“We are very satisfied and happy with Midwest. They have been a great partner for almost 30 years and they strive to support us and increase our business. It is one of our closest vendor relationships and we do not worry about this department being neglected”.
J. Mills, Purchasing and Merchandising, Stone’s Home Centers
Exceeding Expectations. One Fastener Destination at a Time!
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
Get to know the 2024 NHPA Young Retailer of the Year honorees and learn more about these high-achieving, dedicated and forward-thinking retailers in the October issue of Hardware Retailing This year’s class has made a positive impact in their operations, communities and beyond and is proving the future of the channel is bright.
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
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
TRAINING MANAGER & EDITOR
Jesse Carleton, jcarleton@YourNHPA.org
RETAIL ENGAGEMENT SPECIALIST
Renee Changnon, rchangnon@YourNHPA.org
Read how two retailers used the wealth of information found in their financial statements to address business challenges. Learn the essential key performance indicators you should focus on and how to train employees to help improve them.
Taking cybersecurity seriously is part of everyone’s job. Foster a culture of security inside and outside your operation with these strategies and tools from the Retail & Hospitality Information Sharing and Analysis Center.
In pursuit of helping independent operations become better and more profitable, NHPA places a key focus on education. Hear from past students of the association’s Foundations of Retail Program and how its courses can elevate your business.
Two retailers share how they approach stocking their shelves with home security products. See what products they say are worth stocking and how they train their employees to inform customers about their home security options.
CONNECTIONS
Send Scott a Message swright@YourNHPA.org
Scott Wright
“At NHPA, we have always been at the forefront of the KPI conversation, primarily because we have been compiling and publishing financial data for more than 100 years.”
we’re in a period of negative year-over-year comps (seven consecutive quarters for Home Depot and six for Lowe’s) following the historic sales gains of the past few years. Maybe it’s because we fear a greater slice of the home improvement pie is moving away from brick-and-mortar and giving way to online shopping. Perhaps it’s the anticipation of new tech, including AI, that will change the way we compile, analyze and manage financial metrics moving forward.
It might be a combination of all three, but the fact that independent retailers’ interest in industry-specific key performance indicators (KPIs) is at an all-time high is more likely a factor of operating in a 24/7 info cycle. We constantly want to know what’s going on and how everyone else is doing, especially when things are trending a bit downward. In the past 12 months, it seems all discussions with retailers have led to a conversation of KPIs: “What are you seeing in customer count trends?” and “How is your average transaction holding up?” are a couple of the more common questions.
Now we’re hearing more retailers ask about units per transaction and even closure rate, which until the last few years has been somewhat of an enigma to most independents who simply don’t know how many people walk through the door each year. KPI questions such as these are asked in almost every setting where retailers gather these days—at least the gatherings we host.
At the North American Hardware and Paint Association (NHPA), we have always been at the forefront of the KPI conversation, primarily because we have been compiling and publishing financial data for independent home improvement retailers in our Cost of Doing Business Study for more than 100 years. This study benchmarks the financial performance of hardware stores, home centers, LBM outlets and paint and decorating retail stores.
But it seems the frenzy over KPIs has never been this high, at least not in my 30 years with the association and Hardware Retailing magazine. Nearly every roundtable I moderate for NHPA—including Marketing & Merchandising, Human Resources & Training and even IT executives—has become like a group of CFOs sitting around the table talking in their own special CFO vernacular. The Marketing & Merchandising roundtable in particular has had robust discussions related to which KPIs marketing owns versus which ones belong to merchandising.
We teach KPIs to students in our Retail Management Certification Program, framing the discussion around KPIs within the revenue equation. It’s interesting to see the lightbulb moment when students realize retail sales can only result from several variables in the formula expressed by: Total store traffic x closure rate = number of transactions x average transaction amount = sales. Then we extrapolate it further and multiply it by gross margin to get to gross margin dollars—what you take to the bank.
On Page 22, we highlight two retailers focused on driving business by managing KPIs and dialing in their team members to not only understand the financial keys to higher performance, but what everyone on board can do to help the cause. We also share a few of the KPIs that are on everyone’s minds these days. We hope you enjoy it.
Scott Wright Executive Director of Content Development & Executive Editor
CONNECTIONS
Send Dan a Message dant@YourNHPA.org
Dan Tratensek
“Plan and budget for the things you can control. You will always have unexpected things happen and the best business managers learn to adapt and overcome.”
SEPTEMBER HAS ALWAYS been special for me. Not only do my mother’s, my youngest daughter’s, my youngest granddaughter’s and my birthday all fall in September, but there’s something else special about the ninth month of the year.
September marks the official transition into my favorite season of the year, but it also represents a point in time when we start feeling the current year winding down and begin thinking about what’s to come in the next year.
For most everyone in the business world this means it’s time we all start thinking about budgeting.
If we are thoughtful in our budgeting this can be an exciting time, when we begin to turn those thoughts about where we might go into actual plans that we hope to execute.
For me, this is the essence of solid budgeting. Sure, we have to crunch numbers, make predictions and plug everything into a spreadsheet, but at a higher level, budgeting is the process we go through to put all of our ideas to the test.
As we prepare to enter the final quarter of 2024, I am well aware that the last three or so years have presented all of us with some budgeting challenges. As I write this, I’m sure we are all facing a series of major uncertainties that make predicting the course of our business for the balance of this year challenging, let alone trying to gain a longer view.
Although our view of the path forward might be a bit murky, there is one budgeting principle that I hold myself to but also encourage others to embrace.
Plan and budget for the things you can control. You will always have unexpected things happen and the best business managers learn to adapt and overcome.
When you sit down to plan, start taking into account the things that have a direct impact on you and have a plan on how you are going to execute those things.
If you want to grow your top-line sales, how are you going to do this? Maybe you’ll focus on increasing transaction size. Well, how? What are the things you can do, that you control, that can have a direct impact on this?
This is how you start building a thoughtful budget and plan for the future.
It’s easy to get caught up pondering all those things that are outside your ability to impact like the election, interest rates, etc. I would offer that your time would be better spent plotting for the things you have the ability to influence.
As you sit down this month to order Dan a nice birthday gift, sip on your pumpkin spice latte and start thinking about 2025, do yourself a favor and consider the possibilities, but start with the plans you know you can execute. Then go do them.
Dan
M. Tratensek
Chief Operating Officer & Publisher
See how your operation compares against similar businesses and get your copy of the 2024 Cost of Doing Business Study today at YourNHPA.org/codb.
Jim Robisch has been working in the home improvement channel for over 40 years. He recently retired from The Farnsworth Group, where he was a senior partner and adviser focusing on retail research and consulting. He directed retailer and wholesaler services activities for the firm, including customer intelligence, brand image and positioning, market expansion, customer satisfaction, growth and strategic planning. Jim has worked with more than 1,000 independent retailers and over 50 of the top industry chains and the largest wholesale groups. He has evaluated over 1,000 trading areas and visited over 10,000 stores. In retirement, Jim remains active with consulting work and serving on numerous industry and non-industry advisory boards.
Let me first say that I have a confession to make: I really hated all my accounting courses. It wasn’t that I was necessarily bad at them, but to me they were just so boring. Like watching paint dry comes to mind. However, later in my life, it became evident that accounting and all that “numbers stuff” was one of those necessary evils—even though neither is anything but evil. One should always remember that accounting, or your “numbers stuff,” should drive your management decisions and most certainly your growth planning.
