Hardware Retailing May 2023

JOHN ROSSMAN Former Amazon Executive

Building Code Approved

Ledger Board Screw

Construction Lag Screw

Hex Construction Lag Screw

Hex Timber Screw

Our proprietary XL coatings are certified by the International Code Council® to exceed the protection offered by hot-dipped galvanized fasteners and are approved for use in exterior applications and ACQ lumber.

Structural Screw

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

Business Transition Trends

Next month, Hardware Retailing takes a look at the prevalent trends in business transition today and shares insights from industry experts and retailers on how to navigate the playing field to secure the future of your business. Plus, explore resources for buying and selling a business from the North American Hardware and Paint Association.

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

Counting on Culture and Tech

28

28 OPERATIONS

Finding What Works

Taking part in frequent technology assessments allows you to know whether something is working or not. Explore best practices for determining the ROI of technology in your operation and how to evaluate its effectiveness.

46 OPERATIONS

Open to Omnichannel

In a ever-changing retail landscape, today’s consumers want it all, including digital and brick-and-mortar options. See how a strong omnichannel strategy that crosses touchpoints will set your business up for success.

48 CATEGORY

Illuminating Best

Practices

Investing in core categories and implementing new strategies for improvement leads to higher sales. Read five best practices for the electrical and lighting category.

LET’S GET GROWING

Do it Best provides me the guidance and insights to set my business apart from the competition.

Experienced Do it Best member-owners gave first-time member-owner Steve Bennett a wealth of industry knowledge.

We connected first-time member-owner Steve Bennett with a network of successful LBM member-owners to help him start out strong. Join a company that’s committed to taking your business as far as you can dream it.

Read how Pilot Lumber Company’s success story started with a supportive community at doitbestonline.com/PilotLumber.

Stay Informed

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

Find More Online OPERATIONS Safe and Secure

Ransomware is one of the leading types of malware that can encrypt all your data or lock you out of your computer or entire network. Don’t leave your business vulnerable—take note of these strategies to mitigate the risks of cybercrimes.

CATEGORY Curating Bright Lights

Is It Working?

Determining the return on investment of technology solution or operational process is a key to its success. Knowing where to start is also crucial when implementing any type of technology. Don’t miss these additional resources for assessing your tech needs and determining if they are working for you.

Starting Line for Tech

Discover best practices for assessing your tech needs and learn where to discover the processes you need to make your operation successful.

Taking Tech Steps

Technology doesn’t come in a one-size-fits-all package. Read about three different types of tech and how each could work for your business.

Go to the Source

Discover questions you can ask employees to gauge your tech needs, what your employees think would work best and how they feel customers will react.

Customers will always need lightbulbs so enhance your light section with a wide variety of lightbulbs, to fit different moods, fixtures and decor. Read five tips for making your selection shine from retailers who have spruced up their lightbulb sections.

PODCAST Follow Their Career Path

In Episode 87, hear how industry leaders Marty Ellison of Miller Hardware Co. and Josiah Gates of The Aubuchon Co. turned jobs into careers in the home improvement industry.

CORRECTION

We made some mistakes in the cover story of the April print edition of Hardware Retailing. We regret the errors, and you can read a corrected version online at connect.yournhpa.org or scan the QR code to read it.

Melanie Moul

Springing Into Action

I THINK SPRING is an underrated season. Most people consider summer or fall to be their favorite season, whether it’s because of the return to hot weather or the relief from it when the air turns crisp.

For me, there’s nothing quite like sitting up in bed in the early hours of a spring morning and realizing you hear birds chirping, something you haven’t heard in months. You look out the window, and underneath a thin layer of fresh snow, you see buds trying their hardest to break through the tips of the trees. Don’t freeze again, you tell them.

Spring is a celebration of restarts. It’s a second chance. An opportunity to try something new.

As you breathe in that fresh spring air, think for a minute: What would you do with a second chance? What’s your something new?

In this issue, we’re recognizing several people who have taken chances with technology in their operations. Our feature story on Page 28 highlights retailers who have seen significant ROI with their technology investments. From electronic shelf labels to comprehensive digital communications, these investments can sometimes come with a hefty dollar and time price tag. But the retailers we talked to say if given a second chance, they would do the same thing, because the value they’ve gained—whether in operational efficiencies or in customer loyalty—are well worth the initial investment.

Also in this issue, we’re introducing the first of three 2023 Top Guns Awards honorees, Eric Hassett, owner and president of Hassett Hardware, which has five locations in the San Francisco Bay Area.

Growing up in Silicon Valley, Hassett has always been exposed to innovation and groundbreaking technology, so it was a natural transition to introduce technology into his business. Hassett’s commitment to investing in technology, but not forgetting to invest in his company culture, is a key reason he was named a 2023 Top Guns honoree. Read more about Hassett starting on Page 38, and plan to attend the Top Guns panel discussion and awards reception at the 2023 NHPA Independents Conference, Aug. 2-3 in Dallas, for additional insights. Head to YourNHPA.org/conference for more details and to register.

Don’t freeze. Take this chance to learn from the industry’s leading retailers in tech.

Melanie Moul Communications & Content Manager

“What would you do with a second chance? What’s your something new?”

Fresh ideas for home improvement.

Strength and selection go together with Outdoor Accents ® decorative hardware from Simpson Strong-Tie. We’re always expanding our Mission Collection ® and Avant Collection™ lines with new products and accessories, making it easy to enhance outdoor structures and living spaces. Both feature an innovative hex-head washer and fastener combo that looks like a bolted connection but installs as simply as a screw. It’s the only approved fastening solution for Outdoor Accents connectors. Plus, our code-listed connectors and fasteners are rigorously tested for performance. So whether your customers are building a planter box or a pavilion, it will be strong, safe and beautiful for years to come.

To see our complete lines of Outdoor Accents decorative hardware, visit go.strongtie.com/outdooraccents or call (800) 999-5099.

dant@YourNHPA.org

Dan Tratensek

Investing in the Future

MOST PROGRESSIVE BUSINESS OPERATORS are fastidious when it comes to watching their financial statements. They realize that the difference between just getting by and taking a business to the next level comes through focusing on the details.

I have watched these retailers pore over every dollar and cent coming and going from their businesses and spend long hours looking for ways to squeeze more juice out of that financial lemon.

However, there is also another level of progressive retailers who come to understand both the science and art of running a retail operation. These owners and managers carefully scrutinize their finances, but they also exhibit a keen vision for when the value of an investment may not be measured by a more traditional return on investment (ROI) formula. These retail savants understand that sometimes an investment in the business isn’t quite so easy to measure.

Take, for instance, some of the investments progressive retailers are making in technology.

Now, more than ever, we see retailers of all shapes and sizes evaluating the potential impact of everything from mobile devices to artificial intelligence. For some tech investments, the ROI is easy to see. For example, if you launch an e-commerce effort and it costs x amount to start up and maintain, you can then track sales generated through the e-commerce site and come up with a rudimentary ROI.

Investments, however, become a bit murkier when you start looking at something like electronic shelf labels or self checkout. Does an electronic shelf label translate directly to more sales? Does basket size increase when customers check themselves out?

