Using Technology

• Retail and Technology Solutions

• How to Amplify Your Brand With Digital Marketing

• And more!

Former Google Head of Business Innovation & Strategy

CHRIS HOOD

Former Amazon Executive JOHN ROSSMAN

HEADQUARTERS

CONNECTIONS Follow Us Online

1025 East 54th St. Indianapolis, Indiana 317-275-9400

NHPA@YourNHPA.org

YourNHPA.org

OUR MISSION

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

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

EXECUTIVE VICE CHAIRMAN

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ned Green, Weiders Paint & Hardware, Rochester, New York

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

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

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

Jody Kohl, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033 800-888-1817; Fax: 715-341-4080

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca

330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

From Job to Career

Beyond advertising a positive and culturally minded job description, businesses should focus on promoting their operations as a career opportunity, not simply a job to be filled. Next month, hear from employees of independent operations who started in an entry level position and have grown in the business, turning their job into a career.

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

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

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

All editorial contents © 2023 North American Hardware and Paint Association. No editorial may be reproduced without prior permission of the publisher.

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

EXECUTIVE STAFF

PRESIDENT & CEO

Bob Cutter

CHIEF OPERATING OFFICER & PUBLISHER

Dan Tratensek

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES

David Gowan

EXECUTIVE DIRECTOR, ADVANCED RETAIL EDUCATION PROGRAMS

Scott Wright, swright@YourNHPA.org

EXECUTIVE DIRECTOR, INNOVATION & ENGAGEMENT

Whitney Mancuso

COMMUNICATIONS

317-275-9400, editorial@YourNHPA.org

COMMUNICATIONS & CONTENT MANAGER

Melanie Moul, mmoul@YourNHPA.org

SENIOR EDITOR

Lindsey Thompson, lthompson@YourNHPA.org

ASSOCIATE EDITOR

Carly Froderman, cfroderman@YourNHPA.org

RETAIL TRAINING EDITOR

Jess Tillman, jtillman@YourNHPA.org

GRAPHIC DESIGNER

Autumn Ricketts

GRAPHIC DESIGNER

Olivia Adam

DIGITAL MEDIA SPECIALIST

Kevin Trehan

PRODUCTION MANAGER

Austin Vance

COMMUNICATIONS & PRODUCTION COORDINATOR

Kallahan Beatty

SALES & PRODUCTION ASSISTANT

Freda Creech

MARKETING MANAGER

Julie Leinwand

SALES

DIRECTOR OF SALES & SOUTHERN SALES DIRECTOR

Scott Gilcrest, sgilcrest@YourNHPA.org, 317-508-7680

NORTHERN SALES DIRECTOR

Jordan Rice, jrice@YourNHPA.org, 217-808-1641

ASSOCIATION PROGRAMS

800-772-4424, NHPA@YourNHPA.org

DIRECTOR OF MEMBER SERVICES & EVENTS

Katie McHone-Jones, kmchone-jones@YourNHPA.org

DIRECTOR OF ORGANIZATIONAL

DEVELOPMENT & CONSULTING

Kim Peffley, kpeffley@YourNHPA.org

TRAINING MANAGER & EDITOR

Jesse Carleton, jcarleton@YourNHPA.org

RETAIL ENGAGEMENT SPECIALIST

Renee Changnon, rchangnon@YourNHPA.org

In Every Issue

44 PROFILE

Stronger Together

When Matt’s Building Materials experienced a major fire on New Year’s Day 2022, the family was unsure of their next steps. Learn how employees and customers rallied together to rebuild this community icon even better than before.

26 COVER STORY

The Next Steps

Selling an independent family business can be an emotional process with plenty of challenges. Hear from the previous owner of a family-owned company and the family-owned outside operation that purchased them to discover on making the transition go smoothly from both sides of the

34 RESOURCES

Your Training Guide

Learn about the new Academy Catalog, which was put together by NHPA’s retail engagement team and lists all of the association’s training programs and their benefits in one place.

50 ASSOCIATION

Tech-Focused Career

Hear from one of the 2023 NHPA Independents Conference keynote speakers, Chris Hood, who shares high points from his storied career in the movie, television, video game and retail industries.

40 INDUSTRY EVENTS

Tech Takeaways

Discover the highlights from NRF 2023: Retail’s Big Show, where retailers from across the industry gathered for educational sessions, product discovery and networking.

56 CATEGORY SPOTLIGHT

Final Destination

Discover how to harness the power of your hand and power tool category and make it a destination that pulls customers from near and far.

aggressive growth

Do it Best makes with Ryan and his team

Cascade store brand.

Stay Informed

Scan this QR code or visit hardwareretailing.com/march to read these stories and more.

Find More Online

ASSOCIATION A Warm Welcome

Meet the newest NHPA board member, Joanne Lawrie, and hear from other board members on what they love about serving the industry as a part of the NHPA board.

PROFILE 100 Years of Service

COVER

Looking Ahead

Succession planning and business transitions can be tough, but learning how the process works and how to best handle the challenges and hurdles along the way will help everything go more smoothly for both sides.

8 Tips for Selling or Buying a Business

If you’re looking to sell your business, here are eight tips for walking through that process on both the buying and selling sides.

The Place to Buy and Sell

NHPA offers the Retail Marketplace where owners can list their operations for sale oradvertise that they are looking to purchase a business.

See 3 Business Transition Strategies

Read how different retailers transitioned their businesses from one owner to another through three different strategies: family inheritance, selling to an outside source or forming an employee stock ownership plan (ESOP).

LeVahn Brothers in Minneapolis celebrates 100 years of service this summer. Current owner, and fourth generation family member, Andy LeVahn, spoke about the store’s origin as a plumbing store and how it has evolved to better serve the community they are in.

PODCAST Technology Takeaways From NRF 2023

NHPA senior editor Lindsey Thompson attended the National Retail Federation’s NRF 2023: Retail’s Big Show in New York City. Listen to her takeaways from the show and how they can apply to your operation.

Scan the QR code or visit the website below to listen.

YourNHPA.org/podcast

Kim Peffley

Energizing Your Team and Business

I STARTED AS A PART-TIME CASHIER in my family’s hardware store almost 30 years ago. Throughout the years, I’ve held many roles in the industry, from cashier to general manager of seven stores. I love this industry and my passion for seeing it thrive and grow is in my blood. In my role at the North American Hardware and Paint Association (NHPA), my absolute favorite part of my job is getting to connect with retailers. When connecting with retailers, a consistent discussion topic is how to energize our teams and business. This month I wanted to share a few tips and tools retailers have utilized to bring energy back to their stores.

One of the first steps is determining each employee’s engagement level. Knowing what issues need to be addressed is essential so you can tackle them head-on. Focusing on engagement can help improve retention, increase productivity, lower absenteeism, enhance customer experience and drive sales.

One tool I recommend checking out is the NHPA Employee Survey. It asks critical questions that can help you improve company culture and communication. You can use this survey to better understand how your employees are engaged with their jobs and how well they communicate with you and each other. Once you gauge how your employees are doing, you can create an action plan. You can find the survey and other helpful tools at YourNHPA.org/human-resources.

The next step is improving your overall company communication, which is almost always listed as a top concern for employees. Test your current communication paths and determine if your message reaches every employee. Find solutions to improve your reach and look for new approaches to connect to your team. Don’t hesitate to ask your team what is or isn’t working and ask them for additional ideas. A great tool to improve your company’s communication is the DiSC Assessment. This tool helps individuals become more self-aware of who they are so they can learn to flex and adapt to others and their unique communication styles. To learn more about DiSC and how it can help your business visit YourNHPA.org/disc. Energized businesses are focused on the future, and their engaged teams know the direction the company is heading and how vital their role is in reaching the company’s goals. They work together to ensure customer experience is top-notch, helping drive sales and build the business. Taking steps to energize your business is key, and I would love to learn more about your business, share some additional tools and offer support. Feel free to send me an email at kpeffley@yournhpa.org; getting to know you is the best part of my day, so let’s connect soon.

