Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
Associate Publisher: Craig Cope craig@thehardwareconnection.com 804-690-0666
By Chris Jensen
Modern retailing methods are necessary if a retailer wants to stay competitive in today’s cut-throat retail arena, but that doesn’t mean all old-fashioned hardware stores are outdated. Aging baby boomers in particular enjoy the nostalgia of shopping a store that harkens back to a simpler time, yet offers all the conveniences of a modern merchant.
Take Granite Falls Hardware in Granite Falls, Wash., operated by Danny and Becky Meeks. The store, which dates back to the 1920s, still features the original squeaky wooden floors from a building that used to be a burlesque theater. The Meeks have also installed a sophisticated point-ofsale system so they can keep track of their inventory like their more modern competitors do.
Walking through the door of Wakarusa PRO Hardware in Wakarusa, Ind., is like stepping back in time, starting with the original hardwood floors. Owner Mike Schade can point out more than 1,000 wood drawers lining the walls to amaze customers, but it is new additions like rental and package
shipping that keep the business afloat.
Nathaniel Garber Schoen is the fifth generation of the Garber family to operate Garber Hardware, which has been open in the West Village of New York City since 1884. The nearby Home Depot cannot touch Garber’s ability to offer hard-to-find items with knowledgeable advice.
Richie Crabb and his sister Sandy Novak are the third generation of their family to operate Busy Bee Hardware in Detroit. The business got its start in 1918 catering to farmers selling goods at the local market and now uses the original seed counters to sell to a new generation of urban farmer.
Visit the second floor at Busy Bee Hardware and you will encounter antique bike hardware, century-old safes, cast-iron stoves and antique pedal cars. Take the rope-operated elevator to the bottom and you will discover a tunnel and a series of hallways that were likely the home of a prohibition-era distillery.
Old-fashioned is a misnomer. Hardware stores that have character will always be in fashion. n
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the way i see it
WBy Tom Chasteen
hen you own your own hardware business the unexpected is more the norm than not. Usually the issues we are not prepared for are finding hard-to-find special items for customers or contractors who simply must have the right part that will fit in the same location or be compatible with the existing equipment. The dealers who have a lot of commercial or industrial accounts know exactly what I mean. Those are not the issues to which I’m referring. The ones I’m referring to are much more involved and can be devastating to a small business owner. They are the issues that have no warning and can totally disrupt a business operation both in the short term and the long term if we don’t take proper precautions. Mayhem usually comes in three categories: health issues, weather issues and legal issues. We will focus on the first category.
Health issues typically occur when a key person (store owner, manager or family member) is faced with a life-threatening health issue that will inhibit their ability to function effectively within the business.
The first time I encountered this type of business issue is when my father was diagnosed with terminal stomach cancer 19 years ago. It was totally unexpected. He played golf on Thursday, went in for routine tests on Friday, was diagnosed on Saturday and started chemotherapy on Sunday. Five months to the day that he was diagnosed my father, my best friend, my mentor and business partner was gone.
His illness affected our whole organization. My mother was our bookkeeper and they had been married 52 years and she was obviously even more devastated than I with the news and the treatment process that was to follow for the next five months. The chemo treatments were every week and we lived two hours (one way) from the closest treatment facility. So each week the three most important people (we thought) were out of the office all at the same time.
What I learned and vowed to do was focus on the delegation of responsibilities so that if one person was not able to perform those duties someone else could, maybe not as efficiently but the job would get
the way i see it
done. The other thing I learned was to accept the fact that those duties would not get done the way I would do them or as thoroughly as if I had done them, but I came to trust that they would get done. My reasoning was that the president of General Motors didn’t come down and oversee the production of each car and if he could figure it out so could I.
We had always believed in technology and our point-of-sale computer was critical in this process to allow me to develop the tools to manage our family business without touching every widget. We could not justify (or at least thought we couldn’t justify) key person insurance, but it is something we wish we would have had at the time.
I don’t believe there is anything you can do to anticipate a catastrophic issue like a terminal illness, but there are some things you can do to “stress test” your business to identify the areas you need to focus on. It’s a very easy thing to do. Tell your top person to take an unannounced and unplanned week off from work (with pay of course) and do not allow them to communicate with anyone from the store. The issues will begin coming to the top almost immediately, especially if they were responsible for opening the store that day.
Take your time. Don’t become frustrated. The purpose of this drill is to find out what the issues are, not to get upset because you have issues. Write down each problem you encounter. Don’t try to fix it—see if your staff can fix it themselves. If they can it’s really not that big of an issue. Then after your key person comes back to work, sit down and figure out how you can delegate or teach someone else how to handle the big issues if they are ever needed to step in again.
This is the very reason we had fire drills when we were in grade school, so in the event of an emergency we knew what to do. Would it eliminate the crisis? No. Would it eliminate the chaos? No. However, it will help ensure everyone gets out alive or, in this case, the business continues to function.
Use your computer system and at the very least set your minimum stock levels and your maximum stock levels on your A and B movers—that’s the 20 percent of your inventory that moves 80 percent of the time and where hopefully 80 percent of your gross profits are earned.
Look into insurance quotes for key person insurance. See if going with either a high deductable or a limited defined benefit is feasible.
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Some insurance companies will offer a variation of key person insurance with their insurance packages. Asking the question and getting a quote are free.
Talk with your bank to see if you have overdraft protection and if you need a line of credit. It’s easier to fi ll out the application now versus waiting until you are in the middle of a crisis and the bank is scrutinizing every move you make.
Finally, speak with your suppliers. Share your emergency plans with them and ask them how they can help as well. You will be surprised what some may say. I was totally taken aback when one supplier we had been doing business with for over 20 years offered us 180 days dating and didn’t even ask me. When he called it was a very emotional conversation. I assured him it wasn’t necessary but the thought that he was willing to stand behind me meant the world to me and my father.
I encourage you to not wait to “stress test” your business until you have no other choice. Do it when you can make the adjustments needed without the added stress and confusion.
Let me know your thoughts on this subject, from one retailer to another, by contacting me at tom@thehardwareconnection.com . ■
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Allen BiedrzyckiHuffman True Value Huffman, Texas
I’ve been asked for both protein gas and profane gas today.
Hannah Stewart Stewart Hardware Southport, N.C.
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Dan Vogel Lee’s Do it Best Home Center Millstadt, Ill.
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items and we have most of them. It’s an impulse buy and people recognize the Shark Tank brand.
What new initiatives are planned for 2015?
Sales and customer counts so far in 2015?
It’s been a tough year so far, especially going against last year. We had our best January ever last year because we had a ton of snow. This year, we didn’t have any weather. So we’re down about 4 percent in sales and about 3 percent in customer count.
Best new product you’ve added in last year?
We’ve had some good luck with the Shark Tank items. It’s a promotion from Ace and a tie-in to the TV show. Ace has a whole assortment of Shark Tank
We are going to completely redo the light bulb aisle. Ace has a new assortment that’s heavily focused on LEDs. We’ll be putting that in during the second quarter. We’re also going to do a complete plumbing reset, mostly undersink and toilet repair. One of the reasons for the reset: Ace is offering plumbing assortments based on region. I’ll use the Midwest/Chicago version. That way, I’ll have the right pieces and brands for the toilets and sinks that are popular around here.