There’s not necessarily an easy answer. In these cases, the ROI is more complicated. How much time would your employees save not having to change prices every week? How much of that saved time can be dedicated to helping customers or driving sales?

That’s why the entire concept of making investments in technology can be a bit more complicated than simply buying a new delivery truck or adding a new product line. But just because it is more complicated doesn’t mean it is any less important. Those same retailers who understand the difference between growth and stagnation in financial margins, also understand that some investments collect their ROI in more complex ways.

So how do you navigate these new waters? Well, for one, you can start by reading our article that begins on Page 28

Then, you can go to YourNHPA.org/conference and learn more about our the 2023 Independents Conference. At this premier event, you can talk to some of these tech providers to learn about ROI, hear from other retailers just like you who have made investments in technology and gain better insight into how these kinds of investments can make a difference in your business and balance sheet.

Dan M. Tratensek Chief Operating

Officer & Publisher

“Now, more than ever, we see retailers of all shapes and sizes evaluating the potential impact of everything from mobile devices to artificial intelligence.”

Heavy Duty Aluminum Screen

Heavy Duty Aluminum Screen is an extra durable and unique addition to the window, door and porch screening market.

• Woven with larger diameter wires than standard aluminum screening

• Delivers excellent visibility and insect protection

• Deterrent against squirrels and other critters from entering through it

• Durable black powder-coated paint finish

RESEARCH Plan for Your Financial Future

Participate in the 2023 Cost of Doing Business Study at YourNHPA.org/codb and receive a free copy of the study and a personalized financial analysis.

Benchmark Your Business

Participate in NHPA’s Annual Cost of Doing Business Study

HOW DO YOUR NUMBERS stack up against industry averages? The North American Hardware and Paint Association (NHPA) is now inviting hardware stores, home centers, lumberyards and paint and decorating outlet retailers to participate in the 2023 Cost of Doing Business Study Submissions are open from now until June 30 to share your operation’s financial data.

Every year, NHPA’s Cost of Doing Business Study offers data and insights to home improvement retailers on how to increase their profits and strategize for the future. For more than 100 years, NHPA has collected information from independent retailers for this study. Individual financial data is held in strict confidentiality and financial and operational data will only be published in aggregate.

How to Participate

Cost of Doing Business Study participants will receive a free copy of the study ($499 value), a personalized financial analysis with their operation’s financial results compared to industry averages, a what-if scenario generator to calculate how small changes can make a big impact and other financial metrics.

“Participating in the Cost of Doing Business Study gives retailers access to a wide range of data, from typical operations to high-performing operations, to give them a benchmark for their performance,” says David Gowan, NHPA chief financial officer and executive vice president of business services. “This way, retailers can make well-informed decisions to better position their operations for years to come.”

To participate today or learn more about the study, visit YourNHPA.org/codb

Choose from four easy ways to share your information and participate in the 2023 Cost of Doing Business Study

• Online - Complete the online Cost of Doing Business Study form and/or submit your 2022 year-end financial documents at YourNHPA.org/codb

• Email - Send your company information and 2022 year-end financial statements to NHPA CFO David Gowan at dgowan@YourNHPA.org

• Mail the Survey - Print and complete the survey using your 2022 year-end financial data and mail it to NHPA.

• Mail Statements - Fill out the company information section of the survey, attach a copy of your 2022 year-end financial statements and mail them to NHPA.

NHPA’s Mailing Address

Attn: NHPA CODB Coordinator 1025 E. 54th St. Indianapolis, IN 46220

Continuing Education

Learn about all of the programs NHPA has to offer by downloading your free copy of the Academy for Retail Development Catalog at YourNHPA.org/academy.

AWARDS

Celebrate the Bright Future of the Industry

Congratulate the Young Retailer of the Year honorees at a reception held at the 2023 NHPA Independents Conference.

NHPA HAS ANNOUNCED the recipients of the 2023 Young Retailer of the Year award. These dynamic individuals were selected from a field of inspiring independent home improvement retailers under the age of 35 from across North America—and these 11 honorees represent the future of the industry.

The Young Retailer of the Year honorees will be recognized at a reception held at the 2023 NHPA Independents Conference in Dallas on August 2. Join NHPA to meet the honorees and learn how they’re making an impact in their operations, communities and across the industry. Spend time mingling with retailers, vendors and other industry players during the reception.

Tickets are available for the reception in a limited quantity. Reserve yours now at YourNHPA.org/conference, and look ahead to the September issue of Hardware Retailing for complete coverage of the honorees.

Thank You to Our Program Sponsors

NHPA would also like to recognize the 2023 Young Retailer of the Year program sponsors for their continued dedication to the independent retailers who are pushing the boundaries of the industry every day.

2023 Young Retailer of the Year Honorees

Under $3 Million in Annual Sales

• Jessica Talerico: owner of Old Lyme Hardware in Old Lyme, Connecticut

• Zane Watkins: general manager and co-owner of Village Hardware in Hatch, New Mexico

Over $3 Million in Annual Sales

• Travis Hellvig: operations manager of Hartford Building Center in Hartford, South Dakota

Multiple Stores

• Ryan Clouse: owner of Clouse Family Ace Hardware in Oscoda, Michigan

• Austin Diehl: director of retail operations at Randy’s Do it Best in Virginia

• Scott Fines: owner of Fines Home Hardware Building Centre in Ontario, Canada

• Michael Gleason Jr.: assistant general manager and head purchaser at Gleco Paint in Pennsylvania

• Matt Lambert: regional vice president, Nation’s Best in Oklahoma and Texas

• John Luhring: owner of Parkersburg Hardware and Garden Center and Allison Hardware and Floral Center in Iowa

• Dalton Meny: head of operations at Meny’s True Value in Indiana

• Katie Prus: owner and manager of Abbotsford Paint in Abbotsford, British Columbia, Canada

You Won’t Want to Miss These Podcast Episodes!

Subscribe and listen to the “Taking Care of Business” podcast at YourNHPA.org/podcasts

Cultivating a Career in Hardware

EPISODE 87

Retailers Marty Ellison of Miller Hardware Co. and Josiah Gates of The Aubuchon Company discuss turning jobs into careers in the home improvement industry.

A Legacy of Innovation

COMING MAY 15 | EPISODE 88

Hear from 2023 Top Guns honoree Eric Hassett, a third-generation leader of Hassett Hardware, on how technology and customer service intersect within his company.

Schaefer Talks “Recovery Hardware”

IN CASE YOU MISSED IT | EPISODE 69

NHPA’s Dan Tratensek and Renee Changnon have a conversation with Gina Schaefer, CEO of A Few Cool Hardware Stores, a chain of 12 stores in the Washington D.C. and Baltimore metro areas.

#10: You get to think outside the box, literally, and come to Indianapolis three times over a six-month period to attend in-person class sessions. Indianapolis is also home to the Indy 500 in May!

#9: You will become a student again. The Retail Management Certification Program is a college-level program. There’s homework and a big semester project, and you get a diploma when you finish—the Retail Management Certification Program Certificate.