Kim Peffley Director of Organizational Development & Consulting

“Focusing on engagement can help improve retention, increase productivity, lower absenteeism, enhance customer experience and drive sales.”

dant@YourNHPA.org

Dan Tratensek

Learning to Evolve

BACK IN HIGH SCHOOL , I remember a particularly intense conversation with a good friend who was in grave distress over some issues with his then-girlfriend. Apparently, their relationship had become stale and said girlfriend was suggesting they worked better as friends.

In my attempts to settle his nerves, I explained that all high school relationships end in one of two ways—you break up and move on with your lives or you get married and live happily ever after. Since most high school relationships don’t end in marriage, I reasoned that he should come to terms with the fact that his relationship would likely end in breakup. Of course, this wasn’t much solace to his aggrieved teenage psyche.

Unfortunately, the same principle applies to businesses. Businesses typically end in one of two ways—they close down or the owners sell it or pass it along to the next owners. There isn’t much middle ground. Like high school relationships, the brutal truth is that most businesses don’t survive into multiple generations.

I would assume your goal as the current steward of your business is achieving the latter outcome.

In order to do this, you have to push your business forward. Much like my friend’s sophomore relationship, you can’t let things grow stale. Of course, this is often the case with too many businesses, and I am seeing it more and more in this industry. There is a steady stream of independent retailers saying their convenience and service are enough to beat their competition; the truth is these words often don’t reflect reality, especially when the competition is collecting customer data to create unique loyalty messaging, monitoring price changes across the industry in real time, offering a variety of online options for engaging with the business and more.

So, if you want to beat the odds and have something of value to either fund your retirement or pass on to the next generation, you have to be honest about the current state of your operation and examine what others are doing to evolve and keep their businesses fresh.

Luckily, the North American Hardware and Paint Association (NHPA) has a solution for you. In August, we will be hosting our first-ever Independents Conference. During this two-day conference, we will be focusing on the latest in retail technology, best-in-class operations practices and much more. Attendees will hear from industry leaders and pioneers from Amazon, Google and others who have evolved with the times. There’s no better way to keep your operation on the leading edge than learning from the best in the business and discovering how they developed relationships with their customers that were built to stand the test of time—unlike my friend’s high school romance. For more information go to YourNHPA.org/conference.

Dan M. Tratensek Chief Operating Officer & Publisher

“You have to be honest about the current state of your operation and examine what others are doing to evolve and keep their businesses fresh.”

Our Truck Drivers Are the Best in the Industry!

We are excited to announce that we have just updated our truck fleet with new trucks, trailers, and graphics to reflect our company’s updated logo. Our trucks now feature a modern, sleek logo and design that will help us stand out on the road. We are confident that this new look will help us make a great impression on existing and potential customers.

Our professional group of drivers is committed to providing the highest level of service and safety for all of our customers. We understand that driving is a major responsibility; and we take it very seriously. Our drivers are experienced, courteous, and attentive to detail. Our drivers are highly-skilled professionals, and they consistently go above and beyond. We are proud to have such a fantastic team of drivers! We are dedicated to providing a safe and reliable experience for our all of our dealers.

We understand that on-time delivery is important to you, and we take pride in our commitment to meeting our customers’ needs. We strive to ensure that all orders are picked, packaged, and delivered promptly with care. If you have any issues with your order, please don’t hesitate to contact us, and we’ll do our very best to resolve them quickly. We aim to do our best with all aspects of our business to ensure dealer profitibility. Thank you for trusting House-Hasson for all your hardware and supply needs!

Helping You Grow Store Sales And Profits

Pictured: Sloan’s Hardware employees and our driver.

ASSOCIATION

Early Bird Discount Ends Soon

Register for the 2023 NHPA Independents Conference by April 1 to save $400 with early bird pricing. Visit YourNHPA.org/conference

What’s Their Secret?

Pulling Back the Curtain on Tech Giants Like Amazon and Google

JOIN ATTENDEES from across North America for two energetic days of keynote speakers, presentations and panels, industry awards, exhibits and networking at the 2023 NHPA Independents Conference Aug. 2-3 in Dallas.

You will gain insights from tech giants—including former Amazon and Google executives, celebrate two prestigious industry awards—The Young Retailer of the Year and Top Guns Awards—and discover retail solutions from leading technology and retail service providers.

The early bird registration deadline for the NHPA Independents Conference is fast approaching. Register to attend by April 1 to save $400.

Retailer Panel Discussions

Avoiding the Hack: Lessons Learned From Cybersecurity Incidents

Learn from retailers who have managed cybersecurity incidents and hear about the types of attacks you need to prepare for. This panel discussion will offer guidance on mitigating risk and how to communicate and implement companywide best practices.

Streamlining Operations Using Technology

When you need an effective solution, sometimes the answer is to build it yourself. Hear from retailers who have developed their own internal technology tools to improve operations from inventory management to employee productivity.

Inventory Management and Purchasing Solutions

In this panel discussion, learn how The Aubuchon Company has improved inventory management, purchasing strategies and loss mitigation across more than 100 store locations with the help of a unique technology solution.

Amplify Your Brand with Digital Marketing

Connect with your customers beyond the four walls of your store. In this panel discussion, hear from retailers who are experts in using technology solutions to extend the customer experience beyond brick-and-mortar.

Visit YourNHPA.org/conference to get your ticket to the 2023 NHPA Independents Conference.

Scan the QR code to see the conference speaker lineup.

FOUNDATIONS

Enroll Today

Download the learning guide at YourNHPA.org/foundations to learn more about NHPA’s online development programs for managers and key employees.

MARKETPLACE

NHPA Adds to Its Marketplace Services

For more information about Live Oak Bank loans and to connect with buyers, sellers and potential employees through the NHPA Retail Marketplace, visit YourNHPA.org/marketplace

ARE YOU LOOKING to buy an independent home improvement store? NHPA members can now take advantage of small business loans through the association’s partnership with Live Oak Bank. Whether you’re looking to build, buy or expand your business, Live Oak Bank offers small business loans to independent retailers.

This new offering complements the different services, including valuation, available through the NHPA Retail Marketplace—the industry’s marketplace for buying and selling independent home

improvement stores and posting jobs. Marketplace listings appear in print in Hardware Retailing and online on the NHPA website and NHPA Retail Marketplace webpage. Both public and private Marketplace listing options are available to retailers. Public listings allow retailers to advertise their business for up to one year with information, photos and the retailer contact information listed. Private listings do not share photos or critical information, and NHPA helps facilitate any inquiries.

We also offer valuation services!

If you’re ready to sell, but aren’t sure how to assess the value of your business, NHPA has partnered with Gary Pittsford, partner and chief valuation officer of Castle Valuation, a Division of Creative Planning, to help guide you through the valuation process.

EDUCATION

Enroll in Foundations of Merchandising Management

Visit YourNHPA.org/foundations to enroll in the Foundations of Merchandising Management online course by March 10

DO YOU NEED TO level up your merchandising management and assortment planning strategies?

NHPA’s Foundations of Merchandising Management is a new, 12-week online program created for both new and experienced staff responsible for managing merchandising at their operations.

The course focuses on timeless merchandising best practices, strategies and tactics that teach students how to optimize merchandising functions in a retail home improvement environment, enhancing store appearance and customer experience.

Students will also complete a real-world capstone assignment for their business where they will apply all of the knowledge and skills they have learned throughout the course. The project will focus on solving a problem or capitalizing on a missed opportunity in the business.

