ALSO INSIDE:
Preview of 2023
Hardware Conference
Growing Core Categories
Northeast Retailers Recover From Flooding
Join hundreds of retailers from across the industry and gain actionable solutions for today’s toughest retail challenges. Get a playbook for success from former Google and Amazon execs and hear from retailers on strategies around cyberthreats, streamlining operations, building customer loyalty and more. Aug. 1 – 3
• NEW! Smart Start Programs
• Online Buying Event Work Areas
• Meet Dealers & Vendors
• Orgill Services Support
• Explore New Products
• Tech Symposium
or talk to your Orgill rep. We’ll see you in Dallas!
With Do it Best, we can expand our vision without limits.
Our incredible buying power and logistical strengths have transformed RAKS Building Supply into New Mexico’s best and largest independent building materials dealer.
Join the company with a team of industry experts who are committed to take your business beyond your vision.
Read Kenny and Richie’s success story at doitbestonline.com/RAKS.
Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666
Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
Senior Editor: Doug Donaldson doug@thehardwareconnection.com 646-508-7904
Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com
National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624
Contributing Writers: Gary Pittsford, Craig Webb The
QUICK This three step system installs quickly simply and provides a neat finished appearance. It eliminates inserts, plugs or shields
STRONG Permanent installation
COMPLETE SYSTEM Packaged with required nuts & washers
PROVIDES MAXIMUM HOLDING POWER
Threaded wedge top gives maximum holding power and torque for heavy applications
SAFE No dangerous powder-actuated tools are needed
CONSISTENT DEPTH Letter coded for embedment dept
By Chris Jensen
An industry expert recently commented that in today’s business environment, you are either a buyer or a seller. Single-store operators and multi-store chains are seeking attractive exit strategies. Do you have an exit strategy for your business?
If you are approaching retirement age and haven’t given much thought to an exit strategy, then you are in luck. This issue contains three articles about exit strategies that provide a wealth of information and insights about this important topic. As third-generation owners of ClarkDevon Hardware in Chicago, Ed and Ken Walchak found that employee ownership allowed them to retire while preserving the store’s legacy. Learn how the Walchak brothers are meeting their retirement goals while setting up their family business for long-term success in this month’s cover story starting on page 20.
Business valuation expert Tom Bronson, who will be the featured speaker at this year’s Hardware Conference in Marco Island, shares some of his expertise in an article titled “Navigating the Challenges of Exiting Your Hardware Store Business,” which starts on page 26.
Plan on attending the 35th edition of The Hardware Conference, set for August
18-20 at the JW Marriott Marco Island, and listen to more insights from Tom.
Brett Millard, the managing director for home improvement retail at Anchor Peabody, is experienced at closing transactions for small and medium-sized retailers. He contributed an article in this issue titled “Ignore the Unsolicited Offer: An Introduction to the Sell-Side Process.” Increase your knowledge of transactions from the seller’s point of view by reading his informative article that starts on page 30.
I wish I didn’t have to keep writing about natural disasters, but when situations arise that impact lots of companies in the hardware industry, I feel it’s our job to dig into the facts and communicate that information in a timely fashion. Turn to page 60 for my in-depth coverage of the flooding that has ravaged many communities in the Northeast. As a native of upstate New York, it hits close to home for me. If you want to lend a hand, click here for a link to a Gofundme page to help Harry’s Hardware in Cabot, Vt., return its store to a safe condition.
July is Independent Retailer Month (www.indieretailermonth.com), so we salute all the family-owned independent businesses that make our industry the dynamic, successful industry it is. n
*Comparing 66-gallon heat pump against pre-2015 similarly-sized standard electric using DOE EF to UEF conversion rates. Savings may vary.
By Craig Cope
Anniversaries are special moments in life that provide an opportunity to block out all day-to-day activities and reflect on the journey. This August 18-20 marks the 35th anniversary of The Hardware Conference taking place at the JW Marriott Marco Island Beach Resort. It also marks the eighth year since my wife, Shanti, and I took over the management of the event from founder Tom Chasteen and his wife, Dale Chasteen.
In those eight years, we have faced numerous obstacles along the way—hurricanes, hotel renovations/ construction and a global pandemic, to name a few. We learned the critical importance of a solid business transition plan during the early years.
Business transition planning has always been a hot-button topic since I started working in the independent hardware channel almost a decade ago. However, my observations from attending countless industry shows is
that I have yet to witness a significant number of “younger retailers.” This was the driving factor in selecting this year’s Hardware Conference theme— Business Transition Planning.
Spearheading the topic on Saturday is professional speaker and serial entrepreneur Tom Bronson. Tom is the founder and president of Mastery Partners, a company that equips business owners to maximize business value to achieve their dream exit. Before forming Mastery Partners, Tom served as president and CEO of Granbury Solutions, a VAR (value-added reseller) and ISV (independent software vendor) serving food service, retail and winery technology markets, with the industry’s first recurring revenue model offering an end-to-end suite of technology to those markets. Conference attendees will receive free copies of both Tom’s books: “Maximize Business Value, Begin with the EXIT in Mind” (2020) and “Maximize Business Value Playbook” (2022).
The Conference unofficially begins on Thursday, August 18 with Epicor hosting a full-day, hands-on, interactive Technology Forum. Thursday night is the All-Industry Cocktail Reception in the newly renovated Presidential Penthouse, providing breathtaking views of Marco Island and the Gulf of Mexico.
Friday begins with Do it Best and Orgill luncheons, with executives from both wholesalers attending. Attendees will have a few hours to enjoy some of the property’s amenities, including miles of white sand beach, multiple pools, spa or a stateof-the-art gaming emporium—10K Alley. The night is highlighted by the Beacon Awards cocktail reception followed by the dinner awards banquet. The Beacon Awards honor the “Best of the Best” retailers in the industry, and we have four outstanding winners to recognize this year. The night is capped off when everyone gathers in the hospitality suite.
Saturday and Sunday mornings begin with an outdoor breakfast buffet situated on the terrace. After breakfast, the exhibit ballroom opens, providing attendees the opportunity to engage with top manufacturers, service providers and other industry professionals. The Hardware Conference breaks on Saturday afternoon for attendees to participate in either 18 holes of golf, an Airboat Everglades Excursion or Day at the Beach activities.
The half-day activity is included in the retail registration fee of $129 per person in addition to three cocktail receptions, two dinners and two breakfasts. Since The Hardware Conference is the JW Marriott’s oldest consecutive attending group in Marco Island, attendees also enjoy a steeply discounted room rate of $198 per night plus tax. For attendees looking for something special, the hotel offers an adult-only section of the property called Sirene. The Conference rate there is still only $348/night plus tax. Guests staying in Sirene enjoy an adultonly experience plus a host of additional amenities – click here to view.
Undoubtedly, The Hardware Conference is one of the industry’s
most unique and rewarding events. The mix of learning, networking, relationship building and relaxation is what drew Shanti and me into the hardware industry. Having business conversations with industry representatives while enjoying a beautiful environment creates bonds that no phone call, email or Zoom meeting can match. We hope you can join us in Marco Island! n
PRODUCT #1:
DAP
It seems the hardware industry is filled with products and tools promising “pro grade,” “pro finish” or countless other versions of “pro.” I am reminded of the proverb: “A bad workman blames his tools.” Just because the product or tool can deliver “pro” results doesn’t mean the user is a “pro.” The discrepancy between expectations and results can lead to a dissatisfied customer.
DAP’s new 2 in 1 Wall & Ceiling Spray Texture is a rare product that promises “pro results” and delivers while requiring minimal user experience. The 2 in 1 Wall & Ceiling Texture spray can features an Aim Tech adjustable nozzle providing 60-degree movement to access those difficult-to-reach locations.
In addition to up and down movement, the nozzle has three settings to control the desired texture: fine, medium or heavy. The new texture is ready for sanding or painting within 30 minutes, and any remaining product is stored using the can’s relocking tab.
By Craig Cope
Click here to see a company video highlighting the Aim Tech adjustable nozzle.
The product is applied 12 to 18 inches from the surface, with brief bursts and a sweeping motion for even application or blending with existing texture. 2 in 1 Wall & Ceiling Spray Texture comes in four different textures: Orange Peel for both waterbased and oil-based; Knock Down and Popcorn (available September), both
in water-based. Click here to view a demonstration.
We provided our samples to a few DIYers who needed to patch and repair drywall with a textured finish. One of our tester’s comments provided the best review of the 2 in 1 Wall & Ceiling Spray Texture. “My past drywall repairs were always an eyesore, because I could never effectively blend the texture. Now I can repair the drywall, apply the texture and finish the project within an hour,” he said. DAP’s new 2 in 1 Wall & Ceiling Spray Texture is an outstanding product delivering professional results with the convenience of a reusable and adjustable spray can.
Recently we had the opportunity to revisit a product we reviewed in our February 2021 issue—Rescue! Ant Baits. The folks at Rescue recently updated the
Left: RESCUE! Ant Baits old package.
Right: RESCUE! Ant Baits new package.
Epicor for Retail solutions equip your team with intuitive tools that streamline operations and drive more revenue and profitability. That’s working with you, for you.
packing configuration and retail display materials. The product remains unchanged and features a dual-bait formula that is mess free and child-resistant.
The dual-bait formula includes both carbohydrates (sugar), a natural ant attractant, and protein. When ants enter the bait station to eat the sugar, they bring the protein back to the colony, effectively killing the larvae and queen. Click here to view a brief video.
The new packaging changes the packing layout of the four bait stations from a 3x2 horizontal stack to a 4x1 vertical layout.
The new retail displays are available in both floor-standing end cap or gondola shelf displays. The Rescue! Ant Baits features the same outstanding product we expect but now in new retail-friendlier packaging. n
The Hardware Connection Century Club, sponsored by Intermatic Inc., recognizes “The Innovators and Survivors Who Helped Build America.” Our Century Club currently includes 760 hardware and LBM retailers, 17 wholesalers and 191 manufacturers that were founded in the United States of America and remain in business after 100 or more years.
You can find the complete list of Century Club members including old store photos and links to company history by clicking here. We congratulate the following 37 retailers who have been added to The Hardware Connection Century Club this year:
Allers Lumber Company, Lindenhurst, NY—1923
Anawalt Lumber & Hardware, Los Angeles, CA—1923
Andrews Ace Hardware, Citronelle, AL—1923
Arlington Coal and Lumber, Arlington, MA—1923
Bivens Hardware, Pickens, SC—1923
Canaan Hardware and Supply, Canaan, NH—1923
Caribou Jack’s Trading Company, Soda Springs, ID—1903
Carthage Hardware, Carthage, MO—1878
Christensen Lumber Company (now part of Kodiak Building Partners), Fremont, NE—1923
Davis-Hawn Lumber, Dallas, TX—1923
Duvall Ace Hardware & Garden, Duvall, WA—1912
Farr’s Hardware, Coquille, OR—1916
Fort Worth Lumber Company (formerly H.H Hardin
Lumber Co.), Fort Worth, TX—1893
Gasser Hardware & Farm Supply, Boscobel, WI—1923
Gerretsen Building Supply (div. of TAL Holdings), Roseburg, OR—1923
Heuser Hardware, Jeffersonville, IN—1923
Jim’s Point Marion Hardware, Point Marion, PA—1903
Kredo Hardware, Broadview Heights, OH—1898
LeVahn Brothers Plumbing and Hardware Hank, Maple Grove, MN—1923
Liberty Lumber Yard, New Orleans, LA—1923
Lyon & Billard Lumber, Meriden, CT—1847
Markel Lumber Company, New Orleans, LA—1923
Maxwell’s Hardware, Downingtown, PA—1897
McDougald’s, Clarkton, NC—1917
Morrison Terrebonne Lumber, Houma, LA—1923
Mt. Pleasant Hardware, Providence, RI—1923
Nitterhouse Masonry & Hardware Supply, Chambersburg, PA—1923
Olson’s Ace Hardware (formerly Dressel’s Hardware), Oak Park, IL—1923
P.C. Smith & Son Hardware, Saugerties, NY—1914
Pilot Lumber Company, Bellevue, KY—1919
Prince Lumber, Newark, NJ—1923
Rockingham Cooperative, Dayton, VA—1921
San Antonio Lumber, San Antonio, FL—1923
Schneider Hardware, West Orange, NJ--1923
Shattuck Heights Hardware (formerly Wanamaker Hardware), Arlington, MA—1923
Shelly’s Building Supply (now part of US LBM), Telford, PA—1923
Smith Lumber Company, Valley City, ND—1923
By Doug Donaldson
As third-generation owners of Clark-Devon Hardware in Chicago, Ed and Ken Walchak found that employee ownership allowed them to retire while preserving the store’s legacy.
