REPORT ON BUSINESS CONDITIONS AROUND THE COUNTRY
March 2020 Vol. 12, No. 2
THE INDUSTRY’S DIGITAL LEADER
RETAIL REBIRTH: Independents
Thriving in Former Chain Sites
ALSO INSIDE:
6 Planning Topics for Family-Owned Business Succession How is Coronavirus Impacting the Industry?
‘Strong And Independent’ Orgill offers the prices, products and everything else our customers need!
“We’re developing our name around being strong and independent, and Orgill gets that.” Scott Ward l Fix & Feed Hardware, Texas l An Orgill customer since 2015
Consistent Support
Always In Stock, Always Competitive
“We enjoy our partnership with Orgill. Our sales rep takes
“Orgill continues to be a good partner, and that’s what
their support has always remained consistent.”
competitive on pricing.”
care of us. No matter what we’ve needed from Orgill,
we’re looking for—a partner that has product in stock and is
Orgill’s Got Us Covered
A Partner for Growth
“As a business co-owner, there are a lot of little things I take
“It was an easy decision to switch to Orgill, because Orgill is
other items, such as merchandising and pricing analysis.”
and helping us continue to grow.”
care of daily, so I feel good knowing Orgill can help us handle
so easy to work with. They support us while giving us space
For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017
CONTENTS March 2020 ■ Vol. 12, No. 2
30
RETAIL REBIRTH: INDEPENDENTS THRIVING IN FORMER CHAIN SITES
HOW’S BUSINESS: BUSINESS CONDITIONS FROM AROUND THE COUNTRY
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware cartoon: Scott Jensen Amazing But True Hardware Stories How’s Business? Shop Talk: Hardware Products Review Retail Rebirth: Independents Thriving in Former Chain Sites Six Planning Topics for Family-Owned Business Succession Beacon Awards Set the Stage at The Hardware Conference Category Report: Hand and Power Tools Special Report: How is the Coronavirus Impacting the Hardware Industry? In the News Upcoming Events Retail Ideas Behind the Numbers The Hardware Connection app is available for iPhone, iPad, Android and Amazon. Download here.
www.TheHardwareConnection.com
Like us on Facebook by clicking here.
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6 8 12 14 16 25 30 42 45 47 51 53 59 60 62
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THE HARDWARE Connection ■ March 2020 ■ 3
Finders, keepers.
HOW TRIO HARDWARE KEEPS CUSTOMERS COMING IN — AND COMING BACK.
“Do it Best offers us the product
Customers in Plainview, New York, know that when they walk into Trio Hardware,
in and the rewards we need to
they’re going to find exactly what they need. Member-owners Todd and Ritsa
keep them coming back.”
Kirschner know that when those customers leave, they’re already planning their next visit. That’s the kind of relationship that can happen with help from Do it Best. When the Kirschners built their new store, they turned to the Do it Best Signature™ Store Design team to maximize their space and stock it from floor to ceiling with a wide range of the products they knew their customers would buy. Next, the Kirschners launched the Best Rewards loyalty program to give their shoppers a SM
compelling reason to come back again. Together, the Kirschners and Do it Best have developed an effective system to attract and retain customers. As a result, Trio Hardware serves a steadily growing base of loyal shoppers — again and again.
» Partnering with Do it Best can help you attract more customers and keep them coming back. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestretail.com.
mix we need to draw customers
Todd & Ritsa Kirschner Trio Hardware
ADVERTISERS’ INDEX A.O. Smith/Reliance Water Heaters | www.RelianceWaterHeaters.com . . 34 Blue Rhino | www.bluerhino.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Do it Best Corp. | www.doitbestonline.com . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . 9, 15 Epicor Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Ettore Products Company | www.ettore.com . . . . . . . . . . . . . . . . . . . . . . . . 23 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . 26 Jack Link’s Beef Jerky | www.jacklinks.com . . . . . . . . . . . . . . . . . . . . . . . . 38 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Mayhew Tools | www.mayhew.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 RapidFix / LHB Industries | www.rapidfix.com . . . . . . . . . . . . . . . . . . . . . 28 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . 29 Robert Bosch Tool Corp. | www.boschtools.com . . . . . . . . . . . . . . . . . . . . . 22 STIHL USA | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 17
Connection
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91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 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: Andy Curry, Doug Donaldson, Gary Pittsford
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2020 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
www.TheHardwareConnection.com
THE HARDWARE Connection ■ March 2020 ■ 5
editor’s note By Chris Jensen
A
Retail Failure Leads to Opportunity
ll across America, retail stores are closing. Some are operated by independents, who didn’t adjust to the new rules of customer engagement and tried to get by with methods of marketing and merchandising that worked fine in the 1980s. However, the majority of store closings are chain companies who found themselves with too many store locations open and not enough foot traffic as online sellers like Amazon have emerged as the ultimate convenience option. Clearly, not all small businesses are dying. Retailing isn’t dead, but bad retail is. There are opportunities for smart retailers to capitalize on, and our industry is filled with independents who like taking on challenges. Wholesalers have stepped up to help, because it’s a war of attrition if they don’t. They are helping their dealers jump in and take over unwanted store locations that have been abandoned by chains such as Shopko, Sears, Kmart and Rite Aid. High-performance independent retailers who are successful and have capital are branching out to expand their market reach. They stay focused on growth and serving the community, using a tried-and-true formula to provide a better shopping experience. They know 6 ■ The hARDWARe Connection ■ March 2020
how to develop unique niches and recognize that a well-merchandised store will fall flat if employees cannot deliver exceptional customer service every day. Turn to page 30 to read stories of Retail Rebirth, outlining how independents are thriving in former chain sites. What is most interesting about this trend is the fact many of these stores are in the midsize range of 30,000 to 50,000 square feet. That is the size range of regional home center chains that were run out of the market by the big boxes in the 1990s— think Payless Cashways, Pay ‘n Pak, Ernst Home Center and Central Hardware. There’s new hope in the middle. Also turn to page 51 for our Special Report on the coronavirus outbreak, which is having a widening impact on the industry as stores run out of needed supplies, events get canceled and the global supply chain is threatened. Ending on a high note, The Hardware Connection is proud to announce that we were named a regional AZBEE finalist from the American Society of Business Publication Editors for Best Individual Profile for our December 2019 cover story on Rob Bantly of Bantly Hardware, a Century Club retailer in Johnstown, Pa. n www.ThehardwareConnection.com
TREND WATCH
By Craig Cope
Using a Careful Strategy to Launch a New Website
I
n my column in the February issue, I wrote about the importance of independent retailers maintaining an active online presence for both web and social media. I noted that The Hardware Connection was preparing to launch a new website to better support all of our digital activities. Having launched several websites in my career, whether from scratch or complete overhauls, I wanted to provide the key things I’ve learned and how that knowledge can streamline your next digital grand opening. The first step is without a doubt the most important and most difficult: define the purpose of your website. On its surface, this seems like a simple question, but as you move through the process this step will serve as a guiding principle and help prevent “scope creep.” The purpose of your site will also provide a starting point to either hire a third-party or use an off-theshelf solution. If the main purpose of your site is to support e-commerce purchases or a Buy Online Pick Up in Store (BOPIS) strategy, then the development side of the project will most likely require
8 ■ THE HARDWARE Connection ■ March 2020
outside expertise and longer development time. However, if you simply want to create a footprint online with general information about the store, then an off-the-shelf product should fit your needs with little to no outside assistance and short development time. Regardless of your purpose, your site must have a few key features. The first and most important feature is the site must be mobile friendly. Last year, Google announced it would index and rank websites predominantly using the mobile version of the website. With Google representing 92 percent of online search, this is a key factor in development. You can develop and launch an outstanding website, but if it cannot be found by Google or has a low ranking then all your effort and money are wasted. The next key feature is how the user navigates the site and the way information is presented. Besides mobile, Google also favors intent-based searches that attempt to answer a specific question. You may have noticed when searching on Google that it attempts to auto-complete common questions and directs the user to the website that best www.TheHardwareConnection.com