Topics will include:

Philosophy of merchandising

• Visual merchandising standards and techniques

• Promotional space management

Resets and remodels

Merchandising maintenance

Assortment planning and category management

• Vendor relations

• Merchandising and marketing

• Pricing strategies and management

In-store design elements

TRENDS

RESOURCES How the Index Works for You

Sign up to receive updates on when surveys go live and download the reports at YourNHPA.org/retailer-index

ARE IN THE RESULTS

CATCH UP ON THE INDEPENDENT RETAILER INDEX QUARTERLY REPORT

THE INDEPENDENT RETAILER INDEX, developed by the North American Hardware and Paint Association (NHPA) in partnership with The Farnsworth Group, serves as a regular measure of the independent channel’s performance. In the second survey of 32 independent retailers, respondents were asked to share how several operating metrics have changed from Q3 2021 to Q3 2022, including total sales, transaction count, inventory investment, cost of goods and more. Retailers were also asked about investment plans for Q1 2023.

Future

Standout Stats

25% of respondents who saw gross margin increase attributed increases to inflation.

69% of retailers increased their inventory investments by an average of 19%.

Over 6%

Source: 2022 NHPA Independent Retailer Index Q3 Survey

Get Revenge Against Pests

Don’t let roaches, ants, termites, fleas, ticks and their pesky friends invade your home turf. Gone are the days of roaches hiding behind the fridge, and no more letting bedbugs hitchhike home with you from vacation. It’s time to fight back against household pests. It’s time to get Revenge®!

The Revenge® brand is a proud part of BONIDE products and our 95 years of expertise in consumer pest control. Since 1926, BONIDE has been a leading name in synthetic and organic gardening products, specializing in weed, insect, disease and animal controls for use all around the yard and garden. Our Revenge® brand shares the same values of heritage and continuous improvement that have helped make BONIDE a leader in lawn and garden pest control.

Revenge® Invisible Roach Bait is the longest-lasting roach bait, winning the 2020 Gold Innovation Award from Home Improvement Executive. Effective against German cockroaches for up to two years, the nonstaining dry bait formula starts killing within 24 hours. The innovative puffer applicator is ideal for kitchens, bathrooms, living rooms and those hard-to-reach cracks and crevices. Revenge® Invisible Roach Bait is effective against over 15 listed insects and is effective on adults and nymphs.

Stop invading insects before they take over your home with Revenge® House Guard. Providing protection for up to 18 months, the water-based formula will not stain and

leaves no odors. Ideal for both inside and outside the home, Revenge® House Guard forms a protective barrier against the most insidious insects.

Strike back against stinging enemies too. Revenge® Wasp & Hornet Killer knocks down wasps, hornets, yellow jackets and carpenter bees. With a dielectric breakdown voltage of 47,300 volts, safely spray airborne menaces from up to 20 feet away. Eradicate the whole hive under eaves, window frames, patios or anywhere else they may gather.

In 2018 BONIDE became part of the ADAMA worldwide family of companies which brought global resources, expertise and best-in-class innovation to BONIDE. We are focused on advancing household pest control products with our Revenge® brand. Whether it’s improving safety, pushing effectiveness or making our products longer lasting, we’re always looking to make the very best in modern household pest control products.

NEW PRODUCTS

PRODUCTS

Retailer Recommendations

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

Cooktop Cleaning Wipes

Weiman’s Cooktop & Microwave Dual Action Wipes lift food, grease and oily residues from the inside of microwave ovens or glass cooktop surfaces with their coarse side and leave a streak-free shine with their smooth side. They feature a scratch-free formula and are nontoxic.

WEIMAN | weiman.com or 800-837-8140

All-Purpose Plant Food

Natural & Organic All-Purpose Plant Food has been specifically formulated for herbs, flowers, fruits, vegetables and houseplants. It is 100% plant- and mineral-based and sustainably made with no synthetic chemicals or animal waste from big factory farms. The no-burn formula makes it easy to use.

BACK TO THE ROOTS backtotheroots.com or 510-922-9758

Face Mask Filter

When paired with a cloth mask, the reusable adhesive KN95 BiOAID filter works as a KN95 mask and filters over 95% of airborne particles, bacteria, pollen, mold, dust, lint and odors. The peel-and-stick filter is easy to apply and creates a secure, tight seal. BiOAID filters are FDA-Accredited Lab Certified and provide scientifically measured protection.

BIOAID95 | bioaid95.com or 415-910-0099

Outdoor Privacy Screen

Sunbelly’s aluminum outdoor privacy screens are created with modern architecture and design in mind and can create shade on decks, add visual interest to a landscaping project or give privacy from neighbors. The screens are available in six profiles, from lowest to highest privacy: planks, parallel, cinder block, honeycomb, high tide and blurred lines. They are available in black and bronze finishes.

SUNBELLY | sunbelly.com

Paint Sample Board

Large paint samples provide the most accurate color, and Mighty Boards are jumbo sample boards used for testing paint colors. They are made from a warp-free, plastic material and measure 18 inches by 24 inches—four times the size of the competition.

GOLDEN TOUCH CORP. mightyboards.com

Folding Utility Knife

Fiskars® Pro Compact Folding Utility Knife is an ergonomic compact knife that opens with the flick of the wrist. It features tool-free blade changes and a dual-locking blade release system to prevent accidental blade release. It includes a belt clip and one CarbonMax™ utility blade that will last 24 times longer than a standard utility blade.

FISKARS | fiskars.com or 866-348-5661

“We’ve been stocking this product forever. It’s great and gives our customers a chance to view our paint on a larger surface without having to put a paint sample on the wall.”

—Lou Boss, Dick’s Color Center

Decorative Tile

Walker Zanger’s Pietra Gris stone tile collection features subtle, unique and naturally occurring color variations, embodied in mosaics and field tile with a foundational palette centered around natural whites and cloudy gray veins. The tiles are robust enough for residential and commercial applications and are suitable for kitchens, bathrooms and other interior spaces. The Pietra Gris collection comprises twelve items: 10 sophisticated mosaic patterns, and field tiles in two size options, 12 inch by 24 inch and 4 inch by 16 inch.

WALKER ZANGER

walkerzanger.com or 818-280-8300

Curved Faucet

The Curve offers left or right installation configurations and is available in two variations, one with hands-free sensors and one with deck-mounted handles. All of Isenberg’s options are available with handles from all collections, allowing for a wide range of customized looks. In addition to finishes like chrome, brushed nickel and matte black, Isenberg offers 20 ceramic-based color options. The color options are oven-cured and machine-polished for a durable, scratch-, chip- and corrosion-resistant final product.

ISENBERG BATH CORP.

isenbergfaucets.com or 888-342-2284

Cordless Glue Gun

The BLACK+DECKER 4V MAX* Cordless Glue Gun glues a variety of materials, including paper, cardstock, fabric, cork and wood for crafting and light DIY tasks. It is ready to use in 30 seconds and provides up to 25 minutes of runtime on a single charge. It features a self-standing base and an integrated LED light to illuminate projects.

BLACK+DECKER blackanddecker.com

Detail Paint Brush

Zibra’s Fan Brush was designed to paint different molding shapes with speed and fluidity. The length of the bristles are optimized with a tapered design to hug around unique shapes and crevices.

ZIBRA enjoyzibra.com or 800-547-0780

NEW PRODUCTS

PRODUCTS See More Products

To stay informed about new innovations and trends, subscribe to the twice monthly Hot Products newsletter at hardwareretailing.com/subscribe

Outdoor Fire Pit

The Donovan Outdoor LP Gas Fire Pit features patented DualHeat™ Technology by Endless Summer® This technology combines a traditional gas firepit with an infrared patio heater below the mantel. It includes easy push-and-turn electronic ignition, a black embossed steel base, bronze fire glass, a hide-away table insert, an automatic shutoff safety device and a UV-printed table insert and protective cover.

MR. BAR-B-Q PRODUCTS LLC endlesssummerheat.com or 888-398-8643

Illuminated Pool Tube

Powered by PoolCandy LiveLights, the illuminated LED Jumbo Pool Tube is 40 inches in diameter and completely waterproof. The lights can be set to glow solid blue, purple, red or green or set up in party mode featuring continuously changing lights through different colors.

