Hardware Retailing August 2024

9 Ways the Independent Channel Is Embracing AI Page

ENROLL TODAY

Navigating Cash Flow ROADMAP

TO FINANCIAL FREEDOM

Don't Let Cash Flow Problems Hold Your Business Back

Tired of the cash flow roller coaster? Find your path to a smoother, more profitable ride with NHPA’s exciting new course, Navigating Cash Flow.

Join fellow retailers for this comprehensive and interactive course designed to help retailers like you take control of your finances and unlock your business’s full potential.

IN THIS GAME-CHANGING COURSE, YOU’LL MASTER HOW TO:

Diagnose and resolve root causes of cash flow problems

Budget accurately and manage financial risk

Optimize inventory management and vendor negotiations

Streamline receivables and payables for improved cash flow

Develop short-term and long-term marketing strategies to boost revenue

Live Session

Oct. 15-16 | Indianapolis

COURSE INCLUDES: Virtual Workshops 6-Week Remote Training

Weekly sessions to implement newly learned strategies into your operation

9 Ways the Independent Channel Is Embracing AI Page

HEADQUARTERS

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

NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

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

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

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

EXECUTIVE VICE CHAIRMAN

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

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ash Ebbo, Clement’s Paint, Austin, Texas

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

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

Michael Sacks, FLC Holdings, LaGrange, Texas

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

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

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

NHPA CANADA

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

COMING IN SEPTEMBER

Financial Checkup

Accounting statements are the health reports of your business; are you happy with what you see? In the September issue of Hardware Retailing, we’ll look at crucial KPIs on a typical accounting statement, why it’s important for your employees to understand the basics of finances and what everyone can do to keep those numbers in top shape.

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 © 2024 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 OF CONTENT

DEVELOPMENT & EXECUTIVE EDITOR

Scott Wright, swright@YourNHPA.org

EXECUTIVE DIRECTOR OF MARKETING & INDUSTRY RELATIONS

Whitney Mancuso

CONTENT AND PRODUCTION

317-275-9400, editorial@YourNHPA.org

MANAGING EDITOR

Lindsey Thompson, lthompson@YourNHPA.org

RESEARCH & ENTERPRISE CONTENT MANAGER

Melanie Moul, mmoul@YourNHPA.org

CONTENT COORDINATOR

Jacob Musselman, jmusselman@YourNHPA.org

LEAD GRAPHIC DESIGNER

Autumn Ricketts

GRAPHIC DESIGNER

Olivia Shroyer

PRODUCTION MANAGER

Austin Vance

PRODUCTION & DESIGN ASSISTANT

Samantha Mitchell

SALES & PRODUCTION ASSISTANT

Freda Creech

MARKETING COORDINATOR

Nathan Piper

SALES

NATIONAL SALES MANAGER

Greg Cole gcole@YourNHPA.org | 317-775-2206

ASSOCIATION PROGRAMS

800-772-4424, NHPA@YourNHPA.org

EXECUTIVE DIRECTOR OF RETAIL ENGAGEMENT & EVENTS

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

EXECUTIVE DIRECTOR OF EDUCATIONAL DEVELOPMENT & CONSULTING

Kim Peffley, kpeffley@YourNHPA.org

TRAINING MANAGER & EDITOR

Jesse Carleton, jcarleton@YourNHPA.org

RETAIL ENGAGEMENT SPECIALIST

Renee Changnon, rchangnon@YourNHPA.org

As home improvement retailers look to embrace what’s next to enhance their operations, artificial intelligence tops the list. See the ways independent home improvement retailers are using AI to improve efficiency and how you can incorporate these programs into your own operation.

Kicking off at the end of the month, the Independent Home Improvement Conference promises to be a must-attend event for all independent home improvement retailers.

Growth comes in many forms, but what is most important is getting into a growth mindset. See how one retailer has made improvement top of mind for his staff.

Discover how smart space management, a diverse inventory and savvy social media marketing can transform any hardware store into the go-to destination for outdoor living products.

Photo Credit: AI Generated

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EDITORIALLY SPEAKING

CONNECTIONS

Send Lindsey a Message lthompson@YourNHPA.org

Lindsey Thompson

“AI can create higher efficiencies, save money and allow employees to focus on what’s most important—your customers.”

FROM THE EDITOR

Teaching an Old Dog New Tricks

PLEASE EXCUSE ME FOR BREAKING one of the top rules of journalism—using cliches—right from the start. But as I was thinking through this column, I couldn’t help but see how the cliche fits perfectly. I am the old dog, and I am being taught new tricks!

Just last month, I marked three and a half years with the North American Hardware and Paint Association (NHPA). I started with NHPA as an associate editor, a role I was honestly just excited to be offered. At almost 38 years old when NHPA hired me, I felt ancient applying for jobs in an industry that is pretty heavy in youngins, and I was so grateful to NHPA for giving me a chance at a late-in-life career.

When I started, I was an old dog, but I was ready to learn some new tricks. NHPA set me up, and continues to set me up, for success to do just that. Along with honing my writing and editing skills, I’ve learned to be a better leader and teammate, have hard conversations and step out of my comfort zone in several different ways.

Thanks to the empowerment and encouragement from the leadership team at NHPA, I’ve recently been promoted to managing editor. This is a role I can’t wait to dive into to continue to guide NHPA in creating content that is engaging, helpful and allows you to become better and more profitable retailers. I can’t wait to grow even more and learn even more new tricks.

This month’s feature on artificial intelligence (AI), which begins on Page 26, is also all about teaching old dogs (no offense!) new tricks. AI has so many great applications and benefits and has helped so many retailers become more efficient, more profitable and just overall better. But it can also be a little terrifying and requires many people to stretch themselves and learn their own new tricks.

From loss prevention to marketing content, AI can create higher efficiencies, save money and allow employees to focus on what’s most important—your customers. AI also comes in many forms, so it’s effective no matter the size of your operation, your comfort level with technology or what areas of your operation you want to improve.

Reflecting on it, the “old dog, new tricks” is the perfect metaphor because I am old and AI is new. Just like NHPA took a chance on me, I encourage you to take a closer look at AI. It might stretch you, but who knows what new tricks you might come away with.

Lindsey Thompson Managing Editor

TAKING CARE OF BUSINESS

CONNECTIONS

Send Dan a Message dant@YourNHPA.org

Dan Tratensek

“This event is bringing together hundreds of retailers to be celebrated by their industry allies.”

FROM THE PUBLISHER

Independent Retailers Thrive

LATER THIS MONTH, there’s going to be a very special event taking place, and I wanted to use my column in this issue not to promote this event but to point out why it is so relevant.

If you haven’t guessed by now, I’m referring to the Independent Home Improvement Conference (IHI Conference) that will be held August 27-29 down in Marco Island, Florida.

Oh sure, I could tell you about all the networking opportunities, educational sessions and events planned during the conference, but you’ve honestly probably heard enough about all that by now.

What I want to focus on is the fact that the event itself exists and is being roundly supported by the home improvement channel. From my perspective, as someone who has been watching this industry for nearly three decades, I don’t take its existence for granted at all.

Years ago, we would often have the conversation, even within the channel, about why independent retail operators were still relevant. The prevailing thought was that in the era of big-box proliferation, the small “mom and pops” would never be able to put up a fight.

Yet here we are, almost half century after the likes of Home Depot and Lowe’s started on their growth trajectories, and independent operators are perhaps more relevant than they have been at any time during this period.

The IHI Conference is a testament to this relevance.

This event is bringing together hundreds of retailers to celebrate with one another, learn from one another and be celebrated by their industry allies.

The event is truly one of a kind. It is the singular place in the industry where independent retailers of all affiliations will come together in an environment that is solely focused on their needs.

It’s been truly humbling to see how the entire channel has rallied around this cause and how competitors have been willing to put down their banners to elevate the channel and ensure independent retailers remain a vibrant part of this industry.

This event and its supporters are clearly committed to making sure independent retailers not only survive but continue to excel well into the future. This is a major leap forward from a time when so many seemed to question whether independent retailers would even have a future.

It’s important to remember that it is only through the support of industry partners like those who will be present in Marco Island this month that independent retailers have defied the odds and excelled in the face of mounting competition. It is also only through the willingness of these retailers—YOU—to support, encourage and learn from one another that will guarantee the continued importance and vibrancy of the channel.

I hope to see you all down in Marco Island to celebrate the success story at the heart of independent home improvement retailers, and if you couldn’t make it this year, let’s make sure we get together in 2025.

Dan M. Tratensek Chief Operating Officer & Publisher

RETAIL OPERATIONS

EDUCATION

Tackling Loss

Ensuring everyone in your organization understands loss prevention basics is key to keeping your team, your store and your customers safe. Explore the Loss Prevention training course at YourNHPA.org/academy

Meet Jim

Jim Close is a loss prevention professional with 24 years of experience working with independent home improvement retailers. Prior to working in loss prevention, Jim was an investigator with a major metropolitan law enforcement agency. He also teaches loss prevention in NHPA’s Retail Management Certification Program, and he helped develop NHPA’s Loss Prevention online training program.

EXPERT INSIGHTS

Don’t Be Wrung by Employee Theft

In my previous columns, we’ve explored external drivers of shrink with a focus on shoplifting and organized retail crime (ORC). Now we are going to focus on employee theft as it is the second largest cause of shrink.

What makes internal theft different from shoplifting is that you as an owner or manager have direct control over deterring internal theft. The most effective techniques involve policy and procedures coupled with education.

There are many ways a dishonest employee can steal from you, but the most common method used to steal from the cash register is fraudulent refunds. The reason this method is so widely used to steal is because it is easy to do and difficult to detect.

In this case, the cashier will either reprint a cash sale receipt or keep one a customer discarded and then use that receipt to refund the cash value of the sale and pocket the money. Using this method, the cash drawer will balance and back office paperwork will appear normal. Inventory will be off because the falsely returned item on the receipt was not actually returned. In most cases, the inventory variance will not be great enough to throw up any red flags.

By instituting a simple auditing procedure, you can detect and prevent this type of theft. Tracking the number of refunds processed by each cashier is a good start. You should be on the lookout for employees who process more refunds than other cashiers. This does not necessarily mean that the employee is stealing. There could be a legitimate reason why they lead the pack in refunds, but it is a starting point to dig a little deeper.