#8: You’ll make friends fast—a network of business friends, that is. Friends to last your entire career! The program has an amazing network of alumni willing to help each other, as well as current students enrolled in the program. It’s a benefit that will take you through your whole career.

#7: Our university instructors are dialed into the industry. They are professors who run business schools at top universities. They know retailing. One used to own a home center, and another is the dean of Butler University’s Lacy School of Business.

#6: Our industry-expert instructors are the best of the best. They were once retailers themselves and have spent their careers (and have decades of experience) helping independent home improvement retailers drive sales and profits.

#5: Our alumni instructors come back to teach. Some of our alumni have risen to the top of their organizations since graduating and come back to give back what they received when they went through the program. After graduating, most

students remain involved with the program and NHPA. We even have a Retail Management Certification Program 10th Anniversary Reunion scheduled on Aug. 2 at the 2023 NHPA Independents Conference.

#4: Your store is your lab for the semester. Students initiate and complete a semester-long business improvement project designed to fix or create something that increases the baseline for success in your business. We estimate that, on average, the return on investment (ROI) from applied learning, business improvement projects and “quick wins” is five times the amount of tuition paid. If you do it right, it can pay for everything—and the returns keep adding up year after year.

#3: You’ll gain access to our business improvement project database. It’s full of past student project reports and presentations for almost every retail topic imaginable. It’s also filled with a plethora of best practices. And students continue to have access to the semester project database long after graduating from the program.

#2: You can receive a scholarship to attend. Most students apply for (and receive) a scholarship to attend the program from our network of industry partners who support the program. We also recently launched the Retail Management Certification Program’s Pay it Forward Scholarship Fund to help students offset the cost of attending.

#1: The No. 1 reason you should join the Retail Management Certification Program class of 2023 is you get to hang out with the cool folks at NHPA for six months!

TRENDS

MARKETING Grow Your Following

Discover four ways to engage with TikTok and increase your followers at hardwareretailing.com/tiktok-following

TIME TO TALK ABOUT TIME TO TALK ABOUT TIME TO TALK ABOUT TIKTOK TIKTOK TIKTOK

5 COMPELLING DATA POINTS FOR USING THE PLATFORM

WITH 62% OF GEN Z USING TIKTOK —according to a study conducted by Material, a global strategy, insights, design and technology partner—joining the platform and building a following can cement relationships with customers who will soon make up the majority of your sales. The stats speak loudly—TikTok users are twice as likely as users of traditional social platforms to recommend a product or service they’ve discovered on the app and one-and-a-half times more successful at convincing others to try the product or service. With many big-box stores already utilizing the platform and engaging with consumers successfully, it is vital for independent retailers to consider investing time and resources in the platform.

55%

of users get on TikTok to research new brands or products

36%

of Gen Zers want to learn about products through short-form videos like TikToks

2 out of 3

TikTok users are likely to buy something while on the platform

40% Brands are remembered

more on TikTok than on other platforms

TikTok users are

1.3x

more likely to know about products and trends before their peers

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.

High Strength Spackling Compound

3M™ High Strength Large Hole Repair is designed to tackle holes between three and five inches in both interior and exterior spaces. This strong spackle is fiber reinforced and dries five times faster than other 3M™ spackle compounds. This product works best with the 3M™ High Strength Large Hole Repair Plate, flexing and adhering behind the wall for a professional-looking finish.

3MTM | 3m.com

Heavy-Duty Triple Tap Extension Cord

Prime Wire & Cable’s Heavy-Duty Slim 3-Outlet Locking

Cord is a patent-pending slim triple-tap (SL3™) cord. It features a lighted PRIMELOK® locking plug connector with a Primelight® Indicator Light to show when power is on. The cord is a 12/3 SJTW contractor-quality cord and is water-resistant and flame-retardant. It is ideal for harsh working environments and stays flexible in temperatures from -40 degrees to over 140 degrees F.

PRIME WIRE & CABLE | primewirecable.com

Sanding Sheets

3M™ Pro Grade Precision™ Faster Sanding Sheets have superior cut durability and enhanced mineral technology to resist clogging and sand faster. When folded, the NO-SLIP GRIP™ durable backing grips together to prevent slipping, so you can sand longer with less hand fatigue.

3MTM | 3m.com

Painters Blade

The Painters Blade 12-in-1 folds closed for safety and convenience. It can be opened with one hand using the thumb pin and locks in the open position. It features a tool clip and a knurled handle to prevent slippage and hand fatigue. At only 3/8-inches thick, the blade is designed to slip into a pocket and is also available in a counter pack.

WARNER TOOL PRODUCTS warnertool.com

Multipurpose Scissors

The BLACK+DECKER Multipurpose Scissors set includes three sizes (5 ½-inch, 6 3⁄5-inch and 8 ½ inch) suitable for a variety of cutting tasks. They’re ideal for cutting paper of varying weights, cardboard, photos, fabric and more.

BLACK+DECKER | blackanddecker.com

“This Painters Blade is mulituse and ergonomic. Our customers love it.”

—Curtis Coyle, Spectrum Paint

Cable Stapler

The MILWAUKEE™ M12™ Cable Stapler is designed to consistently sink 1-inch insulated staples to the depths electricians need when fastening NM-B cable. It features an LED work light, reversible belt clip, battery fuel gauge, staple viewing window and dry fire lockout. The kit includes an M12™ Cable Stapler, M12™ REDLITHIUM™ CP 2.0Ah battery pack, M12™ charger and contractor bag.

MILWAUKEE TOOL | milwaukeetool.com or 800-729-3878

3-in-1 Compost System

Subpod® is an in-ground compost system and worm farm. Inside the Subpod, compost worms and microbes turn materials such as food scraps, paper, coconut peat and more into rich compost. Nutrients from the compost feed the surrounding garden soil and help plants thrive. Fresh air circulates through Subpod via the ventilation panels and the underground installation protects the worms and compost from harsh weather conditions and direct sunlight.

SUBPOD® | subpod.com

Cordless Tower Work Light

Makita’s 18V LXT® Lithium-Ion Cordless Tower Work Light extends to an overall height of 7 ¼ feet with a foldable design for quick setup and takedown. The adjustable head rotates 220 degrees vertically and pivots 230 degrees horizontally and features three-mode operation: 3,000 lumens on high, 1,700 lumens on medium and 900 lumens on low. It is IP55-rated for dust and water resistance and uses Makita’s 18V LXT 5.0Ah batteries.

MAKITA USA INC. | makitatools.com or 800-462-5482

Measuring Tape Square

MATEY MEASURE® squares off the curve by clipping to measuring tapes, which enables accurate measurements at the joints of two perpendicular surfaces such as flooring, recessed woodwork, doorways, windows and more.

INVENT & CREATE LTD.

mateymeasure.com or 770-951-8355

Biodegradable Bar and Chain Oil

DEWALT

DEWALT

Rust Stain Remover

Ty-D-Bol Rust Stain remover liquid eliminates tough rust stains on white toilets and seats. It is safe for plumbing and septic systems and comes in a 16-ounce bottle.