POOLCANDY | poolcandy.net

Lee Badger (left) and his wife Kim (right) have continued working at Badger Building Center following its acquisition by TAL Holdings.

OPERATIONS Next Chapters

Explore three business transition strategies for your operation at hardwareretailing.com/business-transition-strategies

ANEW ROAD

SELLING YOUR BUSINESS TO AN OUTSIDE BUYER

BY CARLY FRODERMAN

Selling an independent family business can be an emotional process, and it can become even more emotional when selling to an outside buyer. Learning where to find an outside buyer, how the acquisition process works and how to best handle all of the challenges and hurdles will help the process go more smoothly and can temper some of the emotions of the transaction.

Hardware Retailing spoke with the previous owner of Badger Building Center, a family-owned company, and the CEO of TAL Holdings, the family-owned outside operation that purchased them, to offer an up-close look at the process of selling and provide best practices for navigating an outside sale.

TAL, an acronym created from the company’s original business, Tum-A-Lum Lumber founded in

1906 by J.M. Crawford, was created in 2012 to better position the operation for growth and is still owned by 4th and 5th generation descendants of Crawford today. Starting with four locations in 2012, TAL encompasses 29 home improvement stores located throughout the Pacific Northwest and employs around 620 workers.

Jason Blair, CEO of TAL, has been in the industry since 1991 and joined TAL in January 2022.

Badger Building Center was established in 1983 in Sandpoint, Idaho, by Mike and Sandy Badger and grew to four locations by 2013. Their son, Lee Badger, began working in the operation in 1989 and now holds a senior management position at the Post Falls, Idaho, location following Badger Building Center’s acquisition by TAL in 2021. Blair and Badger share about the sale process and provide insights from both sides of the transaction.

All in the Family

Listen to Lanier Do it Best’s family business transition story on Episode 80 of NHPA’s “Taking Care of Business” podcast at YourNHPA.org/podcast

COMFORT COUNTS

The Lead Up

Like many other independent family-owned businesses, Badger says he and his family had no plans to sell the operation, especially to an outside buyer.

“We didn’t just wake up one morning and say ‘Let’s sell,’” Badger says. “Over the years, we were approached a number of times by different people who were interested in purchasing our business. We really didn’t have any interest and never had a serious conversation with them.”

While the approaches about selling sparked conversations within the family about the future of the company, it wasn’t until Badger met members of TAL in 2019 that the family was inspired to get more serious about the acquisition process, he says.

“Around that time, we hit a point where we wanted to do what was best for our employees by expanding and allowing more growth opportunities than they may have had if we had continued as we were going,” Badger says. “TAL’s family-owned legacy and values aligned with ours, and as we dug deeper, we realized how similar we were to them; they checked every box that was important to our family. We felt comfortable with them, and we were confident they would move our business in the direction

we wanted and continue to offer growth opportunities to our employees.”

Blair says with any acquisition, leadership at TAL wants the retailer who is selling their operation to be comfortable with TAL and vice versa.

“It’s important to us that when we make an acquisition, the seller is supportive of what’s going to happen and our cultures fit with one another,” he says.

There are a multitude of ways an acquisition opportunity can present itself.

“Most of our acquisition opportunities have come through some sort of existing relationship within our network of businesses, whether that’s through a direct relationship with the current owners, relationships through the vendor community or occasionally through the broker community,” Blair says. “We’re not typically the ones to reach out to somebody unless we have been alerted they are for sale, but it is a mixed bag as to who reaches out first depending on the circumstances.”

If TAL does reach out, it is because the operation checks all of the company’s boxes for an acquisition.

“When we are vetting opportunities, we are looking for successful companies that have a similar culture fit and a legacy brand like ours,” Blair says. “We seek out good operators in the Pacific Northwest, typically not in large metropolitan areas, who are well-respected and located in an area where we are focused with nice growth potential.”

With the right geography, presence in its community and exceptional culture, Badger Building Center was a good fit, Blair says.

“Badger Building Center also had great leaders in play,” he says. “There’s always going to be some level of change, but when the business is similar to yours, that transition is less jarring.”

“It’s important to us that when we make an acquisition, the seller is supportive of what’s going to happen and our cultures fit with one another.”

—Jason Blair, TAL Holdings

TAL Holdings CEO Jason Blair strives to make sure both sides are comfortable during the acquisition process.

Just as no operation is the same, acquisitions can vary greatly. With any acquisition opportunity, the buying cycle could take a few months or a few years and often depends on aspects like the complexity of the deal, the geography and quality of the business.

“Badger Building Center’s acquisition was impacted by COVID-19, so it took a little longer to come together completely,” Blair says. “The process also moved slower because everyone was focused on doing the right thing for their businesses, but it still was not an unusual amount of time for us.”

Before the process began, the Badger family recruited some key players.

“We surrounded ourselves with a good accountant and attorney, as well as a third-party facilitator we knew and trusted who gave advice and worked with the lawyers on both sides of the transaction,” Badger says. “It was very worthwhile to have somebody, beyond an accountant and attorney, who had been through similar business transactions in the past and could aid us through the transaction.”

To gain an understanding of the value of the business, Badger calculated the businesses’ EBITDA, or net income with interest, taxes, depreciation and amortization added back, he says.

“Coming up with a valuation that both the seller and acquirer are comfortable with is critical to the transaction,” Blair says. “Valuations can vary because there are aspects that are subjective, like the value of a brand, and some that are objective, like the value of the equipment. Valuations can also be emotional, so it is critical to be realistic with expectations.”

Counteracting Challenges

Like any part of a business, the acquisition process has challenges. Selling or buying a business requires extra work for everyone involved in the process, and it’s important to expect bumps along the way and for the strong possibility that everything won’t go perfectly.

“Typically the biggest challenge on the buying side is working through all the necessary legal paperwork; it is sometimes overwhelming,” Blair says. “When obstacles present themselves, you should try to handle them as quickly as possible and be open about the expectations around how you’re going to handle them to ensure that they don’t derail the entire process.”

A surprising aspect for Badger was the large number of people involved with the process and how much effort it took to come to closing.

“It’s a very detailed, drawn-out process that forces you to rely on a lot of different people to compile information and produce paperwork so you can get through the closing process,” he says.

Blair says it’s beneficial to take your time and be flexible. He suggests setting dates for when you want steps to happen, but be ready to adjust as you go deeper in the process.

Badger warns about giving enough time to complete the acquisitions as well.

If you’re ready to sell but aren’t sure how to assess the value of your business, the North American Hardware and Paint Association (NHPA) has launched a new service to help. Gary Pittsford, partner and chief valuation officer of Castle Valuation, a division of Creative Planning, can help guide you through the valuation process.

NHPA’s Valuation + Seller Listing package will provide you with a business valuation and a seller listing on the NHPA Retail Marketplace where you can advertise your business to 40,000 independent home improvement retailers.

RESOURCES

Draft the Right Docs

See what documents you need for a smooth business transition experience at hardwareretailing.com/succession-documents

“One challenge we had was time,” Badger says. “We thought we had given ourselves plenty of time between agreeing on the asset purchase agreement (APA) and closing, but we barely gave ourselves enough time to compile the information necessary for closing.”

While that was one challenge, it wasn’t necessarily the hardest one.

“The biggest challenge for us was the emotional aspect,” Badger says. “We had employees who had been here for over 30 years and there’s a loss of identity when you go from general manager to a regional general manager or all of the sudden you’re not the owner, you’re just another part of the piece that helps the operation move forward.”

It is important to understand there are differences in how each side of the transaction looks at the opportunity and for the buyer to be mindful of the emotion involved, Blair says. Fear and anxiety can become part of the process, so being compassionate is also important.

The Next Steps

Once the acquisition is complete, the work isn’t done yet.