An audit of the cashier’s paperwork will tell you if you have an issue. Knowing what to look for is the key to catching and preventing this type of theft.

One clue that an employee is committing theft can be seen in the customer’s signature on the refunded receipt. If they appear to be the same on multiple refunds, that is an indicator that the cashier is signing the POS keypad and not a customer. You should also look to see if the same item is frequently returned by a cashier.

Another option is to randomly call customers to inquire about their refund experience. I can’t tell you how many times I have heard the phrase, “I haven’t returned anything to your store,” when making these types of follow-up calls.

As with all company processes, consistency and communication are key. You can mitigate employee theft at the register by having a process in place that is applied universally and that everyone knows about.

Jim Close Managing Partner Risk Management Services Loss Prevention

RETAIL INNOVATION

OPERATIONS

AI in Real-Life

Turn to Page 26 for more ways retailers are utilizing AI in their operations to improve efficiencies, boost productivity and add to the bottom line.

Meet Adam

Adam Gunnett started with Busy Beaver Building Centers in 2015 as an IT specialist, eventually serving as director of IT and then director of IT & marketing, where he skillfully merged the technical aspects of IT with the creative demands of marketing. Most recently, Adam was promoted to director of IT & business intelligence. In this role, he integrates IT solutions with business intelligence strategies, aiming to optimize operational efficiency and market impact. Adam has been pivotal in fostering a technology-driven environment at Busy Beaver. His approach ensures the staff at Busy Beaver are equipped with cutting-edge tools, enabling them to focus on delivering legendary customer service and reducing time spent on manual, repetitive tasks. This evolution in Adam’s career highlights his adaptability, technical prowess and visionary leadership in the ever-evolving landscape of IT and business intelligence.

EXPERT INSIGHTS

The Future Is Here

Artificial intelligence (AI) has permeated every facet of business and consumer technology, rapidly transforming from a futuristic concept to an inescapable presence. As we look ahead, it’s clear that within the next year, everyone—whether casually browsing social media or conducting an online search—will experience AI in some form. This rapid integration prompts a key question: How can we best leverage AI beyond the buzz and hype?

AI’s application ranges from mere novelties to substantial, efficiency-driving tools. For instance, many professionals, including my peers, are now utilizing ChatGPT for content creation. This has proven to be a highly efficient use of AI, serving as an entry point for many into the broader realm of artificial intelligence. Personally, I regularly use it to refine communications, from sprucing up emails to drafting articles like this one (shh!).

The popularity of tools such as ChatGPT and Microsoft Co-Pilot is paving the way for wider acceptance of conversational AI. This shift is reminiscent of the widespread adoption of touchscreen technology—a once novel feature that has become a daily necessity.

At Busy Beaver, we are embracing AI to enhance how we manage and disseminate internal information. We have begun transitioning our internal documentation, company policies, standard operating procedures (SOPs) and learning materials to the Zipline platform. This platform features an AI bot named Zippy that provides personalized responses based on the employee’s specific location and role, ensuring that each team member has access to the exact information they need without unnecessary complexity.

Additionally, we are testing a new tool called Profitmind, touted as an AI retail analyst. One of the enduring challenges at Busy Beaver has been effectively utilizing the vast amount of data we collect. Profitmind introduces an AI layer over our existing data systems, offering a new level of transparency. This enables our decision-makers to understand complex data sets more intuitively, enhancing confidence in their decisions and promoting swifter execution. The ability of AI to analyze massive amounts of data almost instantly provides actionable insights and recommendations that can significantly influence both our top and bottom financial lines.

Our goal is to harness AI not as a replacement for human expertise, but as a powerful tool to empower our employees and enhance their capabilities. We are optimistic and excited about the potential of AI to reshape our operations, confident that this technology will lead to smarter, faster and more effective employees.

Adam Gunnett Director of IT & Business Intelligence Busy Beaver Building Centers Inc.

EDUCATION A Strong Foundation

The NHPA Foundations of Retail Program provides flexibility for busy schedules and features industry-specific training. Learn more at YourNHPA.org/foundations

How to Foster an Engaged Team

—Emily Kribs, Kabelin Ace Hardware

I had the great pleasure of working with Emily for years, and I know she’s an exceptional leader. Emily truly cares about each of her team members. I have learned a lot from her through the years. Keep up the amazing work! Employee engagement is crucial and should be a primary focus of every leadership team. When I think about employee engagement, I like to visualize the team in this activity. Imagine your team is in a rowboat, tasked with crossing a lake. Here’s what typically happens:

• Engaged Employees: These team members grab paddles and are eager to help achieve the goal.

• Unengaged Employees: These individuals get in the boat but don’t paddle, relying on others to do the work.

• Disengaged Employees: This group grabs paddles but rows in the wrong direction, intending to be disruptive.

As leaders, we often focus too much on the disruptive employees and neglect those diligently rowing in the right direction. Here’s a few ways to effectively boost employee engagement and morale.

First, determine who is engaged, not engaged and disengaged on your team. Visualize them in the boat.

Second, recognize and thank engaged employees for their hard work. Ask how you can support them and provide the necessary tools for their success.

Third, connect with unengaged and disengaged employees to understand why they are not participating. Ask those employees questions, listen and help find ways to get

them involved and motivated to contribute. Have direct conversations to understand their disruptive behavior. Address concerns without letting them consume all of your time. Set clear goals and hold them accountable. Remember, as a leader, your role is to steer your boat and ensure everyone is rowing in the right direction. By recognizing and rewarding your engaged employees, re-engaging those who have lost motivation and addressing the disruptive behaviors of the disengaged, you create a balanced and harmonious team.

Keep your focus on fostering a positive environment where everyone feels valued and empowered. When each team member knows their efforts are appreciated and their growth is supported, you’ll find your boat gliding smoothly across the lake towards success. Your team’s engagement is the key to your collective achievements.

By focusing on each group appropriately, you can ensure your team feels motivated and appreciated, which leads to a more productive and positive work environment.

Now, let’s go out and make a difference in someone’s day today!

Kim Peffley Executive Director, Educational Development and Consulting, NHPA

Kim Peffley is the executive director of educational development and consulting with the North American Hardware and Paint Association (NHPA). With 30 years of retail experience, her management and leadership knowledge enables her to offer professional training covering many aspects related to effectively leading a team in a home improvement retailing environment. Peffley leads retailers through comprehensive organizational change to improve internal communications and create stronger teams.

Service First

Learn the five underrated building blocks of quality customer service that are key to a successful customer experience at hardwareretailing.com/customer-must-dos

TRENDS

WINNING CX

CUSTOMER SERVICE IS CONSTANTLY EVOLVING, with customer expectations seemingly changing day to day. According to the recent Salesforce Sixth Edition State of Service Report, 86% of respondents say customer expectations are higher than they used to be. Customers want better service across more channels, and they want it now. Take a closer look at some of these statistics from the survey to shape your own customer service strategies.

61%

Prefer to use self-service to resolve simple issues

77%

Expect to interact with someone immediately when they contact a company

88%

Say good customer service makes them more likely to purchase again

OF THE CUSTOMER SERVICE AGENTS SURVEYED

82% say customers ask for more than they used to

81% say customers expect personal touches more than they used to

78% say customers seem more rushed than they used to

Retailer Recommendations

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

Smoker Grill

The Woodwind Pro is a smoker grill that utilizes wood pellets, chunks, chips and even charcoal in its attached smoke box to allow users to control heat and flavor. The grill is crafted of stainless steel and comes in 24- and 36-inch widths.

CAMP CHEF | campchef.com

Reusable Paint Tray

The Repaint Tray is a silicone paint tray liner and lid designed with convenience in mind, allowing users to preserve their ongoing projects. The re-sealable lid ensures poured paint remains fresh and safe from external elements. When finished with the project, users can let the paint dry in the liner and easily peel it out of the silicone. The Repaint Tray fits a 1-quart paint tray and can accommodate a 9-inch roller brush.

REPAINT STUDIOS | repaintstudios.com

Photo courtesy of Camp Chef

Press Tool

The RIDGID RP 115 Mini Press Tool is a light and small press tool designed for residential and lightweight commercial plumbing use. It can press ½-inch to ¾-inch copper, stainless steel and PEX fittings. The RP 115 has a SlimGrip handle with an optimized trigger for balance and control. It also includes the RIDGID full lifetime warranty.

EMERSON ELECTRIC CO. | ridgid.com

Color Sensor

Instantly match over 200,000 brand name paints with the Nix Mini 3. The sensor can instantly provide RGB, HEX and CMYK codes of scanned colors, no calibration required. The sensor is splash-resistant, made in Canada and has a one-year warranty.

NIX SENSOR | nixsensor.com

Outdoor Cooler

Weighing 17 pounds, the Rugged Road 85 is a lightweight cooler strong enough to support the weight of an entire Jeep and can keep what’s inside cold for up to seven days. The cooler can hold up to 85 cans and around 70 pounds of ice while floating upright in the water. It comes with a lifetime warranty and is available in five different colors.

RUGGED ROAD | ruggedroadoutdoors.com

Garden Pot Scoop

Tidy Pots is a handheld garden scoop and alternative to the traditional hand shovel used to move dirt from a bag into a pot without the mess. It can fill a pot up to five times faster than a traditional shovel or hand trowel, will never rust, is recyclable and has a lifetime warranty.

TIDY POTS | tidypots.com

Propane Firepit

The Chimenea Propane Firepit is a stylish addition to any outdoor entertainment area. It is built with a directional heat shield, forcing hot air outward with its 40,000 BTUs of heat. This firepit can be powered with a 20-pound propane tank for nine to 15 hours of use. Eight pounds of lava rocks are included and help trap and disperse heat. The durably constructed painted steel frame and stainless steel base include a tip-over safety switch for extra protection.

CUISINART | cuisinart.com

Photo courtesy of Lofted LLC

Photo courtesy of Cuisinart Outdoors

Snapback Hat

The Nine Line Snapback Hat combines a classic hat with a versatile design. No top button provides maximum comfort while wearing hearing protection or headphones. This hat is great for the range, yard work and everything in between and is available in several colors and styles.

Utility Task Vehicle

The Ranger XP 1000 is a premium utility vehicle from Polaris that offers three-person or six-person seating options and comes in four color patterns.