At the corner of North Clark Street and West Devon Avenue in Chicago, an iconic hardware-themed clock keeps time with five-minute increments marked off with large bolts. This past June, the clock’s combination wrench hands swept into a new era for Clark-Devon Hardware. After 99 years of family ownership, the largest independent hardware
store in Chicago is now owned by its employees.
Third-generation owners and brothers Ed Walchak, 66, and Ken Walchak,
Above: Third generation co-owners Ken Walchak, (left) and Ed Walchak (right) pass the baton to Xan Flink (center), the newly named CEO who now oversees the new Clark-Devon, where every employee holds a vested interest in the success of the business. Photo credit: Stephen Serio
72, managed Clark-Devon Hardware for the past 50 years. Their grandfather founded the store in 1924. However, a fourth generation of the family wasn’t waiting in the wings to take over. So, the duo faced a tough choice.
“In part, it was an emotional decision, because we’re the third generation and we were entrusted with the family business,” Ken says. “We didn’t just want to walk away from something like that.”
Ken says finding a strategic buyer would have been easier and possibly more profitable. However, that route didn’t appeal to the brothers.
“We had a couple offers to buy, but we weren’t sure that their commitment to current employees and to the community would match ours,” Ken explains. “Employee ownership seemed like a much nicer way to go out.”
The brothers also wanted to reward longtime employees—many have worked at the store for decades.
“Now, there are 65 people who are owners of a business who wouldn’t have that opportunity if we had chosen a different route,” Ken says. “We’re really proud of what has happened, but it’s not been easy.”
Throughout the United States, there are about 6,500 employee stock ownership plans (ESOP) with more than 10 million employee-owners nationwide, according to the National Center for Employee Ownership. ESOP creation
The Walchak brothers feel confident in handing over the leadership of Clark-Devon Hardware to a seasoned management team that has helped build the business over the years. Front row left to right: Ed and Ken Walchak with manager Jay Fuentes. Back row left to right: Bob Barkmeyer, incoming CEO Xan Flink, Brane Bijelic, Sine Somerville and Steve Lev. Photo credit: Stephen Serio
has remained steady for the past decade. Since 2015, an average of 254 ESOPs have been created each year. About 6 percent of all ESOPs are within the retail trade industry.
For owners like the Walchaks, ESOPs can provide continuity for their employees and community. For the new employee owners, ESOPs have tax advantages. For example, company contributions to repay loans taken out by the ESOP to purchase the company are tax deductible. If the ESOP is an S corporation, ownership shares are not subject to federal income tax, and employees pay a reduced tax when they sell shares upon leaving the company or retiring. However, there are some expenses associated with managing an ESOP. An administrator is paid from company profits and there may be additional legal and accounting expenses.
The Walchaks took part of their payout in cash and the remainder paid in loan
installments. For the employees, this plan meant that they became owners with no cost to them. The store’s stock shares are held by a trustee and each year shares are allocated to employees as part of the annual valuation process.
Ed and Ken retired and left the employees a healthy hardware business that is on the cusp of joining the Century Club next year.
“We’re hoping that Clark-Devon continues growing steadily,” Ken says. “We’re hoping these folks all become multimillionaires. It’s a great business and grew even faster than we thought.”
On its busiest days, the 10,000-squarefoot store can see 1,300 transactions. Monday through Friday, the store averages 1,000 transactions per day. About 70 percent of the store’s business is with property management and building maintenance firms. The store’s lock department is one of the busiest in the nation, cutting about 10,000 keys a month. Customers frequently have requests to key hundreds of new keys all at one time.
Clark-Devon Hardware has built a strong janitorial supplies niche as well. Owners and managers of older properties rely on the store for specific products not sold in big boxes. Paint and rental departments also drive customers to north Chicago’s Rogers Park neighborhood.
Clark-Devon Hardware’s management team joins 59 fellow employees as the new owners of the business based on a recent ESOP sale. They are front row left to right: Jay Fuentes, CEO Xan Flink, Bob Barkmeyer. Back row left to right: Brane Bijelic, Sine Somerville and Steve Lev. Photo credit: Stephen Serio
New CEO Xan Flink has seen the store continue to grow since he started at Clark-Devon 15 years ago as a cashier who knew nothing about the hardware business.
Flink was in his early 20s when he began working at Clark-Devon. He moved past the cash register and began working the sales floor, learning about products and the customer base of the busy store. Flink has been a manager for the past 10 years and has focused on building the company’s online business. Under his direction, the store’s online business has increased from near zero six years ago to now generating about 30 percent of sales.
The experience of developing the online business provided leadership opportunities that have become essential to his new role as CEO.
“To me, leading the company is a huge honor and responsibility,” Flink
The landmark ‘Hardware Clock’ on ClarkDevon Hardware’s southwest facade has been watching over the corner of Clark Street and Devon Avenue for the past 16 years. In that short time, it has become a neighborhood icon. Brothers Ken and Ed Walchak guided the design and construction of the huge clock, which weighs in at 1.5 tons, as a gift to the community that helped them build and sustain their family-owned business over three generations. Photo credit: Stephen Serio
says. “We want to make sure the culture the Walchaks built—which means doing right by customers and employees—is maintained.”
For Flink, one of the keys to continuing the store’s success is its relationship with Do it Best, their distributor since 2000. “Do it Best’s built-in infrastructure has been a great help with our online business, and we use their resources to train our employees,” Flink says.
Through the transition to an ESOP, Do it Best also assisted with financial information. Flink credits the distributor with making the change of ownership smoother, especially by answering questions related to the credit and accounting department.
“I’m extremely optimistic about the store,” Flink says. “The Walchaks
• Discover the limitations of your current POS system and the risks it poses to your business.
• Explore the benefits of upgrading to Retail Automation POS, including enhanced functionality and scalability.
• Seamlessly transfer your existing Point of Sale data from Quickbooks POS and Prosperity with expert assistance and support.
• Future-proof your business and stay ahead of the competition.
Clark-Devon Hardware was founded in 1924 and has been owned and operated by three successive generations of the same family.
deserve all the credit in the world for building an extremely successful store that’s an anchor in the community. My goal is to continue to run things as successfully as we can.”
Ed and Ken are ready for their next chapter, too. “In a couple years, I hope to come back and buy a garden hose and say hello to everybody,” Ken says.
Clark-Devon’s School of Maintenance hosts regular classes for maintenance workers and apartment owners such as this one on changing apartment locks.
“This really is the greatest thing we ever did. It would please our grandfather to no end that the business he began has been cultivated, blossomed and thrived.”
Throughout the process of converting from a nearly 100-year-old family business to an employee stock ownership plan (ESOP), third-generation owner Ken Walchak and new CEO Xan Flink share some tips and observations that may help other stores considering a similar move.
1. Determine goals. The Walchak brothers wanted to maintain the store’s legacy and culture. An ESOP allowed for a more seamless continuation of the company’s presence in the community. Making the most money possible from the sale of a business is often balanced against maintaining that culture.
2. Have a critical mass of employees. ESOP may not be right for every succession plan. Very small stores with three or fewer employees may have a more difficult time setting up an ESOP, Ken says. However, he recommends investigating different ESOP structures to determine if one might work.
3. Establish a strong leadership team. Without employees that have experience in management roles, transitioning to an ESOP may be more difficult, Flink says. That corporate knowledge means
being able to continue doing everyday business without missing a beat.
4. Bring in expert consultants. For Clark-Devon Hardware, consultants Menke & Associates proved to be invaluable in navigating the ESOP process. Along with helping explain ESOPs, their advisers guided the retiring owners and new employee owners through the government regulations and vesting options.
5. Talk with other ESOP businesses. Before the Walchaks made the decision to covert the store to an ESOP, they sought out other similar businesses that also went through the process. Ken found that the insights from these businesses were invaluable in making the decision to move forward with an ESOP.
6. Communicate throughout transition. When the sale went through, the Menke ESOP representative described the process to employees and answered questions. The employees will meet annually to discuss business performance, and the stock will be valued every year as part of this meeting. n
By Tom Bronson
Running a hardware store is a fulfilling endeavor that requires dedication, hard work and a deep understanding of the industry. However, as hardware store owners, many of you may find yourselves approaching a significant milestone: exiting your business and transitioning into the next phase of your lives.
Unfortunately, statistically speaking, the odds are against you. Here’s why. For every small business that comes on the market only 17 percent reach the finish line and close a sale. That’s right—there’s a whopping 83 percent failure rate! And it’s not much better for transitions to the next generation. Only 30 percent of those transitions are successful.
Here, we aim to address the various issues related to exiting a hardware store business and provide valuable insights to help you navigate this crucial process.
No matter your age or how long you’ve been in business, it is essential to acknowledge the need for a solid exit strategy. And, of course, the need
Click to find these books on Amazon:
Maximize Business Value, Begin with the Exit in Mind
Mazimize Business Value Playbook
becomes more urgent as we age. After all, planning for the future ensures a smooth transition and maximizes the value of your business.
Many owners tend to delay this consideration due to the emotional attachment and the fear of losing their identity tied to the store. However, by understanding that an exit strategy is a natural part of the business lifecycle, you can begin to evaluate your personal goals, financial situation and timeline for exit. Engaging with professionals such as accountants, financial advisors and business consultants can provide invaluable guidance throughout the process.
Determining the value of your hardware store is a critical step in the exit process. What does this involve? It involves assessing your assets, financial records, customer base, inventory and market conditions. First, you will want to start by truly understanding how much you will need to retire on to maintain your lifestyle in retirement. Then, when you obtain a valuation of the business, you will know if you have reached that magical number.
Consider getting a professional business valuation to obtain an accurate estimate of your store’s worth. A valuation will help you set a realistic target price but also identify areas where you can enhance the value of your business. Investing in improving aspects such as store aesthetics, operational efficiency and customer loyalty programs may be worthwhile. You can attract potential buyers and negotiate better deals by presenting a well-prepared and appealing business.
One of the most important factors in the “transferability” of any business is eliminating owner dependency, and the best way to do that is to have a solid succession plan in place. A succession plan ensures continuity of the business should anything happen to the owner. With a succession plan, the business may have a chance of surviving such
an event. Store owners should ask themselves: what would happen to my business and my family if something happened to me?