“We had an open line of conversation with our employees, and we leaned into that communication process through the

acquisition to make sure our people knew what we were doing, how we were doing it and what the end result was going to look like,” Badger says.

Transparency and open conversations are not only important with acquired employees, they are also vital to a successful melding of cultures.

“Having patience is really important in the process,” Blair says. “We are always mindful of the change that we’re about to embark on for everyone involved, and we want to be very thoughtful about that. We strive to acquire companies that have a great culture, and we want to meld that with our current culture in a way that works well for everyone.”

It was an adjustment being part of a much larger team and being surrounded by more people, Badger says. Badger Building Center’s purchasing team went from two people to nine people and the marketing department went from one person to three people.

“Everything used to go through one person in the organization, and when you become part of a much larger team, there’s a different way to report and function,” Badger says. “It took us a little while to wrap our arms around it, but I feel like we’ve done a very solid job of that and TAL has done a great job of helping us through it to the other side.”

HONESTY HELPS

Lee Badger practiced an open line of communication with his employees during the Badger Building Center acquisition.

RESOURCES Navigating a Sale

Discover eight tips on how to sell or buy a business at hardwareretailing.com/tips-buy-sell

Visit the NHPA Retail Marketplace

NHPA frequently receives inquiries from retailers who are looking to sell their stores, those who are looking to acquire additional stores and those who are looking for key talent in a challenging employment landscape. NHPA created the Retail Marketplace to give operators a cost-effective way to advertise their businesses for sale, their interest in buying or open job positions.

There is a high likelihood that a strong investment opportunity, potential buyer or the future leader of your business is already out there.

Visit YourNHPA.org/marketplace for more information.

Even though it can cause employees to disengage, Badger says he wishes they could have given staff a softer landing by announcing the acquisition to them earlier.

“We have a wonderful group of employees who are super strong,” Badger says. “They could have looked at this acquisition as a messy change and disappointment, but they really viewed it as a new challenge and endeavored to be the best that they could be through the journey.”

While there will always be ambiguity and uncertainty during this process, leadership can make the difference between a successful transition and a failed one.

“As leaders, it is our job to ensure that we make those new employees who are out there in the trenches interacting with customers, building loads and checking people out at the front counter feel good about what’s going to happen,” Blair says.

Badger says he appreciates the way TAL has respected his company’s history and employees.

“The way both sides have handled the

acquisition has allowed our team to adjust as smoothly as you could expect with such a huge change,” he says.

The More You Know

For Blair, the goal of any acquisition opportunity is to learn as much throughout the process and from the retailer as you teach them and create a mutually beneficial relationship.

“My best advice for retailers looking to sell their business is to have clean financials that are easily explained and set clear expectations on the confidential information you’re willing to share, which means having the right NDAs in place,” he says.

In the end, being open, honest and transparent will allow the newly acquired operation to head in a clear direction.

“Be patient and thorough, and be certain that you’re partnering with the right company because they’re not going to go away anytime soon,” Badger says.

“Build up a great staff years ahead of even considering acquisition because a great staff is what will help you get through the process and continue to grow toward a strong future.”

The industry’s marketplace for buying and selling independent home improvement businesses and posting jobs.

BUSINESS FOR SALE

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3.21 million

The main building is a total 27,213 sq. ft. of retail and warehouse space on 4 acres. The main bldg. was constructed in 1994 with additions constructed in 2002 & 2004. Single story with 22’ clear height in 11,459 sq. ft. of lumber warehouse, three grade level doors and two dock height doors.

BUSINESS FOR SALE

Central Vermont Paint, Flooring, and Decorating

Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1.1 million

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

SEEKING BUSINESSES The Aubuchon Company

BUSINESS FOR SALE

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1.04 million

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

BUSINESS FOR SALE

Hoosick True Value

Location: Hoosick Falls, New York

Gross Revenue: $1.26 million

Price: $1.875 million

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

BUSINESS FOR SALE

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

For our next acquisition, we are looking for:

Single-store and multi-store hardware operations

• Located in northeast and southeast United States

• Store size of 5,000-30,000 ft2

• At least $3 million in average store sales

SEEKING BUSINESSES

Bolster Hardware

We are looking for:

• Geography agnostic With or without real estate

• Store revenues of $1.5M+

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

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

Upgrade your NHPA membership to access all training modules currently available and new ones when they launch at YourNHPA.org/membership

EDUCATION

From Training Basics to Beyond

Train Employees Through the NHPA Academy for Retail Development

BY JESS TILLMAN

As one of the most important parts of your business, your employees rely on you to give them the tools and resources they need to be successful at their jobs. Today’s employees, including the growing number of Gen Z workers, believe learning and training is key to being successful in their careers, according to BambooHR. By offering a diverse range of training to employees, businesses could see an increase in employee engagement and retention.

But training them when they first join your operation is simply the start; training should also be utilized to help them grow as an individual and an employee, stay up-to-date with the industry standards and contribute to your overall business.

That’s where the North American Hardware and Paint Association (NHPA) comes in. NHPA’s Academy for Retail Development offers everything from online courses covering basic retail skills to college level management programs. These industry-specific courses are designed to teach employees of all levels the skills they need to have a successful career in home improvement retailing.

A Note From Kim Peffley:

NHPA’s Director of Organizational Development and Consulting

I am so excited about the Academy catalog because it truly highlights all of the amazing programs NHPA has available to support retailers within our industry to become better and more profitable retailers. With several resources available in one place, NHPA can share their programs easily with retailers to help them build their own development plan, from hiring new employees, retaining them in the business and growing their teams and business. NHPA is happy to connect with retailers one-on-one to discuss their specific needs and share more details about their programs and what would be best for your operation. Some of the more popular programs include:

• Assisting future leader development

• Improving communication

• Learning problem solving skills

• Being self-aware of employees and the company overall

• Solving conflicts

• Optimizing store operations

“ NHPA is happy to connect with retailers one-on-one to discuss their specifi c needs and share more details about their programs and what would be best for your operation. ”

—Kim Peffley, NHPA

Finding the Right Fit

If you are looking to develop a strategic plan for your business that includes robust training for your staff, the new NHPA Academy catalog can help guide your plans. This catalog lists everything that is available through the Academy for Retail Development. In the catalog, you’ll find course listings with a brief description of each to help determine which options best fit your training needs.

To make it easier to choose the best option for your business needs, courses are categorized between those focused on individual growth and courses focused on organizational development. Courses in the individual growth area are geared towards developing employees in all aspects of retail, from basic product knowledge to leadership and management skills. Educational programs in the business development area are directed towards helping the organization as a whole develop better teams, company culture and operations. Many of these programs are administered by an NHPA consultant, while some online options are available.

One of NHPA’s courses that has evolved is the Foundations Program, designed around leadership. These courses educate the employee on how to be a better leader within a business, how to effectively merchandise a store

to maximize space and profit and how to mentor other employees to help improve themselves. Two foundations courses are brand new: Foundations of Mentoring and Foundations of Merchandising Management. Foundations of Mentoring focuses on the importance of mentorship and how to incorporate it into your business from the top down. Foundations of Merchandising Management covers the strategies and skills needed for effective assortment planning, visual merchandising, vendor relations and more.

Additionally, NHPA has a yearly Retail Management Certification Program held online and in person. Over the course of six months, students work with mentors on how to more effectively run their operation, as well as plan and present a final project specifically designed for the student’s business. Final projects vary depending on the needs of the student and what they would like to accomplish and have included topics such as streamlining the inventory process, engaging employees and adding additional locations.

Visit YourNHPA.org/academy to request a copy of the catalog to see what courses are available through NHPA. The catalog offers a broad spectrum of training to fit retailers’ training needs, but if you aren’t seeing exactly what you want, customized options are available. Contact NHPA’s training experts to discuss a program designed around your needs.