WILLERT HOME PRODUCTS

tydbol.com or 800-325-9680

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

Kids Outdoor Tools

Fiskars® Kids’ Scratch Tool Set includes four high-quality tools designed just for kids: a trowel, a cultivator, a large-headed scoop and small brush. They’re designed to fit small hands and are made from durable, fiber-reinforced materials. The Kids’ Scratch Tool Set includes soft grips and an extra-large hang hole for storage.

FISKARS | fiskars.com or 866-348-5661

Turntable Organizer

YouCopia’s Crazy Susan® Turntable features six removable clear bins with handles and soft, nonslip feet to hold it steady. The 11-inch turntable rotates on stainless steel ball bearings and is made from BPA-free plastic. It is suitable for organizing small items in kitchens, bathrooms, offices, craft rooms and kids’ rooms.

YOUCOPIA | youcopia.com or 888-973-9288

OPERATIONS Where to Start

Find your own road map for adding tech to your operation with anecdotes from fellow retailers. Learn more at hardwareretailing.com/tech-road-map

BANG BUCK FOR YOUR

Why You Should Be Measuring Your Tech’s ROI

BY LINDSEY THOMPSON

Ready or not, technology is the future of the retail industry, and it’s here to stay. The pandemic permanently changed the retail landscape and how consumers shop and engage with businesses, placing an additional focus on technology. While not every operation needs to adopt the latest and greatest innovations, retailers should consider how technology can improve different areas of their operations and take a close look at the return on investment (ROI) for any type of technology. As you evaluate current and future tech options for your operation, Hardware Retailing shares best practices from experts and fellow retailers on how to measure ROI and the benefits technology brings to an operation.

Beyond the Numbers

Typically, when measuring ROI, you take the amount of money you earned, subtract the amount you invested and divide that number by the amount invested. But that formula doesn’t translate to all types of technologies or take into account factors beyond money.

When it comes to evaluating technology, retailers should consider other aspects—efficiency gains, time saved, customer engagement, brand awareness and others—to determine whether the technology is successful or not.

Rebecca Wettemann, CEO and principal of Valoir, a technology research firm, says retailers should look beyond traditional ROI formulas and key performance indicators (KPIs) specific to a technology.

“When analyzing ROI, it’s not so much about coming up with a specific number but understanding what you are going to spend and the benefits you’re going to get from that investment,” Wettemann says. “It’s less about the ROI numbers and more about what you are trying to accomplish as a retailer.”

Two key factors to consider are reach and frequency, Wettemann says. Reach refers to the number of people, applications or processes a technology touches, with more touches equaling greater return. The more frequently a technology is used, or the more it can be applied across an operation, the greater the ROI.

“If I’m filling a bathtub, it’s a lot faster with a bucket than a measuring cup,” Wettemann says. “Look at how many people and processes you are impacting with a technology—that’s where you can see a true measure of its impact.”

With so many different ways to measure success, it may feel overwhelming or not worth your time, but Wettemann says taking stock of a technology’s impact is crucial. Retailers, especially small business owners, have many choices on where to invest money and need to be savvy about where that money goes.

“Retailers should look at technology investments the same way they’d look at other business investments, such as enhancing a storefront or hiring more workers,” Wettemann says. “When you look at the ROI of technology, you’re making sure you’re getting the most value for what you’re investing in your business.”

“Look at how many people and processes you are impacting with a technology—that’s where you can see a true measure of its impact.”

Rebecca Wettemann, Valoir

OPERATIONS

3 Steps to Tech

Read three best practices for successfully adding technology to your operation. Learn more at hardwareretailing.com/bring-on-tech

This mindset is especially important for small businesses that need to account for every dime spent. Wettemann suggests any business operator to take a close look at what a specific investment could yield in another area of the business. For example, instead of spending it on a new technology, consider whether that money could offer a better ROI earning money in a high-yield savings account or invested in physical store improvements.

“Business owners should take into account the payback time of any investment as well,” she says. “They need to look at how many months or years it will take to recoup the initial investment. The faster you can recoup an investment the better the ROI because you can then invest that capital elsewhere.”

Moving the Mission Forward

Technology plays a large role in Heuser Ace Hardware’s successes over the years. A key driver in the company’s technology investments, Bobby Heuser looks beyond traditional ROI when measuring a technology’s success. Heuser owns the operation—which includes three hardware stores and one paint store in the Hilton Head area of South Carolina—with his parents, Renee and Bob. The Heuser family has implemented a wide range of technologies since opening in 2015.

Heuser says while measuring traditional ROI is important, there are other factors a retailer should consider when evaluating success. The operation added electronic shelf labels (ESLs) to the Pawleys Island store in April 2022, the Hardeeville store in September 2022 and the Bluffton store in March 2023. Heuser looked beyond the cost and the payback period and took into account secondary benefits like improving efficiency and customer service to measure the success of the new technology.

One such metric Heuser assesses is employee efficiency and time spent with customers. Many of the store’s employees are retired trade workers with specific skills in electrical, plumbing and construction that are critical for helping customers. Instead of putting 30 hours a week into price changes, thanks to the ESLs, employees use the same 30 hours a week to help customers, a positive ROI on employees’ time.

“We also found that digital price tags increase accuracy in our stores—the price on the shelf is always the price at the front,” Heuser says. “The tags decrease frustration and give the customer more information about the product, providing another touchpoint and a higher level of customer service.”

For Heuser, technology is successful for the operation if it aligns with and reinforces the operation’s mission statement. At one point, the Heusers considered adding self checkout but decided against it for the time being because they felt it wouldn’t advance their mission and goals.

“We try to be the most helpful company in our town and want to introduce technologies that reinforce that value proposition,” Heuser says. “Just because it’s a positive ROI on paper, doesn’t necessarily mean it’s going to be an overall positive for your company or customers. It has to line up with your mission.”

The Heuser family (below) is committed to progress that makes sense for the business.

INNOVATION INVESTMENTS

“We try to be the most helpful company in our town and want to introduce technologies that reinforce that value proposition. Just because it’s a positive ROI on paper, doesn’t necessarily mean it’s going to be an overall positive for your company or customers. It has to line up with your mission.”

— Bobby Heuser, Heuser Ace Hardware

JOHN ROSSMAN Former Amazon Executive

Expanding Your Reach

ROI can also come in the form of more customers or a new customer base, as is the case with Pintura Paint in San Antonio, Texas. Since taking over the business in 2019, managing partner Danny Garcia has focused on using marketing—specifically digital communications— to boost sales and connect with customers.

One of his first tasks was creating a Facebook page for the store, where he posts five to seven times a week using Hootsuite to manage and schedule posts. Posts include videos of new products, the store and special events promotions. His children, 8-year-old Arianna Garcia and 4-year-old Polo Garcia, also make frequent appearances on the social feed to the delight of many customers.

“Establishing a digital presence was the biggest challenge when we took over,” Garcia says. “The previous owners didn’t have a good foothold on any social media platforms or an online presence, so I took that challenge on and it has really paid off.”

Continued on Page 36

Any technology or process that owner Bobby Heuser implements at Heuser Ace Hardware has the No. 1 goal of serving customers. Last year, Heuser started adding electronic shelf labels (ESLs) to the stores.