Confusion abounds when it comes to this topic. So many relate accounting only to income statement and balance sheet management. This perspective is so limiting. The reality is that you truly can’t evaluate, let alone manage, anything in your business without first measuring how it’s performing. How do you know where to address problems and invest in greater opportunities?
The best place to start when evaluating your performance is to grab a copy of the Cost of Business Study (CODB) from the North American Hardware and Paint Association. It is the easiest and minimum amount of comparative due diligence you should do. The CODB results provide a wide-ranging view of stores’ financial performance. The report covers performance results over time, categorized by store type—hardware store, home center, LBM outlet and paint and decorating outlet—size, performance and more. It’s not skewed by brand or wholesaler affiliation. However, if your supplier does a similar survey, I recommend getting that data for comparison also. But nothing beats comparison to the universe.
I also suggest comparing data in your roundtable groups, as typically these involve active discussion about the numbers. This kind of comparison offers great insights for your own analysis.
There is other critical data you can’t get off your income statement and balance sheet. It’s what I call the “cool stuff” and it is so important in today’s market environment. You need to get customer feedback. Better yet, try to obtain feedback from infrequent customers or even those who don’t shop your store. Mystery shoppers and quick customer exit surveys can help here. Why? Because it’s imperative for management to understand their advertising effectiveness, online position, customer satisfaction, store avoidance issues and more. My favorite is finding out what certain target customer groups think about you. More specifically, find out why they don’t shop you frequently or at all.
I’m a data junkie for sure. Remember: Numbers don’t lie, so use them!
Jim Robisch Senior Partner & Adviser, Ret. The Farnsworth Group
The NHPA Foundations of Retail Program offers new managers and key employees leadership development skills. Learn more at YourNHPA.org/foundations
Jared Brown is the director of business intelligence for The Aubuchon Co. He has a degree in kinesiology and biomechanics from Miami University and came to Aubuchon in 2015 from the banking world. Jared grew up in Ohio and moved to Massachusetts in 2012, where he currently lives with his wife and daughter. At Aubuchon, he is involved in inventory planning and forecasting, margin management and retail pricing and process improvement and operations. Jared has been integral in streamlining and modernizing Aubuchon’s inventory management strategies after the company closed its distribution operations and transitioned to a supplier-based model.
Irecently had a deep conversation with a peer who boasts over five decades of experience—he’s been working in hardware since before I was born. Despite our experience and age gap, I was amazed at how similar our struggles are with the varying personalities, work ethics and diverse leadership styles. “Retail is detail,” he would repeat as we sought solutions to the day’s new challenges.
What I most appreciate about his perspective, steeped in a wealth of history, is that it doesn’t reduce to cliches like “no one wants to work anymore” or “everyone is just lazy nowadays.” His decades of experience have taught him the value of continuous learning and teaching—a cycle he’s both benefited from and contributed to.
Fun fact of the day: Giraffes can walk within an hour of being born. This skill is genetically coded in their DNA, unlike humans, who aren’t born with inherent knowledge of retail skills like how to flush product, rotate stock or close a sale. We must be taught. Some are fortunate enough to learn by imitation—a case of “monkey see, monkey do.” However, this mimicry is flawed. Without understanding the why behind actions, employees may fail to grasp the importance of their tasks.
The decline in quality begins when we cease to teach. When we neglect to explain the reasons behind our actions, we contribute to the phenomenon of new retailers overlooking crucial details. They might remain oblivious to these details unless we point them out, and even then, it may take several attempts to instill these lessons.
Granted, watching a new retailer learn the ropes is not as captivating as observing a baby giraffe’s first steps. Yet, the more we invest time and effort in imparting these skills, the less frustration we’ll encounter when expecting them to perform independently. Just as we anticipate that children learning to walk will fall, we should also be prepared for new retailers to stumble in their initial steps.
The key to cultivating a competent retail workforce lies not only in teaching the how but also the why behind each task. Equally important is our comfort and acceptance that these lessons often need repetition. In nurturing the growth of our retail professionals, just as in the natural world, our role is not merely to teach them how to walk but to guide them until they can confidently stride forward on their own.
Thank you, Reggie.
Jared Brown Director of Business Intelligence
As hardware store acquisition loan experts, Live Oak Bank knows what a successful ownership transition entails and shares comprehensive insights in their Guide to Buying a Business. Scan the QR code below to download the free guide.
Live Oak Bank’s hardware store experts fully understand the nuances of your specific business model and will support you with customized banking products focused on your success. Live Oak offers loans, business checking and business savings nationwide. Beyond the traditional banking experience, they strive to be an asset to each one of their customers by turning obstacles into opportunities and by helping you avoid costly mistakes. Let their team confidently guide you through the business banking or loan process and craft a unique plan that will help you and your business thrive.
brian.misenheimer@liveoak.bank
ou may have heard the term “silver tsunami.” It refers to the unprecedented increase in the aging population, typically Baby Boomers (born between 1946 and 1964) reaching age 65 and up. All Boomers will be age 65 by the year 2030. The Baby Boomer generation accounts for an estimated 2.3 million small businesses in the U.S.1 Additionally, 67% of boomer businesses are profitable, making them the most profitable age group of small business or franchise owners.2 Furthermore, experts estimate that roughly 10,000 Baby Boomers retire each day.1
Many Boomers need to sell their companies to realize their retirement. Additionally, Forbes has compiled several data points suggesting that the likely successors of some of these Baby Boomer-owned businesses may not be interested in taking over the family business.1 This is significant because it provides abundant opportunities for entrepreneurs to take up the mission of becoming the next generation of small business owners.
According to the U.S. Census Bureau, there are over 7.9 million small businesses in the U.S.3 Additionally, statistics from Live Oak’s research powered by Barlow state that “Nearly one in five of small business owners have already taken steps to transition ownership of their company” and “29% of small businesses anticipate an ownership transition within the next five years.”4 That leaves ample opportunity for people looking to acquire businesses.
There are many benefits to acquiring a hardware business versus starting a new one, including utilizing existing infrastructure, tapping into an existing customer base, trained employees and having cash flow and profit from the beginning—not to mention being your own boss.
At Live Oak Bank, we specialize in hardware business acquisition financing. Our team is dedicated to helping you navigate the deal process—from assessing acquisition opportunities to due diligence and closing—we are with you every step of the way. Scan the QR code to access our free Guide to Buying a Business to learn more about acquisition.
Brian Misenheimer Vice President, Franchise Lending Live Oak Bank, Member FDIC
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
See how one retailer rediscovered large street-facing windows and now uses them to showcase inventory and appreciate a good view at hardwareretailing.com/meyer-ace
WHILE YOU MAY BE holding onto the scrapings of summer, consumers are ready to dive head first into fall. According to a recent report from Axios, big-box retailers like Home Depot and Lowe’s started pushing
Halloween merchandise earlier than ever this year, launching some items online as early as April. The holiday is shaping up to be a boon for retail sales. See the stats here and get your costumes ready now so you’re not left behind.
Every year, the National Retail Federation (NRF) makes a projection for Halloween retail sales. In 2023, the organization projected overall sales of $12.2 billion, including about $3.9 billion on decorations and $3.6 billion on candy, both of which were up from 2022.
While spending on children’s costumes has held steady at about $1.2 billion per year over the last several years, costume sales for adults have grown nearly 20% year over year since 2020. Another significant segment for costumes is pets. In 2023, NRF estimated people would spend about $700 million to dress up their beloved furry family members for the season.