POLARIS OFF ROAD | polaris.com

Photo courtesy of Polaris Off Road

Ant Bait Station

The Ants-No-More® Ant Bait Station by Kness is the ultimate solution for tackling ant infestations. This versatile station can be easily placed wherever ants are near. Its dual-bait compartment with an interior sliding stop helps to reduce bait spillage and to ensure safety. Plus, multiple entry holes let ants move in and out of the trap faster, allowing them to take the bait back to the nest and eliminate the colony.

KNESS PEST DEFENSE | kness.com

Hard Hat Holder

The Hard Hat Caddy is a personal protective equipment catch-all. It stores hard hats with its patent-pending twist lock and release and can also hold eye protection, ear plugs, gloves and other wearables. It is finished with a high wear-resistant, noise reduction rubber and is designed, manufactured and assembled in the U.S.

HANGEN INNOVATIONS | hardhatcaddy.com

the heart of the problem–the colony. With the Ants-No-More® Ant Bait Station you can conquer any ant problem, indoor or out. Foraging ants enter the ant bait station, take the bait from one of two compartments, and carry it back to the nest, vanquishing ant problems at the

Multiuse Cooker

IS N O W AI

Bring Efficiencies to Your Operation With This Emerging Technology

BY LINDSEY THOMPSON

From sentient supercomputers taking over space missions in “2001: A Space Odyssey” to a robot helping solve a murder and save the day in “Big Hero 6,” artificial intelligence (AI) has been a main character in pop culture for over a century. No longer just a scene from science-fiction, AI is a constantly evolving technology that simulates human intelligence using machines, allowing computers to complete tasks typically only humans can handle. Depending on which side of the technology spectrum you’re on, this short acronym can either strike fear or conjure excitement. Regardless of your feelings on AI,

AI in Action

From stopping theft to generating new ideas to creating content, AI is benefitting independent retailers of all sizes and types.

it’s already here in the independent channel and has shown its usefulness in improving efficiencies within operations. And in these continually uncertain times, any gains in efficiencies that lead to a solid bottom line are welcome, no matter the size of your operation. If you’re ready to dip your toes in the AI waters or just dive right in, Hardware Retailing shares the history of the technology and a breakdown of the basics of AI. Plus, see how AI is helping operations be more effective and read insights from retailers in the independent home improvement channel who are currently using AI in their operations.

RESOURCES Dive Into AI

If you’re ready to explore AI further, check out our database of AI vendors and the various ways they can help you at hardwareretailing.com/ai-vendors. COVER STORY

The Birth of AI

In 1950, computer scientist Alan Turing published “Computing Machinery and Intelligence” asking the question: “Can machines think?” In 1956, John McCarthy first coined the term “artificial intelligence” at the first-ever AI conference at Dartmouth College. It would be almost 50 years before McCarthy would write his paper “What Is Artificial Intelligence?” in 2004 and create the often-cited definition of AI: the science and engineering of making intelligent machines.

Flash forward another 20 years, and AI is more than just a buzzword—it’s become an integral part of our lives. And many times, you don’t even realize you’re using it. All those junk emails that go to your spam folder—AI. When you type in the search bar and it autofills with suggestions—AI. You’re driving and Waze suggests a different route—AI. Ask Alexa or Siri or Google Home anything—AI.

AI has already infiltrated many parts of our lives, but to help your operations be better and more profitable, explore these nine operational areas where AI can improve efficiency, customer service and profitability.

1 | Loss Prevention

The independent retail channel is no stranger to the prevalence of retail theft. Fortunately, technology is allowing retailers to better protect their operations.

As the owner of Gow’s Home Hardware & Furniture in Bridgewater, Nova Scotia, Amanda Fancy looks for any tools that can save her time and energy so she can focus more on her operation.

“Honestly, if there’s something in my world that can make my life easier, I want to do that,” Fancy says. “The targets are always moving, so if technology like AI can help us stay ahead of the curve, I want to take advantage of it.”

Fancy has implemented AI to help detect and deter theft in the store. The store is outfitted with security cameras from InVid Tech that include AI programs for facial recognition. The facial recognition program alerts herself and selected employees by email when it recognizes the face of a previous offender in the store or when a customer is exhibiting suspicious behavior. Fancy says she eventually wants to have those notifications come via text message so that they can act more immediately.

The program also tracks what areas of the store are busier during certain time periods, so Fancy can schedule employees accordingly, as well-trained and engaged employees are one of the best theft deterrents.

“Using AI for loss prevention has been huge for us because like many other independent retailers, theft has hit us hard,” Fancy says. “The AI we’re using is not necessarily cutting edge for the customer, but it definitely helps elevate our level of customer service.”

Gow’s Home Hardware & Furniture owner Amanda Fancy has brought in AI technology as part of her loss prevention strategy. The technology uses facial recognition AI to track suspicious behavior and identify previous offenders.

INDUSTRY INSIGHTS

Keeping Up With AI

Learn how major big-box retailers are using artificial intelligence to serve customers at hardwareretailing.com/big-boxes-ai

2 | Idea Generation

As retailers strive to continually provide an engaging customer experience, coming up with those ideas is the perfect job for AI.

In an effort to spend less time generating ideas for store events and marketing content, Jessica Bettencourt, president and CEO of Klem’s in Spencer, Massachusetts, uses ChatGPT to create taglines for advertising and write marketing and promotional copy. Her retail mastermind group has been learning about AI and testing the platform for a few years.

“ChatGPT even came in handy when a fellow retailer was trying to come up with a name for their new rewards program,” she says.

Bettencourt asked ChatGPT for ideas when she wanted fresh concepts for children’s events to host in the store, using the prompt “fun kids’ event ideas to be held at a retail store.”

Looking toward the future, Bettencourt plans on using AI for additional marketing tasks, creating blog posts and similar marketing content and writing product descriptions for e-commerce.

“AI is helpful for us because you can get into the mindset where you stick with what has always been done year after year. If you’re looking to grow, you need to put a fresh spin on content. AI does that for us, getting us to think a little bit differently.”

—Amanda Fancy, Gow’s Home Hardware & Furniture

One of the biggest benefits of utilizing AI for idea generation is being able to spend less time brainstorming and more time implementing, Bettencourt says.

“You still have to edit and make sure that whatever AI comes up with has your voice, but it can be an invaluable tool,” she says. “I have seen some of my fellow retailers use it to write copy for an event in a certain voice, such as ‘I am having an event for May the 4th and want a post about hardware written like Darth Vader.’ The possibilities are really endless.”

For Fancy at Gow’s Home Hardware & Furniture, she uses AI to expand on her ideas. From planning events to developing additional content for social media and ad copy to updating the employee handbook and preparing team-building exercises for staff meetings, Fancy taps into AI to get a fresh perspective and to brainstorm ideas. She also uses ChatGPT to help her fill out ideas from outlines she creates, which saves her precious time.

“AI is helpful for us because you can get into the mindset where you stick with what has always been done year after year,” she says. “If you’re looking to grow, you need to put a fresh spin on content. AI does that for us, getting us to think a little bit differently.”

Jessica Bettencourt, owner of Klem’s, uses AI to come up with ideas for store events. AI provided the idea for a recent event for children that included a magic show and other fun activities for children of all ages.

The ABCs of AI

Despite the prevalence of AI, many still have trouble pinpointing exactly what it is. At a basic level, there are several ways to break down AI: weak versus strong, generative versus predictive and supervised versus unsupervised learning.

Weak AI

Weak AI, also called narrow AI, is focused on performing specific tasks. Most AI you see today is Weak AI (e.g., chatbots, email filters and facial recognition).

Strong AI

While still theoretical, Strong AI is where the machine has intelligence at the same level of humans and is self-aware with consciousness.

Generative AI

Models that take large amounts of raw data and generate outputs when prompted. Examples include ChatGPT, content creation and translation services.

Predictive AI

Capable of taking data and predicting future needs, events and trends. Examples include fraud detection and receiving product recommendations when online shopping.

Supervised Learning

The algorithm uses specific data sets to lead to more specific outputs.

Unsupervised Learning

The algorithm works independently to learn the data’s inherent structure and the onus is on the user to interpret the outputs.

As she looks to what the future holds for AI in her operation, Fancy wants to use it to improve the overall operation and ultimately, customer experience. She will be looking to see how AI can be used to help customers shop in the store’s furniture and appliance department and use it for social media content planning to stay on top of the latest and greatest trends in social.

“The point is to streamline human tasks, not to replace a human with AI,” Fancy says. “I think if we can automate some of the repetitive tasks, it gives us an opportunity to focus on those areas we never get a chance to focus on. So ultimately, it makes us stronger as a business, and from an efficiency standpoint, the sky’s the limit.”

3 | Customer Service

Customer service is the cornerstone of most independent home improvement operations but can also be a huge time suck on owners and managers—enter AI.

In Capterra’s 2023 CX Investments Survey, 65% of companies surveyed use AI for customer service, and of those, 69% use machine learning, 65% use smart assistants and 64% use chatbots.

Bradley Carson, owner of J-Town Hardware in Jeffersontown, Kentucky, has been using AI to send messages to customers on the store’s social media sites, saving hours of time each week responding to messages.

These automatic messages are generic in nature, thanking customers for reaching out, but provide a quick touchpoint between the store and customer. They have also been using AI to create social media content and manage posting content.

“Because this is new technology to the industry and to us, there is always a learning curve,” Carson says. “We are still trying to overcome our own paranoia, so we are moving slowly. As we get deeper into the uses for AI, we hope to use it for ordering and for answering customer questions online.”

About a year ago, Brent Burrows, vice president, retail and sales for CBS Bahamas, which has two locations in Nassau, says the company added an AI-powered chatbot to the website to replace the human-led chat service they had been using.

While it was helpful, the human-led chat service didn’t meet all of the company’s needs and lacked consistency between agents and providing new and updated information. Burrows says leadership decided to partner with a developer to create an AI-powered chat solution that is specific to the company’s needs in terms of retail and customer support.

“We were paying about $5,000 a month to contract a chat service out of the UK to provide around-the-clock support on our website,” Burrows says. “When ChatGPT started taking off, we realized there was probably a better and more cost-effective way to accomplish the same.”

Not only has the new chatbot solution benefited CBS Bahamas customers and boosted overall customer

service, Burrows is re-selling the solution to other businesses under the name StarfishChat.ai.