Succession planning does not necessarily mean who will be the next business owner, as you might think about in family succession. Instead, it’s about having a solid line of leadership, family or not, to carry on with the day-to-day operation of the business.
Succession requires careful planning, open communication and the necessary training and support to ensure a seamless transition. That’s especially true if the succession plan includes family. Discuss your intentions with intended successors and assess their interest and capabilities. Establish clear roles, responsibilities and expectations for all involved parties. Implement a structured training program to ensure a smooth knowledge transfer and empower the successor to lead the business confidently.
Succession is just as important when exploring external options such as selling to a competitor or merging with another business. Many buyers want to purchase ongoing concerns and don’t plan to inject new leaders post-acquisition. A business that is owner dependent is worth a fraction of a business with a solid succession plan in place.
When exiting your hardware store, it’s essential to consider the impact on your
employees. These individuals have contributed to the success of your business and deserve your support during this transition. Openly communicate your intentions early on and provide them with as much information as possible.
This step helps alleviate concerns and maintains a sense of stability. Be transparent about the potential impact on their roles and job security. Demonstrating your commitment to their well-being ensures a smoother transition and preserves your store’s positive reputation within the community.
Exiting a business involves navigating a complex landscape of legal and financial considerations. Engage with an attorney well-versed in business transactions to ensure compliance with all legal requirements. Key areas to address include reviewing contracts, leases and licenses, settling outstanding debts and understanding tax implications. Your attorney can guide you through the process, ensuring that all necessary documents are in order and that the transfer of ownership is legally sound.
In terms of financial aspects, consult with a qualified financial advisor who specializes in business exits. They can help you understand the financial implications of your exit strategy and assist in structuring the deal to maximize your financial gains and minimize potential liabilities. Consider tax
planning strategies to optimize the tax consequences of the sale or transfer of your business. By proactively approaching your exit’s legal and financial aspects, you can protect your interests and ensure a smooth transition.
When the time comes to market and sell your hardware store, a strategic approach is crucial. Although not recommended, if you want to take a DIY approach, you must develop a comprehensive marketing plan that highlights your store’s unique selling points, customer base and potential growth opportunities.
Identify your business’s most relevant target audience, whether it’s aspiring entrepreneurs, existing hardware store owners looking to expand or larger retail chains seeking a local presence. Utilize traditional and digital channels to reach a wide range of potential buyers.
The better approach is to consider engaging an exit planning professional three to five years before you want to exit so the business is ready for transition. Then, when the time is right, hire a professional M&A advisor or qualified business broker. These professionals have the expertise and network to connect you with serious buyers and guide you through the negotiation and due diligence stages. Work closely with them to prepare a compelling
sales package showcasing your store’s financial performance, market position and growth potential of your store. Be ready to provide accurate and up-todate financial records, operational metrics and customer data to instill confidence in potential buyers. Throughout the selling process, maintain confidentiality to protect the integrity of your business and minimize disruptions to operations. This is especially crucial when dealing with employees, suppliers and competitors. A well-managed marketing and selling strategy will not only attract qualified buyers but also help you secure a fair sale price that reflects the true value of your hardware store.
Exiting your hardware store marks the beginning of a new chapter in your life. It’s an opportunity to reflect on your accomplishments, celebrate your successes and pursue new passions. Consider volunteering in your community, mentoring aspiring entrepreneurs or leveraging your industry expertise by becoming a consultant or advisor. Explore personal interests and hobbies that may have taken a backseat while running your business. For some, retirement may be the ultimate goal, providing the freedom to relax and enjoy the fruits of your labor.
Exiting a hardware store business requires careful planning, diligent preparation and strategic decision-making.
As aging hardware store owners, it is essential to acknowledge the need for an exit strategy and embrace the challenges and opportunities it presents. You can navigate this transition successfully by valuing and preparing your business, engaging in succession planning, considering your employees and addressing legal and financial aspects.
Remember, your hardware store’s legacy extends beyond its physical presence. By thoughtfully planning your exit, you can ensure a smooth transition, maximize the value of your business and leave a lasting impact on the industry you have been a part of for so long. Embrace the opportunity to pass on your knowledge, inspire future entrepreneurs and enjoy the fruits of your labor as you embark on the next chapter of your life. n
Tom Bronson is a serial entrepreneur and business owner. He is the founder and president of Mastery Partners, Mastery Mergers & Acquisitions, and the Business Transition Summit. All three companies empower business owners to maximize business value and serve business owners in different capacities to help them achieve their dream exit. He also helps business owners personally by serving with Business Navigators as the Navigating for Business Success Chairperson. This servant leadership organization helps businesses through outreach, education and community service. Tom just published his second book, “Maximize Business Value Playbook,” the follow-up to his first book, “Maximize Business Value, Begin with the EXIT in Mind.” Tom can be contacted at 817-797-1488 or tom@masterypartners.com.
Many home center and hardware store owners receive unsolic-
ited offers on a regular basis. While it feels good to hear someone is interested in your business, my advice is to gracefully decline these offers until you are prepared. Most unsolicited offers like this don’t get to the finish line, and the ones that do generally are in favor of the buyer, not the seller (you).
In this scenario, the buyer has all the leverage because they know they are likely the only one at the table. In addition to what is likely a less-than-market deal (valuation, structure and terms), the distraction from pursuing an unsolicited offer can impact your business’ performance.
Instead, I encourage you to be patient. Timing matters, and you need to make sure it’s the right timing for you, the business and the overall economic environment to sell. The right timing coupled with diligent upfront planning, hiring transactional advisors and executing a competitive process will tilt the leverage in your favor.
Where do you even begin? What follows are the key phases of a sellside process to help you navigate this opportunity with confidence.
By Brett Millard
I routinely hear owners asking questions on how and when to prepare their business to sell. The simple answer is to always prepare your business to sell, even if you aren’t planning to sell. Family/ownership dynamics can change, and you may need to execute a transaction unexpectedly.
Therefore, continuously focus your efforts on driving profitability, maintaining a clean balance sheet, investing in infrastructure and growth, upgrading technology systems, building a strong bench of managers, striving for best-in-class metrics and cleaning up shareholder agreements.
All this work delivers a turnkey business to the marketplace, puts your business in the best possible light and reduces the risk of closing. Buyers have finite resources, time and capital, so there is value in being the most prepared and attractive business available. Remember, most businesses only sell once; you want to get it right.
It is advantageous to have a transaction team in your corner throughout the sell-side process. In the very least, owners should hire an attorney who specializes in transactions and investment banking/M&A advisors who have relevant industry experience.
The right advisors will act as an accelerant and de-risk the process while maintaining the momentum of your transaction so you can focus on operating the business. These advisors understand the sell-side process intimately and are astute in unlocking value you might not know is available. Below are some important functions these advisors provide.
Transaction Attorneys:
• Take risk out of the deal;
• Advise you on what is a reasonable or unreasonable request from a buyer;
• Organize the data and schedules; and
• Turn versions of legal drafts in short order.
• Tell your story and position the business in the best possible light;
• Unburden the business from diligence requests so your team can focus on operating the business;
• Create a ‘market’ with multiple interested buyers;
• Interface with the advisors on both sides to ensure everyone is acting in concert; and
• Provide insight on the legal and financial issues.
During the pre-marketing diligence phase, your transaction team should conduct a thorough business examination and organize the necessary documentation needed to complete this type of transaction. Pre-marketing
diligence will uncover potential business concerns/discrepancies which could derail or kill a transaction.
Setting the stage with clear expectations for key deal terms and messaging for transaction obstacles will save unneeded headaches later in the process. Below are some standard deal terms and workstreams you and your advisors should address in advance.
1. Business valuation potential;
2. Business growth outlook;
3. Post-transaction succession;
4. Disposition of owned real estate— sell or lease;
5. Tax difference between a stock and asset deal;
6. Obstacles identified during premarketing diligence (i.e. right-offirst-refusal); and
7. Necessity for audited financials, quality of earnings report and/or a market study.
The culmination of your premarketing efforts results in the investment bankers crafting a compelling written presentation that will be shared with interested parties. This document showcases the unique business value propositions, describes the operations and employees, and outlines the acceptable deal terms. It should provide buyers with
most of the necessary information to underwrite a transaction.
This could be the first and last time you tell your story. Take pride in what you and your team have accomplished and ensure the ‘special sauce’ is well articulated. Leverage your banker’s industry knowledge to make sure you hit on all the key points buyers will care about. The goal of this presentation is to build excitement among multiple buyers and to streamline the process.
The marketing phase can be the most exciting and gut-wrenching part of the process. Prior to launching, a vetted list of buyers (who you have blessed) and timeline need to be agreed upon. A tailored process with defined milestones can create competitive tension you will leverage throughout the process.
It is also crucial to protect your business by maintaining confidentiality through non-disclosure agreements, safeguarding the flow of information through a secure virtual data room and conducting adequate industry screening of buyers who make no sense to contact. Here are the typical milestones in a process:
1. Indication of interest (IOI): A loose valuation range and acceptable terms are provided by interested buyers based on their review of the
marketing memorandum. The transaction team uses this information to whittle down the field to serious inquiries only.
2. Management meetings: Management meetings are then conducted with multiple buyers. This is the opportunity for both buyer and seller to evaluate and ensure each other’s business strategy, values and mission are aligned.
3. Letter of intent (LOI): The remaining interested buyers will provide a detailed, nonbinding LOI to acquire the business for a specific valuation, terms and structure. Many LOIs include exclusivity clauses should you choose to accept, so it is imperative your transaction team irons out the deal terms in the LOI negotiations. Doing so will expedite the drafting of the purchase agreement, minimize the back-and-forth negotiations and reduce the risk of closing.
4. Exclusivity, Comprehensive Buyer Due Diligence, Closing: Once the LOI is executed, your transaction attorney will take over the lead of the process and work in good faith with the buyer’s attorney to finalize the purchase agreement and close the transaction. During this phase, the buyer will complete diligence and your investment banker/M&A advisor will help shepherd the transaction to completion.
Transactional advisors provide invaluable expertise in navigating valuation challenges, maintaining confidentiality, marketing and structuring deals, managing due diligence and negotiating. Typically, the return on the fees they charge is three times the cost.
Selling your business presents numerous hurdles impacting success. By facilitating a competitive process and hiring transaction advisors who can add value, you can optimize the chance for an outsized outcome and the certainty of closing. n
Brett Millard serves as the managing director for home improvement retail at Anchor Peabody. He has over 10 years of financial advisory and investment banking experience, and five years of experience solely serving the home improvement retail and lumber and building material sectors. His industry experience includes closing over 15 transactions and more than $3 billion of aggregate transaction value for small to mid-sized family and institutionalowned businesses. Brett fosters long-term relationships with owners and executives as their independent advisor of choice on transactions such as selling or buying a business, mergers and other transactionrelated matters. By acting as part of the fabric of the industry, he seeks to provide an unrivaled level of knowledge which owners and executives can leverage in their most critical strategic decisions. He can be reached at 317-774-4497 or bmillard@anchorpeabody.com .
The Hardware Conference is set for August 18-20 at the JW Marriott right on the water in Marco Island, Fla.
No matter where you are in your hardware retailing career, it’s never too late to start planning an exit strategy. The home improvement industry has been undergoing massive change in the past few years as numerous retailers head for the exits and complete the sale of their businesses. Many of the remaining retail players are actively seeking out acquisition targets.