ASSOCIATION View the

NHPA Academy Catalog Scan

Don’t Lose Sales & Employees

Higher transaction sizes. Well-trained employees can anticipate the needs of customers working on projects. In addition to suggesting add-on sales, these employees can upsell customers to better products, also resulting in a higher transaction size. 1

Better customer service. Well-trained employees are confident they can answer customers’ questions, so they are not afraid to interact with them. Good customer service means shoplifters will have less of a chance to do their work, reducing your shrinkage. 2

Higher job satisfaction. Well-trained employees are more likely to enjoy their jobs and keep their jobs longer. If you show you are investing in them by training them to do their jobs, they will want to invest their time and talent into your business. 3

Higher productivity. Well-trained employees spend less time asking questions and more time selling. They are able to take care of each customer’s individual needs quickly, creating a more efficient salesfloor. 4

A safer store. Well-trained employees know how to do their jobs safely, and how to keep the store safe for customers. This reduces an employee’s downtime due to an on-the-job injury. An accident-free workplace helps lower your insurance, too. 5

INNOVATION Ideas +

TECH TAKEAWAYS FROM NRF 2023: RETAIL’S BIG SHOW

BY LINDSEY THOMPSON

Bringing together players from across the industry, NRF 2023: Retail’s Big Show focused on innovation, new ideas and product discovery. The annual event is hosted by the National Retail Federation (NRF), the world’s largest retail trade association that advocates for the people, policies and ideas that help retail thrive.

During the event, over 30,000 attendees listened to keynote speakers, took part in educational sessions and panel discussions, discovered new products, services and vendors and networked with industry colleagues. Keynote speakers came from inside and outside the industry and included

decorated Olympian and gymnast Simone Biles, Walmart U.S. president and CEO John Furner, Macy’s chairman and CEO Jeff Gennette, Lowe’s chairman and CEO Marvin Ellison, Nordstrom president and chief brand officer Pete Nordstrom, Kroger CEO Rodney McMullen and actor, producer and writer Kal Penn.

Lindsey Thompson, senior editor with the North American Hardware and Paint Association (NHPA), attended this year’s show. She shares her takeaways, key themes and insights from the event that are applicable to the independent home improvement industry.

Tech Giants

Hear from former execs of technology powerhouses Amazon and Google at the 2023 NHPA Independents Conference. Learn more at YourNHPA.org/conference INDUSTRY EVENTS

Tech to the Key Takeaways

Embracing Shoppertainment

Combining shopping with entertainment, the concept of shoppertainment was a key topic in numerous event sessions and panels. In stores like CAMP, which has locations in California, New York, New Jersey, Massachusetts and Texas, shoppertainment comes in the form of immersive kids’ activities revolving around themes like movies, sports and crafts.

For Anna Harman, co-founder and CEO of Studs, it’s her staff members who help create a positive store experience.

“It’s our team that brings our customer experience alive while the physical store sets the backdrop for an amazing experience,” she says.

Matt Alexander, co-founder and CEO of Neighborhood Goods, says that the level of shoppertainment should match the operation’s culture and mission.

“At Neighborhood Goods, we try to foster and maintain magnetism and give reasons for people to visit,” Alexander says. “We avoid the gimmicky; it has to be relevant for our customers. Fundamentally, retail is a traditional experience, and while tech is great, you need to stay grounded in what works for you and your customers.”

Creating Convenience

Serving customers is the No. 1 goal for most retailers, and fortunately, technology is making it easier to provide a higher level of customer service.

“In retail, you’re in the convenience business,” says Cassidy Beadle, retail client innovation director for Accenture. “Focus on designing innovative solutions to remove friction and hurdles, creating point-of-sale experiences that encourage purchases and solving moments of waste or frustration through technologies like cashierless checkouts, delivery, product access and seamless payments.”

Choosing the Right Technology

Don’t feel the need to implement the latest and greatest technology just for the sake of adding it. Yevgeni Tsirulnik, senior vice president, innovation and incubation for Toshiba Global Commerce Solutions, says technology and innovation should be about what’s best for your customers.

“When implementing any new technology, it’s okay to fail, just fail fast and know when to shut it down,” he says.

Next Level

Sharing the latest trends and topics in technology, the Innovation Lab at NRF 2023: Retail’s Big Show showcased companies on the forefront of innovation. The companies shared their innovations in artificial intelligence, robotics, Web3, metaverse, virtual reality, autonomous delivery and the Internet of Things. Below, learn about some of the high-tech and forward-thinking companies featured in the Innovation Lab.

Pull Logic

uses QR codes and other tech that enable retailers to automate the sales process and have the right products in the right locations to maximize product availability.

Marpipe provides multivariate testing to measure the performance of every possible combination of creative variables in an ad, including images, headlines, colors, calls to action and more.

Shiftsmart

helps workers build income, skills and experience to become true micro-entrepreneurs and connect those workers with companies looking for labor solutions.

VisionR

mines data directly from shoppers as they navigate stores, empowering retailers with real-time insights to maximize their operations.

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CHECKOUTS Fired Up to Help

See how other retailers support local fire safety initiatives at hardwareretailing.com/fire-safety

RETAILER PROFILE

From the Ashes

Strong Company Culture Accelerates Recovery for Matt’s Building Materials

BY LINDSEY THOMPSON

On a windy New Year’s Day just over a year ago, a fire ravaged the Pharr, Texas, location of Matt’s Building Materials and nearly burned the 220,000-square-foot retail store, warehouses and lumberyard to the ground. After starting in the door shop, the fire spread to the flooring department, warehouses, retail space and offices, destroying over 180,000 square feet of the location’s physical space.

The company, which also has locations in Palmview and San Benito, Texas, has faced many challenges over the years but the fire was one of the most difficult.

Despite the latest trial, the company has emerged even stronger. The day after the fire, with the building still smoldering behind them, co-owner Danny Smith gathered his family—including his three sons and fellow

co-owners Isaac, Ben and Jeremy—and team members together. Danny shared uplifting words and prayed for the first responders, their community, their team and family and the company’s future. Even in terrible circumstances, the company’s culture and mission—to support its employees and community and stand strong in its values— shown through in his dad’s words, Isaac says.

“After my dad prayed, he offered these words of encouragement: ‘That building behind me isn’t Matt’s Building Materials. It’s not the building, it’s the people. You are Matt’s Building Materials. We are Matt’s,’” Isaac says. “I stood there looking at my world crumbling; it was really hard for me because I lived and breathed that place, it was my first home. But my dad put everything in perspective. Our business was going to be good because God is good and has a plan.”

REBUILDING TOGETHER

Matt’s Building Materials owner Danny Smith and his sons Isaac, Ben and Jeremy stand together in front of what remained of the operation after a fire.

A Solid Foundation

The company spirit Danny shared that difficult day has been a part of Matt’s Building Materials since the company was established almost six decades ago as Valley Cash & Carry Building Materials. Ira Matt purchased the business in 1975, renamed the company Matt’s Cash & Carry Building Materials and brought on Danny to assist with managing, purchasing and overseeing both locations in Pharr and San Benito.

The operation became the only lumberyard and building material store to cater to the local Hispanic community, and through the years, it added other home improvement products and services. In 2002, Danny and his wife Diana purchased the business from Ira Matt. Danny gave his two longtime friends and co-workers, Luis Mancillas and Oscar Sandoval, a stake in the business as co-owners. The company’s name also changed to reflect the new ownership and developing market and was renamed Matt’s Building Materials.

Today, along with serving as co-owners, Isaac and his brothers are heavily involved in the day-to-day operations. Isaac is the hardlines purchaser and oversees marketing and management, Jeremy works as a general manager and commodity purchaser and Ben is a general manager and oversees information technology and finances.

Isaac says he started working in the stores when he was 13, inspired by the work ethic he saw in his dad. He and his brothers had to start from the ground up, learning a little bit

about every part of the business. Each of the Smith brothers was also required to graduate from college before they could earn a raise or take on a full-time position with the company.