“For small and medium-size building material businesses looking to compete with larger counterparts, StarfishChat.ai offers an unparalleled advantage,” Burrows says. “It empowers you to provide continual customer support, drive sales and enhance customer satisfaction, all while managing resources effectively and being super simple to set up and maintain.”

4 | Advertising

Thanks to AI programs like ChatGPT, owners and managers with little to no experience in advertising can create effective campaigns in a short amount of time.

Geoff Saunders, manager of Cascade Home Center in Dallas, Oregon, has been in the independent home improvement industry since 1997, so he knows a thing or two about advertising in this channel. Saunders has also seen how inexperience can cripple a new manager and has been experimenting with AI to create advertising campaigns that managers of any experience level can use in their store.

“Even if I knew absolutely nothing about advertising, I could put an inquiry into ChatGPT and in three seconds, it can produce a pretty robust plan, including key areas to highlight,” Saunders says.

In his experimentation, Saunders entered into ChatGPT: “What kinds of projects and products should be highlighted in an advertisement for a hardware store for the months of July and August?” The program then provided a full advertising plan with key areas to highlight, specific products under each key area to promote and the home improvement project homeowners are most likely to complete during those months, plus the products to

The chatbot on the CBS Bahamas website provides an additional layer of customer service.

• Low flat-rate stop-charges

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Digital Safeguards

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AI INSIGHTS FROM Across the Industry

advertise for those projects. It also outlined promotional offers and services a retailer could offer.

“While it won’t replace employees, AI can be a helpful tool for newer managers who don’t have the time or experience to create full advertising plans,” Saunders says.

5 | Content Creation

Independent retailers often wear many hats as a small business owner, and with all the areas of the operations demanding their attention, content creation often gets put on the back burner.

From social media posts to product descriptions, creating content for your operation can be a full-time job.

According to a survey by Constant Contact and Ascend2, 73% of small businesses lack confidence in their marketing strategies. Over half of the survey respondents indicated that the most time-consuming marketing task for them and their business is creating content.

Going hand-in-hand with content creation, marketing is another task that many small business owners don’t have time or brain power to dedicate to. Brian Young, small business consultant with Laoch Consulting, encourages his clients to utilize AI for marketing tasks, specifically ChatGPT.

However, he cautions that using AI for marketing shouldn’t be “set it and forget it.”

“While it won’t replace employees, AI can be a helpful tool for newer managers who don’t have the time or experience to create full advertising plans.”

—Geoff Saunders, Cascade Home Center

The Independent Home Improvement Conference, taking place Aug. 27-29 in Marco Island, Florida, will bring together retailers, vendors and other industry players for education, networking and fun in the sun. As part of the lineup, several sessions will cover artificial intelligence. Learn more about these sessions and register for the conference at IHIConference.org .

AI Unleashed: Supercharge Your Business

AI may not be coming for your job, but it can certainly make it easier. Explore AI-based tools that can enhance efficiency, communication and ultimately your bottom line across multiple areas of your business.

Saving You Time: Putting AI to Work for Your Business, Hosted by Rundoo

For retail businesses, one of the strongest applications of AI is inventory management. In this sessions, be introduced to machine learning and explore how it can optimize your inventory ordering.

Dollars and Sense: Maximizing Productivity With Minimal Investment

This session will unveil small-budget tech tools designed to supercharge employee efficiency. Explore innovative solutions tailored to fit any budget and learn how to leverage cost-effective technology.

Unlocking the Secrets of Tech Investment ROI

Attendees will actively participate in this interactive hackathon session by sharing the tools and systems that have brought the highest return on investment to their operations.

“Oftentimes marketing content created by AI is stale and comes across as automatic and robotic,” Young says. “It often misses the mark on the personal, genuine and human aspects retailers want to convey.”

When businesses use AI for marketing content, Young says it can be misused or relied on too heavily. Rather than considering AI a source for instant answers and then automatically copying and pasting what ChatGPT puts out as marketing content, retailers should dig a little deeper and consider their audience, tone and goal.

“Retailers should use AI as a diving board and a jumping off point to get them into the marketing waters,” Young says. “We want AI to make marketing easier, quicker and more effective and to provide human-grade content, but we need to think of AI as more of a glorified brainstorming and idea generator rather than a replacement for a marketing employee. This strategy will still cut your content creation time in half.”

To get the most out of using AI for marketing, Young says it’s crucial to tell AI what your goal is, who you are targeting, how long you want the response to be, where you are using this content and what you’d like the content to be about. If you want AI’s response to be conversational, comical, whimsical, authoritative or empathetic, you have to be specific.

Young says users need to have a conversation with AI, not just ask a question and accept the answer without asking follow-up questions to clarify and correct it.

“Do not accept everything that AI says, and don’t share the content if you don’t agree with it or it just isn’t you,” Young says. “It’ll ruin your reputation and authority when you want to build it up.”

6 | Solve Problems

Whether you’re a writer or web developer or any other type of creator, sometimes you just hit a roadblock that AI can help you break through.

Nick Weiner, senior marketing coordinator for Lancaster, says the marketing team has turned to AI to help solve problems, everything from software issues to writer’s block to code writing failures. The team uses generative AI programs to create images and videos when they don’t have the time or resources to create them in a studio.

While AI has been helpful in certain situations, it has its limitations, Weiner says.

“AI can really only help you as much as you can help yourself. You have to ask the right types of questions and phrase it in a particular manner for AI to understand,” he says. “There are still a lot of limitations on the various available software. I’m interested to see where it takes us, but I don’t see it replacing anyone’s job anytime soon.”

7 | Cybersecurity

As the vice president of membership and marketing at the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC), Luke Vander Linden works closely with retailers and other business owners, helping them put loss prevention processes and programs in place to protect their operations against loss.

Vander Linden has seen AI being utilized in the retail sector for both loss prevention and cybersecurity in several innovative ways.

“In particular, as loss prevention becomes more reliant on technology, we’re seeing increased capabilities and also an evolving intersection with cybersecurity,” Vander Linden says. “Real-time tracking and analysis as enabled by AI-powered systems is allowing retailers to have greater insight into a wide range of critical indicators ranging from inventory levels, user behavior, point-of-sale monitoring and fraud detection.”

Some of the specific ways AI is assisting retailers protect against cybercriminals include anomaly detection, where AI monitors network traffic to detect unusual patterns that may indicate a cyberattack, and transaction monitoring that relies on AI algorithms to analyze transactions for signs of fraud, such as unusual purchasing patterns or multiple transactions from different locations in a short period.

When it comes to data protection, AI is used in encryption management systems to manage and automate encryption processes and ensure data security. AI systems are also being used to control and monitor access to sensitive data, preventing unauthorized access.

8 | In-Store Service

AI can also be beneficial for customers, as Ashley Peterson, owner of Blue Mist Paint & Decorating in Spartanburg, South Carolina, has discovered. She and her husband Heath have been in the independent paint industry for two years but have already tapped into a number of helpful resources and tech tools that have guided their customers on making product choices.

They have been using the color visualizer tool available through the Richard’s Paint website and hope to incorporate Daltile’s Stylizer on their own website to increase web traffic and encourage customers to stay on the website longer.

Peterson says she would love to add a kiosk to the store that would include one or more AI programs that customers can access to play with color and home decor choices.

“In my experience, many consumers don’t know these types of tools exist, so if we can offer them, it would allow us to serve our customers even more,” Peterson says. “I am not convinced that digital paint samples will ever give you the most accurate look, but I think it is a great starting point.”

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9 | Operational Forecasting

At Hill Country Paints, with locations in College Station, Waco and Houston, Texas, employee development manager Steven Hill is so interested in the ways AI can benefit his operation that he is currently enrolled in an online boot camp for machine learning and artificial intelligence through Ohio State University.

The classes are designed to give students real-world and hands-on experience with the latest AI technologies and methodologies. Because he doesn’t come from a data or computer science background, Hill hopes to use what he learns to implement AI-driven solutions to better optimize inventory management and improve customer service.

“A chatbot will allow us to provide instant support and product recommendations to customers, and by doing so, we can free up our employees to handle more complex tasks,” Hill says. “I would like to implement chatbots to guide customers through a more streamlined and easier process, so my employees can focus on taking care of customers in the store.”

While the classes are not specifically tailored to independent paint retailers, Hill is learning the framework for how different AI technologies, specifically supervised learning and unsupervised learning, could work in retail and his paint operation.

Supervised learning programs with labeled input and output information could be used for more accurate and reliable predictions in areas like sales forecasting, inventory management and customer behavior, Hill says. Supervised learning could also help identify outliers, such as abnormal sales spikes from weather, special store promotions or other reasons, so those situations can be potentially recreated to boost sales again.

“Another big strength with supervised learning is that it has more reliable predictions when it pertains to marketing,

allowing for more targeted marketing that can be used to identify and target specific customer segments based on their past purchase behavior and demographic data,” Hill says.

Hill foresees using unsupervised learning, which requires him to do more interpretation of the output data, for market analysis. For example, looking at items frequently purchased together to give insights on better ways to lay out the store.

While taking the classes, Hill has already started playing around with different AI programs, inputting existing data and using models to predict and forecast.

“I’m using a very small set of data, so right now it’s all about getting repetitions in and just practicing and getting the muscle memory down,” Hill says. “To make really good use of this for our business, we need a lot of information, and not just more information, but good quality information. If you give it bad information, you’re going to get bad information back.”

While not glamorous, one of the keys to effectively using AI is having clean data, which Hill says means getting into the nitty gritty of your operation’s spreadsheets.

“It is a lot, and it helps to have someone on staff who is willing to get into the weeds,” he says.

Hill emphasizes that he is by no means an expert in AI, but is excited to learn all he can because he sees the future potential benefits of the technology. Some people have fears of AI taking over jobs, but right now, AI is taking care of those tasks that free up associates to focus on the customer.

“The responsibility is on us as small business retailers to not go into the future kicking and screaming, but rather be reasonable and evolve with what’s coming,” Hill says. “The big boxes are already investing in these technologies, and if we don’t start adapting and implementing, we will never be on the same playing field. We need to take our strengths of better products and higher levels of customer service and leverage those with technology.”