That’s why it makes sense for this year’s Hardware Conference to adopt the theme of Business Transition Planning.
Join your fellow independent retailers as the Business Transition Planning theme gets discussed throughout this year’s Hardware Conference in Marco Island. The 2023 Hardware Conference
will take place August 18-20 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla. It is the perfect opportunity to bring your whole family to a five-star resort located right on the Gulf of Mexico with miles of beautiful white beaches.
This year’s Hardware Conference is a special occasion, as Directors Craig and Shanti Cope will be celebrating the event’s 35th anniversary. It has always been held in Marco Island, providing a neutral forum for retailers from different wholesaler programs to network and discuss business strategies.
The Conference began in 1988 with a small group of hardware retailers, led by Tom Chasteen, who wanted to get together once a year with key manufacturers. Do it Best and Orgill both actively support the Conference.
Upgraded a few years ago to JW Marriott status, the top-notch resort offers an oasis of luxurious comfort with activities designed for the whole family. Interact with key vendors on how to increase sales in your store during open exhibit hours, then pick up new ideas for your store while interacting with fellow
Meals are a great time to network and relax with other retailers.
retailers at three cocktail receptions, two breakfasts and two dinner banquets.
The Conference schedule leaves you and your family plenty of time to enjoy three swimming pools, a wide variety of water activities, spa services at the Spa by JW® or a relaxing walk along the white sand beach. Saturday afternoon is set aside with a golf outing, beach activities and Everglades airboat excursion.
The industry’s premier event for the independent retail hardware channel offers an awards program that was launched in 2013 to recognize the “best of the best” retailers. The 11th edition of the Beacon Awards is co-sponsored by The Hardware Conference and The Hardware Connection. Epicor, Ettore Products, Fluidmaster, Do it Best and Orgill provide additional sponsorship support for the program.
The 2023 Beacon Award winners will be recognized during Friday evening’s banquet. Retail Beacon Award winners for each sponsoring wholesaler will be honored, plus two retailers will be honored for Best New Store.
All Beacon winners will receive allexpense paid trips for two to the 2023
Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award trophy and be featured in an article in The Hardware Connection.
Leading vendors participate in the Conference with tabletop booths showcasing their latest product introductions. Dealers can engage in informal conversations with manufacturers without the pressure of buying, both during exhibit hours and at meal functions and receptions.
After two hours of exhibit hours on Saturday morning, Tom Bronson will lead an interactive discussion on Business Transition Planning. Tom Bronson is a serial entrepreneur and business owner. He is the founder and president of Mastery Partners, Mastery Mergers & Acquisitions, and the Business Transition Summit. All three companies empower business owners to maximize business value and serve business owners in different capacities to help them achieve their dream exit. Tom just published his second book, “Maximize Business Value Playbook,” the follow-up to his first book, “Maximize Business Value, Begin with the EXIT in Mind.” See page 26 in this issue to read Tom’s article on “Navigating the Challenges of Exiting Your Hardware Store Business.”
Past attendees say they like the fun and relaxed format of the Conference. “We have enjoyed attending the
One of the highlights is hearing retailing insights from the Beacon Award winners.
Conference and look forward to coming back again,” said Willis Qualheim of Qualheim’s True Value in Wisconsin, who has attended past Conferences with his daughters Karissa and Casey. In 2017, they attended to watch their family business receive a Beacon Award.
Don Hoff of Harleysville Ace Hardware in Harleysville, Pa., another former Beacon Award winner, came away with a very favorable impression after attending a previous Conference with his wife, Ruth, so he continues to come back. “Everything was first class and well organized and we really appreciated the interaction we had with other retailers,” he said.
The Hardware Conference kicks off on Thursday, August 17 with a full-day, hands-on, interactive Technology Forum hosted by Epicor. Bring your tablet or laptop so you can log right into your store as you learn new tips and tricks to make your POS software more productive. Topics covered include:
• Inventory best practices
• Mobile tools to best serve your customers
• Advanced reporting and analytics
• Open Q&A
• One-on-one meetings (in-person only)
Friday begins with Do it Best and Orgill luncheons with executives from both wholesalers attending.
There are still some rooms left in the room block. The Hardware Conference hotel rate is only $198 plus tax, a huge discount from the current market price of $458 and up.
You can register for the Conference and book your room by clicking here or call the hotel directly by calling 239-394-2511.
The Hardware Conference registration fee for in-person attendees is $129 per person and includes three cocktail receptions, two breakfasts, two dinners and Saturday’s half-day activity. There is no better value in the independent hardware channel than attending The Hardware Conference.
For more information, go to www. thehardwareconference.com or contact Craig or Shanti Cope at 305-853-0049. n
Wednesday, August 16
2:00 p.m. - 4:00 p.m. Technology Forum, Vendor and Dealer Registration
Thursday, August 17
8:00 a.m. - 9:00 a.m. Seminar Breakfast, Calusa Terrace
8:00 a.m. - 12:00 p.m. Technology Forum, Vendor and Dealer Registration
9:00 a.m. – 5:00 p.m. Epicor Technology Forum
11:00 a.m. - 3:30 p.m. Vendor Only Meeting, sponsored by The Hardware Connection
6:30 p.m. - 8:30 p.m. All-Industry Cocktail Reception, sponsored by Epicor
Friday, August 18
8:00 a.m. - 4:00 p.m. Vendor Set Up, Banyan 1 & 2
8:00 a.m. - 4:00 p.m. Dealer and Vendor Registration
10:30 a.m. - 2:00 p.m. Do it Best Meeting & Luncheon
10:30 a.m. - 2:00 p.m. Orgill Meeting & Luncheon—All Dealers welcome.
2:30 p.m. - 3:30 p.m. Beacon Award Winner Private Reception
6:00 p.m. - 7:15 p.m. Cocktail Reception, sponsored by Hyde Tools
6:15 p.m. – 10:30 p.m. “Kids Night Out” (Ages 5-12), Tiki Tribe
7:15 p.m. - 9:30 p.m. Beacon Awards Banquet Dinner, sponsored by The Hardware Connection. At conclusion of dinner, hospitality suite is open, sponsored by Duracell.
Saturday, August 19
7:00 a.m. - 8:00 a.m. Breakfast, Sunset Terrace
8:15 a.m. - 10:00 a.m. Exhibit Areas Open, sponsored by Sunnyside
10:00 a.m. - 11:30 a.m. Business Transition Planning, led by Tom Bronson
12:00 p.m. - 5:45 p.m. Golf Outing at The Rookery Golf Course
12:30 p.m. - 4:30 p.m. Day at the Beach, JW Marriott Beach
12:30 p.m. - 5:00 p.m. Everglades Airboat Excursion
1:00 p.m. - 5:00 p.m. Hospitality Suite is open, sponsored by Duracell
6:15 p.m. - 7:15 p.m. Cocktail Reception, sponsored by WD-40
7:15 p.m. – 9:00 p.m. Key West Buffet Dinner Party and Auction. At conclusion of dinner, Hospitality Suite is open, sponsored by Duracell
Sunday, August 20
7:00 a.m. - 8:00 a.m. Breakfast, Sunset Terrace
8:15 a.m. - 10:00 a.m. Exhibit Areas Open, sponsored by Sunnyside
10:15 a.m. - 11:30 a.m. Open Dialogue session
11:30 a.m. - 12:00 p.m. Closing Remarks of 2023 Hardware Conference
The Hardware Conference would like to thank and recognize its Marquee Sponsors for their support over the years. The following companies are Marquee Sponsors of this year’s event:
“Where Relationships Are Formed”
AUGUST 18-20
HERE TODAY!
Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.
Epicor will offer full-day, hands-on training sessions for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.
Honor the Industry’s Best Retailers at the 2023 Beacon
The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry.
Sponsors: Wholesale Sponsors: FOR MORE INFORMATION ABOUT ATTENDING THE BEACON AWARDS ALONG WITH ALL OTHER EDUCATIONAL SEMINARS, OPEN FLOOR DISCUSSIONS AND SOCIAL ACTIVITIES AT THE HARDWARE CONFERENCE, VISIT WWW.THEHARDWARECONFERENCE.COM
By Craig Webb
Thierry Garnier, CEO of Kingfisher plc and president of the EDRA/GHIN dealer association, talks about sustainability at the start of the Global-DIY Summit.
Their languages may differ, but construction supply dealers the world over share the same mission: Serve the customer, engage employees and turn a profit. Thus, it made sense for me to travel to Berlin on June 14-16 to learn the best management ideas from outside U.S. borders. Here are eight, drawn from the 9th Global DIY-Summit, attended by more than 1,000 home center executives and product suppliers from 55 countries.
The DIY-Summit is supported by EDRA/GHIN, an umbrella group of retailing associations, and the Home Improvement Manufacturers Association, an association of home improvement suppliers.
Erwin Van Osta merged Belgium’s prooriented Plafomat with DIY store Hubo to improve both group’s operations and sales.
Erwin Van Osta is co-founder and CEO of Hubo, a chain of 160 stores in Belgium with annual revenue of nearly $1.1 billion, as well as president of BricoAlliance, a collection of nine different DIY chains with stores in a dozen countries. He is blunt and driven: “Just f***ing do it!” is his catchphrase when dealing with staff. And staffers respond. Employees spontaneously organize charity events and are featured with their kids in lots of Hubo’s ads.
The company also organizes events in which the employees are the CEO— in this case, the Chief Entertainment Officer. The company puts on a slickly produced show called “Hubo’s Got Talent,” in which employees sing, dance, and show other skills. Among the prizes is one year of professional coaching.
A typical Byggmax store layout, of which only 20 percent is under cover.
The Sweden-based Byggmax Group operates 218 stores in four Nordic countries, generating roughly $680 million in sales last year. It has a 7.0 percent EBITDA margin thanks to its low-price focus. The stores typically have only two to three employees, cus tomers load all the products, payment is made at self-service kiosks (after an employee at a gate checks what’s been loaded) and all administrative duties are handled by the central office. Each store carries about 3,000 to 6,000 SKUs designed to handle roughly 300 home improvement tasks. Large-volume product requests are drop-shipped directly from the manufacturer.
Byggmax Studio, launched last December with two stores, is a show room-only facility focusing on 300 SKUs of flooring and tile. Products sold are shipped directly to the buy er’s home. Byggmax recently unveiled software customers can use to com bine preplanned home modules that can be built in just two days.
Please visit our booths at the following Fall Trade Shows:
True Value Booth #4625
Ace Booth #2753
Do it Best Fall Market Booth # 3810
Part of GooDay’s web home page.
When Takashi Yanase joined his family’s GooDay home improvement chain in 2008, the Kyushu, Japan-based chain basically had no company e-mail, no website and a computer system that consisted of just one terminal in each store. Before its monthly managers’ meetings, the company would print roughly 10,000 pages—100 for each recipient. Clearly, the company had to make big changes, but how could GooDay afford the technology needed?
Yanase turned to Google’s free software. In 2015, Gmail replaced interoffice mail, and Google Meet supplanted most out-of-office gatherings. GooDay also began using Google’s free document, spreadsheet and presentation software.
Eventually, the company’s data moved into the Cloud, where GooDay uses Google’s BigQuery software to process the data and Tableau software to create meaningful charts and maps.
“We’ve gone from data that didn’t make sense to meaningful data that can be used to predict the future,” Yanase said. The change has been so
successful that the company has grown to 63 stores with $280 million in sales, and Yanase has created a side business, Kaho Enterprise, to help build systems for other companies. And there’s also GooDay Data Academy, which trains employees on data management. Coming soon: An in-store device that uses voice recognition system to locate products on the shelves.