“Our dad didn’t want us to be entitled because we were the owner’s sons,” Isaac says. “I didn’t appreciate it back then, but I definitely appreciate it now. Working in those different departments gives me a better appreciation for everything my team does.”

With his three sons at the helm, Danny has taken a step back from the business but is still heavily involved in steering the direction of the company.

“I can’t tell you how much we appreciate our dad; he doesn’t need to work as hard but he still puts in time and effort to help us grow and develop,” Isaac says. “Our dad has always taught us to treat everyone with respect, honesty and integrity. You need to be profitable, but it isn’t the main focus. If you focus only on profits you lose the human aspect and start doing things the wrong way.”

Putting the Pieces Back Together

After the fire, inspired by Danny’s speech, the company sold “We Are Matt’s” T-shirts to rally the community during the rebuilding process. Staying true to their humble nature, the Smiths donated the profits from the sales to the Pharr Fire Department. The sale of the T-shirts brought in almost $18,000 that went toward fire education and to help others get back on their feet after a fire.

STRONG COMMUNITY

Customers and the community rallied around the Smith family after the fire and helped with the rebuilding process.

The Smith family was able to open Mini Matt’s to continue serving customers while the operation was rebuilt.

PRESSING

Not only did the employees and community get behind Matt’s Building Materials by purchasing T-shirts, many of the operation’s local competitors showed their support by buying shirts and sharing them with their own customers.

“Having other businesses support us was really sweet because it reinforced that we don’t make enemies, we build relationships with customers and competitors alike,” Isaac says.

Not long after the fire at Matt’s Building Materials, a local produce company also had a major fire in its warehouse. Isaac says one of the owner’s daughters called him to thank the Smith family for sharing their story, which helped her family get through their own tragedy.

“We didn’t do it to boast but to show that even in the midst of the storm, God is still in control,” he says. “I didn’t even know this person, and here they were calling me and telling me how we helped them, which was incredible. Some of the things that have happened since the fire have been amazing to see.”

The Smiths have started the process of rebuilding and plan on building even better than before. Isaac says the former building was inefficient and while tragic, the fire provided an opportunity to improve the physical building and the overall business.

For the Smith family, there have been three keys to the company’s recovery, Isaac says. No. 1 is their strong faith, followed closely by their team who doesn’t give up on the business and stands by it through thick and thin.

“Our community and vendors are also key to our recovery. We had so many vendors step up to help us, our insurance company was imperative and our local community came through with prayers, monetary support, food, warehouse space, forklifts, assistance with clean up and so much more,” Isaac says. “So many things had to go perfectly for us to be here, and they did. Commodity inventory—lumber, siding, roofing and plywood—was still available, our trucks were still there, the yard was intact and our team was still behind us.”

By the first week of February 2021, just one month after the fire, the Smiths put up Mini Matt’s, a smaller building that provided a structure where customers could still purchase commodities and some convenience hardware.

While the next year will be focused on having all hands on deck to rebuild, maintain and adapt to what they have, Isaac says Matt’s Building Materials plans to keep growing.

“We want to continue to adapt to the market,” Isaac says. “We also want to stay humble and do business the right way.”

INDUSTRY EVENTS

Tech Insights Await in August

Scan the code to learn more about the 2023 NHPA Independents Conference or visit YourNHPA.org/conference. Early bird discount ends April 1!

Q+A

Innovation Abounds

Meet Chris Hood, 2023 NHPA Independents Conference Keynote Speaker

Mark your calendars for August 2-3 when the North American Hardware and Paint Association (NHPA) hosts the 2023 NHPA Independents Conference in Dallas. No other time this year will you hear from former Amazon and Google execs, cybersecurity and technology experts, take part in the Top Guns and Young Retailer of the Year award programs and dive into topics covering numerous aspects of retail technologies. During the two-day conference, attendees will discover the latest in retail technology and the solutions independent home improvement retailers are using to improve their efficiency, customer service and competitive advantage in the channel.

Hardware Retailing sat down with one of the event’s keynote speakers, digital strategist

Chris Hood. Hood is an internationally recognized voice, thought leader and digital strategist with over 35 years of experience in online entertainment and marketing for television, film, music and video games. Through The Chris Hood Digital Show, Hood currently works with companies worldwide to develop digital strategies. Previously, Hood worked as the head of business innovation and strategy for Google, where he engaged with Fortune 500 companies to create digital transformation programs and build cultures of innovation. Hood also worked as a director for Fox Broadcasting, where he developed storytelling technologies and innovated new mechanisms for viewers to engage with television content.

Hardware Retailing (HR): You’ve worked in some interesting and exciting industries and have been involved in some cutting-edge technologies. Tell us about your first career in the film industry.

Chris Hood (CH): I actually had two jobs at that time, working at a movie theater and also selling computer software at a retail shop. It was great because the two jobs combined two of my passions: technology and movies. As I travel through my career, I’ve been able to keep both of those in sync with each other and really leverage what I learned from that retail experience and at the movie theater in my other roles in technology, media and entertainment.

HR: After some time in the movie industry, you brought your eye for innovation to the music industry. Tell us about what your startup company created.

CH: In 2003, I joined a startup company called Ruckus Network, which was created by two students out of MIT who wanted to create a way to share music on college campuses in a legal and free manner. It was a direct battle against Napster and the free sharing that was going on at that time. The technology from Ruckus was designed to distribute music freely on campus by working directly with the record labels to get license agreements. It was a lot like a student discount; Ruckus paid for the license agreements, and then through registrations and advertising we would then sell that back to the

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Catch the Keynotes

From cybersecurity to retail tech innovations, don't miss the other 2023 NHPA Independents Conference keynote speakers and panelists. See the full speaker and panelist lineup at YourNHPA.org/conference

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record label so the students could get it for free. While our business model, which was basically giving something away for free in exchange for advertising revenue, was simple and also almost unheard of at that time, it is now the basis of many streaming-type services many consumers use today.

HR: What are some of the other highlights of your career in terms of innovation and technology?

CH: I’ve had some exciting careers and professions and opportunities in the movie, television and video game industries. In each of them it comes down to how to bridge the gap between business problems or challenges that organizations are facing and the technology available to fix them.

We have business problems and we have to leverage technology to combat those problems because consumers are engaging with businesses through technology. That’s what has been fascinating in my career; being able to leverage these ideas of innovation and digital strategy and build opportunities at organizations to use that technology. I’ve been able to help organizations build cultures that support innovation and digital strategies and help them reach the goals they want to achieve. Regardless of the industry piece of it, whether it’s TV or video games or retail or health care or even financial services, the problems are the same across the board, and I’ve loved having these types of conversations with executives to help them shift their mindsets so they can also be successful.

HR: Part of your keynote presentation at the NHPA Independents Conference will include talking about digital transformation. Can you share more on this idea?

CH: Just this year, I’ve started to play with this notion that digital transformation is dead. The phrase digital transformation has been overused and many have modified the definition to meet their specific advertising or marketing needs or internal culture. So I want to look at it from a different lens, which is digital acceleration. Digital transformation was about converting your organization to digital so that you can keep up with the demands of consumers, but the fact is we are already in a digital world. It’s no longer about trying to adapt. It’s about accelerating your digital outcomes so you can keep up with consumer demands because, at the end of the day, every single consumer who you have is trying to meet with you in some way. So why not make that easier and more understood, or a better experience through technology that we’re already engaged with?

“It’s no longer about trying to adapt. It's about accelerating your digital outcomes so you can keep up with consumer demands."

—Chris Hood, Digital Strategist

HARNESS THE POWER

Make Your Hand and Power Tools Category a Destination

BY CARLY FRODERMAN

Hand and power tools have the potential for powerhouse sales no matter the size of your business or your community. Being knowledgeable, hosting events and advertising aggressively are just some of the strategies that can turn this basic core category into a destination.