Paul McGivern Skokie Ace Hardware Skokie, Ill.
Sales and customer counts so far in 2015?
They’ve been just average. January, February and March are the slow months for us.
Best new product you’ve added in the last year?
We took on a line of Toro outdoor products that have been top sellers for us this year. It’s the name recognition that helps with sales.
New initiatives planned for 2015?
We are actually going to take on Generac and become a dealer. We have a mechanical services shop, and Generac goes hand and hand with it.
David Batson Batson’s Ace Hardware Bushnell, Ill.
Sales and customer counts so far in 2015?
We don’t have anything to compare them to. I purchased the business about 18 months ago.
Best new product you’ve added in last year?
We’re a Milwaukee power tool dealer, and I’ve been surprised by the number of cordless grease guns we’ve sold. Also, hacksaws have sold really well. We’re
and a lot of farmers shop here, along with trucking companies.
Strategy for competing against the big boxes?
Distance. We’re 20 miles from any big box. We’re sort of a convenience store, but we’re priced in line with the big boxes—some stuff cheaper, some more expensive.
New initiatives planned for 2015?
We will continue to refine our assortment. We’re setting up a bird feeder area. That seems to be taking off. We’re tweaking everything on a daily basis.
Junction Building Supply Dekalb Junction, N.Y.
Ivey’s Lumber
Sales and customer counts so far in 2015?
Our sales are good. We opened in a dreadful winter and had a tough first six months. We’re seeing really good signs. Outdoor products have paid dividends. Deck-building products have done well. It’s challenging on the lumber side. There are seven firms fighting for scraps. It’s definitely a builder’s world. As far as hardware, we’re building our recognition in the community. We’re in a town of about 5,000 and we’re anticipating a much higher customer count.
Best new product you’ve added in last year?
We brought in a line of shingles from a fi rm called Malarkey. In our area, we’re the only place that sells this brand of shingle. We’ve been very aggressive in how we’re pushing these shingles. It’s a good product. I just put it on my house. Far and
away, that brand has really helped us ramp up sales. Without it, we’d be in a drought.
New initiatives planned for 2015?
Paint, paint, paint. I am hungry to sell paint. We are nowhere near where we need to be to be a great paint store. We’re learning about purchasing and marketing of paint and how to approach commercial painters. We want to make paint what shingles were last year for us. I’m using billboards, cable TV ads and circulars to build our paint business. We’re also using social media. We have 744 followers on Facebook, and we try to act like a human, not a business on Facebook. We’re not constantly trying to sell, but posting things that are relevant to the community.
Josh Johnson Ivey’s Lumber Haughton and Mansfield, La.
Sales and customer counts so far in 2015?
We’ve had record months in sales and customer counts. It has to do with the storms. For all our stores, we’re up about 10 percent in sales and 11 percent in customer count.
Best new product you’ve added in the last year?
We’ve gone deeper in some of the point-of-sale impulse items.
New initiatives planned for 2015?
We’re putting in a postal service. I like the customer count aspect of it—the recognition and draw. I’d be happy to break even and take additional customers. We estimate it will draw 15 to 25 customers per day. We went with the USPS because it has a turnkey operation with no fees to get involved.
Kirby Kuklenski
Ace Hardware Uintah Gardens and South Academy
Ace Hardware
Colorado Springs, Colo.
Sales and customer counts so far in 2015?
Everything is a green arrow, except average sales. We’re running about 7.2 percent up in sales; customer count is up about 3 percent. The main reason is that we didn’t have much of a winter. We’re at 30 percent of normal snow. We keep improving our mix and resetting departments. We’re resetting the decorative section of our plumbing
department and having a total reset of the paint department.
Best new product you’ve added in the last year?
Paint has been really good for us, especially after Ace partnered with Valspar. One weekend, we sold 312 gallons of paint. In a town of 3,000 people, that’s big.
New initiatives planned for 2015?
We are becoming more active in emailing customers with seasonal item promotions. These emails will introduce new items. And this year we’ll have a new item endcap. We have 23,000 SKUs in the store, but customers can’t see them all.
Tom Meredith Deer Park Ace Deer Park, Wash.
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By Tom Chasteen
As we approach the spring wholesaler shows and we have had a chance to look over some of the new products coming out, we see that several companies consistently develop new and better products. One of the companies that I’ve noticed over the years is Dremel. They keep coming out with innovative tools that consumers and professionals use. Just look at all of the companies that now make a multi tool and the ever-growing list of available accessories we can now use with these tools.
Dremel still dominates the rotary tool industry with the many variations of the original Dremel tool. However, Dremel has continued to improve on the original tool and is making several variations to fit different classes of users and job demands. Their most recent model, the Dremel Micro, is a perfect example of Dremel’s desire to improve on an already fantastic product.
The Dremel Micro is powered by a lithium-ion battery, so it is both powerful and charges quickly. But the Micro has so many neat features.
It’s powerful enough to handle cutting off 5/16 bolt heads, but small enough and easy enough to handle even the most delicate carving projects. It has a digital speed indicator that allows the user to set the speed from 5,000 to 28,000 RPM with just the touch of a button on the handle.
It has a battery meter as well, so you will know how much battery power you are using and how much you have left. It has an LED light that illuminates the work area very well. But most of all, this tool just feels so good in your hand. It’s light and easy to move and hold in position. And this tool has power to do everything our testers put to it including cutting off that 5/16 stainless steel bolt head.
For more information on the Dremel Micro, click on this link: https://www.youtube.com/ watch?v=GDpXny02JCg
Dremel has also entered into the butane tool business with two outstanding products: the VersaFlame and the VersaTip. Both, in my opinion, could become market leaders in their respective categories.
The VersaFlame is a butane torch that is compact but is big enough to solder copper tubing fi ttings (3/4) and heat up seized bolts but can be adjusted to use with heat shrink tubing or making anelec trical solderi n g
connection. The butane tank holds enough butane to use the VersaFlame for 75 minutes of continuous use. Other features include a control for the amount of air the fl am ehasand
an ignition button that you can easily use with a safety lock. It also has a lock-on feature that allows you to set the desired fl ame temperature and stand the VersaFlame on your work surface so you have the use of both hands.
With the large tank capacity you can easily complete most jobs on just one tank full of butane. Our testers actually had a hard time using up one tank of butane while testing the VersaFlame. For more information on the VersaFlame, click on this link: https://www.youtube. com/watch?v=-QbhDIi9qY4
The VersaTip is a butane soldering iron and it exceeded all of our testers’ expectations. Soldering an electrical connection in a remote area is always a problem and if it is windy most butane soldering guns or irons get blown out by the wind at the most inopportune time. That is not the case with the VersaTip. In addition,
the VersaTip can be turned on with one hand with an ingenious safety lock mechanism. It also is the perfect size for someone’s hand— it’s not big and bulky.
The VersaTip also has many other uses. Our testers used it to cut nylon webbing with the cutting knife attachment as well as heating heat shrink tubing on the soldered joints.
Other features include:
• Interchangeable flame guard with extra tools included in the kit.
• Easy to thumb trigger and convenient safety lock.
• Fine pointed soldering tip.
• Cutting knife tool and knife tool for shaping plastics and nylon.
• Air tip.
• And a really nice feature—a protective cap.