Cooperativa Sodimac, which runs 240 stores from Mexico down through South America, has helped the Chilean-born (and now U.S. owned) company Zippedi develop a robot helper that is now being used by The Home Depot and other DIY stores around the world.
More than 200 of the Zippedi robots are helping stores spot out-of-stock items, check for compliance with the planogram and current price, and
identify inventory placed high on the top racks. The robot also can help create a 3-D virtual version of the store, so managers can imagine how a reset would look before physically making the changes.
The latest Construction Supply 150 report on America’s biggest LBM dealers found that only about 31 percent of those responding said they have a smartphone app for their customers, but 32 percent planned to get one. Companies like Obi can attest to its effectiveness. It’s heyOBI app has 5 million users, many of whom contribute to the 25 million visitors to Obi’s online store and are among Ob’s 1.5 million German social media fans.
“We strive to create a triple win, where retailers, brands and consumers benefit,” said Patricia Grundmann, Obi’s VP of retail media and director of the Obi First media group.
E-commerce activity is growing fastest in the UK and Poland.
A Euromonitor International study found the United Kingdom leads most industrialized nations in the percentage of people using online tools to find and then travel to DIY stores.
Nick Brackenbury, CEO of the London-based software company NearSt, believes the next key advantage in web use will be whether you can tell a customer that a product they want is in stock. This is because search engines will boost placement of companies that can report a product’s availability, he said. NearSt works with dealers to make their stock visible to search engines.
For many U.S. dealers, this could be a challenge. The vast majority of smaller LBM operations use their ERP systems to keep track of what they have in stock. Spot checks and annual inventory counts will fall short of what’s needed in a world where knowing for sure about availability will be vital to keeping customers happy.
Like many other exhibitors, Tesa’s booth at the Global DIY-Summit promoted sustainability.
DIY-Summit speakers used the word “sustainability” more often than you would hear in 10 LBM conferences in the U.S., and many of the exhibitors touted their green credentials.
Several speakers said their companies had embraced a three-part plan to cut greenhouse gas emissions—first with equipment they use (switching to electric vehicles, for instance), then via sources of energy they purchase (e.g., moving away from coal-burning power plants), and finally via emissions generated by product suppliers as they are made, distributed and trashed. For instance, Byggmax aims to reduce emissions from its own operations by 90 percent between 2020 and 2027, and it is investing in companies that make recyclable products.
One of the summit’s big announcements was the creation of a task force of manufacturers and retailers,
including The Home Depot, to study how much greenhouse gases get emitted across the supply chain and then share ideas on how to reduce them. At the very least, manufacturers can expect to start getting questions from vendors about their greenhouse gas emissions.
A sustainability strategy is important, but you also need to communicate it, said Marija Milasevic, a senior consultant at Euromonitor International. In a recent survey, only 19 percent of businesses regard their sustainability communication strategy as extremely effective, she said.
“I learned from my father how to hammer a nail. I didn’t pass this skill onto my children,” Hubo’s Van Osta said. “We must motivate and stimulate children to get into a DIY mode.”
To that end, Hubo sponsors events that help get people interested in DIY. Hubo and Obi have live chat lines to help people through projects, while Peru’s 35-store Promart Home Center chain employs lots of in-store experts, as much of Peru’s homes are built by hand by the occupants. n
Craig Webb is president of Webb Analytics, a data and research consultancy that helps executives in construction supply spot the trends, threats and opportunities that matter most. Contact him at cwebb@webb-analytics.com.
1. WHAT MAJOR INITIATIVES ARE ON TAP FOR TRUE VALUE FOR THE REMAINDER OF 2023?
As we celebrate our 75th anniversary, we are really looking ahead to the next 75 years and beyond. Our customers and their stores are cornerstones of their communities, and our mission is to provide support and infrastructure to let them run their business exactly how they see fit.
In 2023, this means two major focus areas: first, continuously improving all aspects of doing business with True Value and second, helping our stores reconnect with their customers.
These initiatives are at the core of what we have been doing best for
more than seven decades – letting the independent hardware store flourish. That starts with ensuring busy store owners and community leaders can access in-demand products when they need them, in the quantities they need them. This also means our customers have access to industry-leading support, care and guidance for any issue they experience. We’ve been making significant investments in our operations to ensure we’re perfecting that process for every interaction a customer has with True Value, and we will continue to prioritize these efforts.
On the other side of that equation, our stores are in the thick of the larger economic landscape. As retailers of all sizes and across all industries navigate this shared challenge, and as post-pandemic consumer sales decline, we’re focused on helping our customers reconnect with their shoppers in meaningful ways.
It is time for store owners to rethink how they’ve approached their business for the past three years, as, once again, consumer retail has changed. This looks like taking our core offerings to the next level to help our retailers run their business more efficiently and to maximize their growth. Think improved marketing programs, competitive product selection and strong vendor relationships, and the most flexibility in the industry to order what you need.
At the end of the day, it all ties back to prioritizing an exceptional experience
for the independent hardware store owner that allows them to easily run a successful business exactly how they want, backed by a legacy brand. On that note, earlier this year, we also shared our commitment to moving the True Value brand forward in exciting, meaningful ways, and we can’t wait to share more about that effort.
2. TRUE VALUE HAS COMPLETED SEVERAL ACQUISITIONS SINCE LAST YEAR SUCH AS YENKIN-MAJESTIC PAINTS, AGWAY AND NOVA WILDCAT SHUR-LINE. HOW HAVE THESE DEALS WORKED OUT SO FAR, ARE YOU STILL IN ACQUISITION MODE AND IF SO, WHAT ARE THE MOST IMPORTANT ELEMENTS YOU CONSIDER BEFORE MAKING AN ACQUISITION?
Our recent acquisitions have truly exceeded our expectations and only continue to accelerate the collective growth of True Value and our stores. Hands down, the most important element for us when considering these acquisitions or any other business move, is “Is it good for our customers?” We make these acquisitions to better support our customers, who in turn, can better serve their communities. These acquisitions give our independent stores the ability to continue expanding the products they offer and allow them to be flexible and competitive. We have a strong pipeline to continue building our portfolio and can’t wait to share more.
3. IN WHAT WAYS ARE YOU HONORING AND CELEBRATING TRUE VALUE’S 75TH ANNIVERSARY THIS YEAR? LOOKING BACK ON THE COMPANY’S HISTORY, WHAT STANDS OUT?
As I mentioned, we’re having all sorts of fun to commemorate this milestone, but really this celebration is all about the independent hardware stores we support. We are spending this year showcasing what makes True Value unique and honoring the legacy of the True Value name, including major celebrations at our markets and highlighting our stores and their local impact.
It is remarkable to me to look back on how much True Value Company has grown, from 25 stores to 4,500. We launched our own manufacturing facility, opened and now operate 13 distribution centers, and serve 60 countries. What truly stands out to me, though, is just how much True Value stores mean to their communities. True Value has been here for 75 years because of our and our retailers’ belief and investment in operating independent hardware stores that know their community best. We have heard time and time again how much it matters to shoppers to see a trusted name on the front of the building.
Our stores are friendly, knowledgeable places with trusted staff who give customers personal, expert service. In the age of giant big-box stores, and pages and pages of online shopping, the value of walking into a neighborhood
store is not lost on the customer. That is what we’re really celebrating this year. We are loving the trip down memory lane while looking ahead to make the next 75 years even better.
TRUE VALUE’S FINANCIAL STRENGTH AND THE GROWTH OPPORTUNITIES IT PROVIDES FOR RETAILERS?
True Value is strong, and we continue to weather these uncertain times alongside everyone else. We have industry-leading merchandising and supply chain teams that work tirelessly to get our customers the products they need, which is what matters at the end of the day. Our retailers have the flexibility to run their store exactly how they see fit while being backed by a global supply chain network and legacy brand that continues to grow. The acquisitions we’ve made in the past 18 months, the brand investments we’re making and industry-leading programs are great examples of how now is the time to jump on board. It is only up from here for True Value.
OPENING A
IN 2019 WAS TOUTED AS PART OF A $150 MILLION INVESTMENT IN SUPPLY CHAIN OPTIMIZATION. WHAT ADDITIONAL STEPS HAS THE COMPANY TAKEN SINCE THEN TO OPTIMIZE AND IMPROVE ITS SUPPLY CHAIN?
Investing in our supply chain has always been critical, even before it
became a national topic during the pandemic. We chose to invest in that area because it is the infrastructure our retailers rely on to serve their communities. Now, as we all know, the pandemic turned supply chain operations upside down. Operational excellence became even more critical, and we dug in at the most detailed level to ensure quality at every step.
We have focused a lot on technology, from apps that track real-time shipping and delivery, to innovative pallet-scanning programs and improved online ordering platforms. We also continue to make improvements in our distribution centers operations, along with major initiatives to hire the best teams to staff our warehouses.
In addition to planned investments driven by True Value Company, we do just as much in response to retailer feedback. This is where the attention to every level of detail comes into play, all the way down to the types of devices we use for deliveries at the store level. Our retailers have a very important say in how we make our supply chain as successful as possible.
Running an independent hardware store requires many hats, and being a supply chain expert shouldn’t have to be one of them. We’ve invested in multiple ways to make this critical function as easy and successful as possible. n
By Doug Donaldson
or Colville Henery Hardware in Colville, Wash., both purchasing and sales were oddly simple during the pandemic: If a product could be put on the shelves, customers would snap it up. Now, with fill rates near prepandemic levels, customers have greater choices and are shopping around again.
During the pandemic, fill rates for some distributors dipped as low as 40 percent. By the end of 2022 and into 2023, distributors’ fill rates have bounced back. For example, this past spring, Do it Best President Dan Starr said that fill rates were above 90 percent, and the Fort Wayne, Indiana-based distributor has set a goal of 97 percent.
For independent home improvement retailers looking to capture consumers in the post-pandemic shopping environment, service, employee knowledge, assortment planning and merchandising can make the difference, especially in core categories such as plumbing and electrical.
Upper: Colville Henery Hardware has assembled a deep, experienced staff who can answer any customer question, and associates believe that every minute spent with a customer is an investment.
Lower: Manager Aaron Zadorozny (right) and Assistant Manager Patricia Smith take pride in the depth and breadth of the plumbing and electrical department assortments at Colville Henery Hardware, viewing it as one of the store’s differential advantages.
After Matthew and Tara Henery purchased Colville Hardware in 2022, the four-store company revamped its assortment and merchandising. Primarily a do-it-yourselfer destination, Colville Hardware serves about 90 percent DIYers and 10 percent contractors. Plumbing, alone, is 40 percent of Colville Henery Hardware’s business.
Colville Hardware, about 90 minutes north of Spokane, Wash., has a deep
commitment to helping every customer get it right the first time, especially plumbing projects. Employees ensure that each customer has the correct parts, tools and advice to finish their projects, according to Aaron Zadorozny, store manager. Often, Colville Hardware employees will spend much time detailing steps of the project for customers.
With merchandising and assortment planning assistance from Do it Best, Colville Hardware has a robust 16 feet of just toilet repair products, eight feet of SharkBite plumbing products along with another eight feet of crimper tools and accessories and four feet of cold expansion fittings and tubing. The store also has the largest local selection of kitchen and bathroom faucets with a 24-foot linear run of those products.