In its survey, NRF noted that more than half of consumers ages 25-44 planned to start shopping for Halloween in September or even before. Additionally, creativity is key for costume planning, with consumers younger than 25 using social media platforms TikTok, Pinterest and Instagram for inspiration.
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.
Echoing the forests of the Pacific Northwest with swirling green, black and white tones, the Verde Tia collection from Country Floors offers a wide selection of tiles, mosaics and moldings for limitless possibilities. Brass-accented mosaics emphasize the marble’s natural green hues.
COUNTRY FLOORS | countryfloors.com
The Surge from Gel Blaster can shoot gel pellets at over 170 feet per second. It can be charged using its included USB-C plug-in and features an interchangeable barrel system. The included “gellets” burst on impact and are nonstaining and nontoxic, ensuring a safe and mess-free time.
GELBLASTER | gelblaster.com
The Spec Ops Retractable Blade Folding Utility Knife is compact and built with an armor-grade aluminum body. At just 3.5-inches when folded, this knife can fit into any pocket and comes with a belt clip for portability and storage. Its unique pistol-style finger grip and camo-textured body allow for elite comfort and ultimate control when cutting. The push-button blade swap allows for tool-free and rapid reloading of utility blades.
SPEC OPS TOOLS | specopstools.com
The Chain Link Gate Kit from Nationwide Industries includes a matching hinge and latch for chain-link fencing. The round post hinge is adjustable both horizontally and vertically and fits both left and right hand applications. The gravity latch can be secured with steel self-drilling screws on 2- to 3-inch fence posts.
NATIONWIDE INDUSTRIES | nationwideindustries.com
The Heat-Reducing Solid Color Stain + Sealer from Cabot offers durable, even color that blocks UV rays and deflects the sun’s heat. It is available in three colors and can cover old stain with long-lasting waterproofing.
CABOT PRODUCTS GROUP | cabotstain.com
Haas Door’s SlimLine windows are designed to meet the demand for contemporary, modern aesthetics. Featuring a long and narrow profile, these windows offer a stylish solution for homeowners seeking to enhance their garage doors’ visual appeal. Beyond aesthetics, the SlimLine windows prioritize functionality, allowing abundant natural light into the garage while still ensuring privacy and security.
HAAS DOOR | haasdoor.com
The 16-ounce Hybrid Claw Smooth Face Steel Hammer is designed for the best driving performance. Its precision-balanced design provides strong and smooth striking power, while the I-beam handle is designed to withstand bending. The SHOCKSHIELD™ grip reduces vibration up to 10 times more than other hammers. The magnetic nail set is designed to allow users to set nails one-handed. The Hybrid claw allows for greater versatility on the job site for easier nail pulling applications.
MILWAUKEE TOOL | milwaukeetool.com
SnapPower’s MotionLight is an outlet cover plate with built-in, motion-activated LED lights. The patented power prongs on the back simply clip on to your existing outlet receptacle—with no wires, batteries or electrician required—leaving outlets open for use.
SNAPPOWER | snappower.com
The PROFACTOR™ 18V Blower from Bosch Tools delivers corded performance from electric power. With BITURBO Brushless™ Technology, the blower can reach an air speed of 123 mph and has an air speed control wheel and a trigger lock-on button at 64 decibels.
BOSCH | boschtools.com
The Aquafire by A | Fire Designs is a remote-controlled water vapor fireplace with natural orange lights. The fireplace runs on tap water and can be manually filled or installed directly into a plumbing line. It is available in sizes from 20 to 60 inches and weighs up to 71 pounds.
LUMINA PRODUCTS | aquafire.com
The Beginner Pottery Kit from Pottery with a Purpose lets users make their own pottery at home and includes everything needed to sculpt and paint a pot—no kiln needed. Each kit provides enough clay for up to two people. Finalized creations are not waterproof.
POTTERY WITH A PURPOSE | potterywithapurpose.com
The Sure-Vent Air Admittance Valve from Oatey provides ventilation for outdoor sinks, remote bathrooms and remodeling jobs by eliminating the need for a stack vent. It is designed to block sewer gas by opening and closing when pressure changes. It is also available with PVC or ABS adapters.
OATEY | oatey.com
3M ™ PRO GRADE PRECISION ™ Dust Channeling Sanding Block Sponge
Dust-channeling design for less clogging and a faster finish.* It’s a dual-purpose tool for both detail and flat sanding. A tool that’s engineered for endurance. built to perform
3M ™ High Strength Color Changing Spackling Compound
3M™ High Strength Color Changing Spackling Compound changes from blue to white, so you know when it’s ready to sand. Patch dents, dings or even holes up to 3-inches. Make wall repairs with confidence. For when results matter.
built to perform
Get an introduction on the terms used in the income statement and balance sheet with Basic Retail Accounting, an online course from NHPA. Learn more at YourNHPA.org/membership
BY JESSE CARLETON
Much like a report from your doctor, financial statements provide valuable insight into the health of your business. They can explain some of the aches and pains you might be feeling and uncover hidden issues you should address before they become full-blown problems.
Even if the financial health report is good, your income statement and balance sheet can offer direction on the ways to best spend your resources as you grow the business.
Any strategy for the future should be rooted in the insights from financial metrics such as your key performance indicators (KPIs), but what many retailers find challenging is understanding how to use that information to make real changes.
They may also be reluctant to share financial information with the rest of their staff, who can actually be an asset when they understand how they can impact those financial drivers.
This month, Hardware Retailing spoke with two retailers who used their KPIs as a starting point for addressing challenges in their operations. Their insights will help you take specific steps to utilize the wealth of data contained in your financial statements and strategize for the future, including training your team on understanding financials so they can help you be successful.
If you were to chart sales at H & H Home and Hardware in Marion, Kentucky, for the past five years, it might look like a rocket taking off. That’s at least what it felt like for owner Shanna West and her family. But a trend of rising sales wasn’t all the company’s accounting statements had to say. A deeper look at the numbers revealed some challenges creeping in that would be easy to miss for anyone focused only on top-line sales.
Learn key financial terms and ratios that will help you understand your accounting statements at YourNHPA.org/operations
In 2019, Shanna and her husband David bought into the family business with Shanna’s parents, Alan and Stacy Hunt. Through a series of events that included moving to a new location, expanding the size of the building, adding categories after competitors closed and riding a sales boom during the pandemic, the operation today is six times larger than it was in 2019. West and the other owners found themselves so involved in the day-to-day running of the business, they had little time to think about setting goals for the future.
“The idea of ‘working in your business rather than on your business’ described our management style,” West says. “We found ourselves exhausted after record-breaking sales weeks and lacking real direction and reasoning when we discussed the future.”
While the business appeared strong, the owners faced burnout. There were also underlying issues to address if the business was to be sustainable in the long term, such as the need for a better inventory management strategy, a more efficient use of the salesfloor and better cost controls, to name a few.
They were all issues West was able to see with greater clarity after joining the North American Hardware and Paint Association’s (NHPA) Retail Management Certification Program in 2022. During that time, as part of the final project for the class, she began taking a hard look at the company’s financial statements, where there were clues about how to address those critical issues.
The project included comparing KPIs from H & H Home and Hardware with those in NHPA’s Cost of Doing Business Study (CODB), an annual compilation of average financial and operational year-end data from home improvement stores across the country. The results began to change the way West thought about the business.