Hill Country Paints employee development manager Steven Hill (left) is taking online courses on AI. He hopes to use what he learns to improve operations, including inventory management and targeted marketing.

INDEPENDENT HOME IMPROVEMENT CONFERENCE

Sun, Sand & Strategy

Independent Home Improvement Conference Lands in Marco Island

Learning meets leisure at the 2024 Independent Home Improvement Conference taking place August 27-29 in Marco Island, Florida. ROI for retail operations and innovation awaits…

August 28

Partner Pavilion Open

7:30 a.m. to 3:00 p.m. 10:00 a.m. to 10:45 a.m.

Explore and connect with dozens of the industry’s most popular vendors in the exhibitor area and meet companies that can help you improve your ROI and more.

8:00 a.m. to 8:45 a.m.

Breakout Sessions

• Behind the Screens: Taking on E-Commerce

• From Repeat Buyers to Raving Fans: Mastering Customer Loyalty

• Not Another Pizza Party: Fresh Ideas to Boost Employee Engagement

• Shrink Survival Guide: Strategies for Retail Resilience

• A Website Story: How One Store’s Website Went From Mediocre to Meaningful, Hosted by Mountain Mojo

9:00 a.m. to 9:45 a.m. 11:00 a.m. to 11:45 a.m.

Breakout Sessions

• AI Unleashed: Supercharge Your Business

• Dollars and Sense: Maximizing Productivity With Minimal Investment

• Home Turf Advantage: Mastering Local Inventory Advertising

• Navigating Cash Flow: The Roadmap to Retail Prosperity

• Banking on Growth, Hosted by National Cooperative Bank

Breakout Sessions

• Ad Wars: Balancing Traditional vs. Digital Advertising

• Cyberthreats to Severe Weather: Managing Risk Across Your Operation

• From Clicks to Cash: Navigating E-Commerce Trends

• Mission Retention: Tips on Finding and Keeping 5-Star Staff

• Saving You Time: Putting AI to Work for Your Business, Hosted by Rundoo

• Prepare for OSHA’s National Emphasis Program, Hosted by GMG EnviroSafe

Breakout Sessions

• Creative Solutions to Make a Big Marketing Impact on a Shoestring Budget

• Leadership Lab: Developing Solutions for Your Dream Team

• Unlocking the Secrets of Tech Investment ROI

• Using KPIs to Boost Success

• Customer Experience Isn’t Always at Face Value, Hosted by ECI Software Solutions

• Toilets Go High Tech: Capitalize on the Rapidly Changing Toilet Repair Market, Hosted by Fluidmaster

Lunch & Networking 11:30 a.m. to 12:30 p.m.

12:45 p.m. to 1:30 p.m.

KEYNOTE

Mastering Change: Cultivating Mindsets for Lasting Success

Al Comeaux draws from his extensive career, beginning at a hardware store and spanning leadership roles at Travelocity, GE, Sabre and American Airlines, to delve into the transformative mindset essential for navigating change successfully and propelling businesses forward.

Speaker: Al Comeaux, change agent and former executive at Travelocity, GE and American Airlines

1:30 p.m. to 2:15 p.m.

2:15 p.m. to 3:00 p.m.

Beyond Survival: Creating Growth in a Flat Economy

Hear from a dynamic group of retailers who are making strategic choices to drive growth in their operations, regardless of what the economy has in store.

Panelists: Dave Ables, Owner, Three Sons Hardware and Tri-County Lumber; Josiah Gates, COO, The Aubuchon Co.; Jeff Grasty, President of Florida Paints

State of the Industry

Explore key insights into current market trends and explore how retailers are investing in their operations and their teams amid an uncertain economic future.

Presenter: Dan Tratensek, COO and Publisher, North American Hardware and Paint Association

6:00 p.m. to 9:00 p.m.

NHPA Young Retailer of the Year Award Ceremony

Celebrate the 2024 NHPA Young Retailer of the Year honorees who represent the next generation of aspiring independent home improvement and paint retailers. Ticketed event.

Tyler Garrett, President, CEO and Co-Owner, Moscow & Pullman Building Supply

Lee Heinrich, Owner, H&R Hardware and Lumber

Jonathan Jasik, General Manager, Sarasota Paint

Joel Pletch, Store Manager, Walkerton Home Hardware

Isaac Weber, Owner and President, Lugbill Supply Center

Alexander Ziegenbein, Owner, Gretna Ace Hardware

Thank you to our program sponsors!

7:30 a.m. to 3:00 p.m.

8:00 a.m. to 8:45 a.m.

9:00 a.m. to 9:45 a.m.

10:00 a.m. to 10:45 a.m.

11:00 a.m. to 11:45 a.m.

August 29

Partner Pavilion Open

Breakout Sessions

• Behind the Screens: Taking on E-Commerce

• From Repeat Buyers to Raving Fans: Mastering Customer Loyalty

• Not Another Pizza Party: Fresh Ideas to Boost Employee Engagement

• Shrink Survival Guide: Strategies for Retail Resilience

• Tackling Real-Life Challenges and the Evolving Independent Hardware Retail Business, Hosted by 4R Systems

Breakout Sessions

• AI Unleashed: Supercharge Your Business

• Dollars and Sense: Maximizing Productivity With Minimal Investment

• Home Turf Advantage: Mastering Local Inventory Advertising

• Navigating Cash Flow: The Roadmap to Retail Prosperity

• How to Deter Thieves and Protect Your Store, Hosted by Watcher Total Protection

Breakout Sessions

• Ad Wars: Balancing Traditional vs. Digital Advertising

• Cyberthreats to Severe Weather: Managing Risk Across Your Operation

• From Clicks to Cash: Navigating E-Commerce Trends

• Mission Retention: Tips on Finding and Keeping 5-Star Staff

• The Cyberthreat to Independent Retailers, Hosted by Pennsylvania Lumbermens Mutual Insurance Co.

Breakout Sessions

• Creative Solutions to Make a Big Marketing Impact on a Shoestring Budget

• Leadership Lab: Developing Solutions for Your Dream Team

• Unlocking the Secrets of Tech Investment ROI

• Using KPIs to Boost Success

• Layers of Security: Protecting Your Business & Customers From Cyberthreats, Hosted by Epicor

11:30 a.m. to 12:30 p.m.

12:30 p.m. to 1:15 p.m.

1:15 p.m. to 2:00 p.m.

KEYNOTE

2:15 p.m. to 3:00 p.m.

3:00 p.m. to 3:45 p.m.

Lunch & Networking

What’s in the Sauce? Customer Service Secrets From Chick-fil-A

Arthur Greeno will unveil the essential elements for cultivating exceptional customer experiences, empowering attendees to embark on a journey toward unparalleled hospitality.

Speaker: Arthur Greeno, Chick-fil-A restaurateur in Tulsa, Oklahoma, author and Guinness World Record holder

Why Is This so Hard? Navigating the Labor Dilemma

This panel allows attendees to glean insights from industry leaders who are pioneering unconventional methods for sourcing, retaining, motivating and compensating their teams.

Panelists: Yilda Marte, Director of Human Resources, Sunshine Ace Hardware; Gina Schaefer, Founder, A Few Cool Hardware Stores; Leonardo Osorio, Director of Human Resources, Sunpro

Innovation Unleashed: Inspiring Stories From NHPA’s Top Guns

In this inspiring panel discussion, the 2024 NHPA Top Guns Award honorees share their remarkable stories of innovation, community stewardship and strategic vision, demonstrating how their leadership has shaped the landscape of independent home improvement retail.

Panelists: Glen Morosohk, General Manager, Ricciardi Brothers; Wendy Stine, President, Stine Home + Yard; Darren Tomasini, President and CEO, Dazey’s Supply

KEYNOTE

Unleash Your Inner Rudy: Embrace Resilience and Make Every Second Count

Join Rudy as he shares his message of dreaming big, staying focused and overcoming obstacles, empowering attendees to tackle challenges with renewed vigor.

Speaker: Daniel “Rudy” Ruettiger, former University of Notre Dame football player and inspiration for the movie “Rudy”

Based in Kalamazoo, Michigan, Midwest Fastener is a family-owned hardware supplier that services all over the country, from Alaska to Puerto Rico. Midwest Fastener has deep roots with a long-standing reputation in the general and construction fastener aisle for being a knowledgeable, responsive, and trusted partner for your hardware needs. We accomplish this through a fully customer-focused approach by offering quality products and keeping commitments. Our national sales force is dedicated to servicing local hardware stores, lumberyards and more.

3:45 p.m. to 5:30 p.m.

NHPA Top Guns Award Reception

Join us for one final networking opportunity at the grand finale of the IHI Conference. Celebrate your new connections and make it a point to congratulate this year’s honorees. Mingle with your peers and industry partners over cocktails and conversation.

Glen Morosohk, General Manager, Ricciardi Brothers

Wendy Stine, President, Stine Home + Yard

Darren Tomasini, President and CEO, Dazey’s Supply

Thank you to our reception sponsor!

Darren Tomasini President & CEO, Dazey’s Supply

Wendy Stine President, Stine Home + Yard

Glen Morosohk General Manager, Ricciardi Brothers

Partner Events

Scan to see the full schedule and details about the Partner Events.

In addition to IHI Conference activities, attendees can take part in partner events to gather ideas, connect with their peers and see what’s new in the industry. As the organization that represents the entire industry, regardless of affiliation, the IHI Conference encourages attendees to participate in these events and activities, which are free for all IHI Conference attendees.

9:00 a.m. to 5:00 p.m. Tuesday, Aug. 27

Epicor Training

Dive deep into Epicor’s Eagle program with educational sessions covering underutilized tools, tips and tricks and more.

8:00 a.m. to 5:00 p.m.

Orgill Companion Conference

Attend presentations from Orgill executives covering a variety of industry topics and sit in on updates from key vendors.

8:00 a.m. to 3:00 p.m. Wednesday, Aug. 28

Do it Best Partner Activities

Garner insights on cybersecurity, POS tools, e-commerce and more at these educational sessions hosted by Do it Best.

7:00 p.m. to 11:00 p.m.

The Independents Celebration sponsored by Orgill Music and Entertainment sponsored by Do it Best

• Innovation developed from real world needs

• Warner has been setting the quality standards for the industry since 1927

• Committed to providing outstanding products, value and service

PLAY WIN TO RACE DAY

Fuel your chances by earning points in the on-site game, either in the app or on the website. Download the IHI Conference App available on the App Store or Google Play.