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TREND WATCH answers that specific question. Websites that generate content answering common questions will receive greater traffic than sites providing general information. Since hardware stores are in the business of fixing problems, this can be an outstanding source of material for the initial launch and future updates. The next key step is defining an updated schedule and sticking to the schedule. Even the best site quickly becomes stale and outdated unless it receives constant updates. Google also prioritizes sites with routine updates (e.g. every Tuesday). Since few independent retailers have the resources to hire a dedicated website administrator, the process must be simple and easily delegated. An excellent and often underused resource for content is the manufacturers whose products you are already carrying in your store. They have already invested the time and money to create compelling content optimized for Google searches with professional images. Not only does this help drive traffic to your site, but also drive people to your store looking to solve their problems. The last step is finding a website style that best reflects your store’s 10 ■ THE HARDWARE Connection ■ March 2020
unique culture and personality. Your website is an extension of your store brand and should have the same feel as customers’ experience when they enter your location. I do not think any company does this better than Apple. Visitors to their website are presented with an organized, simple design with easy navigation and attention to design featuring high-quality images. This same theme is also replicated in their stores’ excellent lighting, modern feel, zero clutter and the ability to easily engage with their products. For inspiration, look at websites that you frequent and choose a few items that you like about the site and think how you could implement on your site. If you get the opportunity to visit our new website, go to www.thehardwareconnection.com and let me know your thoughts. ■ www.TheHardwareConnection.com
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HARDWARE HUMOR
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Amazing but TRUE
W
e fill propane at our store. We are also in a farming community, where farmers have anhydrous tanks that aren’t very hard to get to. Anhydrous is a key ingredient in making meth. People will fill empty propane tanks with anhydrous. However, anhydrous and brass don’t get along—it will turn the brass on a propane tank valve green. We’re pretty serious about checking the tanks before we fill them. All of our staff know that if a valve is green, we can’t fill the tank, as I imagine that propane and anhydrous get along even less. I went out to fill a customer’s tank. I saw the valve and right away told the customer I couldn’t fill it. My goal wasn’t to straight out say because of the anhydrous, but she argued with me. I set out to explain it to her. Her response was that it was her boyfriend’s tank. I told her she would have to work that out with him and that maybe he borrowed it from a friend. She replied, ‘That’s impossible. I can’t get a hold of him because he’s in prison.’ Brandon Buckalew East Grand Forks Hardware Hank East Grand Forks, Minn.
Originally posted on Hardlines Digest
te stories wo of my favori lady who are: The little old al mason pulled out a pers om her purse fr e ic v e d g in g sa atteries for it. b e th d te n a w d an up but did not m e th d ze si e W em. The secth ce la p re to r e off ho wanted to w y d la a s a w d on d brought her n a r e st a to a st te d. She wanted a re b f o e ic sl n ow could toast one it re su ke a m to . her satisfaction to e m ti a t a e ic sl Chris Wolf Ace Hardware n. Woodbury, Con Hardlines Digest
T
ed on Originally post
Y
ou’re always learning a lot as a hardware retailer. I had a propane tank bite me the first time I learned how to fill one. I burned my hands a little and learned to wear gloves. We used to use a pickup truck to haul items, and during one delivery we didn’t have everything tied down properly. Fortunately, it was on a country road and everything was spread all over the place. We learned to make deliveries in a box truck. Another time, I was delivering 40-pound wood pellet bags by myself. I had to walk down a long flight of stairs to do that. That was the last time I’ll do that alone. Michael Ciavolino | Majestic’s Hardware | Gardiner, N.Y.
14 ■ THE HARDWARE Connection ■ March 2020
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How’s Business? Reineman’s True Value operates stores in Burlington and Salem, Wis.
MIDWEST
Sales and customer counts in 2019 and so far in 2020? Both were up a little, with customer count up about 8 to 10 percent and sales up about 5 percent. I attribute the 2019 increase to a stronger economy. So far, 2020 has been flat or a little down, but we really haven’t had winter in the Midwest. The local economy is looking good with a lot of large developments and housing being built in our area. So, hopefully that will trigger an increase in business. How is your store competing with online ordering? Can anyone really compete with that? We use the True Value ship-to-store program. When we are able, we also take advantage of price-matching. Best niche categories? We have a good variety of giftware, sporting goods, firearms and power equipment. We promote these niches through print and Reineman’s True Value comes up with a theme for its annual social media. One of the biggest promotions for our Ladies Night event. giftware has been a Ladies Night every December. New initiatives planned for 2020? We don’t have anything new planned, just tweaking and revising current plans and trying to adapt to the economy.
Jeff Koenen | Reineman’s True Value Hardware | Burlington and Salem, Wis. 16 ■ THE HARDWARE Connection ■ March 2020
www.TheHardwareConnection.com
Gilford True Value offers hardware, lawn and garden, feed and power equipment.
NORTHEAST
Sales and customer counts in 2019 and so far in 2020? We’re up about 12 percent over the previous year. I took over from the previous manager and have been trying to turn the store around. I’m adding technology wherever I can. I’m also going heavy on advertising, mostly online, leveraging as much as possible with a shoestring budget. We’re a summer vacation area, so I’m getting the store ready for warm weather so I can cater to vacationers and landscapers. How is your store competing with online ordering? I’m not trying 18 ■ THE HARDWARE Connection ■ March 2020
to compete with Amazon. I have taken the tactic of selling premium brands and higher-quality products. For example, I sell higher-end power equipment that you can’t buy at Lowe’s. Best niche categories? To be determined. Right now, though, we sell a lot of Stihl, Honda and Scag power equipment. New initiatives planned for 2020? I’m doing a whole-store remodel. Recently, I bought racking at a great price. I’m also redoing the lights and creating a Honda showroom. I’m also building an indoor deck to display Weber grills for the summer. Chris Finethy Gilford True Value Hardware | Gilford, N.H. www.TheHardwareConnection.com
Connection
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N
LOOKING BACK AT 75 YEARS OF DO IT BEST CORP. HISTORY
A
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DIGIT
YEARS
I N N O VA
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CADE DE
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OF
CELEBRATING A DECADE OF PUBLISHING INNOVATION
December 2019 Vol. 11, No. 8
THE INDUSTRY’S DIGITAL LEADER
RepoRt on Business Conditions ARound the CountRy
February 2020 Vol. 12, No. 1
THE INDUSTRY’S DIGITAL LEADER
March 2020 Vol. 12, No. 2
Restoring HOPE & PROSPERITY to a Dying But Resilient Town
How to ATTRACT the NEXT GENERATION of CUSTOMERS
ALSO INSIDE:
ALSO INSIDE:
LBM Category Trends Holiday Merchandising Displays
Q&A with Do it Best President Dan Starr Paint and Decorating Category Trends
CLICK HERE & SUBSCRIBE YOUR ENTIRE STAFF FOR FREE!
the industRy’s digitAl leAdeR
Retail RebiRth: Independents
Thriving in Former Chain Sites
alSO iiNSiDe: NSiD De:
6 Planning Topics for Family-Owned Business Succession How is Coronavirus Impacting the Industry?
Visit www.TheHardwareConnection.com and learn why The Hardware Connection has the industry’s most retailer subscribers. The Hardware Connection is a digital-only publication distributed 8 times a year via e-mail to more than 60,000 independent hardware retailers, wholesalers and hardware industry executives world-wide.
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How’s Business?
Chauvin Brothers is a Century Club retailer that dates back to 1875.