Better Together
Investing in employee training was one of the ways owner Shanna West was able to create more efficiencies at H & H Home and Hardware
Everyone on your team should have some understanding of the cost involved in running a business. The best way to start is to use NHPA’s popular training course, Our Three Pennies of Profit. It uses a story format to explain the basics of profit and loss in a retail environment. It is essential training for all employees to show how reducing retail shrinkage is one of their responsibilities. Employees also learn the concept of variable pricing and why simply raising prices isn’t the answer to increasing profit.
Go to YourNHPA.org/membership or scan the QR Code to learn more.
Performing a gap analysis of all operating expenses can reveal areas where you may be overspending. Create a gap analysis by listing your expenses in one column and industry averages, as reported in NHPA’s Cost of Doing Business Study, in the next. Mark the top five areas where you are spending more than the national average, then identify the cause for the discrepancy and look for solutions.
Learn more about the Cost of Doing Business Study by scanning the QR Code
Get your own copy of NHPA’s Cost of Doing Business Study and learn how to participate in next year’s survey at YourNHPA.org/codb
“The most eye-opening and valuable tool we used was the CODB,” West says. “I had always used it more as a wish list of where I wanted our business to be, never understanding how strong of a tool it could be.”
For example, West knew staffing was one of the areas in need of improvement. While H & H Home and Hardware overall performed better than the average high-profit store, a gap analysis study comparing the store’s P&L with the CODB revealed the owners’ payroll was several percentage points higher than the national average. That’s because the owners were filling most of the typically higher paid positions.
In contrast, wages for other employees were lower than average, because there were fewer staff. For West and the other owners, this discrepancy was a signal that they were understaffed. There was an opportunity to move talented people into leadership positions and pay them more. It was a win all around. Giving staff new responsibilities led West to develop much-needed job descriptions and shift some responsibilities from company ownership to staff who could help run the business.
Another change implemented from data in the CODB included investing in payroll and training, incentivizing employees to be highly productive on the salesfloor, which created more efficiency out of fewer people.
While it can measure past performance, the value in using the CODB is in how it can help set goals for the future, West says.
Comparing the company’s financials line-by-line with the CODB, revealed what could have been had leadership made different choices. As a result, West and the other owners began focusing less on analyzing what they could have done differently in the past to be more in line with the benchmark and more on discussing the changes they could make in the future to get a better outcome.
“Comparing ourselves with the CODB really changed our monthly conversations,” West says. “It equipped our ownership team with confidence in decision-making since we now have a tool to measure ourselves by at any given time.”
Another important takeaway from the project was the importance of looking at each KPI in context.
“It’s important to understand what the data means by itself and what it means to the whole,” West says. “How does it relate to the rest of your business? Be open to everything it may be trying to tell you.”
For example, if your inventory costs in a particular category are high, it could mean you overspent in that area. Or, it could mean you’re growing that category, which may require taking a little extra risk. Instead of seeing a number that is off the
For a full understanding of how your business can increase gross margin dollars, study the revenue equation. This important retail equation identifies four variables that drive revenue. Managing any or all of these four variables will have a significant impact on your overall sales.
Traffic Count: How many customers visit your business. Increase traffic by advertising to attract new customers and by using loyalty programs to encourage existing customers to shop more often.
Closure Rate: How many of those customers make a purchase. Increase closure rate with excellent customer service, effective merchandising, competitive prices and sufficient quantities of in-stock inventory.
Transaction Size: How much money each customer spends in a single shopping trip. Impulse purchases, attentive sales associates, promotional displays and well-rounded assortments will drive up transaction size.
Margin: How much money you make for each item a customer buys. Use a comprehensive variable pricing strategy that includes price shopping to increase margin.
norm as a problem, first put it in context with what else is happening in the business.
Finally, understanding the metrics on your accounting statements will do you no good unless they lead you to an action plan.
“We look at reports as something to take action with, rather than just show performance,” West says. “Ask yourself, ‘What am I going to do with this report?’”
Today, the business continues to grow, but rather than the frantic pace that characterized those first few years, West says they now have processes in place that correct the challenges of the past, and financial statements are central to their ability to manage the business.
“As a result, our decisions now are more strategic than they used to be. Sure, you can make decisions using a gut feeling,” West says. “It’s even better to have a gut feeling and be able to prove it with numbers.”
Most retailers prefer to keep their financial statements as confidential as possible. However, there’s value in showing at least a portion of your performance metrics to your employees. As Ash Ebbo at Clement’s Paint in Austin, Texas, has discovered, a little transparency can go a long way to help employees understand what they need to do to make your company profitable.
While Clement’s Paint, with eight locations around Austin, has built a solid reputation for good customer service and has a loyal customer base, Ebbo also feels the pressure of a competitive market. Rising costs and expenses, combined with customers who still demand competitive prices have eroded margins. A post-pandemic market correction flattened sales.
As part of a strategy to invigorate profits, Ebbo brought in NHPA to conduct a seminar on financial training for the store’s managers. During the session, managers learned how to read a profit and loss statement, the significance of key metrics and what they could do to improve them. For many, the training offered a whole new way of thinking about the business.
Ebbo combines certain line items on the P&L statement to make the more sensitive areas vague, only giving managers quarterly reports, as that offers a better perspective of how the numbers are trending.
“The training we had with NHPA was excellent, very beneficial to what we were trying to do,” Ebbo says. “As soon as our managers could see and understand the P&L statement, they instantly started diving into ideas about how they could improve it. We also did the DiSC training, which has really helped with our team’s communication skills and has helped create a more effective work environment.”
Continued on Page 31
“As soon as our managers could see and understand our P&L statement, they instantly started diving into ideas about how they could improve it.”
—Ash Ebbo, Clement’s Paint
There are benefits to teaching employees at all levels the importance of the data driving your business. Here are some training best practices.
Give managers the numbers they can best influence.
1
2
Sales (including category sales when relevant), average transaction size, units per transaction, margin and operating costs are some numbers managers can monitor and even improve. Managers can train employees on techniques for increasing transaction size, which can also increase margin. “I put together a report that is not as in-depth as our regular statement,” Clement Paint’s Ash Ebbo says. “Giving managers access to the bottom line and main metrics has been eye-opening.”
Set reasonable goals.
If managers are just starting to learn about financial statements, don’t overwhelm them by setting specific performance goals. Let them take the lead to decide how best to improve their stores. “We’re encouraging them to make whatever improvement they can make,” Ebbo says. “So for example, with the store that had low sundry sales, we asked the manager to think about ways to increase sales in that area. We want them to be creative.”
Encourage creative solutions.
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Ebbo encourages employees to think of creative ways to cut expenses—no suggestion is too small, whether it’s controlling the thermostat or buying a cheaper toilet paper for the restrooms. “When it comes to saving money on store expenses, nothing is too small or off the table for us to think about,” Ebbo says. “I want our employees to be creative about ways to save money.”
Talk to salesfloor associates about expenses.
Explain how expenses eat into profit and encourage them to find ways to cut costs. One way is to create a store expense list that aligns with your budget. For example, if you run out of paper towels in the breakroom, specify which ones from the store inventory may be used (the economy towels versus the name brand). Keep store tools organized and maintained so they’re easy to find and use, rather than pulling a new one off the shelf and expensing it.
Emphasize safety.
5
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In addition to the primary goal of preventing accidents, maintaining safety standards also reduces expenses. Workers' comp and insurance claims both increase expenses. Review safety standards and protocols with staff and challenge them to maintain an accident-free workplace. Have regular safety training and make sure you’re keeping up to date on OSHA and HR compliance issues.