CUSTOMERS COME FIRST

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We know not just any oscillating blades will cut it in your store. You’re after the performance, sales support, and universal tool compatibility that only comes with a market leader. That’s why Arrow, the leader in heavy-duty staple guns and staples, is changing the landscape in pro-grade oscillating blades with a lineup of blades made from the highest-quality materials and performance features we know your customers demand. Choose from three unique planograms that feature single packs and value-priced multipacks, and take 30% off your first order through May 31. But hurry, planograms are limited. Secure yours before it’s gone!

Not Afraid to Fail

TESTING TECH DESPITE THE RISKS

When it comes to technology, not every implementation is a success story. Just like in life, those mistakes can be great learning experiences, even if it’s just learning to fail faster next time, which is the lesson Bobby Heuser, owner of Heuser Hardware, has learned from his foray into technology.

Heuser says he added informational kiosks in the garden center and grilling departments at his stores but found customers weren’t utilizing them as expected, and they didn’t provide that additional level of service he was hoping to achieve. He has also tried some mobile POS solutions that didn’t pan out either, but those missteps have not deterred him. He tells his managers, and takes his own advice to heart—there is room to try new ideas and fail, but it is beneficial to learn to fail quickly.

“You have to be open to try and accept failure because that’s how you learn,” Heuser says. “Where people get into trouble is when they try something that doesn’t work and cling to it for way too long. That’s usually where your losses occur. If you’re going to fail, fail quickly and move on to the next thing, because then you’re going to be available to try other opportunities that can succeed.”

Jeremy Peterson, owner of Family Hardware in Cape Coral, Florida, has his own story of taking a gamble on technology and that risk paying off. As he was opening his operation’s second location in Fort Myers, Florida, in 2022, he discovered the company’s existing POS company could not support the system in the new store. He interviewed several other POS providers but couldn’t find a good fit for his company’s needs.

During this time, he was also redesigning and updating the company’s website. With his self-taught IT background, Peterson decided to create his own POS system.

“The website backend was very similar to what we needed for the POS system,” Peterson says. “So as we were building out the store and getting it ready to open, we were building out the website with the developer. We were able to get the new POS system ready for launch on day one of the store opening.”

While going out on his own was a big risk for Peterson, his willingness to create his own solution paid off with a successful system that he also implemented at the original location.

“We learned that just because you pay for a service, it doesn’t mean it is always going to work for you,” Peterson says. “There is a sense of pride in knowing that our system fulfills our needs.”

DIG DEEPER INTO INNOVATION

Make Plans to Attend the 2023 NHPA Independents Conference

Whether you’re an early adopter or hesitant to dive in, no matter where you sit on the technology spectrum, you won’t want to miss the 2023 NHPA Independents Conference. Featuring keynotes by former Amazon and Google execs and panel sessions from industry heavy-hitters, the conference will deliver a two-day experience like no other. Join us in Dallas Aug. 2-3! Learn more at YourNHPA.org/conference

Continued from Page 32

The emphasis on building their digital presence has led to new customers coming in every week. Garcia says he frequently asks new customers how they found out about the store, and if they say online, he asks where specifically.

“I want to know if they found us on Google, Facebook, Pinterest or somewhere else online,” he says. “While a lot of people don’t remember specifically, those metrics help me better gauge where our marketing is working.”

For his operation, Garcia says technology looks different than it might for a hardware retailer or even another paint operation. But no matter what your technology looks like, it’s still important to assess what’s working and what’s not and come up with ways to measure success, whether that’s measurable data or anecdotal stories.

“In the paint world, technology just looks different,” Garcia says. “But it is important to evaluate what you’re doing and if it’s working and make adjustments as needed.”

The team at Pintura Paint engages with customers in the store and digitally through the operation’s social media platforms.

CULTURE COUNTS

At Hassett Hardware, owner and president Eric Hassett has encouraged a culture of service, collaboration and open communication.

PEOPLE PROGRESS +

Top Guns Honoree Builds a Culture of Service and Technology

BY LINDSEY THOMPSON

Hardware—along with hard work and a love for people—runs in Eric Hassett’s blood. Those qualities have led to an extremely successful career at Hassett Hardware and have contributed to him being named as one of this year’s North American Hardware and Paint Association (NHPA) Top Guns Awards honorees.

ERIC HASSETT

HASSETT HARDWARE Owner and President

Photo Credit: Alex Johnson | AJPHOTOGRAPHER

Improving Efficiency

Learn how Eric Hassett and Hassett Hardware utilize technologies to improve customer service at hardwareretailing.com/technology-mix

Top Guns honorees are chosen for their commitment to and passion for the independent home improvement channel. They are pillars of innovation and have helped grow their businesses through strategic leadership with consideration for their communities and teams. This year’s honorees were specifically chosen for their focus on utilizing technology to improve operations.

Eric is the owner and president of Hassett Hardware, which includes five retail stores and one outdoor power rental equipment location in the San Francisco Bay Area. The business was started in 1957 by Eric’s grandfather Bob Hassett, and Eric got his start in the company and first taste of the industry when he was 11.

“My grandfather had me come to the store after school to pump kerosene out of a 55-gallon drum into glass containers and put 49-cent stickers on the containers,” Eric says. “I moved to sweeping up the nails and then got a big promotion—sorting nuts and bolts.”

Eric’s father, Larry Hassett, who started working in the business when he was 13, became owner in 1986, carrying on the legacy of being customer-focused that Bob started at Hassett Hardware. Eric says his future in home improvement retail was solidified when his dad opened the operation’s Palo Alto location in 1993. It was the company’s first computerized store, and Eric spent weekends and breaks from college working there learning the ins and outs of retail from operations to technology to company culture. He came back to the business after

graduating from the University of California, Davis with the intent to work for his parents for a year while he figured out his next career move—either go to law school or work as a political consultant.

“During that year, my dad was great about stepping back and letting me take on a leadership role,” Eric says. “I quickly realized the business was a great fit because I like entrepreneurship, managing people and solving customers’ problems.”

Culture Comes First

While Hassett Hardware has many accomplishments to its name, the biggest key to its success has been a focus on cultivating a positive company culture. Eric prioritizes company culture, mission and values, and he can remember the exact moment he realized the operation needed a shift. He was attending an Ace Hardware event in 2012 where Linda Small was presenting on Everything DiSC®.

“At that time we had four stores, and I was constantly struggling to figure out why we weren’t executing consistently across locations,” Eric says. “As Linda was presenting and I read through my profile report, I realized I was the problem. I had not been intentional with how I explained our culture.”

In 2013, Eric, his brother Richard and his leadership team rolled out the operation’s core values, mission statement and vision to employees and began the process

At age 11, owner and president Eric Hassett (center) started working in his grandfather’s hardware store. After college he fell in love with the industry, especially managing people and solving customers’ problems.

Where to Start With Tech

Eric Hassett shares his best practices for getting started in tech and how to evaluate what your operation needs to succeed. Learn more at hardwareretailing.com/bring-on-tech

of creating consistency across each location. The team started with nine core values and two years ago, reworked the values down to four to make them easier to remember.