Colville Hardware is always bringing in new products. Staff members have learned to be responsive to customers and are often able to offer multiple solutions for repairs or projects. With a full assortment for just about any doit-yourself project, Colville Hardware works to establish long-term relationships with customers.
“Most of our customers shop here on a daily basis and we know them by name,” Zadorozny says. “We always ask them for feedback to see how well the products worked.”
To keep customers interested and engaged, the store evaluates displays and merchandising. Giving these departments a fresh look with remerchandising
Upper: Since plumbing generates 40 percent of sales at Colville Henery Hardware, a dominant assortment is available to meet the needs of homeowner and contractor customers.
Middle: A few years ago in the electrical department, Colville Hardware brought in a new 24-foot planogram for switches and sales increased 30 percent.
Lower: Staff at Colville Henery Hardware are trained to ensure customers get everything they need for their plumbing or electrical project in one trip.
can boost core category sales, according to Zadorozny. A few years ago in the electrical department, Colville Hardware brought in a new 24-foot planogram for switches and sales increased 30 percent. In October 2022, the store reset its light bulb display to provide a better flow to
the store layout and make the products look more appealing.
Colville Hardware’s vast assortment of plumbing and electrical supplies ensures that customers won’t leave empty-handed. As an advantage over big boxes, the store carries specialty items that cater to the unique needs of their customers.
Like Colville Hardware, Farr’s Hardware in Coos Bay, Ore., has tailored its core category assortment to the needs of its customers. A Century Club retailer, Farr’s Hardware opened in 1916, and fourth-generation owner Jay Farr oversees the company, which has another store in Coquille, Ore.
With that kind of experience, Farr’s Hardware has become adept at matching their customer service and core category assortment to their community.
Farr Hardware’s plumbing and electrical assortments take up about 20 percent of retail space. Several buildings in the Coos Bay community are 100-plus years old, so the Do it Best store stocks fittings and repair products to match that older plumbing. On the other hand, the area has seen fast growth with new subdivisions popping up.
Customers seek a diverse range of plumbing products from hard-to-find fixtures for older homes to the latest plumbing and electrical innovations for newer homes. Farr’s Hardware’s answer to all these requests: We have it.
Hardware.
Middle: The plumbing department at Farr’s Hardware features 160 linear feet of products from everyday staples to hard-to-find items.
Lower: The plumbing department at Farr’s Hardware is comprised of associates with more than 50 years of experience, so customers come there first for local expertise.
The store’s massive plumbing department features about 160 linear feet of products. There are four aisles devoted to their well and pump division. An experienced outside sales team is committed to providing on-site service and in-home installation of wells and water pumps.
Catering to an even split between contractors and homeowners, the store often helps customers deal with drainage issues and has water-testing capabilities.
“This isn’t your average hardware store plumbing department,” says Jordan Torst, Farr’s Hardware’s plumbing lead. “We have experience with French drains, holding tanks and filtration systems.”
Employees with experience in the electrical and plumbing fields offer independent hardware stores a certain gravitas that cannot be matched by bigbox stores.
“When we look to hire, we seek out those with some kind of product knowledge,” Zadorozny says. “It’s all about the customer experience, and it’s going to make customers happier and their jobs easier.”
One Colville Hardware employee owned a plumbing and septic business for 30 years and another built houses from the ground up including plumbing and electrical for three decades.
While some employees specialize in the core categories of plumbing or electrical, all Colville employees are crosstrained in every department. During down time, more experienced employees will teach others essential knowhow such as how to build a p-trap. When employees with less experience have to ask a more experienced staffer to answer a question, they are expected to stay and listen and learn as well.
“We don’t want customers wasting their time going back and forth,” Zadorozny says. “We want to get it right the first time, so we really hone in on listening to the customer to be sure we understand the problem and ask as many questions as humanly possible.”
When customers don’t know what they are looking for, Zadorozny says it’s often like the staff are playing 20 questions.
At Farr’s Hardware, Torst manages a plumbing department that boasts more than 50 years of experience in the plumbing industry. In addition to Torst, he has an assistant and two installers. The store has built a reputation as the go-to destination for plumbing supplies and services.
In addition, Farr’s Hardware specializes in larger plumbing projects. An outside sales team provides on-site service and in-home installation of wells and water pumps. They also provide full product installation and service on wood burning and pellet stoves and appliances.
The store hires new employees who aren’t required to have plumbing or electrical experience. Instead, hiring is based on personality and the store will provide product knowledge training through a mentoring program. New employees shadow experienced employees for a minimum of two weeks.
Farr’s Hardware’s plumbing expertise has been indispensable to many in its community. “We have some people who come in who can’t afford plumbers,” Torst says. “These folks are told to ‘See Jordan, he’ll help you fix it.’” n
• These consumer-friendly displays help the retailer show and sell the product through convenient dispensing units. Retail displays can be custom made to fit your market, are self-standing and can be hung on pegboard.
• Polypropylene webbing is Made in USA and comes in 22 different colors. Best sellers include 3/4”, 1”, 1.5” and 2” x 300’.
• For light-duty applications. UV and chemical resistant. Does not absorb water, mildew resistant and low-abrasive resistance.
• With 125+ years of experience protecting the lumber industry, PLM introduces a new solution for hardware stores. HardwareXpress offers competitive rates, quick and easy quote process with a bindable quote in 48 hours, no pre-inspection and profits coverage (unique coverage in the event of a loss that interrupts normal business operations).
• Will work with business owner to set up virtual loss inspection within 15 days of policy binding.
• Tensile strength is 500 lbs. (1”), 750 lbs. (1.5”) and 900 lbs. (2”).
• To be eligible, must be single location, up to $3 million TIV, up to $2 million in annual sales, 4 autos or less and no installation services.
• Just the coverage you need including cyber and employment practices liability. 2-year policies for peace of mind.
• A new all-weather hybrid-acrylic anchoring adhesive engineered to deliver a faster-curing, highstrength bond for cracked and uncracked concrete and postinstalled rebar connections.
• Designed for high performance in extreme environments, it dispenses and cures quickly and can be specified for both dry and damp conditions.
• Offered in single coaxial and side-by-side cartridges for use with standard manual, pneumatic and battery-powered tools from
• Expanded line of Mayhew socket bits includes new medium and long-length socket bits, sold individually and as sets.
• Extended length of the medium and long socket bits makes these tools ideal for wide array of applications where longer reach into deeply recessed fasteners or high-performance torque in tight spaces is needed.
• Medium socket bit assemblies have an OAL of 5.75” and long socket bit assemblies have OAL of 7”.
Simpson Strong-Tie, AT-3G is easy to prep and apply and has passed the demanding ICC-ES AC308 adverse-condition tests pertaining to reduced and elevated temperatures and long-term sustained loads.
• The 10:1 ratio, two-component adhesive dispenses easily and cures quickly with minimal prep and no power-brushing required for hole-cleaning.
• Available in wide variety of fastener styles and sizes to accommodate varying applications. Each bit is made with S2 tool steel, a shock-resistant material that can withstand high impact and is heat treated to provide added strength and durability.
Mayhew Tools www.mayhewtools.com 800-872-0037
• New to market is a zero-ozone certified air purifier built using TRUE HEPA filtration and one of the most comprehensive arrays of air filtration technologies available.
• Broan-NuTone Air Purifier is third-party certified to emit zero ozone. This single-room air purifier has advanced auto-sensing technology, automatically detecting TVOCs and particulates (PM.1, PM2.5, and PM10), which are the size of respiratory droplets, dust and pollen.
• The world’s most advanced portable pizza oven features a Borosilicate glass door to keep an eye on your pizza without releasing heat, while ClearView™ technology prevents soot and ash buildup on door.
• Use wood or charcoal for traditional wood-fired experience, or attach gas burner (sold separately) that uses 36% less fuel than previous models.
• Maximum temperature of 950 °F/500 °C; cooks pizzas in just 60 seconds. Reach ideal baking temperature of 850 °F/450 °C up to 29% faster; as little as 15 minutes.
• It will automatically increase the fan’s speed to remove detected particles and VOC’s quickly. When the air is clean, it automatically reduces the speed back to regular speed.
• Has built-in ultraviolet light that emits on surface of filter. You can adjust air purifier’s settings from phone or connect Alexa or Google devices.
• Monitor temperature with the integrated thermometer. The SureGrab™ door handle stays cool to the touch. Cook 12-inch pizzas and more on the thick 15mm cordierite baking stone.
Ooni
www.ooni.com 203-241-8418
Sales of Toilet Repair Products (Independent Hardware Channel)
12 Months % Change vs. Year Ago
Source:
Unit Sales Breakdown for Toilet Repair Products
Epicor’s Industry Data Analytics tracking information is based on sales from a representative sample of hardlines retailers located throughout the U.S. For more information, call 512-278-5800 or email
Source: Epicor’s Industry Data Analytics epicorindustryanalytics@epicor.com
Upper Left: Miller’s Fine Hardware in Jupiter, Fla.
Middle Left: Park Supply, Athens, Ala.
Lower Left: El Obrero Hardware, Richmond, Va.
Upper Right: Central Discount, Martin, Ky.
Middle Right: Petersburg Do it Best Hardware, Petersburg, Ind.
Lower Right: Wilcon Depot, San Pablo, Phillippines
The Hardware Connection provides a pictorial look at special events held by retailers. Send pictures of your store to chris@ thehardwareconnection.com .
By Chris Jensen
Aslow-moving storm packing torrential rain hit the Northeast on Sunday, July 9, causing catastrophic damage from flooding in a number of communities in Vermont and upstate New York.
In New York, officials were reporting one person dead and thousands impacted by flooding in Rockland County and Orange County, part of the Hudson Valley north of New York City. Putnam Valley, N.Y., received 8.93 inches of rain on Sunday, more than twice the typical amount of rainfall for the entire month of July, according to the National Weather Service.
Main roads were flooded, washed out or full of debris near West Point, Highland Falls and Fort Montgomery, N.Y. Emergency shelters were set up for those displaced by the historic flooding as hardware and home improvement
Aubuchon Hardware in Montpelier, Vt., has been forced to close temporarily due to flooding.
retailers scrambled to meet the urgent needs of their communities.
A state of emergency was declared for Long Lake and Blue Mountain Lake in the Adirondack Park region of New York after heavy rains damaged roads and bridges and a spillway dam was breached.
Flooding was more widespread in neighboring Vermont, with numerous roads washed out and sustaining major damage. Although an emergency order that had closed Vermont’s capital city of Montpelier was lifted on Tuesday, July 11, most of the downtown area remained under water as local officials kept an eye on a nearby dam that was close to spilling over as additional rainfall hit the area.
Nelson Ace Hardware in Barre, Vt., lost more than $300,000 of inventory when its basement flooded with nine feet of water (which is not covered by insurance), according to a report by Hilary Swift in The New York Times, but Owner Bob Nelson said he was heartened by the support of the community.
On the store’s Facebook page, Nelson posted on July 11: “As Linda and I wait for the water to recede we are humbled by the many texts and calls we've received offering assistance. As of right now Nelson's is still underwater. Once we assess the damage we will be back up and running as soon as possible. We know that many of you are suffering too and need our help. Thank you, thank you, thank you for all the support. Be safe and stay strong!”
On July 12, Nelson posted: “Our internet and phones are down and we can’t retrieve messages—we apologize for all the calls we’ve missed. We should have most of our power restored tomorrow and while we are still reeling from the flood we plan to be open Thursday at least 7:30-4:00. Our community is amazing and really shines when the chips are down and there is a crisis.”