Prioritize add-on sales.
Online retailers already offer suggested sales with every transaction. Brick-and-mortar retailers need to do the same, not only to grow sales but also to provide good customer service. Explain to employees how important add-on sales are to overall profits and how they can boost overall transaction size. Every sale is an opportunity, whether it’s as simple as upgrading a single-cut key to a key with a rubber head, or as complex as recommending sundries for a paint order.
A key performance indicator (KPI) is a way to quantify how well your business is performing in certain areas, such as sales or inventory management, and how effectively you’re meeting your business goals. KPIs measure past performance and provide the data for strategic planning. The KPIs below are essential to understanding the performance of your business in three areas: inventory, labor and salesfloor.
This ratio measures how many gross margin dollars are generated by each dollar tied up in inventory. A number above 100 means you are earning more money than you invested. It shows how profitable your inventory is. Products and departments will have different gross margins and inventory investment requirements. GMROI helps compare high-turn and low-margin lines with low-turn and high-margin lines.
Calculate It: Gross Margin (from the income statement) / Inventory (from the balance sheet) x 100 = GMROI.
Control It
• Keep up on price changes and stay competitive. Do you have room to raise prices?
Look for slow-moving or duplicate SKUs. If you have underperforming SKUs, it may be time to reevaluate a particular category to make sure it’s a good fit for your store or update product mixes so they’re more relevant to your customer base.
• Increase margins by using private label items when possible, which offer a lower cost of goods with higher margins than brand name products.
This number measures how much money you earn, in sales, for every hour your employees work. Optimizing this KPI means having the right number of employees on the salesfloor to help customers, at the right time. It measures how well you are utilizing your second biggest expense: payroll.
Calculate It: Total Sales Revenue / Total Labor Hours = Sales per Labor Hour
Control It
• Monitor traffic patterns so they align with staffing decisions. Scheduling too few staff during busy times will negatively impact customer service and overwork current staff.
• Encourage employees to sell to their full potential by training on add-on and project selling.
Boost employee engagement by setting sales goals and creating incentive programs that encourage add-on sales.
Inventory turnover measures how many times your inventory is sold, or turned, within a set time period, usually a year. It measures turns relative to the cost of the goods. A higher number implies good inventory management and strong sales. A lower number implies you have too much inventory and weak sales.
Calculate It: Cost of Goods Sold / Inventory = Inventory Turnover
Control It
Analyze your inventory management strategy. Check your order points to ensure you’re not carrying too much inventory on the shelf in relation to how often you’re able to resupply. Review your merchandising to ensure you are fully utilizing your promotional spaces and that displays are well maintained so shoppers can easily find what they need.
• Look for slow-moving or duplicate items that could be dragging down turns. A category review will update old or irrelevant assortments.
• Review your market strategy. What’s your advertising budget? Could you increase foot traffic by raising awareness about your store through social media or Google ads?
This KPI shows how efficient you are at generating sales in the space you have. Higher numbers indicate a more efficient salesfloor. This ratio can also identify underperforming categories.
Calculate It: Net Sales / Square Feet of Selling Space = Sales per Square Foot
Control It
Conduct a space productivity assessment. Reset, downsize or eliminate underperforming areas.
• Create better product assortments by giving more space to fast-movers and reducing slow-movers.
Assess store layout to determine space utilization. Could better placement of key categories improve productivity? Do you have promotional displays? A store remodel may be worth the investment if it creates a more efficient salesfloor.
This number indicates how many products are out of stock as a percentage of how many products are for sale. It measures how well you are able to meet customer demand. If you have too many out-of-stock items, customers will begin to see you as a place that cannot meet their needs. You will also limit your cash flow and lose revenue. A high out-of-stock rate could signal a breakdown in your inventory management process or market trends causing some items to sell out faster than normal.
Calculate It: Number of products not in stock / Total number of products available for sale x 100 = Out of Stock Rate
Control It
Recent developments in AI technology have produced data-driven tools that can do some of the order forecasting work for you. These tools save time and improve your accuracy while saving time.
• Instead of relying on one supplier, using multiple suppliers gives you a backup plan when your primary vendor cannot replenish your stock.
• Tighten inventory management systems. If counts in your POS are not accurate, then it will be impossible to order accurately. Regular cycle counts, shooting the outs, training cashiers on accurate checkout procedures and tighter shrinkage control will increase the accuracy of your records, which will increase the accuracy of your ordering.
Related to transaction size, units sold per transaction indicates how well you are selling high-value add-on items. More lines on the ticket mean it’s likely you’re mixing high- and low-margin items. Fewer items on the ticket could indicate your employees need add-on or project sales training.
Calculate it: Run a report for this number in your POS
Focus add-on sales training around customer service, not profit. Front-line employees will have more buy-in to the idea when they understand add-on sales is a function of customer service.
Start training for add-on sales in store services. For example, when selling keys, train employees to ask “How many keys would you like?” and “Do you need a key chain or rubber cover for that key?” These incremental, consistent add-on sales will make a big difference on your annual sales.
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Give key team members a deeper look at the income statement with NHPA’s Foundations of Financial Management course. Visit YourNHPA.org/foundations for more information.
Continued From Page 26
One of the challenges facing Clement’s Paint was an overall decline in paint sundry sales. While some locations were posting healthy sundry sales numbers, others were far below where they should be.
“One store’s sales were particularly low, and when the manager at that location saw the numbers, he was a little surprised, but immediately started thinking about how to change it,” Ebbo says.
Floor-level associates don’t get access to financial records but Ebbo wants them to understand how to influence the size of the sale. Conversations include talks about average transaction size in terms of lines per ticket or how many items are sold per transaction.
“If every ticket only has one or two lines on it, that probably means we’re not getting the sundry sales,” Ebbo says. “There should be at least four to five lines on that receipt. For every customer who forgets to pick up a
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sundry item at our store, we’re giving our competitors a chance to sell it to them.”
Clement’s Paint has also started a monthly sales campaign to encourage sundry sales. The management team works together to pick a few bestselling items, mark them at a deep discount and merchandise them in a highly visible area of the store, generally near the cash register.
Merchandising is the same in all eight locations so customers get used to seeing these sundry sale items, regardless of where they shop. The display and location make it easy for employees to suggest an add-on sale each time a customer makes a purchase.
No step is too small to increase sales and cut expenses. Giving employees exposure to the operation’s finances empowers them to participate in helping Clement’s improve profits and feel like they have a stake in the business.
“Financial training has made our employees smarter and helped managers make more educated decisions,” Ebbo says.
Read more insights from RH-ISAC on how you can make cybersecurity a core part of your business strategy at hardwareretailing.com/cybersecurity-strategy
By Luke Vander Linden, Vice President of Membership and Marketing, Retail & Hospitality ISAC
While keeping stores humming with happy customers is a top priority, safeguarding their data can’t be overlooked in today’s digital landscape. Cybersecurity might sound like a complex issue, but Cybersecurity Awareness Month—which kicks off in October—is here to empower you with the tools and knowledge to make online safety a seamless part of your business.
Participating in Cybersecurity Awareness Month is not just about checking a box or hanging a poster
in the break room. It’s about fostering a culture of security within your organization, minimizing the risk of data breaches and creating a secure and trusted shopping experience for both employees and customers. This translates to a win-win situation, strengthening your reputation and laying the foundation for long-term success in the ever-evolving retail landscape.