For more information on the VersaTip click on this link: https://www.youtube.com/ watch?v=wYwALqIkcoc
The bottom line is that I would give each of these Dremel products five stars. They have been well designed and work as well or better than advertised. Stop by the Dremel booth at an upcoming show and take a look for yourself. I think you will agree that Dremel has done it again.
By Chris Jensen
The big boxes have saturated nearly all of the markets in the United States and Canada, but that doesn’t mean independent retailers can breathe a sigh of relief. Competing against the big boxes is still fraught with danger if you don’t pay attention to the details of retail and especially if you don’t stay sharp with your pricing.
Price, location, service and convenience will continue to be redefined in today’s online-driven world. The big boxes are probably more concerned about fending off Amazon’s ever-expanding reach than
Two keys to Leeper Hardware’s success in the face of big-box competition, according to Lisa and Brian Williams, are great customer service and knowledgeable employees.
worrying about the family-run hardware store down the street.
Since the boxes are running out of locations to place their huge warehouse stores, they have no choice but to rely on smaller formats to keep growing. Later this year Lowe’s plans to open two 30,000-square-foot stores in Manhattan, which follows on the heels of Lowe’s purchase of
72 Orchard Supply Hardware stores of similar size back in 2013.
Independent hardware and home improvement have been successfully competing against the big boxes for more than 35 years. Read on to discover five secret strategies for battling the boxes.
Sullivan Do it Best Hardware & Garden places great emphasis on the store’s long-established local roots in the Indianapolis market.
Local retailers return an average of 52 percent of their revenue to the local economy, compared to just 14 percent for chain retailers, according to a study by research firm Civic Economics. Unfortunately, not enough retailers promote such facts to their customer base.
Pat Sullivan of Sullivan Do it Best Hardware & Garden in Indianapolis builds ties to the community by sharing his hardware knowledge each Saturday morning with a four-hour call-in radio show he has hosted since 1995. Sullivan uses wit and wisdom to answer caller questions on DIY projects. “It’s a great way to promote the store and establish us as local experts,” he says.
When Sullivan remodeled and expanded his main store a decade ago, he made sure the design incorporated photo murals that played up the fact that the business has been locally owned and operated by the Sullivan family since 1954.
In the Berkshire region of Massachusetts, locals have gone to extreme measures to ensure big boxes do not take over the retail community— they started their own currency to promote support of local businesses.
Baldwin Hardware, a True Value store in West Stockbridge, Mass., that dates back to 1864, is one of more than 400 businesses in the Berkshire region that accept a local form of currency called BerkShares. One BerkShare dollar equals one U.S. dollar, with customers gaining a 5 percent discount when they make an exchange at participating local banks. Since the program was launched in fall 2006 more than 5 million BerkShares have been placed into circulation.
“We’re doing more to leverage local, since people want to do business with local companies. Customers are more aware than ever how money is being recirculated in the community,” says Michael Wynn, president of six-store Sunshine Ace Hardware in Naples, Fla.
Brian Barrows, owner of Barrows Hardware, connects with customers through the company’s website and Facebook page.
When their downtown Naples store was remodeled a few years ago, Sunshine Ace’s design incorporated 24 photo panels around the perimeter along with more than 70 photos that feature the Wynn family or old-time shots of Naples. Three large murals were hand-painted by local artists to depict old-time Naples scenes.
Customer service is the best weapon independents have to use against the big boxes, according to David Batson of Batson’s Ace Hardware in Bushnell, Ill. “We make sure we take care of customers as soon as they’re in the door. Once they’re on the floor, they get help. When a customer comes in a small store, they’re coming to buy something, not shop,” Batson says.
Brian Barrows of Barrows Hardware in Worcester, Mass., which celebrated its 100th anniversary last year, credits his employees’ expertise and a customer service mindset as keys to the store’s success in a market with several big-box
stores. Within 10 miles, there are five big-box stores and several independent retailers.
“My employees know how to ask questions and take an interest in what customers want to accomplish,” Barrows says. “Then, the store employees can point out other products that customers might need. When they interact with the customers on that level, sales increase and the customers have a better experience, because they don’t have to make several trips to finish a project.”
“We certainly want to out-service the boxes,” said Paul McGivern of Skokie Ace Hardware in Skokie, Ill., who says they also place a strong emphasis on the Ace Rewards Loyalty program, which covers about 60 percent of their transactions.
To help with customer service, McGivern uses the Ace training program Helpful 101. “We are a certified Ace Helpful store. It takes about two hours and has exercises and practice for customer service, such as how to greet customers, questions to ask for add-on sales and how to make sure customers come back. That’s been really beneficial,” he says.
Participating in a monthly mystery shop program has also been a valuable tool for Skokie Ace. “It’s a way to know how customers are being treated. My employees really get into it and it’s on
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the foremost of their minds. They’ll often ask whether the mystery shopper has visited the store,” McGivern says.
“For me, it comes down to providing service one person at a time. We try to move faster and be more flexible as far as special orders,” says Josh Johnson of Ivey’s Lumber in Haughton and Mansfield, La.
“Customer service is our main focus against the boxes. We try to make sure every employee provides the best customer service,” says Kirby Kuklenski, who owns Ace Hardware Uintah Gardens and South Academy Ace Hardware in Colorado Springs, Colo. “We have daily huddles, weekly management calls and monthly meetings. The first and foremost focus in every one of those meetings is customer service.”
Since they operate smaller stores, independent retailers have always had the advantage of convenience against the mammoth warehouse home centers. However, convenience means different things to different people.
Big-box stores are increasingly using self-checkout stations, which many customers find more annoying than convenient. “Customers are value-conscious but time-conscious too,” says John Gavin of Gavins Ace in Fort Myers, Fla. “We turn them around with eight POS
In addition to Ronnie, Tonia and Eric Boland, Boland’s True Value in Chapin, S.C., has 12 full-time employees who are dedicated to providing exceptional service that stands out in comparison to service levels at the boxes.
registers, as customers really see value in getting in and out quickly.”
The convenience-oriented retailer should focus strictly on technologies that streamline the shopping experience and lower operating costs through efficiency. Simply, the goal is to get the customer in and out with what they came for as quickly as possible and at the lowest competitive price. Self-serve information kiosks and digital price-checkers are just a few examples of in-store technologies that could help support the convenienceoriented experience, according to Doug Stephens of Retail Prophet Consulting.
Other considerations may include allowing customers to buy online and pick up in-store or conversely buy in-store with free home delivery. “Whatever technologies make it fast, easy and efficient to shop your store are the ones you should be actively seeking out. Don’t get sidetracked by any technology that doesn’t support this goal, no matter how slick or cool it may appear to be,” Stephens says.
Barrows credits the store’s web site and Facebook presence with providing an uptick in younger customers.
“A lot of first-time homeowners in the ’90s were of the mindset that they had to go to the big-box stores with their endless selection,” Barrows says. “That mindset is changing. Some younger customers now consider us a good choice. We’re getting a younger crowd and the web site and Facebook is how we’re trying to build momentum with that.”
Online sales are projected to rise 13.5 percent this year, further proof that online selling is the new and future king of convenience. If independent retailers want to stay in the game, they will need more than a bricks-and-mortar location to win the hearts, minds and wallets
of the next generation of consumers. Offering online ordering with store pickup will increasingly become a critical component of retail success against the big boxes.