SOUTH
Sales and customer counts in 2019 and so far in 2020? We were up a little bit from 2018, maybe about 10 percent. This year it’s been slow, because we’ve been getting a lot of rain. The local economy is dependent on off-shore oil and gas and that’s down considerably. How is your store competing with online ordering? With Do it Best as our supplier, we utilize their assistance with e-commerce, but that’s very minimal for us. We don’t do a great deal of online business. Best niche categories? Our main niches are treated lumber and coastal supplies, which includes vinyl seals,
20 ■ THE HARDWARE Connection ■ March 2020
fasteners and other supplies for water construction. We utilize our website to promote those products, but most of our business comes from word of mouth. New initiatives planned for 2020? Not anything major. Thomas Chauvin Chauvin Brothers Chauvin, La.
SOUTHWEST
Sales and customer counts in 2019 and so far in 2020? We’re up 4.87 percent. It’s been flat so far this year. It’s an election year and this coronavirus is not helping this year. We would have been doing good if we stockpiled dust masks. The buy-local push and our www.TheHardwareConnection.com
Ace Hardware in Amarillo supports the buylocal movement.
grilling section have done really well this past year. The local economy relies on agriculture, cattle and we have a nuclear bomb assembly plant here, along with wind generators and oil and gas production. The local economy is doing pretty good. How is your store competing with online ordering? We participate in all of Ace’s programs, and instore pick-up gives us quite a bit of business. The average sale is a little higher on those orders, too. Most weeks, we get about 40 in-store pick-up orders. Best niche categories? We’re really good with customer service, having in-stock items and our Traeger grills. About four times a year, we’ll throw what we call “backyard parties” where we set up grills and cook for customers. We usually get 80 to 100 people for those events. New initiatives planned for 2020? We’re looking to expand our grilling. I don’t mind trying new products, bringing them in and seeing how they www.TheHardwareConnection.com
• Deliver exceptional customer experience • Grow margins and profits • Optimize inventory • Cut costs by taking advantage of online, mobile, and wireless technologies
How’s Business?
WEST
Sales and customer counts in 2019 and so far in Ace Hardware in 2020? We’re up Amarillo has a about 5 percent, strong niche in grills. and I attribute that do. We’ll keep training employees and Ace to the local economy. So far in has a nice training program. Traeger also 2020, we’re flat. What’s been driving the has a good video training program that local economy is a population spike. A employees can take online. lot of people are moving from California to the area. Trenton Maples How is your store competing Ace Hardware with online ordering? We’re doing Amarillo, Texas
Greg Mahler (left) with his father John Mahler, who purchased the business in 1971 from founder Ivan Hoy.
pretty good with in-store pickup. We use the Ace program, and we get two or three orders per week. Best niche categories? We really don’t have a niche, more like the core categories with paint, plumbing, fasteners, and lawn and garden. We try to have a diverse product offering to help the bottom line.
New initiatives planned for 2020? We will be expanding the greenhouse, bringing in more fruit trees and ornamental trees. We’re looking to get more into specialty-type plants. We’ll support our greenhouse and those new plants with a lot of newspaper advertisements. Greg Mahler Hoy’s Hardware | Sweet Home, Ore.
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3 Days of Networking, Relaxing and Learning 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.
Learn More About Your POS System at the Hardware Technology Forum Epicor will offer full-day, hands-on training sessions for 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.
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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
k l a T Shop H
S REV T C U D O R P ARDWARE
IEW
By Craig Cope
PRODUCT #1: DURACELL OPTIMUM DURACELL
Duracell recently launched a new premium line of AA and AAA batteries under the name Duracell Optimum. The Optimum line features “extra life” and “extra power,” enabling a flashlight to shine brighter and longer. Optimum’s enhanced performance is driven by a new proprietary cathode system that outperforms even Coppertop. The technology is one of the biggest innovations for alkaline batteries in the past 50 years. The battery technology is just one feature that sets Optimum apart from other batteries. The packaging also underwent a redesign. The new package features a slider pack with a resealable storage tray featured in the following videos: slider pack, sealable tray. While I doubt many people give too much thought to battery packaging when purchasing, the new design does replace the old Ziploc bags found in many closets and bags. As any parent can attest, batteries are in virtually every device. You don’t even realize some of these devices have batteries until they stop working (e.g. wireless mouse, toothbrush, gaming controllers). The gaming industry has
exploded over the past decade with more than 2.5 billion gamers worldwide and 75 percent of American households have at least one gamer. The gaming market represents a staggering 22 percent of battery demand. Batteries powering toys or other devices are great, but sometimes we rely on them for the basics during electrical outages caused by natural disasters. Living in a hurricane-prone area, our testers were more than versed on the critical role batteries play. We asked them to test the batteries in highoutput, high-draining devices such as flashlights, communication devices and even a medical device. All reported their devices either performed better or longer compared to traditional batteries. During testing in
www.TheHardwareConnection.com
THE HARDWARE Connection ■ March 2020 ■ 25
ShopTalk HARDWAR
E PRODUC
TS REVIEW
the office, we found similar results when running our non-scientific test using two flashlights, one with Optimum and one with Coppertop left on all day. The flashlight with Optimum appeared to be brighter at the beginning of the test and for a longer duration before dimming. Our test results were supported by Duracell’s own data. Optimum performed better for a longer period of time and maintained in the peak performance zone. Both Optimum AA and AAA are available in 4-, 6- and 12-count packaging. Optimum creates a new level of premium battery performance and is a perfect solution for customers looking
for a battery offering peak performance and longer use.
PRODUCT #2: SMART LOCK AUGUST HOME August Home has released its 3rd generation Smart Lock and Smart Lock Pro, building on its already popular smart lock. In the past, I have written articles covering the explosion of the smart home market, which has been experiencing
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double-digit growth year after year and showing no signs of slowing down. The smart lock is one of the most popular categories in the smart home market, just behind smart lights and appliances. In theory, the market is everyone with an exterior door. All smart locks provide a varying level of control to gain access to the home either by a manufacturer app, internet connection or a keypad. However, one common requirement is the replacement of the existing door lock and/or deadbolt. This is just one area where August Home’s Smart Lock and Smart Lock Pro differ from the competition. Both models install on the inside of the door and attach to the existing deadbolt in just a few minutes. This unique application allows even renters to install a smart lock without impacting the existing deadbolt key of the landlord. August locks are controlled by a free smartphone app for both iOS and Android using either an internet connection (optional Wi-Fi bridge required) or Bluetooth®. Once the Bluetooth setup is complete the user can either open the app to unlock their door or automatically unlock once the phone comes within Bluetooth range. This last feature is extremely useful when coming home with a handful of groceries and not having to fumble for a phone or keys. www.TheHardwareConnection.com
k l a T p o Sh E PROD HARDWAR
UCTS REV
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The locks can also be set to auto-lock once the door is closed. While most smart locks provide auto-locking, August adds DoorSense™ technology. This sensor prevents the lock from deploying the deadbolt before the door is closed, which can lead to door jam damage. The app also enables guest access for family, friends or other trusted people. Guest access is an excellent feature if the owner needs to provide temporary access to the house for either a contractor or short-term renter without having to issue physical keys. The app also displays door opening and closing activity by the assigned user. The locks communicate
with Alexa or Google Assistant enabling voice control to lock, unlock or check the status of the door lock. Click here to watch a complete overview. We provided our testers two versions of the August Smart Lock: with the Wi-Fi bridge and without the bridge. The bridge provides remote access to lock while non-bridge locks can only use Bluetooth for control. Both groups raved about the ease of installation, setup and the ability to maintain their current deadbolt. Another feature that jumped out for our reviewers was the ability to automatically unlock the door upon
approach. One test was a mother of two who “rarely has a free hand” to grab keys or phone. The door sensor was also a popular aspect, as one tester had a bad experience with another smart lock that automatically deployed the deadbolt before the door was completely closed and slammed into the jam, causing damage. If you have been on the fence about bringing smart products into your store because of fear of everchanging technology and being
stuck with the outdated product, the August Smart Lock is a great entry point since it utilizes common Bluetooth communication technology and can be installed utilizing the existing deadbolt lock. ■
Point of Sale Your Way. Retail Automation has been serving LBM and Hardware stores since 2000, offering a robust and flexible software solution that is both intuitive to use and reliable. We do things differently. No shoe-horn approach. We customize the software to how YOU do business while offering best-practices and innovative solutions. Carl Swan of Swan Hardware Do It Best, Akron, Ohio tells us how Retail Automation fits his business.
www.retailautomation.biz www.TheHardwareConnection.com
No gimmicks, hidden fees or surprises. Period. (724) 283-4675 Connection www.tek4retail.com THE HARDWARE ■ March 2020 ■ 29
feAture By Chris Jensen
Click here for a gallery of additional store pictures.
retAil rebirth: Independents
Thriving in Former Chain Sites
I
n the 1990s, strip malls and commercial store fronts sprung up around the country, promising suburban homeowners fast access to everything they needed. Fast forward to today, when towns and cities across America are left with shuttered stores of all sizes. It’s not just Main Street that is imperiled. While the demise of a retail company represents a loss of jobs for employees and a loss of choice for consumers, it also represents opportunity. Abandoned store fronts can easily be transformed, if the right retailer comes along with the right strategy to connect with customers.