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Last Chance!

Time is running out to get your tickets and hotel rooms by August 26. Visit ihiconference.org today!

G iveaway TO LEAD

All retailers who register and attend the conference will be entered to win an NHPA In-Store Leadership Training led by Kim Peffley. This personalized training session, valued at $7,500, is designed to empower your team and drive company-wide success.

Scan the QR code to learn more about the giveaway.

Kim Peffley

Breaking Down Barriers

Discover how to overcome common obstacles to growth in the independent channel at hardwareretailing.com/growth-challenges

Eager to Expand

The leadership team at Gillman Home Center keeps their eyes on the future and has cultivated a culture of growth and expansion throughout the operation.

Get Into a Growth Mindset

Building a Culture Focused on Continual Improvement

BY LINDSEY THOMPSON

LFor leadership at Gillman Home Center—including CEO Charlie Gillman, COO Curtis Gillman and special projects manager Travis Gillman—growth has included expanding to multiple locations in the region, but the overall strategy is anchored in continually making what exists even better. The operation currently has 16 locations in Indiana and southeastern Ohio and is poised for more growth. RETAILER

ike the muscles in the human body, if your operation isn’t moving toward the next goal, it’s most likely experiencing atrophy. While growth should be a part of every operational strategy, many retailers assume growth has to mean adding more locations or growing in physical size. Fortunately, growth comes in different forms; what’s important is that you employ a growth mindset.

Curtis says the independent home improvement channel is often guilty of confusing growth with new locations, acquisitions or even sales.

“Those ways are great, but are only a fraction of the metrics to measure growth,” he says. “Goals can also be to grow in how you take care of your team, improve how your company is connected to your community or expand your marketing strategy, margins, employee education or your company’s sustainability.”

Starting Line for Growth

Curtis suggests beginning by asking yourself what a great company looks like and then doing everything you can to move toward those changes. Be open to pivoting, as your growth plans can change year to year or even month to month. Most importantly, your growth plans have to fit your company’s mission and culture.

At Gillman Home Center, the focus on growth starts with leadership at the hiring stage. Curtis says for leadership positions, he uses a methodical hiring process, asking well-crafted questions that give the candidate the opportunity to demonstrate not only their technical prowess but also their leadership and willingness to learn.

“I believe in team interviewing and making group decisions on crucial hires,” Curtis says.

Open communication is another way Curtis maintains a growth mindset among leadership. He hosts standing meetings with his operations managers every Friday, and they meet no matter how busy everyone is to keep moving in the same direction.

“Oftentimes this meeting is very operational and focuses on the fires of the day, but more importantly, it is a venue to build each other up and stay connected on our growth plans, not only for the company as a whole, but as individuals,” Curtis says. “We also occasionally read business or leadership books together and discuss the concepts and how they connect to our company.”

Promoting Progress

The communication aspect of a growth mindset trickles down to all team members as well, as Curtis says regular contact and accessibility to leadership are key to growth.

“I have heard the debate before about whether owners should be spending time working in their business or on their business, but I don’t think it is that simple. It requires a balance,” Curtis says. “Your team has to be comfortable with you, and for them to be comfortable, you can’t be some person behind the curtain who sends out directives and admonishments.”

By spending time in his stores and talking to his team, Curtis says he can learn a lot from his team members, and he hopes some of them can learn from him as well. He gets to know team members to understand what growth means to them and how the company can help them achieve their growth goals.

“I have been surprised many times by team members, whether it be their leadership potential, their goals or their hidden talents,” he says. “If they aren’t comfortable enough with communicating and connecting with leadership, then big opportunities can be missed. Frontline team members have a lot of firsthand insight into how to help our company grow.”

Because Gillman Home Center has become spread out geographically, Curtis doesn’t always have the opportunity to personally get to know every team member and spend the necessary time with them. So, he installs leaders at the central office who share the company’s focus on growth and can support the growth strategy across the different locations.

“No matter which of our locations they work at, I want all of our team members to know they have my ear,” Curtis says. “My cell phone number is published around the stores, it is on my business cards and is in the company newsletter.”

Staying on Track

Curtis admits that growth isn’t easy, and his biggest obstacle to growth is fear.

“I surround myself with people who are smarter than me and then trust them to do their jobs,” he says. “When I reflect on the team I have around me, the fear subsides.”

As you get your own operation into a growth mindset, Curtis says to reframe your definition of growth.

“Decide what is truly important to your business and grow your strengths to support those goals,” he says. “Find opportunities to serve the community better than you ever have, look for margin growth or grow your customer base. If you don’t want to do any of those things it may be time to look at a career change.”

Curtis Gillman Gillman Home Center

Outdoor Escapes

HOW TO SUCCESSFULLY CURATE YOUR OUTDOOR LIVING CATEGORY

BY JACOB MUSSELMAN

Many homeowners are opting to spend more time outside than inside. From lighting up backyard barbecues to enjoying time around a pool, homeowners are looking for the next best outdoor living product to complete their outdoor space.

In 2022, 58% of surveyed homeowners said connecting to the outdoors is an important influence on their home exterior design choices according to

The Future of Home Design survey from the National Association of Home Builders.

The outdoor living category at Howard’s Hardware Hank in Arcadia, Wisconsin, stands out as one of the bestselling categories in the store. Hardware Retailing spoke with store owner Seth Howard about how he sells bulky outdoor living items with limited space, invests in a diverse product mix and engages his customers during the shopping process to make his store an outdoor living destination.

CATEGORY SPOTLIGHT

TRENDS

Upgraded Outdoor Living on the Rise

Dig into the 2024 U.S. Houzz Outdoor Trends Study to see why many young homeowners are upgrading their outdoor living spaces. Learn more at hardwareretailing.com/houzz-outdoors

Do More With Less

While outdoor living may be one of Howard’s bestselling categories, the products associated with it, such as large patio and outdoor furniture, grills and outdoor decorations, can take up a lot of space, which can make stocking these items challenging for some stores with limited square footage.

“We utilize a lot of floor space for our different lines of grills,” Howard says. “With limited selling space, we need to ensure we’re using our square footage wisely.”

Given the store’s 10,000 square feet of selling space, Howard says he needs to be strategic when new outdoor living products come his direction.

To overcome size constraints on his salesfloor, Howard carefully curates the store’s inventory based on customer input and past sales, selecting items that will not only attract customers but also maximize the use of the available space.

Howard’s approach ensures each product that he brings into the outdoor living department contributes to one of his most popular categories and keeps customers coming back into the store.

“These grills take up a lot of space in our store,” Howard says. “We have to pick and choose what we stock because it’s hard to bring in outdoor chairs, tables and a big umbrella without compromising the store’s visual appeal and functionality.”

“We have to pick and choose what we stock because it’s hard to bring in outdoor chairs, tables and a big umbrella without compromising the store’s visual appeal and functionality.”

—Seth

Howard, Howard's Hardware Hank

Optimizing Space

Howard's Hardware Hank utilizes endcaps and standalone displays to showcase outdoor living accessories.

Achieving Stocking Excellence

Since taking ownership of his store, Howard has learned that a comprehensive approach is crucial for success in selling outdoor living products. Stocking grills isn’t enough to succeed in the outdoor living category.

“You can’t just have a couple of items in this category, it won’t be worth your time,” he says.

By stocking an extensive range of seasonings, sauces and grilling accessories, he can attract repeat customers. These customers might initially buy a grill but will return to stock up on essential items like seasonings and fuel.

Howard says before his store expanded its outdoor living product range, he had one barbecue sauce in his store that rarely sold.

“We wondered why nobody was coming in to buy our barbecue sauce,” Howard says. “Nobody was buying it because we only had one or two, and nothing else to go with it. There wasn’t a reason for anyone to come in. If they needed barbecue sauce, they’d go elsewhere.”

To make his store the first place people think of for outdoor living products, Howard has worked through his wholesaler to bring in a variety of items, such as patio furniture and grilling equipment. He aims to offer a mix of well-known brands and local products to provide his customers with the best selection and introduce them to something new.

“Since we’ve been able to bring in a large amount of diverse products, it gets people who are thinking about purchasing outdoor decor to come here because they thought of us first, instead of us being an afterthought,” Howard says.

Beyond the Sale

BECOME A DEALER

• High quality products, made by welders, for welders

• Committed to supporting your company’s growth plans

• High fill rates, ensuring you get what you need when you need it

• Tailored customer service to make your experience hassle-free

• Drive sales with our signage, POP and marketing support

• Over 30,000 retail locations served

• On-site and online product knowledge training

• NEW and exciting product offerings

By stocking grilling-related items, Howard's Hardware Hank is able to increase add-on sales.

Design Evolution

4 Highlights From Deckorators 2024 Outdoor Living Report

Deckorators, a composite decking manufacturer, released its 2024 Outdoor Living Report featuring insights and trends compiled from industry experts and members of the Deckorators Certified Pro Program. The report identifies the latest shifts and trends in the outdoor living design space. According to their experts, people are looking to maximize the utility of their spaces and extend their use throughout the changing seasons.

Kitchens

Dedicated outdoor kitchens are a leading trend for 2024. The inclusion of a variety of elements—from integrated storage and trash receptacles to refrigerators and TVs—extends the outdoor kitchen’s functionality.

Privacy and Shade Structures

Being able to be outside and still feel the privacy of being indoors is something Deckorators’ experts see customers being cognizant of when designing their decks.

Brown Shades Reign

With different U.S. regions often favoring varying functionalities and color options, one similarity in every region that Deckorators experts saw is the desire for various shades of brown.

Heaters and Fire Features

As homeowners spend more time outside, demand for outdoor heaters and fire features has increased, both as a low-cost heating solution for outdoor spaces and to create ambiance.

Spruce Up Your Outdoor Living Displays

Find inspiration on ways to cross-merchandise outdoor living items across different departments at hardwareretailing.com/outdoor-living-displays

Spicing Up Customer Engagement

Another way Howard makes his store an outdoor living destination is by offering free tastings of any of their seasonings, spices and rubs. If a customer asks what a certain product tastes like, Howard is more than happy to show them to his “seasoning lair” as he calls it, and lets them try the product, which in turn makes them more likely to make a purchase.