Most hardware retailers have figured out that they cannot sell the exact same products as the big boxes and stay in business.
Wash.,
Tom Meredith tries to carry the hardto-find items that the big boxes don’t carry because they are slow moving.
“We also stock project quantities on shelf. I review every purchase order to
look at how many sold, and to see if we can up our order to increase quantity on hand,” he says. “For example, I upped the quantity on hand for stainless steel sprinkler pipe clamps. So if the bin quantity drops to 60, we’ll bring it back up to 120. We’ve tripled sales on that one item.”
Meredith will also review slowermoving items to see if he can increase quantity, assuming it will fit on shelves. “The saying goes: ‘One to show, one to go.’ But if you do that, you’ll never sell more than two,” he points out. “A while back, Ace offered three months dating. Everyone I knew was ordering A and B items. I was ordering my D items
to get those quantities up. When you have more on hand, it increases sales, not across the board, but it really has proved to work out well.”
Sunshine Ace’s Naples store stocks 45,000 SKUs in 14,000 square feet including 1,430 fishing rods and 226 rod/ reel combos. Not a single one of those fishing items can be found at the boxes.
“We need to be more strategic about everything. We have to do things right 99 percent of the time if we want to keep up with the boxes,” explains Wynn.
The big boxes have been slowly raising margins for the past decade. They
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John Gavin (right) and his brother Ron of Gavins Ace in Fort Myers, Fla., have always believed that service is their number one weapon against the boxes.
remain razor sharp with their prices on about 250 price-sensitive items, but they are continually pushing up margins on blind items.
If you have a Menards store in your trade market, then it’s even more imperative that you pay close attention to your prices as the Midwestern big-box operator’s entire business model is centered on being the lowest-priced store in town.
“Menards’ prices are always low. Their quality is generally lower as well,” says Brandon Buckalew of Hardware Hank in East Grand Forks, Minn. “We had someone chew us out because our down spout was four times more expensive than Menards’ price. Theirs was a cheap product and they weren’t comparing apples to apples,” he adds.
“Menards is big in Illinois and they do have very low prices, but overall they will carry anything they can get cheap,” says Scott Allen of Paxton True Value Hardware and Rental in Paxton, Ill. “They often have low-quality items that irritate customers. Customers do tend to
go back for low prices though, and we have to occasionally bail them out of a jam with quality merchandise.”
Johnson at Ivey Lumber in Louisiana has one store that is about 40 minutes from a box, but his other store is seven minutes from a big box. “It really changes how we do business and our pricing has to be more competitive. Now, we track the big-box’s lumber prices every day. I do weekly price changes on hardware. The pricing is more competitive,” he says.
As one of only three independent hardware businesses remaining in its county, Leeper Hardware in Jefferson City, Tenn., has been competing with the big boxes for a decade.
“We’re aware of big boxes’ prices and adjust accordingly. We are constantly on Etoolbox (House-Hasson’s electronic communication program) checking prices,” says Lisa Williams, second-generation owner of the business, which celebrated its 65th anniversary last year. “Electrical wire is a big issue, but you can’t afford to have your prices out of whack on any product or you’ll lose a customer.”
Adds her son Brian Williams, “While people have a basic idea to shop local, loyalty is rare now. People are more price loyal than store loyal.”
“You have to be your own competition. If you’re high-priced when someone comes in they’ll never let you forget,” says Gavin at Gavins Ace. ■
Whitney McKellar, with husband Sean Stevens, represents the third generation of her family to operate M&M Lumber in Tulsa, Okla.
had an important job operating a saw mill on Guadalcanal for the Navy during World War II, helping construct air strips, bridges and other vital elements of the Allied forces’ war plan from whatever they could scrounge up on the island. After the war he returned home to Tulsa, Okla., and went to work for Ernest Miller at Tulsa Lumber. In 1964 McKellar became a partner in the business, changing the name to M&M Lumber and moving it to its current location next to a rail spur. McKellar, who passed away in 2001, later bought out his partner and passed on the business to his son, Jim McKellar Jr. in 1987. Now the third generation of the family is involved. Whitney McKellar grew up and stayed in the business started by her grandfather and is married to Sean Stevens, who has been working in the company since high school.
M & M Lumber
Tulsa, Okla.
Wholesaler: Handy Hardware and Blish-Mize for hardware and Allied Building Stores for commodities.
Year Founded: 1964.
Salesfloor square footage: 10,000 square feet plus a 12-acre yard.
% Sales Pro vs. DIY: 95-98% pro, with very few walk-in customers. 2014 sales increase: 8-10%.
Number of employees: 36.
Top core categories: Lumber and plywood.
Most successful niches: We specialize in cedar, which is a cut above and doesn’t split as much. We carry fire-treated lumber and some marine plywood that not everyone carries. We’re known for carrying long-length lumber such as I-joists and LVLs (laminated veneer lumber) that we keep in stock. We carry different brackets for building pergolas and arbors and a decent amount of pneumatic nails that are geared toward contractors.
What is your strategy for competing with the big boxes? We’ve got Lowe’s and Home Depot two and a
The Tulsa Zoo sold oversized penguins as part of a 2002 fundraiser and one ended up guarding the entrance to M&M Lumber. Through the years the penguin has been dressed up with overalls, football uniforms and toolbelts.
half miles from us and there are eight big boxes in Tulsa. We don’t have carts inside the store—we load people’s trucks for them in the yard. We carry material over 16 feet that the big boxes don’t. We do free delivery and they charge $50-75. The biggest advantage is having long-time employees with product knowledge who know what products will and won’t do and aren’t afraid to tell customers.
Biggest challenges facing business? Finding new employees. We have a lot of employees who have been here a while, so it’s hard to find new blood with an old school feel. We are constantly striving to become more efficient with our operations, carrying
Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.
• Independent Hardware Store Owners and Managers
• Vendors Involved in the Two Step Hardware Industry
• Service Providers Involved in the Two Step Hardware Industry
• Wholesalers/Distributors
• Industry Professionals
• Membership benefits include up to six networking events per year held in conjunction with other industry events.
• Each event will have a business focus offering direct and immediate benefits.
• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.
• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.
the right products and getting things done in a streamlined way.
How do you ensure customer service stands out? It’s about the relationship of knowing the right person to get something done. We call before delivering. It’s all the little things you do when you say you’ll do them. Everybody sells the same widgets, but we try to make it about the total project. Explain the humorous initiation ritual you go through with new hires: It’s a tradition that goes back a long time in the company, and it’s a way to get a green person acclimated to the different parts of the business. We’ll say we need sky hooks for a board so we can make it straight or need a board stretcher. We’ll send them on a wild goose chase from the door shop to the lumber counter and out into the yard, and everyone is in on it and trying to keep a straight face. It’s happened to so many people now that everyone in town knows about it.
How did you weather the recession and housing downturn?
Left: The employees at M&M Lumber have more than 450 combined years of experience.
Right: An old Sinclair Dino gas pump lends a measure of nostalgia to the sales floor.
Oklahoma never got too far out of line on housing, so there was a smaller percentage that was affected. We don’t do any tract homes and the custom home builders were not hit as hard as tract builders. Our business remained fairly stable.
What lessons have you learned about retailing over the years?
Whether it’s building a house or painting a room, it should be fun. People come in here all stressed out and our job is to get them to whatever picture they have in their head about a particular project.