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Above: Pleasants Hardware’s eighth store features a 10,000-square-foot sales floor in a high-traffic shopping center.
pleASANtS hArdwAre fiNdS the right fit Darrell Campbell, general manager for Pleasants Hardware, had been like a lion lurking in the tall grass, waiting for the right opportunity to pounce on his prey. He spent several years looking for the right store location to expand in Pleasants’ Richmond, Va., trade area, but the right fit never materialized. Pleasants Hardware is a Century Club retailer that dates back to 1908. Any plans for expansion got put on www.ThehardwareConnection.com
Meg Taylor of Taylor’s Do it Centers and Darrell Campbell of Pleasants Hardware are proud of the new Pleasants store that opened in early January in Mechanicsville, Va.
hold when the seven-store chain was acquired by Taylor’s Do it Centers of Virginia Beach in February 2016. On January 2, 2020, Pleasants Hardware opened its eighth store in Mechanicsville, a suburb of Richmond. That capped off a six-year odyssey for Campbell, as he played the long game and saw his determination rewarded. It was the first new store for Pleasants since Taylor’s took over. “Even in 2014 and 2015, we were looking at this market (Mechanicsville), but just couldn’t find the right real estate,” he says. “I had been browsing the internet and I knew when Walgreens bought Rite Aid in 2018 that this site might come available, because there’s a Walgreens nearby.” Sure enough, Walgreens closed that Rite Aid location in early 2019. Campbell remembers photographing it empty on March 19. With the backing of its new owners, Pleasants closed on the deal in September. “It’s a great location for us,” explains Campbell. “It’s well-positioned in between the boxes, which are three-plus miles in any direction. It has good road frontage with high traffic in a shopping center anchored by Food Lion.” www.ThehardwareConnection.com
The new Pleasants Hardware store formerly housed Rite Aid.
The location in the Hanover Commons Shopping Center features a 10,000-square-foot sales floor plus 1,500 square feet for warehouse and office space and only required a minor buildout. “We had to take out coolers and the pharmacy and build a wall to cordon off the warehouse. The building itself is pretty square,” he points out. Campbell notes that the new store’s assortment is very similar to Pleasants’ other stores. “We try to tailor the assortment to the market. This store is in suburbia, so there is a big emphasis on lawn and garden and outdoor power equipment.” He adds, “The community has embraced this store so much. A lot of people have expressed appreciation that we took over this shuttered location and turned it into a new store. They really wanted a hardware store here.” The Richmond market is thriving right now, according to Campbell, who points out that people are very familiar with the Pleasants Hardware brand since the company’s roots stretch back 112 years. The hARDWARe Connection ■ March 2020 ■ 31
feAture “We’ve constantly got our eyes open. We looked at other Rite-Aid locations, but they weren’t the right fit,” Campbell says. “Life for independents is not too bad these days, whether there’s a revolution or just evolution.”
A New erA of Store CloSiNgS
Here are some of the 9,300 retail chain stores that closed in 2019: Bed, Bath & Beyond: 60; Payless Shoe Source: 2,100; discount chain Fred’s: 557; Walgreens: 200; CVS: 46; Office Depot: 59; J.C. Penney: 27; and Family Dollar: 390.
orChArd Supply getS New life
Orchard Supply Hardware was startThe rise of Amazon and online shop- ed in California as a non-profit farmers co-op by a group of orchardists and ping has caused the retail landscape to fruit tree ranchers in the middle of the change dramatically over the past few Depression in 1931. The co-op transiyears, with chain retailers taking much tioned to for-profit status as Orchard larger lumps than independents. Supply Hardware (OSH) in 1950. OSH In 2017, Walgreens bought 1,932 had seven stores when it was acquired stores from Rite Aid and closed about by W.R. Grace & Company in 1979. 750 of them. Shopko filed for bankruptcy in January The company was flipped to Wickes 2019 and closed all stores by June 2019. Companies in 1986, then the Wickes managers bought the company in a levIt had operated 363 stores in 24 states, mainly in small to mid-sized communities. eraged buyout in 1989. Next up was Sears in 1996, which Lowe’s also closed 51 big-box stores in 2019: 20 in the U.S. and 31 in Canada. expanded the chain to 84 stores. Orchard Supply was spun out of Sears Sears and Kmart have closed more Holdings and became a public company than 3,500 stores in the past 15 years, in 2012, but was forced to file bankruptwith Sears closing 107 and Kmart 127 cy in 2013. Lowe’s spent $205 million to locations in 2019. Walmart closed 269 stores in 2016 to buy most of Orchard’s assets, with 17 of the 91 stores closing. concentrate on Neighborhood Markets In 2016, Lowe’s announced plans to and Supercenters. It closed 22 stores in expand into Florida, eventually open2019—all Neighborhood Markets and Supercenters—as it still struggles to find ing eight stores in that state. All 99 the right size store format to succeed in OSH stores were closed by Lowe’s by February 2019 so the big-box retailer an ever-changing retail environment. could concentrate on its core business. In February 2020, Pier One Imports The 99 vacant OSH stores, mostly entered bankruptcy and began closing in the 30,000 to 35,000-square-foot up to 450 stores. Toys R Us closed all range, created an opportunity for 735 stores in 2018.
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Outdoor Supply Hardware’s newest store opened in San Jose, Calif.
home improvement retailers who wanted to make a bold move. So far, Central Network Retail Group (CNRG) has snapped up 10 OSH locations in California and opened five Outdoor Supply Hardware stores to date, while Westlake Ace Hardware has opened stores in 11 former OSH sites in California. Although technically chains, CNRG and Westlake are both backed by two
Orchard Supply stores were long known for their impressive garden centers, so Outdoor Supply Hardware carries on that tradition.
of the industry’s largest wholesalers for independents: Orgill and Ace. John Sieggreen, executive vice president of retail for Orgill and president of CNRG, says they were attracted to the fact the Orchard stores had a long track record of success in these communities. “Throughout the store we’ve made a concerted effort to make it feel
feature
By hiring many former OSH employees and giving the stores a familiar look, Outdoor Supply Hardware has been able to excite the communities in which stores have opened.
familiar to former Orchard customers. We didn’t change the checkouts or paint the walls and we hired a lot of former OSH employees at the associate, management and buying level,” says Sieggreen. “The result is to make those stores feel familiar to customers. The
reception by customers so far has been super positive.” Outdoor Supply Hardware offers the benefits of a small hardware store but features a larger fastener set and strong lawn and garden assortment, he adds. It was intentional to have the Outdoor Supply Hardware name so similar to Orchard Supply Hardware. “Employees feel a sense of mission. They went from wondering what happened to my job to becoming part of something special again. There is an identity to these communities that is unique, and we wanted to retain that while providing a local option for hardware and lawn and garden,” Sieggreen says.