Mark Wojdula and his wife, Lisa, purchased Reese Hardware & Paint, located in Reese, Michigan, from the Kuhne family in 2003 and renamed it Dunn Hardware & Supply. The store went from a 16-foot Milwaukee power tools section in 2015 to a 3,200-square-foot selling space for Milwaukee tools and accessories in 2022. Hardware Retailing spoke with Wojdula about the success of his operation’s hand and power tools category and how he made the section a department.

OPERATIONS Best of the Best

Read how another operation took its hand and power tools category to the next level at hardwareretailing.com/all-star-tool

Eager to Expand

The growth of Dunn Hardware & Supply’s hand and power tools section can be traced back to one customer requesting a dozen Milwaukee grinders, Wojdula says.

“At that time, our power tool selection was weak and scattered and had different brands without a focus,” Wojdula says. “When we received the request, we went all in and were impressed with the service Milwaukee provided to us and our customer and how well they stood behind their products for warranty issues.”

Wojdula says they put in a 16-foot Milwaukee power tools section in 2015, and it took off, doubling in six months and then doubling again six months later. In 2018, the operation opened up a wall in the adjacent suite, adding 700 square feet of selling space and leading to the creation of “Destination Milwaukee.”

“I chose the name Destination Milwaukee because being a hardware store in a small town, you’re basically a convenience store, which is how we built our customer base,” Wojdula says. “But when we became specialized in hand and power tools, I wanted to move our operation past the convenience factor and be known as a destination, and I think the name reflects that idea.”

With the addition, the operation became the largest Milwaukee dealer in the state.

sales exploded.”

Mark Wojdula, Dunn Hardware & Supply

“Even if we didn’t increase sales by $1 in Milwaukee, the expansion was necessary because the demand was growing so much,” Wojdula says. “Once we added the additional space, sales exploded.”

In 2022, Dunn Hardware & Supply opened up another wall to gain access to another suite, resulting in 3,200 square feet of selling space for Milwaukee tools and accessories.

“With Milwaukee, we were able to compete and price competitively,” Wojdula says. “We also invested during a time when Milwaukee was making innovations with cordless products, and it has been tremendously successful for us.”

Dunn Hardware & Supply went from a 16-foot Milwaukee power tools section in 2015 to a 3,200-square-foot selling space for Milwaukee tools and accessories in 2022.

“Once we added the additional space,

OPERATIONS

Soaring Sales

Discover tips and best practices to take your hand and power tool category to the top at hardwareretailing.com/charge-up-sales

Secrets to Success

The success of Dunn Hardware & Supply’s hand and power tools category sales is multifaceted. A large part of the operation’s prosperity can be traced to the Milwaukee-exclusive events the store holds a few times a year, Wojdula says.

“We have customers come from all over the state and beyond,” Wojdula says. “These events are simply amazing for a small retailer like us.”

During these events, the store opens at 7 a.m., but often, customers have been in line since 6 a.m. or earlier so they can have the first crack at exclusive deals and excellent promotions, Wojdula says.

Part of the event’s success can be attributed to the operation’s aggressive marketing and advertising strategy.

“We run TV and radio ads, post to Facebook, do text blasts and email flyers to our customers to spread the word,” Wojdula says. “We do this event in the spring around Father’s Day and then in the fall.”

“We strive to be honest, price competitively, provide the best selection of products possible, ensure our sales team is knowledgeable about the products, provide excellent service and always offer the best deal possible,” Wojdula says. “Meeting these goals has led to the success of this category.”

Dunn Hardware & Supply owner Mark Wojdula (left) and Milwaukee guru John Weber (right) have worked hard over the years curating the operation’s hand and power tools category.

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Being knowledgeable about hand and power tool products does not come easily, and there is a steep learning curve.

“We utilize training videos from Milwaukee for our product knowledge,” Wojdula says. “It takes time and commitment, but in the end, it is worth it to be knowledgeable about the product and provide accurate information to the customer so they are happy with the sale.”

While training can fill most knowledge gaps, there are times when employees may be missing information.

“If our team doesn’t know something our motto is ‘Be honest,’” Wojdula says. “This rolls into pricing too; we tell customers if we can’t give them a better price. We also tell them when we can, and we don’t wait for them to ask. We tell them if something will be on sale next week or if there will be a deal in the future.”

The operation also does not shy away from trying to match prices either. While the conversation may not result in Dunn Hardware & Supply being able to match the price, the customer has all of the information they need to make an informed decision, Wojdula says.

“Even when our price is a couple of bucks more, we often still get that sale because we are knowledgeable, honest and will take care of tools that are under warranty,” Wojdula says. “When customers have an issue with their tool, they can bring it in, fill out a form in 30 seconds and then we do the paperwork, package it, send it in and text the customer when it is ready to be picked up.”

“It takes time and commitment, but in the end, it is worth it to be knowledgeable about the product and provide accurate information to the customer so they are happy with the sale.”

Mark Wojdula, Dunn Hardware & Supply

Dunn Hardware & Supply’s team strives to be honest with customers and price products competitively. In 2018, the store added 700 square feet of selling space and created “Destination Milwaukee.”

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Engage With Your Customers

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OPERATIONS

Hidden Behind History

HOMCO LUMBER AND HARDWARE STORES PRODUCT BEHIND PHOTOS

WHEN HOMCO Lumber & Hardware in Flagstaff, Arizona, moved to a new location, the management team got creative with storage solutions in the new space. Throughout the retail areas, extra merchandise is stored above gondolas and shelves, hidden behind large photo montages that tell the history of the area and the company. The photos are installed on sliding doors that give employees easy access to additional products.

Chief operating officer Todd Callan says the photos represent important pieces of the company’s storied history and also provide a clever way to hide overstock merchandise.

“The extra products are still accessible and easy to reach, and the photos add a personalized touch to the store,” he says. “Our company culture is extremely important to us, and these photos are one way we can share that culture with our customers and remind our staff of the heritage their work supports.”

At HomCo Lumber & Hardware, extra merchandise is easily accessible to employees stored behind historic photos that share the story of the operation.

Honoring a Furry Friend COMMUNITY

Just a few steps from Settergren’s of Linden Hills in Minneapolis, Minnesota, a bronze statue pays homage to beloved store dog Jäger, who passed away in 2019. A long-time customer started a GoFundMe fundraiser to raise money for a commissioned statue of Jäger, which was completed and dedicated in August 2020 thanks to generous donations from customers and the community, says owner Mark Settergren.

“We also added a park bench to what we now call Jäger’s Park along with a plaque that tells the story of Jäger and his role as the unofficial mayor of Linden Hills,” Settergren says. “It’s so great to see people come out and see his statue. It was the community that really pulled together to keep his name going. It’s a cool thing.”

Jäger became a part of the Settergren Ace family in 2005 at the operation’s Penn Avenue location. In 2011, Jäger moved to the new store in Linden Hills where he lived out the rest of his days greeting customers and becoming a mainstay of the store. Jäger was a Münsterländer, a rare breed of hunting dog known for their mellow and family-oriented temperaments. Along with the statue, Jäger’s memory lives on in the newest store dog, Jürgen, who is Jäger’s grandson.

“Jäger was well-known in the community and everyone loved him; many customers and families would come in just to see him,” Settergren says. “Jäger had a very special personality, he would greet you at the door and just wanted to make you happy.”

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Jäger was a beloved part of Settergren’s Ace Hardware, serving as store dog for both locations in Minneapolis, Minnesota. He is now honored with his own statue near the Linden Hills store.

From countertops to cutting boards, live edge wood is a popular choice for many woodworking projects. Customers at Hartville Hardware in Hartville, Ohio, can shop a large selection of live edge wood pieces to use for their projects. The section includes varying sizes of wood slabs in a wide variety of wood types, including cherry, maple, rosewood, macacauba and more.

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LAST WORD

OPERATIONS Get Started on Training Today

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