“The original nine core values are still seen in the four we have now. They are now just easier to apply to what we do,” Eric says. “Everything we do is focused around our core values, so it’s important that our employees are able to remember them.”

The four core values include: Every Customer, Every Time; In It Together; Do the Right Thing, Not the Easy Thing; and Communication Makes or Breaks Us. Eric says the leadership team makes sure everything they do falls in line with those four values to set an example to all employees to incorporate them into their jobs.

Core values play into the hiring practices at Hassett Hardware as well. Eric says they hire with intention, looking for employees who are in line with the company’s values and mission.

“Our core values are everywhere—in our communications, on signs on the walls, talked about in our manager check-ins and more,” Eric says. “Those values are how we make sure we have a shared understanding across all stores, provide a high level of customer service, hire the right people and continue to grow and maintain who we are.”

The operation’s commitment to its values has paid off. Eric says one of his proudest moments was when The Mercury News in San Jose, California, named Hassett Hardware as one of the best places to work in the Bay Area in 2013. They have won the award ten years in a row since.

“This award is given based on employee nominations, so to win it when we are surrounded by all these Silicon Valley companies offering free massages and unlimited vacation hours lets us know we’re doing something right,” he says. “The effort we are putting in to treat everybody with kindness and respect and doing the right thing for everybody—not just the bottom line—is working.”

Tech That Works

Growing up in Silicon Valley, Eric says he has always had an interest in technology. He has taken that passion and made it work for Hassett Hardware, bringing in programs and processes that ultimately offer a higher level of customer service, which was a priority instilled by his grandfather at the beginning of the company.

Living in Silicon Valley, Eric Hassett has always been interested in technology and how it can improve service.

GROWING TECH

+

ABOUT HASSETT HARDWARE

Founded in 1957

AUGUST 2-3 | DALLAS MEET ERIC AND THE OTHER HONOREES

LEARN MORE ON PAGE 31

“I read a study that said only 7% of an employee’s time is spent giving meaningful assistance to a customer,” he says. “I want that number to be more like 40% or 50% for our employees, so I look for technologies that can achieve that goal.”

Eric started simple, adding operation-focused technologies that eliminated pen and paper processes and allowed employees to focus more of their time and energy on the salesfloor. Now, each store requires very little employee time for ordering and inventory management thanks to programs that automate those tasks.

The operation has recently been testing electronic shelf labels (ESLs) as another way to save employees time and effort. With ESLs, any price changes are done digitally and without numerous hours spent physically changing price tags. Because it is an expensive technology that requires a large upfront investment, Eric says he is also interested in other ways ESLs will improve efficiency, such as having the tag flash a light for special orders or flash to help employees find specific items when doing inventory.

5 Retail Stores & 1 Outdoor Power Rental Equipment Location

78 % DIY Focused Technologies

implemented include:

Mobile Communications Systems

Electronic Shelf Labels Inventory Management Programs

During the summer of 2022, Hassett Hardware started using the Theatro communication system. Eric says the system has eliminated over 50% of broadcast transmissions across the store and employees are only hearing the conversations they need to hear so they can better focus on customers.

Currently, Eric is working to bring in the autonomous robot from Badger Technologies, which roams the store each night and checks for price errors, product outs and misplaced items. Employees manning each department will get a report every morning listing the errors and can easily find and fix them.

“Rather than send the employee for an hour down an aisle to try and catch these errors, my hope is the robot does the work and then provides the checklist so my employees can get to work fixing them faster,” Eric says. “If I can cut the time they need to spend to improve the accuracy and aesthetics of their aisles from an hour to even just 15 minutes, that’s going to be more effective. They can use that saved time to focus more on customers.”

When it comes to adding technologies, Eric says he is not looking to replace employees, but rather enhance their roles within the company. Any technology Hassett Hardware has in place allows the employee more face time with customers.

“Service is going to be our differentiator today, tomorrow and for the next 10 years,” Eric says. “Anything we do will follow this priority.”

Help Along the Way

As he looks back on his career so far, Eric is grateful for his parents, who started him on his successful career path.

“My dad had the foresight to step back when I came on. He didn’t micromanage me but brought me along and empowered me,” he says. “I also had my mom in my ear saying, ‘You don’t have to do hardware.’ So I never felt trapped.”

In his career, Eric says he has been fortunate to be part of a group of Ace Hardware retailers who have been a positive influence in his professional life, including Gina Schaefer, Mark Schulein, Michael Wynn and Jeremy Melnick—all coincidentally former Top Guns.

“Whether it’s chats at conferences or being hardware dorks and talking about retail philosophy over drinks, my peer group has been really strong, and that’s contributed to my successes,” he says. “It’s a community, and I would not be able to do anything I do without it.”

The team back at Hassett Hardware has also played a huge role in Eric’s—and the operation’s—successes, helping him grow as a leader and allowing the business to thrive. He says it’s a huge honor to be named as a Top Guns honoree, and he is proud to be joining the ranks of previous honorees.

Eric attributes their current successes to having his brother Richard and the leadership team step up to the challenges of retail and embrace change as an opportunity, not a hassle.

“Ultimately, this award goes back to my team,” he says. “My name might be on the plaque but what we’ve done with our culture, our stores and taking care of our customers, that recognition goes to our 145 employees who do this work day in and day out. I want them to understand we’re being recognized for excellence by all of their efforts, not just mine.”

“Ultimately, this award goes back to my team. I want them to understand we’re being recognized for excellence by all of their efforts, not just mine.”

—Eric Hassett, Hassett Hardware

CONNECTING WHAT MATTERS

Learn From the Best

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

OPERATIONS

PLUG INTO THE BENEFITS OF STRONG OMNICHANNEL STRATEGIES

BY LINDSEY THOMPSON

As retailers work to navigate the ever-changing technology landscape, a few trends are emerging they should be aware of to plan their own technology strategies. Steven Hummel, manager of market research for the Consumer Technology Association (CTA), the producer of CES®, shares his insights from CTA’s Retail Innovations 2022 Report and the ways retailers can embrace omnichannel strategies to find success in a dual digital and brick-and-mortar world.

Industry Solutions

Tune into Episode 54 of NHPA’s “Taking Care of Business” podcast to hear insights from Grant Morrow and Stephanie Lee, who lead Orgill’s e-commerce and product data programs, on how independent retailers are building their omnichannel presence Listen now at YourNHPA.org/tcb-pod or scan the QR code.

Online Purchasing Stays Popular

Hummel says the surge in online purchasing seen during the pandemic is expected to stay at levels above those seen before COVID-19.

“During the height of COVID-19, consumers were increasingly exposed to online shopping and experienced the benefits of convenience,” Hummel says. “As more consumers currently use both online and in-store channels, retailer support for both channels has become increasingly important.”

Dual Presence Is a Must

According to the CTA report, over half of consumers ages 18 to 34, those living in urban areas and those with children living in their household say it is important or very important for retail to have a physical and digital presence. Retailers with a strong omnichannel retail strategy that goes beyond a digital and physical footprint will fare best in this new retail landscape, Hummel says. Digital and physical locations should complement each other rather than compete.