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Skip King is getting ready to open his sixth store in the Billings, Mont., market in a former IGA grocery store.
As King prepares to open his sixth store in Billings, Mont., on March 16, he is most proud that the historic retail site is getting a new life. While most recently home to an IGA grocery store since the 1980s, it What CNRG learns from these previously housed Odegaard’s Pharmacy Outdoor Supply Hardware stores can and Hardware, which was known for havbe applied to other CNRG brands and to Orgill retailers, Sieggreen points out. ing everything under the sun. “There’s a huge tradition of hardware “We can go to our dealer base with a case study. We can be transparent about there. At Odegaard’s you would find an all-around general store with lumber where it’s been successful,” he adds. and hardware and you could find fish in Charlotte Wells, brand manager for an aquarium—they were ahead of their Tyndale Advisors, says it meant a lot to time,” King says. customers to see these stores reopen. The 34,000-square-foot store will be “We had customers lined up outside the 10,000 square feet larger than King’s doors on the first day.” next largest store, but he’s got a plan for She adds, “We requested feedback that extra space. “We will have a huge from customers: how can we better pet department, frozen and soft foods, serve the customer to make sure these stores have what they need? So far, the a Traeger store and a boutique like our Zimmerman Trail store,” he explains. Outdoor Supply Hardware stores have That store has found a niche with been very well-received.” Montana-made and hard-to-find items, KiNg’S ACe MAiNtAiNiNg trAditioNS hats, scarves and even women’s jeans. King is retaining one of the most popFor a hardware retailer in Big Sky ular features of the IGA store, which had Country, Skip King knows a lot about been a local gathering place for coffee meeting sky-high expectations and and donuts. King is leasing space to a maintaining a legacy in an area where couple to operate the newly remodeled mountains are viewed as destinations Evergreen Cafe, which will offer soup, and not obstacles. Outdoor Supply Hardware currently has five stores open in former Orchard Supply Hardware locations, with plans for five more.
www.ThehardwareConnection.com
The hARDWARe Connection ■ March 2020 ■ 35
feAture sandwiches and even kombucha to attract the younger generation. “I think it will be a good mix. The older folk want tables and chairs to have their coffee and donuts, so we’re keeping that. We may even do soft-serve ice cream for kids in the summer,” he says. King’s Ace Hardware’s newest store will feature a huge fastener department, because King wants to ensure it’s viewed as a hardware store first. He is working to put a U.S. Postal Station in there like he has in two other stores. Taking advantage of another retailer’s misfortune, King snapped up four greenhouses from a recently shuttered Shopko in South Dakota and is planning a huge greenhouse area. King took over the building last August and started tearing it completely apart, doing most of the work himself. “We tore the floor up and redid the parking lot, roof and HVAC. All the sprinkler heads had to be replaced. It was in pretty rough shape,” he says. Sears Hardware operates two blocks down the street, but King says that store has been dying a slow death the past four or five years. This downtown location at 13th and Grand Avenue was the one spot King did not cover with his remaining stores—all are in Yellowstone County. “There are 15,000 rooftops within a mile of this location. It was definitely underserved,” says King, who adds that independent hardware retailers have to be convenient or customers will buy online. 36 ■ The hARDWARe Connection ■ March 2020
Hampton Do it Best Home Center opened in a former Sears Outlet location in 2017.
“Our business is good regardless of the economy, as long as you give good service and provide value,” he says. “We have products in stock for people when they need it.” King is not done capitalizing on opportunity. He has an offer in right now on a shuttered Shopko building in Montana, which will hopefully turn into store number seven.
AMbridge do it beSt hoMe CeNter SolidifieS bACKup plAN David Strano knows that even the best stores need a backup plan. Ambridge Do it Best Home Center has been serving Allegheny and Beaver counties for more than 65 years, but has been in Ambridge, Pa., since the early 1980s, according to Strano, a co-owner. They moved to their current 40,000-square-foot location in 1995, but it’s still an area affected by steel mills closing. The population has declined 13.5 percent since 2000, as people move away after jobs are lost. “We had
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Hampton Do it Best Home Center features a 25,000-squarefoot sales floor.
growth the first 10 years, but it’s getting tougher and tougher,” Strano says. His first backup plan came in 2010, when he opened an InCom Supply business with salesmen on the road to meet the MRO (maintenance, repair and operations) needs of the area. Then in 2016, Benjamin Moore convinced him to open a standalone paint store in Pittsburgh. “These were opportunities that arose and fell into our laps, but really I just wanted a fallback plan if the hardware business started declining,” he explains. Strano had his eye on the Allison Park market, which is about 40 miles away from Ambridge. His Do it Best territory rep told him about a Sears Outlet location there that was shuttered. It had been vacant for less than six months after operating for 20 years. Pouncing on the opportunity, Strano ended up with a 25,000-square-foot store that features an additional 2-3,000 square feet of outside patio space. In February 2017, Hampton Do it Best Home Center opened to an appreciative community. www.ThehardwareConnection.com
Westlake Ace replaced a former Orchard Supply Hardware when this new store opened in Mountain View, Calif., last September.
weStlAKe ACe eXpANdS to CAliforNiA The Hardware Connection interviewed Westlake Ace Hardware President and CEO Joe Jeffries about their expansion into the West Coast. Ace Retail Holdings, a division of Ace Hardware Corp. that owns and operates Westlake Ace, has been busy opening 32,000 to 34,000-squarefoot stores in former Orchard Supply Hardware locations. THC: How many former Orchard Supply Hardware locations will Westlake Ace be opening new stores in? How many have opened so far? Jeffries: We opened 11 stores in California in 2019. The stores are operated under the Ace brand and are located in Chico, Fresno, La Crescenta, Mountain View, Pinole, South Pasadena, Thousand Oaks, Turlock, Van Nuys, West LA and Woodland. THC: How have the stores been received so far in these communities? The hARDWARe Connection ■ March 2020 ■ 37
feAture “It required a normal amount of retrofit. We had to buy a lot of new fixtures and do a paint job. With help from Do it Best, we were able to open in a few months,” he says. The new store doesn’t have lumber or rental like the Ambridge location, but everything else is the same, according to Strano. “We’re still trying to figure out who Chad Ford (left) and Dan McLaughlin opened their second store, Richboro True Value, in a we are with that location, but people do former Rite Aid. seem to like the store. We send out monthly ads and do a lot with social media.” customer,” he says. “Employees are empowered to make decisions and Strano says their status as an indemake buying suggestions.” pendent retailer is a strength, not a With several backup plans now weakness. “We listen to customers and in place, Strano feels more comfortinvestHalf in Page theHardware community. We really try Trade Ad Artwork R1.pdf 1 1/30/20 2:00 PM able with his business future. “I would to go the distance to take care of the
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consider another chain site if it comes available. We know how to connect with customers,” he says.
third tiMe’S the ChArM With backgrounds in corporate finance, Chad Ford and Dan McLaughlin did not set out to be hardware retailers. Chad is also an attorney, but they had family in the hardware business who operated a True Value store in New Hope, Pa. “The time was right,” as Ford explains. They opened their first store together in September 2014: Doylestown True Value in Doylestown, Pa. Accepted well by the community, that store gave Ford and McLaughlin the confidence to tackle expansion. Richboro True Value opened in Richboro, Pa., in 2018, filling the space vacated by Rite Aid. “The opportunity arose and it’s a good market,” explains Ford. “We filled an immediate vacancy when Rite Aid closed.” Their first retrofit came with challenges, as they discovered asbestos tile had been used at some point. “It didn’t end up being too much of an issue,” he says. They started the retrofit work in January and opened the 8,000-square-foot Destination True Value store in June 2018 Ford says True Value does a nice job of providing data on site locations to help them determine if a store will be successful. “They proposed several different locations and Richboro was one. There’s not another hardware store in that town, so we were able to fill that void. Customers www.ThehardwareConnection.com
Westlake’s new stores in California feature the Paint Studio format to serve as a destination for paint products.