What is the smartest thing you did in the past year? We started implementing monthly meetings for operations guys and the front counter, opening up communication with them. We watch videos for product
knowledge and it allows for one-on-one time with our employees. There’s also a monthly newsletter just for employees.
Your dad Jim, mom Ann and husband Sean are involved in the business. What is everyone’s role?
We always have a plan when we walk in the door each day, but then the plan goes out the window as the day unfolds. We have different areas we focus on. Sean oversees the door shop, dad still does a lot of the lumber and mom is still involved in the business. It’s been awesome to work with them every day.
Above: The 10,000-square-foot salesfloor does not cater to walk-in customers but instead focuses on the needs of builders and contractors.
Top Left: This old photo shows how the business was relocated next to a rail spur for ease of lumber shipments.
Lower Left: M&M Lumber offers free job-site delivery.
Talk about the importance of carrying on the business as a thirdgeneration owner: It’s great but there’s a lot of pressure. A lot of the guys who work here taught Sean and I everything we know, so it’s hard to discipline them sometimes. You learn that business is like an assembly line— it doesn’t work unless everyone goes together.
How did you commemorate the company’s 50th anniversary last year? We threw a big party with vendor tables, food and a band. Our lumberyard is located right next to railroad tracks with a spur, and Sean arranged for a locomotive and caboose to be parked here for the party. n
This year’s Hardware Conference, set for September 11-13 at the Marco Island Marriott in Marco Island, Fla., promises to be better than ever. The industry’s premier event for independent retailers will again be highlighted by the Beacon Awards, a new recognition program that was introduced two years ago.
The Beacon Awards, which are co-sponsored by The Hardware Conference and The Hardware Connection, are designed to honor the “best of the best” independent hardware/home improvement retailers while encouraging a new generation of retailers to make their mark.
Premier Beacon Award Sponsors include Apex Tool Group, Epicor Software Corp., Sunnyside Corporation, 3M and Sherwin-Williams Diversified Brands Division. Additional wholesaler sponsorship support comes
Sponsors:
Co-Sponsors:
from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Co.
The Beacon Awards honor the Retail Beacon Award winners for each of the participating wholesalers, plus the Best
New Stores in two categories: under 20,000 square feet and over 20,000 square feet. Whether it’s an existing retailer opening a branch store or a newcomer opening a ground-up business, these new stores represent the future of the industry.
“We have heard lots of positive comments from the winners and our sponsors, and we plan to put on an even better awards banquet at this year’s Conference,” said Tom Delph, who serves as Beacon Awards program director.
Here are the five Beacon Award honorees for 2014:
• Best New Store, over 20,000 square feet: Geneva Ace Hardware, Geneva, Ill., owned by George and Lynn Havlicek
• Best New Store, under 20,000 square feet: Gecko True Value Hardware, Dallas, Texas, owned by Andrea Ridout
• Retail Beacon Award: University Ace Hardware, Auburn, Ala., owned by David and Carolyn Fichtner
• Retail Beacon Award: Complete Home Center, Hernando, Miss., owned by Tom and Cherie Bradley
• Retail Beacon Award: True Value of Concord, Concord, N.C., owned by Sharon and Danny Meendering
Get your nominations in now for the Best New Store award, as the deadline of June 1 is fast approaching. Any dealer can nominate his store and nominations also accepted from wholesalers.
Judging will be based on any or all of the following criteria: financial performance (sales, profits, margins, etc.); community involvement; store design; merchandising displays; promotion activities; specialized product areas/niches; employee training/recognition programs; and innovative retailing concepts.
• Store must have been open at least one year, to a maximum of 4 years.
• New ground-up store or it can be a substantially expanded existing store.
• Can also be a store built to replace store destroyed by natural disaster.
• Store must feature all the core departments: electrical, plumbing, tools, hardware, paint and lawn & garden.
• Can also be new to business owner, if substantial changes are made.
• Can be a branch store.
The Beacon Awards Banquet will be held Friday night, September 11, 2015 at the Marriott Marco Island, Marco
Island, Fla. Honorees will receive: allexpenses paid trip for two to 2015 Hardware Conference in Marco Island including conference registration, airfare, hotel and meals; Beacon Award plaque and feature article in The Hardware Connection.
Please include detailed information for each of the judging criteria, attach any relevant pictures, list the date of new store opening and also provide retailer name, store name, square footage, address, phone number and email address. Email nominations by the June 1 deadline to Tom Delph, Beacon Awards program director, at tdelph@thehardwareconnection.com.
To help retailers make more informed buying decisions for seasonal products, The Hardware Connection regularly publishes the Weather Monitor, using forecasts from the National Oceanic and Atmospheric Administration (NOAA) and The Old Farmer’s Almanac.
As most retailers know, the threat of a storm or extreme weather causes sales to spike in the days leading up to a weather event, and it doesn’t matter if the prediction ends up wrong. Research conducted by Tableau and Interactions reveal sales in certain categories shot up from 20 percent to 261 percent the day before a storm was predicted to arrive.
For more specific business weather data, go to www.awis.com or www.planalytics.com.
teMperature and precipitation outlook
• For the March-May period, abovenormal temperatures are predicted across Alaska and the western lower 48 states. Below-normal temperatures are indicated over much
Source: National Oceanic and Atmospheric Administration
of the Southern Plains and the Lower Mississippi River Valley.
• The March-May precipitation outlook indicated above-median precipitation over parts of the Southwest, the Central and Southern Rockies, the Southern High Plains and Southern Texas, the Southern Atlantic Coast including Florida and much of the Southern coast of Alaska. Below-median precipitation is projected along the Pacific Northwest Coast.
• Through the spring and early portions of the summer, above-median precipitation is projected for the Southwest, which is unusual for that region.
• Drought conditions remain in place across the Red River Valley and adjacent portions of the Upper Mississippi basin. This will inhibit runoff production from snowmelt and spring rainfall.
• Portions of the Great Lakes watersheds have a slightly increased risk for flooding. The upper Illinois River and its tributaries have experienced periodic flooding this winter and still retain a snowpack. This area of Illinois and northwest Indiana have a greater than 50 percent chance of flooding this spring.
• The Hudson Bay drainages of Minnesota and North Dakota are impacted by drought conditions and a lack of significant snowpack, so the
chance for flooding in this region is less than 50 percent.
• The Old Farmer’s Almanac is predicting above-normal temperatures for the eastern half of the United States from late March through early May, with temperatures below normal generally in the West.
• Precipitation will be below normal in the Atlantic and Pacific coast regions and above normal in the central twothirds of the country, according to The Old Farmer’s Almanac.
• April and May will be warmer and drier than normal along the Atlantic Coast in April and May, while the Northeast will be warmer than normal.
• The Southeast will be warmer than normal with below-normal rainfall in April and May, reports The Old Farmer’s Almanac. The Lower Great Lakes will be warmer than normal in April and Mau with average amounts of rainfall. The desert Southwest will have below-normal temperatures and average rainfall amounts.
• For a complete look at The Old Farmer’s Almanac’s spring weather forecast in the U.S., click here.
• Click here to see maps showing the temperature and precipitation outlook for July-Aug.-Sept. 2015.