Aubuchon Hardware has been forced to temporarily close a store it operates on Main Street in downtown Montpelier. “We are doing our best to move supplies to area stores to assist customers in need, however road closures are greatly impeding our efforts,” the retailer posted
on its Facebook page. They added: “Over the past 115 years, since the Aubuchon Company was founded, we have seen our fair share of natural disasters. In 1992, our Montpelier, VT store experienced the same level of flooding. Then in 2011, we experienced hurricane Irene which created another round of havoc throughout Vermont. We have seen a lot since 1908, and together we have always endured. We want you to know that we will be here for the cleanup, we will be here for the rebuild, and we will be here to serve our Vermont communities. Vermonters will persevere!”
Aubuchon Hardware’s store in South Royalton, Vt., (formerly Welch’s True Value) closed on July 10 due to rising waters but was able to reopen later in the week. On Facebook that store promoted the availability of rental offerings such as dehumidifiers, pumps, floor sanders, plumbing snakes and chain saws.
Aubuchon’s store in Ludlow, Vt., was also forced to close on July 10, as roads in and out were washed away. They were hopeful of being able to reopen later in the week. LaValley Building Supply in Ludlow also closed on July 10 but was able to reopen on July 12.
The owners of Harry’s Hardware in Cabot, Vt., (which includes a full-service bar with eight beer taps and a deli) faced a harrowing ordeal as the raging flood waters descended on their town. Here’s what they posted on Facebook on July 11: “Vermont is weeping this morning and I wish I could say that Cabot was
spared. Our harrowing acts to save the store got us trapped in the building for a few hours until it was safe to rescue us, but the inside of the store sustained little damage. Sadly, the outside of the building sustained extensive damage in the storm. We are resilient and we will be back! We will need a moment to rebuild, but we are working towards opening the store and The Den as soon as possible. We have so much love for this town. Everyone rallied to help us and we might be able to open our doors this week, because we all need a place to gather and weep over this mess. We love you all and will keep you posted. We are resilient - Vermont Strong!”
Plainfield Hardware in East Montpelier, Vt., stayed open until 3 p.m. on July 11 despite a lot of local road closures and encouraged customers to stop in for what they needed if they could find a safe route there. The store was able to stock up on flashlights, lamps, batteries, ice, propane, bottled water, firewood and kindling to meet the surging demand of customers.
Consistent with Orgill's mission to “Help Our Customers Be Successful,”
Harry’s Hardware, Cabot, Vt., suffered major structural and foundation damage to the exterior of its store but was back open in a few days.
Orgill's Rome, N.Y., distribution center (DC) has been closely collaborating with the Northeast sales team on a day-to-day basis, and even hour-by-hour in certain cases, as situations arise, according to Earl Bernard, Orgill’s communications director.
Orgill’s long-standing emergency preparedness process is in place and ready to implement any time there is an emergency. Orgill allows dealers to book emergency items, ensuring they have certain necessary products in case of a natural disaster, particularly during hurricane season. When an emergency happens, additional products can be ordered by retailers within the affected area and the supporting Orgill distribution center works with the customer and sales team to expedite delivery, Bernard pointed out.
The Sales Support Team regularly updates the availability of the emergency goods list and posts it on Orgill. com, providing the sales team with a communication tool to share with
customers regarding inventory availability at each DC.
Mark Scanlon, Orgill vice president Northeast distribution, said: “The Rome Team has been proactively adding extra stops between truck routes and preparing orders in advance, anticipating the reopening of roadways. Once the flood water recedes, Orgill’s focus shifts to ensuring that supplies are readily available for our customer base and the communities they serve. The operations team deserves recognition for their exceptional ability to handle additional freight requests at a moment's notice without any disruption to other customers not in the affected areas. Likewise, the transportation team has been outstanding in working with affected retailers to coordinate the deliveries. Both teams remain highly focused on helping to address our customers' needs, especially during these extreme weather-related circumstances.”
Rebecca Partee, Orgill’s sales support vice president added: “Natural disasters can leave intense, lasting impacts in communities. Home improvement stores are essential to support the areas they serve. Orgill works hard to be the trusted supplier for our customers during these difficult times.”
Bo Acker, Orgill transportation manager at its Rome distribution center commented: “Effective communication is crucial for our team to rapidly respond to our customers' needs. In addition to communicating with the sales team about store requirements, we have been
actively sharing information about road closures and routing challenges. Our drivers receive daily updates about routing issues resulting from the storm and the aftermath of the flooding. We employ text messages, emails and one-on-one phone calls to provide detailed information about closures and to address specific concerns. We have also shared links to apps and websites that offer upto-date hourly road condition updates. Furthermore, we maintain communication with drivers regarding store closures, added stops, route obstacles and alternative delivery locations for stores that are either flooded or inaccessible.”
Most of the road closures have had limited impact on our delivery routes from our warehouse in Montgomery, N.Y., said Allison Meyer, Do it Best’s communications director. “We have had only two members that we can't access due to high water. As of today (July 13), we are working with our territory sales managers to identify emergency routes and trucks to help members continue supporting their communities. At this point, we are still waiting for the water to subside before we can access their locations. We’re already working to ensure we have adequate inventory to cover the demand,” she added.
Most of our Do it Best members in Vermont and upstate New York were
Thomas Hometown in Berlin, Vt., was near completion of a major store project when it suffered devastating damage due to flooding.
very fortunate and got out without loss, Meyer said. “Unfortunately, one of our members, Thomas Hometown in Berlin, Vermont, was not so lucky. They were just wrapping up a major store project when the flood hit. They received a larger order for the project at noon on Monday, and by 5 p.m. that afternoon there was already two feet of water in the store. By 8 p.m., they had nearly four feet of water, and overnight the water rose another couple of feet. This location is not far from Montpelier, Vermont, the state capital. As of last night, they have still not had a chance to get into their store, but the water is supposed to start receding,” she said.
Meyer added, “Johnson Hardware (in Johnson, Vt.) and their community have really been impacted. They have a river that actually goes around their property. When we last spoke with the member, he shared that the water was three feet away from breaching their banks and coming into the store as the waters continued to rise.”
A handful of True Value stores in the region were impacted but are all up and running again, according to Nadia Hill, True Value’s communications manager. Montpelier Agway in Montpelier, Vt., experienced severe flooding, but water is receding and the store is assessing damage. Kenyons True Value in Northfield, Vt., also had flooding and was able to pump out water.
Menard’s Family True Value in Morrisville, Vt., and WW Building Supply in Newfane, Vt., both took preventative measures that minimized damage and impact to their stores.
The biggest challenge True Value stores are facing is travel throughout their region, primarily for their customers. True Value reps, who partner with their local stores, said the retailers are not experiencing any delays or issues with deliveries.
“The True Value team is working closely with all of our stores in the area to support them with whatever they need during this time,” said Jennifer McNeill, True Value’s senior vice president supply chain. “Our logistical infrastructure is in place to make sure we can effectively support our customers and their communities during these extreme weather events.” n
To read more coverage and see more pictures of the flood damage, click here.
By Ben Aubuchon
Over the past 115 years, since the Aubuchon Company was founded, we have seen our fair share of natural disasters. In 1992, our Montpelier, Vt., store experienced the same level of flooding. Then in 2011, we experienced Hurricane Irene, which created another round of havoc throughout Vermont. Lessons learned during those prior events have helped many Vermont towns prepare a more proactive response during the recent storm, but there was only so much local residents and businesses could do to ready themselves for what was to come. The devastation forced hundreds of people to evacuate and destroyed homes, businesses and farms. The intense rain cratered roads, triggered mudslides and flooded downtowns, leaving layers of mud, rubble and extensive property damage. Rescue teams from over a half-dozen other states brought fresh personnel and equipment into central Vermont in response to the state of emergency.
Our own past experience with floods did not make us immune to the most recent natural disaster. Eight of
Aubuchon Hardware store front during the flood on Main Street, Montpelier, Vt.
our Vermont locations were affected including Barre, Montpelier, Ludlow, Hardwick, South Royalton, Windsor, Jeffersonville and Lyndonville. As of July 18, all of the mentioned stores excluding Montpelier have reopened and are once again serving their local communities. Each store is actively combating different levels of water damage. Our Montpelier store has undoubtedly been hit the worst. The full extent of the damage and possible reopen dates are currently unknown.
Justin Bicknell, director of sales and operations for the Aubuchon Company’s Northwestern Region, has been in the action since day one of the catastrophe.
“We have been heavily engaged and involved in trying to get the water out of the store. Our primary focus right now is on removing water, mud and all manners of trash,” stated Bicknell. Next steps will be decided upon once the hardware store starts looking like a hardware store again. We are extremely grateful to report that all of our team members, including our two small-town celebrity store cats, Almond and Joy, are healthy and safe!
As an effort to support our local Vermont communities, we have officially launched a Vermont Flood Recovery Roundup Campaign in 19 of our local stores. This campaign began July 17 and runs through July 31. Customers are able to donate their change by rounding up their purchase to the nearest dollar or they can choose to donate any dollar amount, regardless of their payment method. Our new pointof-sale technology has greatly improved our fundraising abilities. Immediately during the flood, we were able to get the ball rolling on this meaningful campaign.
The Aubuchon Foundation will be matching (up to $2,500) the amount raised at each store. All of the proceeds will benefit the VT Flood Response & Recovery Fund set up by the Vermont Community Foundation. Contributions to the fund will support emergency needs, families, farms, main street businesses and communities that were affected across the state and will play an important role as the Foundation works with local nonprofits, state government, relief organizations and other partners to help put Vermont back together. “Despite the enormity of this crisis, it’s
inspiring to see Vermonters rallying to help each other,” said Scott Finn, president and CEO of Vermont Public.
Grants from the Aubuchon Company’s Moran Fund are available for any employee and their family impacted by the flooding. Inspired by M.Marcus Moran Jr.’s unwavering commitment to people, we created The Moran Fund in 2015 as a non-profit employee relief fund designed to directly support Aubuchon Company employees and their families in times of need. The fund is supported by contributions from fellow employees with the company matching each contribution dollarfor-dollar and funding the operating costs. As of December 2021, there have been 132 Moran Fund grants for a total of $271,000 in support provided to employees in times of need. Here at the Aubuchon Company, we take care of each other.
We have seen a lot since 1908, and together we have always endured. We want you to know that we will be here for the cleanup, we will be here for the rebuild and we will be here to serve our Vermont communities. Vermonters will persevere and the Aubuchon Company will be here to help. n
• Anna Davison, Joe Swiggum and Dustin Byl have purchased BMC Farm and Home Center in Soldiers Grove, Wis., from Wayne and Mary Burkum and renamed it Solar Town Farm & Home.
• Sunshine Ace Hardware held grand opening for new store in Naples, Fla.
• Ace Hardware Marketplace opened new store in Louisville, Ky.
• 84 Lumber Company opened new store in Morgantown, W.Va.
• Koopman Lumber & Hardware opened new store in Dennis, Mass.
• Jamie Meholick opened his second 814 Home & Hardware store in Brockway, Pa.
• Kevin and Any Wagner acquired
Koopman Lumber & Hardware
Brinkmann’s Hardware
Hardware
Clements Ferry Ace Hardware in Charleston, S.C.
• Brinkmann’s Hardware opened its fifth location in Glen Cove, N.Y.
• Studs Lumber Co. opened its second location in Pagosa Springs, Colo.