On the following pages, read some ideas for getting your team involved in cybersecurity preparedness and for educating your customers on best practices.
1Champion awareness. Sign up to become a Cybersecurity Awareness Month Champion at staysafeonline.org and receive a toolkit with free materials to customize your own Cybersecurity Awareness Month campaign.
Learn from the experts.
Speakers from the National Cybersecurity Alliance are available to give presentations on topics ranging from overviews of online safety basics to more in-depth discussions from cybersecurity experts. There are also webinars and in-person events planned throughout Cybersecurity Awareness Month, so visit staysafeonline.org to find one to advance the knowledge for you and your team.
Get everyone involved. Employees from top to bottom are the first line of defense in keeping your operation safe from cybercriminals. Use Cybersecurity Awareness Month resources to create internal campaigns to remind employees of their role in protecting the business. Partner with your IT team to create interactive workshops where employees can test their phishing identification skills with simulated emails or participate in role-playing exercises that reinforce best practices for handling customer data. Inject some friendly competition and make awareness fun with a cybersecurity-themed trivia contest that rewards employees for completing online training modules or reporting suspicious activity. Offer prizes like gift cards or extra paid time off to boost participation.
Held each October, Cybersecurity Awareness Month is a global initiative designed to educate the public about online safety and promote best practices for protecting ourselves and our information. This year’s campaign theme is “Secure Our World.”
Why should I participate?
Cybersecurity Awareness Month presents a strategic opportunity to educate employees and solidify customer trust, a cornerstone of success in today’s competitive landscape. By leveraging the wealth of free resources available during Cybersecurity Awareness Month, retailers can craft impactful internal and customer-facing campaigns that can increase knowledge about cybersecurity best practices.
Where can I find resources?
Organizations like the Cybersecurity & Infrastructure Security Agency and the National Cybersecurity Alliance provide educational materials, training programs and awareness campaigns to help individuals and businesses learn more about the importance and impact of cybersecurity.
The Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) is the trusted community for sharing sector-specific cybersecurity information and intelligence. The RH-ISAC connects information security teams at the strategic, operational and tactical levels to work together on issues and challenges, to share practices and insights and to benchmark among each other—all with the goal of building better security for consumer-facing industries through collaboration.
All members of the North American Hardware and Paint Association (NHPA) are eligible for a free trial membership to RH-ISAC. During Cybersecurity Awareness Month and throughout the rest of the year, RH-ISAC offers weekly threat-briefing conference calls, discussion groups focused on a wide range of topics and in-person training and professional development opportunities. Visit rhisac.org/nhpa to sign up for a trial membership and to access free resources, including a small business toolkit to reduce cyber-risk.
Elevate internal communications.
Leverage your company’s internal communication platforms or social media channels to keep cybersecurity awareness top of mind. Share daily security tips, host Q&A sessions with cybersecurity specialists and recognize employees who demonstrate exemplary cybersecurity practices. This continuous engagement will solidify knowledge, demonstrate the critical role that all employees play in cybersecurity and keep employees vigilant.
Utilize consumer-facing campaigns. Consider leveraging consumer-focused outreach as part of your Cybersecurity Awareness Month efforts. By crafting engaging messaging campaigns that educate consumers about common fraud schemes, retailers can empower their customers and create a collaborative defense against scammers. Post short, informative videos or infographics to raise awareness about phishing tactics, showcasing red flags like suspicious email addresses or generic greetings. In-store signage can also help share the message. Provide clear messaging warning customers about counterfeit products, highlighting discrepancies in packaging or detailing common techniques used by fraudsters to mimic legitimate brands. Consider also sharing informative blog posts or articles on your website or in your email communications with explanations for how return fraud works or outlining steps to identify fake online stores, for example. Ultimately, informed consumers become active partners in the fight against fraud. Their vigilance can help identify scams before they cause damage, minimizing losses for retailers and fostering a safer shopping experience for everyone.
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Building Blocks for Success
Head to YourNHPA.org/foundations to see what courses can elevate your team and maximize your store’s potential.
NHPA’S FOUNDATIONS OF RETAIL PROGRAM ELEVATES EMPLOYEES FOR LEADERSHIP
Understanding key concepts of leadership, personal development and merchandising are crucial to being a successful retail manager. The Foundations of Retail Program, led by the North American Hardware and Paint Association (NHPA), offers comprehensive online courses to prepare your key staff to become leaders in your operation. These courses offer flexibility for students’ busy schedules and feature industry-specific training created with the help of industry-leading retailers.
Barbara Smith, training and improvement manager for Wilco, completed the Foundations of Retail Program in 2021 because it aligned with her desire to continue her career growth at Wilco.
“Foundations of Retail provided insight into my leadership and communication styles, which now
helps me interact better with others on our team, as well as our wider employee base,” she says.
Smith appreciated being able to take the course with a co-worker because it opened opportunities to brainstorm and find additional ways to use the concepts they were learning. Smith also valued the business improvement project that students must complete as part of the Foundations of Retail Program because it taught her how to take a project from concept to implementation.
“I would definitely encourage any retailer to take part in NHPA’s Foundations of Retail courses,” Smith says. “As an older student, it was good for me to stretch my brain and learn new things. The online courses offered flexibility, but it was important to schedule dedicated time to complete the assignments.”
NHPA’s Foundations of Retail Program offers five online courses for new and seasoned leaders and managers. Courses start every month and offer flexibility for busy schedules.
In this 9-week introductory online course, students will discover their unique leadership style and strengths, laying the groundwork for ongoing leadership development and management growth.
This advanced leadership course picks up where Your Leadership Style leaves off, teaching managers the critical components of building and leading a successful team.
This course focuses on the skills needed to manage the financial side of business, including grasping the financial framework of a retail operation, key sales drivers and the most important ratios that measure retail productivity.
This course provides students with the strategies and skills to manage merchandising and assortment planning at their stores, including visual merchandising, vendor relations, category management and more.
Mentoring is a key component to developing great leaders at any company. This course trains current and future mentors on all aspects of the mentor/mentee relationship and how to serve as a mentor.
NHPA’s Foundations of Retail Program courses give independent retail teams the confidence, knowledge and job-aligned skills they need to succeed in today’s dynamic retail workplace.
YourNHPA.org/foundations to see what self-paced courses can elevate your team and maximize your store’s potential.
As a young leader in his organization, Josh Weaver went into the NHPA Foundations of Retail Program in 2020 looking to grow as a leader. Weaver, now the merchandising manager for PaulB Hardware in Pennsylvania, had just completed PaulB’s internal leadership courses and had taken a lead role for a major store reset, overseeing several employees. He was ready for the next step when his manager approached him about enrolling in the NHPA Foundations of Retail Program.
“PaulB has always been a career and growth focused company, and NHPA Foundations of Retail was a natural next step for me, as I was just heading into my first leadership role,” Weaver says. “I’m always hungry for the next opportunity, so I took it and ran with it.”
Soon after completing the NHPA Foundations of Retail Program in early 2021, Weaver entered manager-on-duty training through PaulB, became the project manager when PaulB launched a new store, moved into other manager roles and completed NHPA’s Retail Management Certification Program. While a lot has happened since he finished the course, Weaver says he still utilizes lessons he learned, especially building skills in delegation.
“The inability to delegate seems to be one of the biggest roadblocks in management, and I fortunately learned the first level of delegation through Foundations of Retail,” Weaver says. “I sure didn’t learn it to the extent that I needed to, but I received a solid foundation to grow from.”