• Click here to see maps showing the temperature and precipitation outlook for Sept.-Oct.-Nov. 2015. n
By John Fix III
For most of us the long winter is hopefully melting away and spring sales are just around the corner. During those cold months the folks on Hardlines kept warm while discussing a few interesting topics within the group.
Bob Brame of Cadiz Hardware in Kentucky shared his success with postcard promotions. “I have been amazed at the results of the postcards that Ace sends out for us. In terrible weather for us, we had people bringing in a 20 percent off postcard. One elderly man on a cane came in for two light bulbs. Great sales in bad weather.”
Matt Mazzone of Mazzone Hardware in Brooklyn posted his thoughts. “As an inner city store, rewards programs are a struggle for us. I find it very hard to sign up customers and get them used to using a rewards card. Shopping is not as ‘social’ as it is in other communities— most customers want to get in and out. With that being said, we do have some
Cadiz Hardware in Kentucky was able to drive traffic on a wintry day with a postcard promotion.
rewards customers and do well when we run the Ace bucket sales and some other promotions.”
Mazzone continued, “We are looking to do our first piece with the post office EDDM (Every Door Direct Mail) program. I was wondering if anyone had a good suggestion for an offer to run that you found to work well? I wanted to avoid the ‘Bed Bath and Beyond 20 percent off anything’ mentality. I always felt that those coupons prompted customers to only shop when they get 20 percent off and gives the impression that the store is generally overpriced.”
Dick Beal suggested a personal touch when sending out postcards. “For many years I sent out thank you postcards, hand addressed and signed to
Sponsors:
Co-Sponsors:
Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry. The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and is Co-sponsored by The Hardware Conference and The Hardware Connection magazine. The Hardware Conference will be held Sept. 11-13, 2015 For more information about attending this event along with all other educational seminars, open floor discussions and social activites at the 2015 Hardware Conference, visit www.TheHardwareConference.com
good customers with amazing results. Customers specifically came into the store to thank me for thanking them for spending money in my store.”
Ken Walchak of Clark-Devon Hardware in Chicago liked the personal touch idea. “My wife gets these thank you cards from salespeople at department stores. She is not overly impressed by the practice, perhaps because it is so common in that industry. In our business it must be much less common, and therefore more genuine. Maybe I’ll sit down and write up a sample to try out. Should they all be handwritten, or printed and hand signed and addressed? Having all handwritten notes seems more genuine, but that takes longer. It probably should not only be for that rare large sale. Unexpected might be just the ticket.”
Dick Beal expanded on his personal note idea. “Your thank you card cannot look like everybody else’s, it must be unique. Pre-printed is fine but hand addressed, hand signed and hand stamped so it shows you give a darn. A computer-generated, mass-mailed thank you card just does not get it.
Beal continued, “Since I was always running goofy promotions ( Trade in your old trash can) and we had a reputation for being zany in the community I chose a cutesy one showing all sorts of products (in line art) and saying we’re just paint and screws and keys and bolts and nuts over your business. I sincerely thank you for your business. I also had a
second one printed up to the effect that during the hustle and bustle of everyday life we often forget to adequately thank you our customer. Please accept our warmest heartfelt thank you for shopping at our store. I reserved them for customers who made a large purchase, so the most I’d ever send out might be five or six on an average day with 10 or 12 on a good day.”
Tim Pruitt from Avilla Hardware in Arkansas shared his results using mailers via the Post Office EDDM program. “I just started using EDDM last May for my mailers. Prior to this (and a decision to take a more dedicated advertising approach), I used a bulk mail permit and only sent out quarterly fliers.”
Added Pruitt, “I signed up for Orgill’s Doorbuster flier program at each market. From a catalog of about 150 items per month, I order items for the following six-month period. My fliers are then designed and emailed to me, where I can make any changes, subtractions or additions prior to final approval. Once I have it set, it is saved as a pdf file, which I take to a local printer. Each route that I mail to is printed on a different bright paper (lime green, yellow, hot pink, etc.), with various offers to encourage them to return with the flier. This helps me, to a limited extent, to determine the effectiveness of the mailers on each route. Advertising works for sure, but I struggle to find a way to quantify the sales increase based on the fliers.”
Phil Brakefield of Unisource in Illinois finished up the discussion with some final suggestions. “If you are struggling with tracking results, there might be a couple of things to consider testing.
1. Direct mail studies show that a goldenrod or light tan colored paper consistently elicits higher response rates than any other color. I would be very careful using those bright colored papers, because they scream junk mail. You might be better off printing a unique number for each route at the bottom of the sheet that can serve as your tracking mechanism.
2. Try putting your picture, or your pet’s picture, or even an associate’s picture prominently on the flier, with a fun quote. As much as it may pain all of us, a picture of your pet (who can become the store mascot) seems to always work well to generate response.
3. Given that you have a nice process in place to produce the fliers, maybe the offer(s) themselves are not yet where they need to be. Goodness knows what’s going to sell at retail is a guessing game, but maybe some tweaking of product selection will help.
4. It might be worth a shot to offer something perceived as insane for a two-hour period on one day of the sale period. If a ton of folks come in, that will tell you that the fliers are being received and read, clearing the way to tweak and continually test everything else.”
Dealers discussed the ins and outs of direct mail promotions on Hardlines Digest.
Most stores will special order products for customers, but they don’t all agree on how to handle them. Dan Vogel of Lee’s Home Center in Millstadt, Ill., got the conversation started. “We are reviewing our policies for special orders and deposits. For cash customers we require 50 percent down at time of order and full payment on pickup or delivery; unless the order is under $100 and then we require full payment at time of order. Do you require them on charge accounts that are current and in good standing? What about accounts that are not current and always make payments, but are always behind? Even for current accounts, what if the special order is for bigger amounts, say $5k-10k?”
Jim Ertzman of South Hills True Value in Pittsburgh shared his thoughts. “We almost never do deposits. It’s just one more thing to have to monitor for security. Most special orders usually are in within two to five days from the co-op
and a couple weeks from a manufacturer. Usually, they are paid with credit/debit so there is no reason to do a deposit. If they don’t have the money to pay in full today they may not have it when it comes in either. Then you are sitting on it waiting for your money or you have to pay return shipping. I don’t see any real reason to do deposits. We require full payment for screen and window repairs also. Occasionally we get pushback, but I don’t really care. If someone has a house account why wouldn’t you just invoice it? You can add a comment to note that it’s a special order and the ETA. If it puts them over their credit limit or they are slow pay, then you have other issues with this account to resolve.”
Brandon Buckalew of Hardware Hank in Minnesota takes deposits. “We do deposits because I got sick of someone coming in and having us order something and they never come and get it. If they have 20 percent down, they are far more apt to come and get it. Quite often they’ll just pay the whole thing down rather than part of it. We still collect it as a deposit so that our QOO and QOH don’t get messy. Our rain check area was a disaster before we implemented deposits. Now it’s picture perfect. We never have anything sitting back there for long.
If you are going to finance someone to buy something from you for 30 days, what’s the point in taking a deposit? You aren’t asking for the money until the 10th of the following month anyway.”