To further boost engagement and sales, Howard uses his store’s social media to promote outdoor living products with live streams, photos and videos showing followers what they have and short videos highlighting the store’s variety.

“With any form of advertising, you’re not sure why the customer came to your store unless they tell you,” Howard says. “But we’ve had quite a few people mention our social media when they visit.”

Howard's Home Hardware owner Seth Howard has set up what he calls a "seasoning lair" to give customers a chance to sample the store's sauces and seasonings.

INDUSTRY EVENTS

Home Hardware 2024 Homecoming September 11-13 | Toronto, Canada

A Commitment to Success

IN JUNE 2024, Home Hardware Stores Limited appointed John Pierce to the role of chief retail operations officer.

Reporting to Home Hardware Stores Limited’s president and CEO, Kevin Macnab, Pierce will oversee field operations, Dealer support functions, business development, real estate and construction, Home’s Innovation Centre, store design and space planning, communications, events and public relations. He will remain heavily involved in the formal review of prospective new Dealers as the operation continues to grow.

John Pierce Home Hardware

Pierce is a retail veteran with over 25 years of experience in a national retail setting. Most recently, Pierce served as Home Hardware Stores Limited’s vice president of retail business development. In that role, he oversaw business development, real estate and Dealer support functions. During his time with Home Hardware, Pierce has been a key driver of the positive momentum in the business.

“I’m excited to join Home Hardware’s executive leadership team and to continue supporting our network of independent

Dealers,” Pierce says. “My time at Home Hardware has further deepened my appreciation for the power of the Dealer-owned business model, and I’m proud to be a part of this iconic Canadian brand that is so well-known for serving communities across the country.”

Prior to joining Home Hardware, Pierce served as vice president and senior vice president for Loblaw Companies, including six years leading store operations nationally for No Frills, which is an operator-owned business model. He holds undergraduate degrees from the University of Manitoba and a Master of Business Administration from the University of Toronto.

“Since joining Home Hardware Stores Limited, John has demonstrated a deep understanding of our Dealer-owned model,” Macnab says. “His efforts have significantly contributed to the growth and stability of our network, ensuring that our Dealers have the resources and support they need to succeed. With a depth of multifunctional executive experience in Canadian retail, John has the tools necessary to drive Home’s mission to be Canada’s most trusted home improvement experience.”

“I’m excited to join Home Hardware’s executive leadership team and to continue supporting our network of independent Dealers. My time at Home Hardware has further deepened my appreciation for the power of the Dealer-owned business model, and I’m proud to be a part of this iconic Canadian brand that is so well-known for serving communities across the country.”

—John Pierce, Home Hardware Stores Limited

FREEDOM ENROLL TODAY

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TO FINANCIAL

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IN THIS GAME-CHANGING COURSE, YOU’LL MASTER HOW TO:

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Live Session Oct. 15-16 | Indianapolis COURSE INCLUDES: Virtual Workshops 6-Week Remote Training

Weekly sessions to implement newly learned strategies into your operation

Scan the QR code to learn more and enroll today or visit: YourNHPA.org/cash-flow Seats are filling up!

WHOLESALER CENTRAL

INDUSTRY EVENTS

2024 True Value Fall Reunion

September 9-11 | Orlando, Florida

EVENTS

From Buying Show to Brick-and-Mortar

BY JAKE KALNITZ SVP, Chief Merchandising Officer, True Value

IN 2024, why do wholesale shows matter? Of course, they’re fun and a good excuse to travel—but how do they help you operate and grow your home improvement business?

True Value’s Fall Reunion is right around the corner, and I want to share how my merchandising team and I approach this product-centric event to give attendees the most meaningful experience possible.

Reflect the care retailers have for their communities. Every product is carefully tested and chosen and the displays are optimized to help retailers visualize what their store could look like. Assortments of traditional, core items are continuously refreshed to connect to customers, and we showcase new items so they can keep up with trends in their market. We are here to take a load off retailers’ shoulders, and that includes providing ways for them to stay relevant and continue driving growth by moving products off the shelves.

Lean into independence.

Yes, we take over an entire convention center with the widest product options available—after all, urbanity, regional weather and local consumer preferences can vary for independent dealers. The advantage to this kind of independence is being inspired by fellow business owners and how they serve their communities. For example, every

“Reunion is exactly that—an opportunity to come together with fellow members and work together to create scale and best serve customers and the local community.”

Jake Kalnitz, True Value

retailer has to address common concerns like lawn care and basic home maintenance. But not every home in every city in every region has the same exact solution, and that’s what makes each operation special and why Reunion is different from other shows. Attendees will get the actual product they need to solve their neighbors’ home improvement challenges, and they’ll also deepen their knowledge of products, retail business and trends.

Facilitate connections.

Just like your customers, you could parse together information here and there, but nothing beats working with another person to learn about a new product, master a new skill or strengthen expertise. Just like retailers provide expertise in their stores, attendees of Reunion connect directly with the vendors who make these products and learn more about them. They’ll hear from our merchants who can tell them why they’d choose specific products to perform well in each specific store, while gaining more insight into category trends. Attendees can join our Retail Best Practices Conference to hear from industry experts and discover how they can adapt to an ever-changing retail environment. And most important, every attendee has an opportunity to hear from their peers to understand how they are driving traffic and leveraging the True Value platform to win in their markets. Reunion is exactly that—an opportunity to come together with fellow members and work together to create scale and best serve customers and the local community. It’s a powerful reminder of how we share one mission: to empower our communities through the simple act of caring for our homes.

Jake Kalnitz True Value

The Retail Marketplace Can Help You

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

BUSINESS FOR SALE

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3.21 million

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

BUSINESS FOR SALE

Hoosick True Value

Location: Hoosick Falls, NY

Gross Revenue: $1.26 million

Price: $1.875 million

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

BUSINESS FOR SALE

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1.04 million

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

BUSINESS FOR SALE

Albrights Hardware & Garden Center

Location: Allentown, PA

Gross Revenue: $1.9 million Price: $800,000

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

BUSINESS FOR SALE

Central Vermont Paint, Flooring and Decorating Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1.1 million

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

BUSINESS FOR SALE

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

BUSINESS FOR SALE

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEEKING BUSINESSES

The Aubuchon Company

For our next acquisition, we are looking for:

• Single-store and multi-store hardware operations

• Located in northeast and southeast United States

• Store size of 5,000-30,000 ft 2

• At least $3 million in average store sales

SEEKING BUSINESSES

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

SEEKING BUSINESSES

Gold Beach Lumber Yard

We are looking for:

• Single-store and multi-store hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

INDUSTRY EVENTS

Orgill Fall Online Buying Event

August 5-18 | Virtual

OPERATIONS

Sign Program Evolves With Retailers

THE ORGILL store signage program has seen significant evolution since its inception, transitioning from a custom-only approach to a more refined and streamlined operation. This program’s development has been driven by the need to cater to a diverse range of dealers, both large and small, ensuring that each store can effectively communicate with its customers through high-quality, customized signage.

“The program helps to complete the Tyndale Advisors/Orgill ecosystem of offerings,” says Jim Rivas, president of Tyndale Advisors. “Branding and marketing are essential components of any retail operation, aiding dealers of all sizes to be successful and grow. Fresh signage that stands out is often your chance to make an excellent first impression.”

Meeting Needs With Customization

Initially, the program focused on creating bespoke signage solutions tailored to individual dealer needs. While this custom approach remains available, the program now features an extensive catalog of frequently requested signs, allowing for a smoother process from initial interest to final production. Dealers can explain their objectives, and the signage team can quickly suggest optimal signage solutions, creating a seamless experience regardless of the dealer’s size.

Customizability is another key aspect of the program, enabling stores to create a distinctive shopping environment. Signs can be printed in any font or color and can feature backgrounds that align with the store’s overall branding.

Enhancing the Customer Experience

The Orgill signage program has enhanced the customer experience in stores. The primary function of these signs is wayfinding, with options ranging from large departmental signs to in-aisle category management. Additionally, the program includes custom hardware solutions like extenders for signs, allowing endcap signage to be positioned above fixtures, maximizing the use of prime selling areas.

“Coupling the marketing starter kit with the signage program continues the common theme, so when customers come in, they walk into a bright, clean and well-stocked hardware store that is all about Sawgrass Hardware. We also all appreciated how easy the signage installation was.”

—Erika Brown, Sawgrass Hardware

Promoting Seasonal Events and Sales

Effective in-store signage is critical for communicating seasonal promotions and sales events. The program includes promotional add-ons such as sale flags, custom window clings and exterior signs that attract and inform passing customers. These tools help create a cohesive promotional strategy, ensuring that customers are aware of ongoing sales and special offers to drive increased foot traffic and sales. This program enables stores to maintain up-to-date and engaging signage with minimal effort, reducing the time and labor required for store setup and maintenance.

Embracing Technology

Looking to the future, the Orgill signage program is poised to incorporate more technological advancements to further enhance customer satisfaction and operational efficiency.

One significant development in the pipeline is the creation of a catalog-based website. This platform will allow dealers to view the entire range of signage options, customize colors and fonts and better visualize their choices before placing an order. This digital tool aims to reduce production and proofing time, ensuring faster delivery of the final product.

“The new signage has improved the overall look of the store, tying together all the style elements customers recognize as part of the updated LumberJack look. Our team appreciates that if they relocate product assortments to different aisles, it is a simple matter of switching the category inserts from the directory panels.”

—Sue Porter, LumberJack Home & Building Center

Don’t Reinvent the Wheel

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—Rodney Bullion, TAL Holdings LLC.

RESOURCES News to You

Stay up to date on the latest industry news by subscribing to our newsletters at hardwareretailing.com/subscribe

What You Need to Know in August

House-Hasson Hardware

Finalizes Acquisition of Bostwick-Braun

The Tennessee-based hardware supplier has completed its purchase of former Midwestern U.S. wholesale hardware distributor Bostwick-Braun’s warehouses and inventory. The purchase adds warehouses in Indiana and Arkansas and more than 45,000 products to House-Hasson’s existing 55,000 SKU inventory.