Another key takeaway for Weaver was the program’s inside-out approach, where he got to know himself through personal assessments and lessons on emotional intelligence.
“You can invest in somebody and teach them how to lead others, but until they understand themselves, they don’t really have a solid foundation to lead others,” Weaver says. “Before you start scrutinizing and vetting others, it’s crucial to take a good look at yourself, which is an important lesson I learned in Foundations of Retail.”
Weaver valued having the course broken down into smaller segments to better digest the information. He also says the capstone project stretched him and helped him better understand what is required to complete a project.
“At the end of the day, we get out what we put into anything, but if somebody is truly seeking to grow, Foundations is a worthwhile course,” he says.
Retailers who complete the Foundations of Retail Program and are looking for additional avenues for leadership training can take part in the NHPA Retail Management Certification Program (RMCP). Here are five reasons to consider RMCP to grow in your operation.
1 |
The program is a college-level course developed in conjunction with industry experts, university educators and successful retailers.
2 |
RMCP provides actionable knowledge to make a difference in your store immediately.
3 |
Over 300 retailers have embarked on the RMCP journey, learning skills needed to grow store sales and profits in today’s changing retail landscape.
4 |
The course curriculum covers multiple aspects of the business, and its industry-specific nature allows learning to be immediately applied to the business.
5 |
The program is designed specifically to benefit employees in the independent home improvement channel.
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TOP PRODUCT PICKS IN THE HOME SECURITY CATEGORY
BY JACOB MUSSELMAN
While independent home improvement retailers may not be top of mind for consumers seeking home security products, your store can still become a trusted destination for these purchases by offering thoughtfully selected options that fit your business model. To help you find success in this category, Hardware Retailing gathered three best practices to introduce or upgrade your home security product offerings.
Michael Husemoller, general manager of Breed & Co. in Austin, Texas, says at his operation, home security products are essential for new homeowners or those new to the neighborhood.
“Home security products aren’t No.1 on somebody’s list when they come in unless they’ve had a prior need for them due to an incident,” Husemoller says. “But they’re products that are good for your store to have
Boost home security with top-rated automation products like video doorbells, home security cameras and smart locks. Discover what products to stock at hardwareretailing.com/home-automation.
especially for new homeowners or anybody moving into the neighborhood to have peace of mind.”
Floodlights and electronic door locks are particularly popular among customers, Husemoller says, especially as more homeowners look to integrate smart technology into their homes. Relying on thoughtful merchandising, Husemoller places his camera systems in the smart home section, alongside products like LED light strips and customizable lightbulbs, making it easy for customers to find complementary smart home items.
When walking in the center aisle of Breed & Co., a static endcap features flood lights that are refilled as they are sold. Then in the aisle next to the endcap are the padlocks, electronic deadbolts and traditional deadbolts—keeping similar products together.
Service With the Sale
Marc Adler, owner of Adler’s Design Center & Hardware, in Providence, Rhode Island, says his door hardware category is one of the most successful in his store because his employees are highly trained and have years of product knowledge, which helps them walk a customer through an order.
“Over time, we’ve developed our team to be good salespeople,” he says. “The category is successful not only because of the offerings we have, but also because of the service we provide. It’s a service intensive business, which is great because stores like Home Depot don’t have the high-end hardware, and they don’t have the service like we do. It allows us to compete with them.”
Adler makes strategic choices due to limited space. Instead of stocking video cameras, he focuses on expanding his successful door hardware category, including electronic deadbolts.
When new products become available, he relies on his manufacturer representatives to educate his team, ensuring employees are knowledgeable about the latest offerings. This expertise is crucial for guiding customers, especially those unfamiliar with electronic deadbolts.
Adler says electronic deadbolts aren’t a large portion of his deadbolt sales, but the demand for them has increased over time.
When Adler sees a new product in a catalog or hears about it from a manufacturer, he has his representative from that company come to his store and introduce the new product to his team so they can decide whether they want to bring it to their shelves.
“We depend on our reps to come out and educate us on these new products,” he says.
13
MILLION
households may install new alarm systems this year.
Floodlights are the most popular home security component, with of security system owners having that feature.
37%
Source: The 2023 Home Security Market Report, safehome.org
17% of homeowners are interested in home security components leveraging AI to predict incidents.
37% of surveyed homeowners currently have video doorbell systems.
Source: The 2023 Home Security Market Report, safehome.org
Adler’s has a vast selection of door hardware, including electronic deadbolts, which it has carried since manufacturers began offering them in the late 1990s.
Over the years, Adler says he’s seen more parents buying electronic deadbolts instead of needing to rely on their children keeping track of a house key.
“The customers that come to our store looking for electronic deadbolts usually know what they want,” Adler says. ”But the ones who don’t know a lot about them, we have to educate them.”
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INDUSTRY NEWS
Firsthand Look
Ace’s merchandising team share more details on the new concept at hardwareretailing.com/ace-store-concept
ACE HARDWARE launched a new experiential store concept, ELEVATE3 Ace, to roll-out at new and existing stores over the next five years. The store design, which was unveiled at the fall convention in Chicago in August, marks a fundamental shift in the Ace store model and intends to boost both the customer experience and drive store growth, says John Venhuizen, Ace Hardware president and CEO.
“ELEVATE3 Ace is not just a new store format; it’s our vision to become famous for four things in the neighborhoods we serve: Paint, power, backyards and barbecue and home preservation,” Venhuizen says. “We believe in the power of local, and this initiative strengthens our community ties by creating experiential spaces that are not only places to shop but also places to connect. Our neighbors will benefit from locally relevant, premium products, expert advice and immersive retail innovation. With ELEVATE3 Ace, we are setting a new industry standard as we aspire to truly be the best, most helpful store on the planet.”
Key features of the ELEVATE3 Ace store model include premium brand showrooms to elevate exclusive brands and
enhanced customer service to ensure that new and evolving trends in consumer shopping patterns are thoughtfully addressed throughout. The ELEVATE3 Ace flagship store model will include an outdoor space with live goods display and grilling space for demos and events, and Ace retailers will benefit from new product assortments and features designed to drive sales and enhance the overall consumer shopping experience.
“Over the next five years, Ace Hardware will invest over $1 billion in opening new stores and remodeling existing stores to better serve our neighbors,” Venhuizen says. “The ELEVATE3 Ace store model will be at the heart of this investment.”
More than 17,600 Ace Hardware retailers and industry professionals who attended Ace’s Fall Convention in Chicago were the first to experience the innovative ELEVATE3 Ace store model thanks to a fully built-out 13,000-square-foot model store on the convention floor, complete with outdoor spaces and live demonstrations. ELEVATE3 Ace will be seen in some stores beginning this year, with the full roll-out in new and existing stores launching January 2025 and over the next five years.
INDUSTRY EVENTS
Do it Best Fall Market
September 6-9 | Indiana Convention Center, Indianapolis
INDUSTRY NEWS
IN TODAY’S COMPETITIVE MARKET, having the right products on store shelves is crucial to an operation’s success. Do it Best leverages data to ensure its members’ stores are stocked with the products their customers need.
“With data from over 4,000 independent locations, strategic vendors and extensive wholesaler data, we offer tailored solutions that drive innovation and propel our members’ businesses forward,” says vice president of merchandising Jason Stofleth. “Our team conducts comprehensive data analyses to provide product recommendations and customized solutions.”