Jeffries: The reception we’ve received has been overwhelmingly positive. We are thrilled that our new customers once again have a local hardware store, full of friendly and familiar faces, and an exciting blend of products. Most importantly, we look forward to being part of these communities and showing our new neighbors how we live the Ace Helpful Promise every day by delivering reliable service, helpful advice and products to help them get their projects done right. THC: What is different about the product assortment and niches carried in these stores compared to your typical Westlake Ace stores in the Midwest? Jeffries: In addition to carrying a wide variety of local and regional products our California customers are familiar with, the stores all carry traditional hardware products such as fasteners, electrical supplies, tools and plumbing supplies. We’ve also introduced several exciting “store-in-a-store” concepts and The hARDWARe Connection ■ March 2020 ■ 39
feature are glad that we’re local owners and we’ve continued to grow,” he says. Ford adds, “The average customer appreciates the fact the store is very shoppable and it’s laid out well. Everything we stress to our staff is about customer service and striving to provide the best experience.” The second store has done so well that Ford and McLaughlin are working to open store number three in Blue Bell, Pa. Blue Bell True Value will open in early May in a former location for Pet Supplies Plus, a franchise chain. The new store will be a little smaller than 8,000 square feet. Fixtures come in March 19, the inventory is scheduled to arrive March 30 and then Ford and McLaughlin put the finishing touches on a process that is becoming familiar to them. “We’re in the stores every day making sure customers get the answers they need,” Ford says. “So far it’s been a lot of fun and very rewarding.”
Out With the Old, in With the neW Independent hardware retailers have been taking advantage of abandoned chain locations all across America, as the owners who have survived the invasion of the big boxes and the rise of Amazon find themselves positioned well to zig where others have zagged. Lee Kennedy of Kennedy Ace Hardware in Worland, Wyo., is getting ready to open a new store in Worland that previously housed Shopko. 40 ■ The hARDWARe Connection ■ March 2020
The future home of Kennedy Ace Hardware in Worland, Wyo., is a shuttered Shopko.
Mike and Gina Wilmes of Wilmes Do it Best Hardware in South Sioux City, Neb., are working to open their second store in Sioux City, Iowa, in a shuttered Shopko store. It will feature a 30,000-square-foot sales floor when it opens later this spring. Harps Food Stores is opening its first free-standing Ace Hardware store this month in Charleston, Ark., in a former Walmart Express location. Walter Toole was honored with the 2019 Beacon Award for Best New Store after he opened University Ace Hardware in Oviedo, Fla., in a former Walgreens location. That store nearly doubled Ace’s proforma in the first year. Toole is planning to open his 11th store, Aloma Ace Hardware, in Winter Park in early May. Sherry and Dennis Bishop and Robin and Eric Smith were also honored with the 2019 Beacon Award for Best New Store for Petersburg Do it Best Hardware, which moved to a new location in Petersburg, Ind., that previously housed a Shopko. After originally planning to lease some of the space, the Bishops and Smiths ended up using all 28,000 square feet of sales floor, a big jump from their www.ThehardwareConnection.com
previous 6,000-square-foot location. They filled it with lumber, riding mowers, workwear, appliances, toys and more, turning their store into a onestop shop for locals. It may be a big store for a town of 2,400 people, but Petersburg Do it Best Hardware has been a smashing success so far. Scott County True Value opened last November in a former Walmart location in Waldron, Ark., that had been shuttered since 2017. In Lincoln, Neb., Q.P. Ace Hardware was able to open a new store on March 2 in a former Ideal Grocery site despite having a car crash into the building the week before. That had been the city’s oldest grocery store until it was destroyed by fire in 2016. Last April, Busy Beaver opened a new 33,000-square-foot store in a former Big Kmart location in Elkins, W. Va. That was followed in May by a new Busy Beaver store in Calcutta, Pa., taking the place of a shuttered Kmart. In October, Busy Beaver closed a store in Canton, Ohio, that had previously housed Stambaugh Hardware so it could move to a bigger location that formerly housed Sears. That store carries the True Value brand identity. As the retail landscape continues to change, independent retailers are discovering a simple truth: you are either a buyer or a seller. For those unwilling or unable to capitalize on opportunities, they may not like what moves in down the street. ■ www.ThehardwareConnection.com
The Backyard BBQ store-within-a-store concept establishes a dominant image in grilling.
departments such as Garden Centers, Pet Supply, Backyard BBQ, Outdoor Power Equipment, The Tool Shop, The Paint Studio and Kitchen Essentials. A select number of stores feature Hallmark Gold Crown Stores. THC: Are these stores in former OSH locations a springboard to more expansion for Westlake and the Ace brand in California? Jeffries: Our growth in California is the latest example of the vibrant and positive evolution Westlake has gone through in the past several years, and we are continually looking at opportunities to continue that growth in a way that makes sense for our business and the communities we hope to serve. THC: Isn’t it nice to see the Ace brand take over locations that were shuttered by a large corporate chain? Jeffries: The most important thing about this trend is that retailers like Ace are able to serve communities that have lost local retail hardware options. It’s gratifying that we can once again bring these communities a fresh and new retail option that delivers a blend of familiar and local products, exciting new products and world-class service. The hARDWARe Connection ■ March 2020 ■ 41
SucceSSiOn Planning
By Gary Pittsford, CFP®
Six Planning Topics for FamilyOwned Business Succession
A
fter 45 years of working with hundreds of family-owned businesses across the country, I can tell you that each business and every family is slightly different. I can also tell you that most business owners have the same basic concerns about retirement and planning for the succession of their companies. Most of the business owners that I have met over the years have spent their adult lives running and growing their businesses. Many of them, now that they are between age 60 and 70, are thinking about slowing down and retiring from their companies. This succession exit planning process worries most of them, because they have not tackled this topic before. They realize that they only get to sell their company one time and that the plan that they come up with must be the best one. The following are some of the questions business owners ask as they consider the succession planning process: • Will someone within the family take over? • Will the company be sold to an outsider?
• What is my company really worth? • How can I reduce taxes if I sell the business? • How can I be fair to all of my children if only one or two children take over the company? Below are six topics we discuss with each of our clients in regards to succession planning: First is the business structure. The type of business that you have currently affects long-term planning, income taxes and the transition to the next generation. Is it an S Corporation, C Corporation, Limited Liability Company or a family limited partnership? Is there only common stock or is there some preferred stock? Are there 100 shares, 500 shares or 1,000 shares to work with? Talk with your financial advisors, accountants and attorneys to make sure that the entity you have gives you the most flexibility for designing a business succession plan. These discussions need to take place as early as possible. Sometimes it takes five to 10 years to make the changes necessary to fit your family succession plan.