Amy Earls of Page Hardware & Appliance in Connecticut has a deposit policy that varies depending on the item. “We take a flat rate deposit for screen repair and sharpening, a 50 percent deposit on any hardware item that we don’t normally stock (if we are out of something, the customer doesn’t have to put money down), and 50 percent for appliances. Appliances must be paid in full on or before delivery. We stopped billing any appliances to house accounts a couple years ago because they represented the vast majority of our collections efforts. Even customers who pay small balances in a timely manner become slow when paying off $1,000+ balances. We have a handful of builder/little old lady exceptions to the appliance policy.“
Page concluded, “Deposits helped with the pile of product not picked up, but didn’t eliminate it. We have a good system of notification and reminders in place. Products get returned to True Value or put in stock if no one picks them up, deposit or not.”
These are two of the many topics discussed during the past few months on Hardlines Digest. To read more or subscribe, head to www.hardlinesdigest.com.
John Fix started the Hardlines Digest in 1996. The list was run for many years using servers in John’s hardware store, Cornell’s True Value in Eastchester, N.Y., but recently the list migrated to Google Groups. There are currently more than 1,500 subscribers reading the Hardlines Digest.
Sales of Pliers
(Independent Hardware Channel)
12 Months % Change vs. Year Ago
Pliers: Units
Pliers:
Source:
Unit Sales Breakdown for Pliers
Total of 1,077 Items with Sales
• The power tool industry has been growing at a high rate, with industry revenue increasing at an annualized rate of 9.9 percent since 2010, according to research from IBISWorld.
• U.S. power tool demand is forecast to reach $7.3 billion in 2016, according to The Freedonia Group, which represents a 5.3 percent annual growth rate since 2011.
• Professionals have consistently generated two-thirds of power tool sales since the 2006, with consumers capturing the remaining one-third of the market, according to The Freedonia Group’s Power Tools Market Insights.
• Professional power tool sales are forecast to rise 5.7 percent annually until 2016, while consumer power tool sales are projected to rise 4.6 percent annually to $2.7 billion in 2016, according to The Freedonia Group.
• Drills account for 24 percent of electric power tool sales, according to The Freedonia Group, and technology and convenience will continue to play strong factors in tool sales growth due to the development of longer-lasting lithium ion batteries. Other product development trends include the manufacture of lighter weight, easier to use tools that produce less vibration.
• Nailers/staplers account for 26 percent of the pneumatic tool category, which is projected to grow 4.2 percent annually to reach $1.3 billion in 2016.
• The emergence of brushless motors, which use electronic control panels to direct electric current in a way that all but eliminates energy loss, is continuing to transform the electric power tool market.
• The increased popularity of HGTV and DIY Network shows is leading more consumers to tackle DIY projects that require the purchase of hand and power tools, a trend that is expected to continue. ■
Geneva Ace in Geneva, Ill., emphasizes name brand products in its tool department.
San Diego Hardware’s 8,000-square-foot showroom of decorative and functional hardware is surrounded by displays of the original downtown store dating back to 1892.
San Diego Hardware’s in-stock cabinet hardware selection cannot be beat, with 1,000 door locks, 7,000 knobs and pulls, and 3,000 hinges on display.
Customers travel up to 200 miles to check out the extensive selection of cabinet hardware and locksets at Southaven Supply in Southaven, Miss.
The Hardware Ambassador Program was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.
• View Vendor Product Listings by Wholesaler
• Ability to Download Product Listings by Wholesaler Directly into Retailers’ Point-of-Sale Computer Systems
• Check Out Vendor Profiles, Informational Videos & Product Reviews
Click Here to Learn More and View Vendor Product Listings by Wholesaler
• Provides all the features of SmartCode—including keyless entry—combined with the added convenience and enhanced aesthetics of a touchscreen.
• Users can activate the SmartCode 916 with the touch of a finger. The screen will auto-detect a correct code and quickly unlock. The cool white LED display provides crisp, high-definition LED illumination.
• Dedicated lock button provides user with fast, one-touch locking. Home Connect™ technology allows lock to communicate with other wireless products.
• Can hold up to 30 user codes with all-metal, tamper-resistant interior escutcheon.
Kwikset www.kwikset.com 800-422-4278
mini-mite Key machine
• New 008B model has same features as previous 008A model, but with a new look and enhancements that make it good choice for mobile applications or where counter space is limited.
• Lightweight, compact and easy to use.
• Features soft-touch nylon deburring brush and ergonomic vise jaw wing nuts.
• The 008B Mini-Mite will easily duplicate most all cylinder keys including large bow and doublesided automotive keys. The key gauge provides accurate alignment without the need for adapters.
pivot pro pliers
• The new pliers ture a unique pivot point in the center of the body, allowing for additional leverage, delivering nearly double the force of standard pliers.
• Pivot Pro Pliers require 40 percent less force to cut through heavy-gauge electrical wires and cables.
• Easy to use with one hand and offer added grip, enhancing end user comfort.
• The Pivot Pro Pliers are an ideal tool, whether working on a simple at-home task or a large renovation project.
• New line of 46 different tool offerings includes slotted, Phillips, Torx® and nut drivers that are all Made in the USA.
• Feature durable acetate handles that are impact resistant, solvent resistant and are superior in strength compared to molded designs.
• Precision-machined shaft and chrome-coated alloy steel blades for full fastener engagement.
• Chrome plating for superior corrosion resistance.
www.channellock.com 800-724-3018
a growing community of thousands of
“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”
John Fix Owner, Cornell’s
Hardware Eastchester, NY
• Nena’s Ace Hardware is opening a second store in Peoria, Ill.
• SW Collins Co. has opened its fourth store in Lincoln, Maine.
• Shep’s Midtown Ace Hardware opened in Atlanta.
• Khandoo Nagar has moved Lakewood Ace Hardware to a new location in Dallas.
• Frattallone’s Ace opened its 20th store and third in St. Paul, Minn.
• Julie Chin opened Win Long Ocean Hardware in San Francisco.
• Rocky’s Ace Hardware opened its 33 rd store in Middleton, Mass.
• Matt’s Building Materials in Pharr, Texas, has opened a branch location in Palmview, Texas.
• Jim Berube, owner of Jed’s Hardware and Garden Center in Holden, Mass., has sold 40 percent of the business to four longtime employees: Chris Mullin, Anthony Capers, Jon Frykholm and Steve Liimatainen.
• Doug and Lisa Long, owner of four Q.P. Ace Hardware stores in Lincoln, Neb., have purchased CJ’s Home Center in Ralston, Neb., and Center Ace Hardware in Omaha, Neb., from Judy and Charles Huff.
• Joda Pyle purchased Speier Ace
Hardware in Louisville, Ky., from Kevin Katz.
• Spaeth Lumber in Corvallis, Ore., opened a new location in Lebanon, Ore.
• Ace Hardware Center in Weston, Wis., owned by Lowell Bostrom , was honored with the South Area Business Association’s Business of the Year Award due to its contributions to the community.
• Johnson Hardware and Furniture in Sidney, Mont., now operated by the third generation of the Johnson family, is celebrating its 100th anniversary.
Greg Mann
• Greg Mann has been named executive director of Alliance International, the buying partnership between Do it Best Corp. and Home Hardware Stores Ltd. of Canada, succeeding Greg Thomas, who is retiring in April after 21 years at the helm. Most recently Mann
served for eight years as general merchandise manager for MidStates.
• Ace Hardware Corp. reported record 2014 fiscal revenues of $4.7 billion, up 13.2% from the prior year. Net income rose 34.8% to a record $140.9 million. Fourth quarter revenues were up 13.6% to $1.16 billion while net income declined from $23.4 million to $12.7 million.