Do it Best creates planograms using members’ POS, wholesale, vendor and regional data.
“Our precision-engineered approach optimizes inventory and improves product placement to match shopper behavior and preferences, driving increased sales and maximizing shelf space,” Stofleth says. “Maintaining the right stock levels reduces overstock and stockouts, leading to happier, more loyal customers.”
A component of the company’s strategy is confirming products are consistently in stock and readily available on members’ shelves.
“We maintain high fill rates, leading the industry at 97%. This ensures that customers can always find what they need
when they shop at our members’ stores, enhancing reliability, customer satisfaction and loyalty,” Stofleth says.
Do it Best checks its recommendations against its Inventory Productivity Analysis (IPA) tool to verify that every product on members’ shelves has a purpose. The company’s IPA tool uses data to create visual depictions and heat maps of members’ stores, highlighting slow-moving inventory and providing opportunities to update product offerings.
“The process starts with creating a detailed floor plan. Once the floor plan is labeled with planogram locations, a heat map can show performance based on selected date ranges and various success metrics,” Stofleth says. “The heat map uses color codes to identify areas needing attention. By clicking on a specific planogram, detailed information such as SKUs, item descriptions, quantities sold and pricing is available, allowing our members to make well-informed decisions.”
While data analysis is a powerful tool for effective merchandising, intuition, customer knowledge and experience are equally important.
“Combined with our data-driven insights, these elements create a comprehensive approach to inventory management,” Stofleth says. “Integrating the art and science of retail ensures that our members can thrive in a constantly changing marketplace.”
INDUSTRY EVENTS
Dive Deeper
Learn more about House-Hasson’s Bostwick-Braun acquisition at hardwareretailing.com/house-hasson-acquisition
IN EARLY JULY , House-Hasson finalized the acquisition of former Midwestern U.S. wholesale hardware distributor Bostwick-Braun’s warehouses and inventory. The acquisition adds two warehouses in Indiana and Arkansas, as well as more than 45,000 stock keeping units (SKUs) to its existing 55,000 SKU inventory.
Steve Henry, House-Hasson president and CEO, shared with Hardware Retailing how the acquisition fits into the company’s growth strategy and how it will benefit all members.
Hardware Retailing (HR): How did the Bostwick-Braun deal come together?
Steve Henry (SH): The Bostwick-Braun deal fell into our lap as we were looking for a warehouse between Knoxville and Texas. Several years ago, we hired salespeople from a company that was struggling to stay in business, and at the time we hired them, we weren’t delivering in Texas, Louisiana and Arkansas. So for the past two or three years, we have been looking for a warehouse somewhere between Knoxville and Texas to be able to better service our dealers with more products in those states.
We looked at new warehouses, but they were really expensive, so we continued looking for a business that did what we do, and had all the infrastructure in place so we could guard against risk and stress. I was fortunate enough to hear from someone about Bostwick-Braun potentially being for sale. We reached out and were able to put that deal together.
HR: Why was the acquisition a good fit for House-Hasson’s growth strategy?
SH: I keep telling everybody that the icing on the cake was learning that Bostwick-Braun also had a warehouse in Ashley, Indiana. When we found out about the Ashley warehouse, even though that’s not an area we were looking in, we realized it would provide some new territories for us, because we don’t currently deliver in Indiana, Michigan, Illinois or Missouri, and now those areas are opened up through the purchase of that warehouse. Plus, we can now better service our dealers in Texas, Louisiana and Arkansas with the West Helena warehouse in Arkansas.
Steve Henry House-Hasson
“The more you buy, the better deals you get. So if we’re buying products for four warehouses instead of two, our buying power is better. If we buy better, then we can sell better.”
—Steve Henry, House-Hasson
HR: How is the transition from Bostwick-Braun to House-Hasson going?
SH: It has been a lot of work, but we’re pushing through. We are receiving inventory in Ashley, and have done a little bit of shipping from there, but because inventory is down, it has been hard to ship. We’ve opened up around 350 new accounts that we’re currently shipping out of Prichard, West Virginia, and Knoxville, Tennessee, which requires more effort, but we will eventually be moving those accounts back to where they were originally shipped from. Our systems have been tested, and they’re working correctly. We’ve re-tagged the whole warehouse in both locations and are in the process of re-stocking both warehouses, so we’re in good shape.
HR: Along with expanding House-Hasson’s territory, what other benefits do you see coming from this acquisition?
SH: There are certain economies of scale that just work in business. The more you buy, the better deals you get. So if we’re buying products for four warehouses instead of two, our buying power is better. If we buy better, then we can sell better, which helps dealer profitability. We’re convinced that our business model of concentrating on dealer profitability is what has kept us around for 120 years. That’s our focus—when we help our dealers become profitable, then we do well. This acquisition will help us be more efficient in the way we deliver, because we’ll be able to move some of our truck routes around, and we’ll be able to respond quicker and offer a better product mix.
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U.S. Economic Growth
Accelerated in Q2
In the second quarter of 2024, the U.S. economy grew twice as fast as it did in first quarter, which was supported by consumer spending and private inventory investment, according to the National Association of Home Builders.
8 Home Improvement Companies Make NRF’s 2024 List of Top 100 Retailers
Compiled by Kantar, the National Retail Federation’s (NRF) 2024 Top 100 Retailers list ranks the industry’s largest companies according to domestic sales.
Nation’s Best Enters Mississippi, Hits 60 Stores With Latest Acquisition
With its acquisition of Huntington Lumber & Supply Co. in Hazlehurst, Nation’s Best is making its way into Mississippi. The store will maintain operations under its existing name and team alongside Nation’s Best.
To read these news stories and other news, visit hardwareretailing.com/industry-news
Ace Hardware Hits New Store Milestone
In the first half of the year, Ace Hardware opened 111 new stores, including its 5,000th domestic location, and plans to open up more than 200 new stores by the end of the year.
Randy Rusk Named Executive Director of the Do it Best Foundation
In his new role, Randy Rusk will be focusing on expanding Do it Best’s foundation’s impact and presence in the communities it serves. Rusk previously served as community affairs manager.
Do it Best Fall Market
September 6-9 | INDIANAPOLIS, IN
PACOA Fall Dealer Market
September 7-8 | FLUSHING, NY True
September 9-11 | ORLANDO, FL Home
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
*Events are current as of press day.
To add your event to the industry calendar, send an email to editorial@YourNHPA.org
INDUSTRY EVENTS
See the highlights and high points from the 2024 Independent Home Improvement Conference at hardwareretailing.com/2024-ihi-conference.
Bringing the independent channel together in Marco Island, Florida, the 2024 Independent Home Improvement Conference (IHI Conference) featured sun, sand and strategy, sending attendees home with best practices on retail operations and innovation. Attendees of the event, which was hosted by the North American Hardware and Paint Association and The Hardware
Conference, included retailers from all affiliations, industry vendors and other channel players, who all enjoyed educational sessions, networking opportunities and social events.
Don’t miss the October issue of Hardware Retailing for a full recap of the event, including a celebration of the Young Retailer of the Year honorees, and check out the IHI Conference by the numbers below.
We just wrapped up 2024, but can’t wait for 2025. Register now for the 2025 Independent Home Improvement Conference at 2025.ihiconference.org and save big with exclusive launch pricing. Available for a limited time and only for the first 250 registrants. SCAN TO REGISTER
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We’ll go the extra mile for you. Contact us today.
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