“Both e-commerce and brick-and-mortar retailers should look to integrate their single-channel in-store and online shopping experience to create a more streamlined purchase journey for consumers,” Hummel says. “This way, customers can interact with retailers both online and at physical store locations, leveraging the unique advantages offered by in-store, such as ‘try before you buy,’ physically interacting with products and better exchange and return policies. They also receive the advantages offered by online shopping—better inventory, more convenience and easier to browse.”

Omnichannel Brings Bonus Benefits

CTA’s research also found that the benefits of omnichannel strategies can extend beyond the consumer to the retailer.

“Omnichannel strategies lead to improved consumer experience, higher customer satisfaction, customer retention, better understanding of customers to increase personalization and higher brand awareness,” Hummel says.

FOR

SUCCESS SUCCESS

5

Tips to Spark Electrical and Lighting Sales

BY CARLY FRODERMAN

From strategic merchandising to staying on top of the most popular trends, consistently applying best practices to regular traffic-driving categories like electrical and lighting will set your operation up for continual improvement and ever-increasing sales. It is easy to become complacent with core categories in your business—you may stick with the same planograms or become comfortable with long-time product offerings.

To keep the electrical and lighting category from going dim at your operation, hear from two retailers who have found success in this category and shed light on ways to grow and improve your electrical department.

ABOUT THE RETAILERS

Tim Robinson purchased Dover True Value Hardware in Dover Foxcroft, Maine, in 1994 and has since doubled the selling space of its electrical and lighting category. The 6,000-square-foot store serves an even mix of contractors and DIYers and has 76 feet of selling space dedicated to electrical and lighting. In 2021, Joe Matyas became assistant retail manager of the 35,000-square-foot Penticton Home Hardware Building Centre, one of the six locations in British Columbia and Alberta, Canada, for Pro Builders Supply Ltd. The operation serves a customer base of 70% contractors and 30% DIYers, has 7,000 square feet of space dedicated to electrical and lighting and updated its lighting planogram at the end of February.

OPERATIONS Project Know-How

Find out how employees from one operation help customers through common electrical projects at hardwareretailing.com/electrical-projects

Know your customers and cater to them.

A key strategy in any home improvement category is listening to customer needs. When it comes to electrical and lighting, it’s important to pay attention to new technologies and updated electric codes to offer the best products that meet your customer’s wants and needs.

“We constantly ask our contractors what products we are missing,” Robinson says. “When other customers come in looking for something we don’t have, we make a note of it. If we have several individuals who are looking for the same product, we add it to our mix.”

If you are part of a multistore operation that uses set planograms, there are opportunities to better customize your offerings to your customer base.

“When we receive a planogram, we try to tailor it to our local customers to make sure we’re serving their needs,” Matyas says. “We do this by looking at our historical sales and evaluating if the new planogram has our current best sellers. If not, this sometimes means going to outside vendors to bring in certain items our customers are looking for.”

When you know your audience, you can focus your efforts on the core group that drives sales in a category.

2

Stock trendy products.

SHEDDING LIGHT ON WHAT’S HOT

Robinson and Matyas share trends from the electrical and lighting category.

• Brushed gold and matte black light fixture finishes

String lights

• LED lights

• WiFi-controlled lightbulbs and outlets

TIPS TO BUILD CUSTOMER LOYALTY FROM RETAILER TIM ROBINSON

“Learn your local electrical codes so you can better guide your customers.”

“It is a little old-school, but we sell electrical wire by the roll or foot. The added flexibility and ease of purchase leads to more satisfied customers.”

Electrical and lighting trends can change quickly, so it is important to stay up-to-date on the hottest products and styles.

“When sales decline, it indicates it may be time to refresh the whole department,” Matyas says.

Penticton Home Hardware Building Centre’s updated lighting planograms feature new fixtures as well as new finishes and updated designs. Matyas also expanded WiFi-controlled lightbulb offerings.

“Our stock was a little dated,” Matyas says. “Early feedback from the customers has been positive following the recent reset.”

TIP #1

TIP #2

OPERATIONS

Top Tools

Discover five must-have electrical tools for DIYers at hardwareretailing.com/electrical-tools

3

Use social media.

3 TIPS TO BOOST ONLINE ENGAGEMENT

Create a contest. Contests are a great way to grow your following. Ask your followers to share a post of their favorite lighting fixture for a chance to win a gift card.

Keep a consistent voice. Whether you’re posting about the latest light fixture trends or sharing electrical how-to tips, keep the tone consistent. Fluctuate between fun and serious posts, but don’t stray from the general “voice” of your store.

Join the conversation. Engage with local electricians on their social media platforms and consider sharing their content that is helpful and applicable to your customers.

Discover 2023 social media trends to follow and apply to your operation at hardwareretailing.com/social-trends.

LIGHTBULBS 101

Technology and advertising are powerful tools, and social media is a mix of the two that grows connections between communities and businesses and is an easy way to promote your product offerings.

“We have consistent TV and website ads for all locations, but each store has its own unique social media accounts on Instagram and Facebook,” Matyas says. “Our store’s social media strategy considers seasonal changes—during the summer we may promote more outdoor lights and during the winter we may advertise more string lights.”

Merchandising updates or improved product selections are impactful upgrades to feature on social media platforms.

“We put a spotlight on our lighting reset on social media with videos showing off the new fixtures and asking customers to come in to check it out,” Matyas says. “It increases customer awareness and encourages them to visit our store.”

Below you’ll find a glossary of common terms associated with lightbulbs. Use this information to educate your employees and customers on what each unit measures in relation to lighting.

Lumens—measure of brightness

Watts—measure of energy use

Volts—measure of output of electrical current

Kelvin—measure of color temperature

Color Rendering Index (CRI)—measure of how light affects how you see color

Source: Niche Modern

Gain Profit-Focused Store Operations Training With NHPA’s Retail Management Certifi cation Program

Built for owners, managers and key employees in the independent home improvement industry, NHPA’s Retail Management Certification Program focuses on learning skills to grow store sales and profits.

Follow in the footsteps of more than 250 retailers who have graduated from the program. Students on average have earned more than 5X the return on tuition paid after implementing their student projects and putting what they have learned into practice!

These companies are advocating for independent retailers by supporting the program.

RESOURCES

Lighting Up Electrical Problems

Gain insight and help customers understand how to protect their investments from costly, dangerous electrical problems at hardwareretailing.com/electrical-problems

Showcase as many light fixtures as possible and keep displays organized. 4

Bright lighting displays draw customers in, encouraging sales.

“When you don’t have lighting on display, it is harder to sell,” Matyas says. “Providing accurate visual representations of products results in an easier shopping experience and better overall customer experience.”

A positive customer experience can also be influenced by cleanliness. When employees are busy assisting customers, it doesn’t take long for displays to descend into chaos—establishing an upkeep plan increases tidiness.

“A couple of employees are assigned to the department and check it daily,” Matyas says. “I find when displays aren’t neat, customers are more likely to return products to the wrong place. Assigning staff members to fill displays and keep the department organized is very important.”