• Reliable Distributors kicked off its 2015 Management and Marketing Conference in Orlando, Fla., by introducing a new responsive website and introducing two new members: The Islander Group from Mililani, Hawaii; and Allcon Products/Hennix Group from Anaheim, Calif. Presidential Awards were presented to members Inland Wholesale Hardware and Tennessee Farmers Cooperative and to vendors Chapin International and Seymour Midwest.
• Epicor Software Corp. announced the availability of version 24.1 of its Epicor® Eagle N SeriesT retail business management solution, which expands functionality with enhancements that increase payment security, user interaction and mobility. Epicor also announced that Info Security Products Guide, the industry’s leading information security research and advisory guide, has named the new Epicor Data Security Review service a 2015 finalist in the 11th Annual Global Excellence Awards in the New Product or Service category.
• US LBM has acquired 33-unit Lampert Lumber, based in St. Paul, Minn. The lumberyards will continue to operate under the Lampert name under the direction of current president Bob Egan, with fourth-generation owner Dan Fesler remaining in an advisory capacity.
• Ward Dillon, who started Dillon Hardware Company in Lafayette,
• Emery-Waterhouse hosted the largest gathering of retail partners ever March 12-14 as Marketplace 2015: Building Profitable Growth was held at the Rhode Island Convention Center in Providence. The company introduced Emery Keys, a new retail growth program that keeps sales floors current with relevant product assortments and seasonal offerings as a means to build profitability.
Ind., in 1951, passed away February 12 at the age of 92. He served in the Navy in World War II and later operated two hardware stores for 41 years.
• Ace Hardware builds out its wholesale business beyond Ace stores. Click here.
• Country Ace Hardware offers same-day delivery. Click here.
Ace Hardware Corp. is beginning to roll out a test of its latest pilot program. Ace’s Express Delivery program allows customers to find the products they need on acehardware.com and have them delivered by a helpful associate from their neighborhood Ace the same day. Ace plans to test a variety of program components in preparation for a national roll-out.
The Express Delivery pilot program currently offers same-day delivery of eligible products, for a $5 delivery fee, to customers within five miles of the participating Ace store when they order by 1 p.m. local time. There is no minimum spend required or limitations on size, weight or number of items and all payment is handled online.
“With 4,400 stores stocking the most locally relevant product assortments,
Ace has a unique opportunity to become a big player in the sameday delivery landscape once our pilot program concludes,” said John Surane, executive vice president, marketing, merchandising, and sales, Ace Hardware Corp. “About 61 percent of consumers across the country live within five miles of their neighborhood Ace, and that proximity to the household sets us apart.”
Surane continued, “The Ace Hardware brand has always been synonymous with helpful and excellent customer service, so Express Delivery from your local Ace store represents a perfect extension of our brand promise—Amazing Every Customer, Every Time. We also think there’s a huge value to consumers in having their products delivered by a helpful Ace associate, who they might even recognize from their local store.”
Ace’s Express Delivery pilot offi cially rolled out in 33 stores on January 26 in select neighborhoods in Florida, Illinois, Colorado, Maryland, Texas and Arizona. The program is an extension of Ace’s existing In-Store Pickup program, which allows customers to buy online and pickup in store and is currently available at more than 1,600 Ace stores across the country.
For more information on Express Delivery. Click here.
Home Hardware Spring Dealer Market
April 18-21, St. Jacobs, Ontario
Kentucky Building Material Association Convention & Expo
April 16-17, Belterra Casino Resort & Spa, Florence, Ind.
Lumbermenʼs Association of Texas and Louisiana Annual Convention
April 8-9, Moody Gardens Resort & Convention Center, Galveston, Texas
TruServ Canada Spring Market
April 11-13, RBC Convention Center, Winnipeg, Manitoba
Wallace Hardware Spring Dealer Market
April 8-10, LeConte Center, Pigeon Forge, Tenn.
Do it Best Corp. May Market
May 15-18, Indiana Convention Center, Indianapolis
National Hardware Show
May 5-7, Las Vegas Convention Center, Las Vegas, Nev.
House-Hasson Hardware Summer Dealer Market
June 18-20, Sevierville Events Center, Sevierville, Tenn.
The National Lawn & Garden Show
June 9-11, Embassy Suites, Dallas-Frisco, Texas
United Hardware Fall and Winter Buying Market
June 12-14, Minneapolis Convention Center, Minneapolis
World Pet Association SuperZoo
July 21-23, Mandalay Bay Convention Center, Las Vegas, Nev.
Ace Hardware Corp. Fall Convention
August 20-22, McCormick Place Convention Center, Chicago
Handy Hardware Fall Market
August 6-8, Henry B. Gonzalez Convention Center, San Antonio
Orgill Fall Dealer Market
August 27-29, Ernest N. Morial Convention Center, New Orleans
HDW Fall Market
August 7-9, Shreveport Convention Center, Shreveport, La.
The Hardware Conference
September 11-13, Marco Island Marriott, Marco Island, Fla.
www.thehardwareconference.com
True Value Fall Reunion
September 18-20, McCormick Place Convention Center, Chicago
Raising the all-important transaction size starts with adopting a whole-store approach to driving impulse sales. Merchandise disposable and temporary dump bins and rolling racks in strategic places on the sales floor and make sure seasonal endcaps feature prominent signage and are changed regularly.
Use clip strips to cross-merchandise popular everyday items like batteries and work gloves in multiple locations in the store.
The best place to spur impulse sales is still the checkout counter or station, where you have a captive audience for a short period. Even people who don’t buy something have to walk past the checkout counter. Utilize all available space and keep tinkering with the items you display as that keeps your store looking fresh.
Retail snack dollar sales in North America is a $124 billion market, so make sure you’re getting your share. Snack food and beverages, whether it’s beef jerky or soda pop, are hard to resist, and the margins are great.
“Along with candy bars, we carry individual candies like Fireballs, Tootsie Pops and Hershey Miniatures. Contractors buy them by the handful and parents have a hard time saying no to a child asking for a 15 cent Tootsie Pop,” says Amy Earls of Page Hardware & Appliance in Guilford, Conn.
Bob Brame of Cadiz Hardware in Cadiz, Ky., recently remodeled his store. Under the counter he now has more than 100 types of candy.
“There is a Pearson’s Salted Nut Roll that we have been amazed at how it sells. I had never heard of them before, but we sold over 200 in December and January,” he says. Brame also displays hand warmers—another great seller for him—in two places: on a rolling rack close to the counter and with the candy.
Other good items to display near the checkout are reading glasses, mini flashlights, keychains, hand cleaner, scarves, breath mints, utility knives, small toys and novelty socks. The pictures on pages 68 and 69 provide more examples of good impulse merchandising around the checkout. ■
37%
Percentage Home Depot’s web sales increased in 2014, rising from $2.7 to $3.7 billion.
4.5%
Percentage of Home Depot’s total sales in 2014 that came from web sales.
5.3%
Percentage comp-store sales increased for Home Depot in 2014.
4
Number of small-format hardware stores Lowe’s opened in fi scal 2014, along with six big-box stores.
1,840
Number of stores Lowe’s operated as of January 30, 2015.
14
Number of states in which Menards operates its 285 stores.