• Frank Herrera and Rod Rothermel opened their fourth Fischers Do it Best Hardware in Mont Belvieu, Texas.
• Tom and Lisa Benjamin and Corey and Brooke Nickles opened Country Fresh Market & Hardware in Benton, Pa.
• Grant Rosenberger opened Ace Hardware of Lewistown in Lewistown, Pa.
• Lake Country Lumber opened in Minong, Wis.
• Brian and Gina Hodges are the
new owners of Ace Hardware and Rental in Claxton, Ga.
• Northern Lakes Cooperative opened Northern Lakes True Value Hardware in Hayward, Wis.
• Townsend Building Supply held a grand reopening in Troy, Ala., after a remodel.
• Sarah and Amy Pitkin have acquired J.E. Rice Co. in Manassas, Va., from the Rice family, which had owned the business since its founding in 1936.
Walter Toole of Toole’s Ace Hardware
• Waref and Danielle Hawasli are the new owners of Pointe Hardware & Lumber in Detroit.
• Jessica Rowell-Greenfield opened Miller’s Ace Hardware in Citrus Heights, Calif.
• Westlake Ace Hardware is opening a new store in Olathe, Kan.
• Century Club retailer Dain’s Lumber in Peekskill, N.Y., is celebrating its 175th anniversary with a street festival in August.
• Walter Toole is celebrating the 40th anniversary of Toole’s Ace Hardware, with 12 stores in Florida.
• Howard Lumber & Hardware in Statesboro, Ga., is marking its 70th anniversary.
• Beisser Lumber Company in Grimes, Iowa, is celebrating its 70th anniversary.
• General Building Supply in Huntington, W.Va., is marking its 70th anniversary.
• Zuern Building Products in Slinger, Wis., is celebrating its 70th anniversary.
• Goldsboro Builders Supply in Goldsboro, N.C., is marking its 70th anniversary.
• Slavens True Value Hardware in Cortez, Colo., is celebrating its 70th anniversary.
Larry and Norma Dagley of Circle Hardware & Lumber
• Scotts Corners Hardware in Montgomery, N.Y., is marking its 35th anniversary.
• Sliters Lumber & Building Supply, with three locations in Montana, is celebrating its 90th anniversary by supporting 90 local nonprofits in 2023.
• Circle Hardware & Lumber in Waco, Texas, was honored as a Texas Treasure Business by the McLennan County Historical Association.
• Killingworth True Value Hardware in Killingworth, Conn., is marking its 40th anniversary.
• Century Club retailer Pierce & Co. in Hallsboro, N.C., is celebrating its 125th anniversary.
• Sunshine Ace Hardware was honored as Best Place to Work in Southwest Florida by Gulfshore Business magazine.
• Professional Builders Supply in Raleigh, N.C., is marking its 20th anniversary.
• Len-Co Lumber in Buffalo, N.Y., is celebrating its 65th anniversary.
• Graber Building Supply in
Sullivan, Ill., is marking its 35th anniversary.
• Kredo Hardware in Broadview Heights, Ohio, is celebrating its 125th anniversary.
• Buck Lumber & Building Supply in Charleston, S.C., is marking its 75th anniversary.
• Albeni Falls Building Supply in Oldtown, Idaho, is celebrating its 75th anniversary.
• Century Club retailer Maze Lumber Company in Peru, Ill., is marking its 175th anniversary.
• Home Central Stores in Owego, N.Y., is celebrating its 50th anniversary.
• Estwing Mfg. is marking its 100th anniversary.
• H & H Home and Hardware in Marion, Ky., was honored with the 2023 Community Partner of the Year award from Crittendon County Schools.
• Hacienda Home Centers in Albuquerque, N.M., was recognized as New Mexico family-owned small business of the year.
• The Liesemer family is celebrating the 150th anniversary of Liesemer’s Home Hardware in Mildmay, Ontario, making it the oldest Home Hardware store in Canada.
• STIHL Inc. has been recognized as a “weather visionary” at The Weather Company’s exhibit at this year’s Cannes Lions International Festival of Creativity.
• Chris Keffer has been promoted to president and CEO of STIHL Inc., effective August 4, replacing Terry Horan, who was named to the company’s board of directors.
• Orgill has promoted Earl Bernard to communications director and Kristyl Lawson to director, talent development.
• Ace Hardware Corp. hired April Hedgspeth as project analyst for corporate retail operations.
• Lowe’s named Quonta Vance executive vice president, pro and home services.
• 84 Lumber promoted Dave Rumbaugh to vice president of logistics and specialty purchasing.
• House-Hasson Hardware appointed Lysette Aviles as vice president of human resources.
• Do it Best named Robin Bredemeyer, Mallory Bates and Dustin Clark merchandise managers, Kendall Cooper and Megan Morgan associate merchandise managers, Dan Wasvick INCOM and sales product manager, Gabe Arnold
product sales manager and Sarah Clark supply planning operations supervisor.
• House-Hasson Hardware has promoted Taylor Hasson to vice president of strategic retail management.
• Hardlines Distribution Alliance promoted Trent Kauffman to director of merchandising.
• Member Insurance Ltd. appointed Rob Gardiner, owner of Damariscotta Hardware and Randolph Hardware in Maine, to serve as board chair.
• Hillman Solutions Corp. promoted Jon Adinolfi to chief operating officer.
• LMC promoted John McKenna to purchasing manager.
• Ace Hardware ranked highest in customer satisfaction for the fifth straight year in the J.D. Power U.S. Home Improvement Retailer Satisfaction Study.
• True Value Company is sponsoring Project Green Freedom, the first net-zero Habitat for Humanity community in Illinois.
• House-Hasson Hardware enjoyed record dealer and vendor attendance
at its Summer “Splash of Savings” Dealer Market, held June 15-17 in Sevierville, Tenn.
• Simpson Strong-Tie has acquired certain assets of Pieresearch LLP, which offers rebar reinforcing alignment products.
• Spoga+gafa 2023, the garden lifestyle trade fair in Cologne, Germany, drew 30,000 trade visitors from 122 countries.
IN MEMORY:
of U.S. flags at all stores. Click here for more.
• Dick Clemence, Hyde Group chairman, passed away June 11 at age 83. Click here for more.
• Jean Kenosky, 96, retired co-owner of Brookside Lumber Co. in Hawley and Moscow, Pa., passed away April 9.
• Hugo “Bud” Zenker Jr., former owner of Freese True Value Hardware in Lakewood, ohio, passed away May 17 at age 92. He was a U.S. Army Korean War veteran.
• Gregg Thayer, owner of Beck Lumber Co. in Kelliher, Minn, died April 22 at age 72.
• Ronald Fortner, owner of Fortner Lumber Co. in Hiddenite, N.C., passed away May 9 at age 71.
• James “Jim” Cohen, the fourth generation of his family to head the Central Hardware retail chain, passed away June 11 at age 76. He served in the U.S. Navy during the Vietnam War. He spent two decades working nearly every position at Central Hardware before succeeding his father Stanley as president in 1987. Jim was a sponsor and director of the Senior Olympics and received the AMVETS Silver Helmet Award for Central Hardware’s patriotic displays
• Ace Hardware elects new board members. Click here.
• Smith Lumber Co. celebrates 100th anniversary. Click here.
• Simpson Strong-Tie supports kids in need. Click here.
• Ace Hardware to build new DC in Missouri. Click here.
• Mead Lumber unveils rebranding initiative. Click here.
• Nation’s Best acquires Texas home center. Click here.
Florida Hardware Fall Dealer Market
August 25-26, Renaissance Orlando at SeaWorld, Orlando, Fla.
International Istanbul Hardware Fair 2023
August 24-27, Istanbul Expo Center, Istanbul
Orgill Fall Event
August 1-3, Dallas Marriott Downtown, Dallas
The Hardware Conference
August 18-20, J.W. Marriott Marco Island Beach Resort, Marco Island, Fla.
Ace Hardware Fall 2023 Convention
September 19-21, Orange County Convention Center, Orlando, Fla.
Blish-Mize Fall Dealer Market 2023
September 14-16, Overland Park
Convention Center, Overland Park, Kan. Bostwick-Braun North Fall Dealer Market 2023
September 20-22, Glass City Center, Toledo, Ohio
China International Hardware Show 2023
September 19-21, Shanghai
International Expo Centre Shanghai, Pudong, China
Do it Best Fall Market
September 8-11, Indiana Convention Center, Indianapolis
Google Calendar iCalendar Outlook 365 Outlook Live SUBSCRIBE TO OUR CALENDAR
Horizon Distribution 2023 Expo Virtual Trade Show
September 6-8
Monroe Hardware Fall In Store
Virtual Dealer Market
September 11-29
True Value Fall Reunion
September 14-16, George R. Brown Convention Center, Houston
United Hardware Fall 2023 Buying Market
September 27-29, Mayo Civic Center, Rochester, Minn.
United Hardware Fall 2023 Buying Market (Virtual)
September 26-October 6
Wallace Hardware Fall Dealer Market
September 26-28. Sevierville Events Center, Sevierville, Tenn.
House-Hasson Hardware Fall Dealer Market
October 6-7, Sevierville Events Center, Sevierville, Tenn.
Orgill Online Winter Buying Event
October 30-November 12
For a complete listing of calendar dates, click here.
Bliffert Lumber & Hardware held a grand reopening in Germantown, Wis., with a special celebration on June 23.
The newly remodeled store offers customers a comprehensive cabinet showroom and window and door displays, as well as a variety of helpful services like storm and screen repair. The store’s updated and organized layout and wide product selection all combine to make it an ideal resource and destination for both do-it-yourselfers and professional contractors.
“We are very excited to celebrate the reopening of our newly remodeled store, and we look forward to being an important addition to this community,” said Eli Bliffert, vice president. “It is very important to us to carry on the tradition of excellence that the Neu family exhibited here at this location for so many decades.”
Working closely with the co-op team at Do it Best, Bliffert’s designed and planned the store, ensuring each detail was well thought out to provide the optimum experience for customers.
Bliffert Lumber and Hardware, a member of The Hardware Connection Century Club, has served contractors and homeowners in southeastern Wisconsin for nearly 120 years. Since
Bliffert Lumber hosted a grand reopening for its Germantown, Wis., store after a redesign.
the company’s incorporation in 1904, they have helped the community grow by supplying building materials to hospitals, stadiums, new homes and a variety of other projects. Now in the fifth generation of Bliffert family ownership, they are proud to be family-owned and operated and make sure that the personal service shows at each of their 13 locations. n
85%
Visa and MasterCard’s control of credit card and debit card transactions, according to the Institute for Local Self-Reliance (ILSR)
$15 billion
Estimated savings per year if the bipartisan Credit Card Competition Act of 2023 is passed by Congress, which is designed to reduce excessive credit card swipe fees and spur competition.
7x How much more American businesses pay in credit card swipe fees compared to European businesses, according to ILSR.
2%
Average credit card swipe fee per credit card transaction in U.S., compared to 0.3% in the European Union, according to ILSR.
38%
Percentage of respondents to a national survey of independent small businesses who said credit card swipe fees are a significant challenge for their business, according to ILSR. Sixty percent said capping fees would be very effective at helping small businesses survive and succeed.
$68
Amount out of every $100 spent locally that stays in the local economy, according to “The Multiplier Effect of Local Business Ownership” by Civic Economics. That means each dollar spent at an independent business returns three times more money to the local economy than a dollar spent at a national chain.