5

ELECTRIC OFFERINGS

Matyas shares examples of clip strip products to display in the electrical and lighting category.

Power bars

• Electrical tape

Extension cords

BRIGHT IDEAS

• Night lights

• Replacement bulbs

Coaching employees to brainstorm add-on opportunities to suggest to customers reduces the need for return trips and increases customer satisfaction. Robinson points out add-on opportunities that go with different products in the electrical and lighting category.

Light fixture—lightbulbs

• Electrical boxes—switch or outlet

Electrical wire—wire nuts

Merchandising strategically increases add-on sales and transaction sizes. Matyas says he recently added clip strips in his operation and uses them in the electrical aisle to help sell complete projects.

“I questioned employees on what products they are asked about in certain aisles and searched for relevant add-on items to feature on clip strips in those departments,” Matyas says.

Featured clip strip products do not have to come from a different department or aisle either.

“Even if a product is on a nearby shelf, I’ll put some of that product on a clip strip,” Matyas says. “Doing this draws attention to that product and reminds customers of their need for them when they are looking at different products for their projects,” Matyas says.

Utilize clip strips and consider add-on opportunities.

Penticton Home Hardware Building Centre updated its lighting planogram at the end of February to offer more trendy options to its customers.

Get

Your Free Copy of the 2023 Cost

Each year, NHPA’s Cost of Doing Business Study delivers data and insights to help retailers increase profits, cut costs and strategize for their financial future and success.

Participate by June 30 to get a free copy of the study

CHECKOUTS

SHARE YOUR IDEAS

Engage With Your Customers

Have an idea? Send an email to editorial@YourNHPA.org to have your story considered for publication.

Java Time

HARDWARE ON THE SQUARE OFFERS 5-CENT CUPS OF COFFEE

BORN FROM A LOVE OF COFFEE and the desire to fulfill a need in the community, Joe Consford, owner of Hardware on the Square in San Augustine, Texas, added a coffee shop to the hardware store in October 2016.

“I love coffee, but there was no coffee shop in our town, so I decided to open one,” Consford says. “My dad and I watched videos on how to make coffee and would practice at home. We perfected our recipes and then built the coffee shop inside the hardware store.”

Consford says he found a coffee shop in Louisiana that was going out of business and bought its coffee equipment, setting it up in his garage at home to practice making coffee before opening up the coffee shop in the hardware store.

Not only does the hardware store offer coffee, it sells its cups of coffee for a bargain at 5 cents a cup.

“Our customers can sip on our custom-brewed coffee as they enjoy the historical atmosphere of our hometown hardware store,” Consford says. “It is a great place to sit and visit and enjoy a cup of joe.”

When customers of Hardware on the Square need a caffeine boost, they can sip on a cup of 5-cent java from the store’s coffee shop.

Whitmore Ace Hardware honors the memory of a beloved employee who passed away in 2008 through Melissa’s Closet and Crystal’s Jewelry Box. The organization hosts an annual prom dress drive to provide affordable options to area high schoolers.

Paying It Forward for Prom

Whitmore Ace Hardware, which has 13 locations in Illinois, tragically lost a beloved employee, Melissa Michalowski, in a car accident in 2008. To honor and remember Melissa and her friend Crystal Carr, who also passed away in the accident, the operation started Melissa’s Closet and Crystal’s Jewelry Box. During the organization’s annual event, it outfits high school students with $5 prom dresses and inexpensive accessories, says Whitmore Ace Hardware marketing director Laurie Becker.

“Melissa came to work every day happy to be there, sharing her smile and positive attitude with everyone, and so we wanted to do something in Melissa’s memory,” Becker says. “A number of our employees expressed how expensive prom is and were asking to work more hours to be able to afford it, and the idea for Melissa’s Closet was born.”

The first event brought in 120 dresses and has grown to over 1,900 dresses, tons of accessories, hair and makeup lessons and a scholarship fund. During the event, which takes place in early spring, 80 to 100 volunteers set up the shop and help students choose dresses and pick out jewelry. To date, the event has dressed over 3,500 students for prom.

Community members and local stores donate dresses, shoes and purses. Students from the local Paul Mitchell School set up a beauty salon to do updos and makeup for free.

“It’s hard to explain what it’s like to experience this day and the joy it brings, not only to the students, but their parents,” Becker says. “This event makes life a little easier by cutting expenses for prom and brings us happiness to celebrate two beautiful girls who we miss greatly.”

OPERATIONS

The Perfect Pair

A part of the historic Cumberland neighborhood in Nashville, Tennessee, Cumberland Hardware has served the hardware needs of the community for over a century. The store is also home to two adorable furry employees. Store cats Oliver and Annie have been a part of the store for nearly two decades, welcoming customers and looking for pats on the head, says owners John and Sheila Varallo.

“Customers love Oliver and Annie, they are mainstays in the store,” John says. “They each have their own stools to lounge on, and in the cold months, we’ll put heating pads on their chairs to keep them extra cozy.”

LAST WORD

INDUSTRY EVENTS Take Tech Further

This August, don’t miss the NHPA 2023 Independents Conference where you’ll discover innovative best practices, insights and resources. Learn more at YourNHPA.org/conference

Betting on Tech

3 WAYS EMBRACING INNOVATION MAKES AN IMPACT

MORE THAN JUST something to do to keep up with your competition, technology comes with many benefits. Read on to discover three ways technology can make your operation successful and turn to Page 28 for more ways that innovation boosts your business.

1

ADD TO THE BOTTOM LINE

While technology requires an investment—and sometimes a significant one—in the long run it can improve your bottom line. Technology for inventory management can prevent over-ordering and allows for more consistent inventory turns, saving money now and down the road.

BECOME MORE EFFICIENT

Many technologies make your employees’ jobs easier and allow them to spend more time with customers. Communication technologies cut down on the time employees spend listening to unnecessary noise on the radio and give them more opportunities to focus on customers. 2

ENGAGE WITH NEW AUDIENCES

Embracing digital marketing and online technologies connects you with new audiences and provides another avenue for engagement. Offering an e-commerce site or other ways to buy online can also boost your revenue and sales with new ways for customers to buy. 3

B

B U SI N E S S F O R S AL E

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3 21 million

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 level doors and two dock height doors

B U S I N E S

Central Vermont Paint , Flooring , and Decorating

Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1 1 million

Full-service decorating store providing

kitchen/bathroom remodeling, cabinetry product o erings, design assistance, specialized service, and professional installation

B U S I N E S S F O R S AL E

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

Hoosick True Value

Location: Hoosick Falls, New York

Gross Revenue: $1.26 million Price: $1.875 million

This opportunity o ers 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

B U S I N E S S F O R S AL E

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

B U S I N E S S F O R S AL E

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEE KI N G B U S IN E S S E S

Gold Beach Lumber Yard

We are looking for:

•

•

•

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

• Single-store and multi-store

hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

The Orgill Advantage:

One of Many Bryan Gilbert

19 years with Orgill Texas Rep

One of Many Scott Rizzoto

21 years with Orgill Northeast Rep