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Second are family members. Will someone in the family be buying the business from you? Will it be one child, or possibly two or three? Will one child have 51 percent voting control? You, as the business owner, need to be satisfied in your mind that at least one or two of your children are best suited to take over control of the business. If they are not going to take over, then consider key managers who have been with you a long time that are good candidates. If key managers are not candidates, then perhaps there is someone else in your industry that you have confidence in who might want to buy the business? Third are the transition options. If one or more of your children are going to take over the business, then you need to have a discussion with your advisors about different techniques that can be used. Many business owners gift some of the company stock to their children who are taking over and sell the rest to them. If the stock in the company is going to be sold, then you want the sale designed so that you can take advantage of long-term capital gains, which are taxed lower rates. Sometimes, if you have the right type of entity, it may be desirable to transition voting stock to one or two children and non-voting stock to other children that may not be in the business. There are many ways to transition a company to the next generation, and all of the options need to be considered when www.ThehardwareConnection.com
you talk with your financial advisors, attorneys and accountants. Fourth is retirement security. Many business owners still want or need additional retirement income after the business succession is completed. There are many different ways to lock in a monthly income for the retiring business owner. Using two or three different income options listed below usually works best, keeping in mind that some of these ideas are good for the company and others are good for the retiring owner. A fair compromise must be reached. • Taking a reduced salary and working part time is a possibility. • If you retain some of the stock, then dividend income is possible. • Being on the board of directors and receiving directors’ fees for several years is an option. • Being paid as a consultant in certain areas. • If you own the building, then rental income is an option. • Selling some of the stock with a monthly installment note. Fifth are the tax decisions. Some of the transition options you will be considering will be ordinary income or perhaps long-term capital gains for the retiring owner. Some of the options will be deductible by the company and some will not. All of the sales ideas must be reviewed carefully to make sure that the company can afford the two or three options you plan to use and The hARDWARe Connection ■ March 2020 ■ 43
SucceSSiOn Planning that the retiring business owner is also receiving some tax breaks. After working many years to build up the company the business owner deserves as many tax breaks as possible, but the plan chosen must be affordable for the company and children. Sixth is reviewing your will and trust. Many business owners have several children and often only one of the children is interested in running the business and the others have chosen different careers. Most business owners tell me that they want to be fair to all of their children, but it is sometimes hard to do if one child is going to be receiving the family’s largest asset. Sometimes, changing the payout to the children in your will or trust helps this process. For example, if your estate documents currently say that the three children will each receive 33 percent of the estate, that could possibly be changed. The one child who will be taking over the company could be reduced to an inheritance of 10 percent and the other children could receive more. Changing the beneficiary of retirement IRA accounts and life insurance policies could help equalize the inheritance as well. Every business owner asks me the same question: “If I give this stock to one of my children, what happens if they die suddenly or get divorced?” A well-designed stock redemption 44 ■ The hARDWARe Connection ■ March 2020
agreement or buy-sell agreement becomes very important for protecting the company stock. A properly prepared buy-sell agreement should have provisions that cover every stockholder in case of death, disability, divorce, personal bankruptcy, termination and retirement. When you start moving stock to other individuals in the family, this buy-sell agreement becomes very important. Because the six concerns I have discussed above are complicated, you need to put together an excellent financial advisory team to help you with all of your important legal, tax and financial questions. Designing a plan to protect the company and your family’s net worth will take several months to prepare and potentially three to five years to implement. The sooner you get started the better. n Gary Pittsford, CFP®, is president and CEO of Castle Wealth Advisors, LLC. Castle specializes in helping families and closely held business owners with valuations, succession planning, estate and income tax analysis and retirement income security. For more information, visit www.Castle3. com, call 888-849-9559 or e-mail Gary@Castle3.com.
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THE HARDWARE CONFERENCE
Beacon Awards Set the Stage at
Hardware Conference
The Hardware Conference is set for August 21-23 at the JW Marriott right on the water in Marco Island, Fla.
I
t’s hard to beat relaxing on sandy beaches while learning new ways to improve your business. Start making plans to attend the 2020 Hardware Conference, set for August 21-23 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla. It is designed to be affordable and family-friendly. The event, now in its 32nd year, is the industry’s largest event bringing together independent retailers regardless of wholesaler affiliation. The Hardware Conference offers the perfect opportunity to find ways to improve your business while having fun at a world-class resort right on the Gulf of Mexico, with miles of sandy white beaches. Recently upgraded to JW Marriott status, the resort offers an oasis of www.ThehardwareConnection.com
luxurious comfort with activities designed for the whole family. Discover the latest new products from leading vendors during open exhibit hours, then pick up new ideas for your store while interacting with fellow 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 newly remodeled Spa by JW® or a relaxing walk along the white sand beach. Conference directors Craig and Shanti Cope host a family-friendly, affordable event that provides independent retailers with a forum for sharing ideas and discussing business The hARDWARe Connection ■ March 2020 ■ 45
issues with key suppliers. The industry’s premier event for the independent retail hardware channel offers an awards program Presented By that was launched in 2013 to recognize the “best of the best” retailers. The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection. Apex Tool Group, Epicor, Ettore Products, Rust-Oleum, Ace Hardware, Do it Best Corp. and Orgill provided additional sponsorship support for the 2019 program. In addition to Retail Beacon Awards for each of the participating wholesalers, the awards banquet honors the industry’s best new stores in two categories: over 20,000 square feet and under 20,000 square feet. The 2020 Beacon Awards banquet will be held Friday evening, August 21, at the JW Marriott Marco Island. Winners will receive all-expense paid trips for two to the 2020 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. Get your nominations in now for the Best New Store category—the entry deadline is May 1, 2020. For more information on the nomination process, 46 ■ The hARDWARe Connection ■ March 2020
Upper: The 2020 Beacon Award winners will be honored during an awards banquet on Friday evening. Lower: Retail attendees have a chance for one-on-one dialogue with vendors.
contact Editor Chris Jensen at chris@thehardwareconnection.com. 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. The Conference is designed for the whole family, with Saturday afternoon set aside with vendor-sponsored golf, beach activities sponsored by Wooster Brush, a shelling excursion and Everglades airboat excursion. For more information, go to www.thehardwareconference.com or contact Craig or Shanti Cope at 305-853-0049. n www.ThehardwareConnection.com
CAteGorY rePort
HAND AND POWER TOOL TRENDS
Sales of Adjustable Wrenches (Independent Hardware Channel) 12 Months % Change vs. Year Ago Adjustable Wrenches: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -5.9% Adjustable Wrenches: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6% Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Adjustable Wrenches Total of 165 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.4% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.1% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67.7% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77.4% Source: Vista Information Services, div. of Epicor Software Corp.
Seasonality of Sales of Adjustable Wrenches (Index=100) 120
120 110
122
110
95
100
10086
90 80
107
111 109
97
103 93
96
103
79
90
70
Jan. 80 2019
Feb. March Apr. 2019 2019 2019
May June July Aug. Sept. Oct. Nov. Dec. 2019 2019 2019 2019 2019 2019 2019 2019
Source: Vista70 Information Services, div. of Epicor Software Corp.
Adjustable Wrenches Share of Sales by Type (Latest 12 Months)
0
20 Wrench
40
Wrench Set
60
80
95.0%
100
5.0% 0
20
40
www.TheHardwareConnection.com
60
80
100
Source: Vista Information Services, div. of Epicor Software Corp.
Manufacturers and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to www.vistainfoservices.com.
THe HARDWARe Connection ■ March 2020 ■ 47
Hartville Hardware in Hartville, Ohio, stocks more power tools than any big box.