Do it Best Foundation Event Raises Over $1 Million

At its fourth annual Fore the Cause charity golf tournament, the Do it Best Foundation announced a new fundraising milestone, raising over $1,013,000, beating last year’s total by 54%. The funds raised will go to supporting health and wellness and youth enrichment nonprofit initiatives.

spoga+gafa 2024 Brings Together Garden Industry

From Across the Globe

Welcoming over 28,000 attendees from 113 countries, spoga+gafa solidified its position as a key event for the global garden industry. Attendance saw an 8% increase from the previous year, with the highest number of attendees coming from the Netherlands, Italy, Belgium, the U.S., Germany and Australia.

Cherished Retailer to Close After Over 6 Decades of Service

Crest Hardware & Urban Garden Center, a family-owned business that has been a cornerstone of the Williamsburg community for over 60 years, announced that it will be closing its doors at the end of this month. Under the leadership of Joseph Franquinha, Crest Hardware has thrived by adapting to the evolving needs of the community, transforming into a vibrant Urban Garden Center and a cultural hub.

Tractor Supply Company Hits Store Milestone

The agricultural lawn and garden store chain announced the opening of its 500th garden center location in Lowell, Indiana. To date, Tractor Supply operates garden centers in 41 states and plans to open more than 100 by the end of 2024.

To read these news stories and other news, visit hardwareretailing.com/industry-news

“Maintaining current retail prices and product costs has been absolutely critical the past few years. The Paladin systems are critical tools to help us accomplish this and maintain our margins and pro tability.”

Jim Byrum – Byrum Ace Hardware | Central Michigan

Accurate Pricing Simpli ed by Paladin Point of Sale

Jim Byrum became a hardware retailer almost by happenstance. With a career built in corporate sales and agriculture advocacy, he opened his rst hardware store in Leslie, Michigan not long after nding he had nowhere to buy items for a DIY project at 2 p.m. on a Saturday afternoon. It was the rst of what has become seven stores spread across Central Michigan. He uses Paladin technology to run them all.

Paladin provides Jim’s stores:

• Simplicity of use

• Fast and accurate payment processing

• Multistore management capabilities

Success

Jim says “All the systems are in place to operate successfully” – pricing updates, charge accounts, rewards programs, gift cards and more. The combination has obviously been successful for Jim, his wife Dianne, and their stores. Four of them – Leslie, Charlotte, Howell and Pinkney – earned 2022 Pinnacle Awards from Ace, while two others were honored as Platinum stores.

“Over the last 20, 30 years there’s been a real loss of small-town hardware stores, and the lack of modern technology, I think, is one of the reasons. The demand for technology by retailers for a number of reasons, and the need for speed at the point of sale has changed so much over the past few years, I don’t know how stores operate without it.”

With 44 years of experience supporting independent hardware retailers, Paladin is an employee-owned company dedicated to making stores run better with a powerfully simple point of sale solution.

Dine and Dance at the IHI Beach Celebration

WHEN ATTENDEES FROM ACROSS the channel gather this August for the Independent Home Improvement Conference (IHI Conference) in Marco Island, Florida, they will be in for quite the reception as industry distributors Orgill and Do it Best will be inviting everyone to attend an event celebrating independent retailers.

Orgill is hosting the Independents Celebration with Do it Best sponsoring the music and entertainment for the event. The beach-themed evening will include indoor and outdoor activities, food buffets, drinks and locally themed live music. IHI Conference guests can relax and watch the sunset with industry friends or grab a drink and dance the night away, according to event organizers.

“Independent retailers deserve to be celebrated, and we felt the IHI Conference was the ideal place for us to hold an event like this. It’s an event that is all about elevating independent retailers regardless of their affi liations, and this will be a celebration honoring that spirit. We started this tradition last year at the event in Dallas when we invited everyone to join us for an evening at the world-famous Gilley’s. This year, we’re excited to have Do it Best join the party at the beach.”

—Boyden Moore, Orgill President and CEO

“Independent retailers are the backbone of our communities, and their success is vital to the health of the home improvement industry. At Do it Best, we’re dedicated to supporting and celebrating these hard-working entrepreneurs. The Independent Home Improvement Conference provides an excellent platform for learning, networking and recognition, and we are thrilled to provide music and entertainment at the Independents Celebration. It’s a chance to recognize the resilience, innovation and community spirit that defines independent retailers across North America.”

—Dan Starr, Do it Best President and CEO

Do it Best Fall Market

September 6-9 | INDIANAPOLIS, IN

PACOA Fall Dealer Market

September 7-8 | FLUSHING, NY

True Value Fall Reunion

September 9-11 | ORLANDO, FL

Home Hardware 2024 Homecoming

September 11-13 | TORONTO, ONTARIO

Blish-Mize Fall Market

September 12-14 | OVERLAND PARK, KS

HIRI Summit

September 18-19 | CHICAGO, IL

Wallace Fall Dealer Market

October 2-3 | SEVIERVILLE, TN

United Hardware Fall Buying Market

October 9-11 | ST. CLOUD, MN

Hardlines Conference

October 22-23| CHARLEVOIX, QUEBEC

LMC Expo

October 23-25| PHILADELPHIA, PA

Scan the QR code to see our full list of events.

*Events are current as of press day.

To add your event to the industry calendar, send an email to editorial@YourNHPA.org

FOCUS ON WHAT MATTERS

Specifically designed to grow your business, the PRO Hardware and Farm Mart programs provide the advertising, marketing and merchandising services you need so you can focus on reaching your goals. Expert teams create and manage print ads, mobile resources and digital tools so you can dedicate more time to customers, employees and meeting the needs of your community.

The PRO Hardware and Farm Mart programs are also customizable, efficiently allowing you to use the tools that work and that matter the most for your business.

Learn more about the PRO Hardware and Farm Mart programs by contacting Katie Bravo, Advertising & Communications Manager, at 303.792.3000 or katie.bravo@hdaworks.com

us online at www.prohardware.com or www.farmmart.com.

EDUCATION

Merchandising Know-How

NHPA’s Foundations of Retail Merchandising Management program provides students with strategies to manage merchandising and assortment planning. Learn more at YourNHPA.org/foundations.

Meet Tony

Tony Corsberg’s nearly 45-year career began as a stocker at Friedman Bros. Hardware in Santa Rosa, California. He eventually served as vice president of merchandising, where he spearheaded the rebranding initiative that created Friedman’s Home Improvement, which today operates four large-format home centers with lumberyards in northern California. Tony retired from Friedman’s in 2018 and later started his consulting firm Merchant5 Advisors, guiding independent retailers in merchandising initiatives. In 2022, he was integral in the development of NHPA’s Foundations of Merchandising Management program.

Crafting the Right Product Assortment

Product assortment is the bedrock of retail. Assortment planning is the process of selecting the right items to be presented in a limited selling space that meets customers’ needs and is productive inventory within that space. It can be as simple as a “cut and paste” planogram from a reliable supplier, or it can be a curated assortment utilizing the diverse supply chain ecosystem we covered earlier that can provide a more unique product mix. Either way, the assortment should be intentional and consistent with the retailer’s brand, helping differentiate them from other retailers. This is part of the 5P recipe of merchandising that exercises art and science, intuition and data.

It starts with a clear understanding of the operation’s brand. This brand is not just the store name or the logo. This brand is how the operation is perceived and what the operation stands for in the marketplace. The operation can be a home center, a lumberyard or a hardware, building supply, paint, farm or feed store, or it can be a variation of these. The better retailers craft their unique brand within this framework, differentiating themselves through an intentional and strategic assortment planning process that delivers their brand in their aisles every day. These retailers stay in their lane and do not deviate with “bolt on” assortments or irrelevant products that might confuse the brand with their customers.

This intentional approach to assortment planning puts key categories for the retailer in a “market position” relative to the competition in the trading area. Standard industry market positions for departments or categories are as follows: Dominant, offering more SKUs than competition; competitive, similar SKU count and price points; focused, offering a carefully selected and targeted SKU mix; and convenient, offering a minimal selection. Once a market position is established, an assortment plan is created to deliver it.

“These retailers stay in their lane and do not deviate with ‘bolt on’ assortments or irrelevant products that might confuse the brand with their customers.”

In the end, the right assortment plan will have the right brands where relevant, offer a logical range of price points without gaps or duplicating SKUs that cannibalize sales from other SKUs and include those essential accessory items necessary to complete the project.

Know your brand, assort to that brand and deliver it in your selling space. Don’t set it and forget it. The assortment plan’s life cycle has only begun.

Tony Corsberg Founder Merchant5 Advisors

We’re

IHI Conference

IHI Conference

IHI Conference

IHI Conference

• 3 Days of Education & Networking

Orgill Companion Conference

• 3 Days of Education & Networking

• 3 Days of Education & Networking

• 3 Days of Education & Networking

• 3 Industry Awards

• 3 Industry Awards

• 3 Industry Awards

• 3 Industry Awards

• 4 Breakout Education Tracks

• 4 Breakout Education Tracks

• 4 Breakout Education Tracks

• 4 Breakout Education Tracks

• Channel Partner Exhibits & Presentations

• Channel Partner Exhibits & Presentations

• Channel Partner Exhibits & Presentations

• Channel Partner Exhibits & Presentations

• Beachfront Property With 3 Pools

• Beachfront Property With 3 Pools

• Beachfront Property With 3 Pools

• Golf, Tennis & Excursions

Orgill Companion Conference

Orgill Companion Conference

Orgill Companion Conference

• Educational Sessions and Seminars

• Educational Sessions and Seminars

• Educational Sessions and Seminars

• Educational Sessions and Seminars

• Orgill Retail Services Team Support

• Orgill Retail Services Team Support

• Orgill Retail Services Team Support

• Orgill Retail Services Team Support

• Retail Optimization Work Sessions

• Retail Optimization Work Sessions

• Retail Optimization Work Sessions

• Retail Optimization Work Sessions

• Tech Symposium

• Tech Symposium

• Tech Symposium

• Tech Symposium

• New Products from Top Vendors

• Beachfront Property With 3 Pools

• Golf, Tennis & Excursions

• Golf, Tennis & Excursions

• Golf, Tennis & Excursions

• New Products from Top Vendors

• New Products from Top Vendors

• New Products from Top Vendors

• All-Industry Party Hosted by Orgill— open to all attendees!

• All-Industry Party Hosted by Orgill— open to all attendees!

• All-Industry Party Hosted by Orgill— open to all attendees!

• All-Industry Party Hosted by Orgill— open to all attendees!