hAnd And Power tool BuYinG uPdAte • The global power tools market is projected to reach $41.7 billion by 2024, up from $31.8 billion in 2019, growing at a compound annual growth rate of 5.5% during the forecast period, Parkrose Hardware in Portland, Ore., caters to DIYers and pros with its hand tool assortment. according to MarketsandMarkets. • The global hand tools market is growing at a CAGR of 8.5%, according expected to post a CAGR of close to Allied Market Research. to 4% during the period 2020-2024, • The residential tool user segment according to market research by is projected to see annual growth Technavio. The rapidly growing of 5.9% through 2022, according to construction market is one of the Allied Market Research, outpacing key drivers anticipated to boost the tool sales to pro and industrial users. hand tools market during the fore• Sales of metal-cutting tools will lead cast period. the industrial market, driving a com• The global battery power tools marpound annual growth rate of 4.9%, ket is projected to rise from $22.4 bilaccording to Future Market Insights. ■ lion in 2018 to $44.1 billion in 2026, 48 ■ THe HARDWARe Connection ■ March 2020
www.TheHardwareConnection.com
HAND & POWER TOOL PRODUCTS
CRESCENT APEX POWER TOOL ACCESSORIES
VAMPLIERS® JAWZ • VamPLIERS® JAWZ 7-1/2” Curved Jaws Screw Extraction Locking Pliers easily remove stripped, rusted, security, specialty, torx, low-profile truss screws, nuts and bolts. • Vertical serrations bite and grip the screw head without slippage. Gripping vise remains closed securely while pliers are turned. • Quick-release feature enables you to unlock the pliers at once. Also equipped with anti-slip elastomer handles for safety. • Perfectly fit serration maximizes contact with no slippage. Vampire Tools www.vampiretools.com 949-748-0552 www.TheHardwareConnection.com
• Crescent™ Tools has been overhauled over the past two years, and that continues with the announcement that Apex Tool Group is bringing the APEX® Industrial Fastening brand under the Crescent umbrella as Crescent APEX®. • The new Crescent APEX brand will offer innovative power tool accessories used by industrial and construction tradesmen, including their professional line of u-GUARD® nonmarring covered tools. • Griffin Biering, global marketing director at Apex Tool Group, said “The fastening innovation we’ve spearheaded in the assembly manufacturing space is carrying into the construction market. With Crescent’s deep connection to professional tradespeople, we are combining our efforts and delivering superior power tool accessories from a brand they trust.” • Crescent APEX® becomes the sixth brand under the Crescent name, joining Crescent Wiss®, Crescent Lufkin®, Crescent Nicholson®, Crescent H.K. Porter® and Crescent JOBOX®. Apex Tool Group www.crescenttool.com 919-362-1670 THE HARDWARE Connection ■ March 2020 ■ 49
ProGrAmmABle diGitAl leVel • Johnson’s most robust and accurate digital level, the JLX® 24” programmable digital level has the accuracy and durabilBosCh FreAK GdX18-V-1800C imPACt driVer ity required for professional applications. • The Bosch Freak, half impact driver, half • It features pre-programmed impact wrench, now offers even more ADA compliance, drainage and power as the Bosch GDX18V-1800C, delivroof pitch modes that simplify ering 1,800 in.-lbs. of max torque. A 1/4” measurements for the most quick-change hex shank holder with Power common digital level applicaGroove to secure bits combines with a 1/2” tions, but it can also be easily square drive impact wrench for sockets. ® customized to meet your needs. • The updated Freak features Bluetooth connectivity, which connects the tool to the • This level is easy to use—it features simple, three-button operfree Bosch Toolbox App on a connected ation and its dual backlit LCD device to customize settings. displays on the top and front • Driven by an efficient, maintenance-free EC put the information where you brushless motor, the tool supplies plenty need it. Both displays automatiof fastener-tightening force. Bosch’s hamcally invert when you are taking mer-and-anvil system delivers maximum overhead measurements. impact energy and performance to handle • Durability is never a concern the toughest concrete-, wood- and metalwith this level. Its IP65 construcfastening tasks. tion provides complete protec• The Bosch Performance Control System tion against dust and water. It allows users to adjust tool speed/torque with also comes with a non-marring the push of a button to match the tool to the wall grip and its crystal clear application. Quickly and seamlessly switch vials were designed to never from a 1/4” quick-change hex shank to a 1/2” fog, leak or crack. square drive for two tools in one package. Johnson Level Robert Bosch Tool Corp. www.johnsonlevel.com www.boschtools.com 262-242-1161 877-267-2499 50 ■ THe HARDWARe Connection ■ March 2020
www.TheHardwareConnection.com
SPECIAL REPORT: HOW IS THE CORONAVIRUS CRISIS IMPACTING THE HARDWARE INDUSTRY?
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he news these days is dominated by the latest developments as the novel coronavirus (COVID-19) outbreak continues to spread rapidly around the world. As the Center for Disease Control and Prevention (CDC), the World Health Organization, and state and federal agencies work frantically to contain the virus while drug companies work on a vaccine, the hardware industry finds itself on the front lines of the action. Panicked consumers are rushing to hardware stores in search of masks, hand sanitizer and cleaning wipes, only to discover supplies are short or non-existent. Since the vast majority (about 80 percent) of the coronavirus cases are in China, that creates a high risk for major disruptions in the global supply chain. As of press time, the coronavirus outbreak had surpassed 108,000 cases worldwide and spread to 100 countries, with more than 3,800 deaths. In the United States, there were more than 550 confirmed cases and 24 deaths as of March 9. The immediate impact of this health crisis has been the cancellation of key trade events. Ace Hardware’s Spring Convention, scheduled for March 12-14 in Chicago, was canceled on March 5 with the following statement: “The health and safety of our Ace employees, retailers and vendors is and has always been our top priority. Due to www.TheHardwareConnection.com
Ace Hardware of Clarkston in Michigan was swamped once Owner Jason Haley posted that they had a supply of N95 masks.
growing concerns around the coronavirus (COVID-19), we have made the difficult decision to cancel the Ace Spring Convention next week in Chicago.” Jessica Rau, Ace’s director-PR, social and corporate media relations, said, “We are working diligently to provide a digital convention experience for our retailers.” The International Hardware Show in Cologne, Germany, originally scheduled to begin March 1, has been moved to February 21-24 in 2021. About 3,000 exhibitors (1,200 from China), were expected to attend that event. The International Home & Housewares Show, scheduled for March 14-17 in Chicago, has also been canceled. The National Hardware Show, which typically attracts a significant number of exhibitors from China and other countries, was still scheduled for May 5-7 in Las Vegas. THE HARDWARE Connection ■ March 2020 ■ 51
At the Orgill show in Orlando at the end of February, several vendors said they were worried about future production capability. Companies that have the majority of their production in China said they are currently scrambling for a backup plan, and it’s not as if they can travel to China to address the issue. One plumbing manufacturer said they rely on China for one component for their product line, which looms as a growing challenge for the company. Ironically, the tariff situation last year had caused some U.S. manufacturers to shift all or some production from China to other countries like Vietnam. Such fortuitous initiatives have mitigated the disruption in the supply chain, but the biggest problem is a shortage of N95 respirator masks. Hardware stores, big boxes, mass merchants and even online sellers like Amazon have few if any in stock. Ron Beal, chairman of Orgill Inc., which has an extensive Worldwide Sourcing program, said that they haven’t seen much impact yet from the coronavirus outbreak. “Manufacturing companies in China are just returning after the Chinese New Year, but we’re seeing workers return to production in China. We think we’re in good shape, but we’re like everyone else in that we have to be reactive to the situation. It can eventually start to impact the global supply chain,” Beal said. Demand for respirators is so high that it’s becoming difficult to order them on e-commerce platforms like Amazon, 52 ■ THE HARDWARE Connection ■ March 2020
let alone find them in stores. To fill the surge in demand for the devices, particularly the N95 respirator, 3M is ramping up production. In Aberdeen, S.D., more than 650 employees at one of 3M’s largest manufacturing facilities are working overtime to increase face mask production, according to a report on CNBC. On March 5, Ace Hardware of Clarkston (Michigan), posted on its Facebook page: “We just received a couple hundred N95 masks. We have been flooded with phone calls and people coming in looking. We are fully loaded now, but everything is first come, first serve.” “The dust masks are gone. Any hand sanitizer is gone, it doesn’t matter what kind it is. And we can’t get more anywhere,” said Jill Saunders, co-owner of Ace Hardware stores in Southern Pines and Seven Lakes, N.C., in an interview with a local newspaper. Several retailers said they have been told orders for respirator masks will not be fulfilled until April or in some cases, early May, as vendors prioritize making sure health-care and government workers are given first priority. The CDC does not recommend people wear masks to protect themselves from the virus, although people who have the virus should wear them to avoid spreading it. For the most updated and accurate information on the coronavirus outbreak and how to prevent its spread, go to www.cdc.gov. ■ www.TheHardwareConnection.com
IN THE NEWS NEW STORES: • Jackie and Ron Horne have opened Carolina Hardware & Home Center in Pageland, S.C. • Pat Sullivan, owner of three Sullivan’s Hardware & Garden stores in central Indiana, purchased Allisonville Garden & Home in Fishers, Ind. • Westlake Ace Hardware has purchased North Bend Ace Hardware in North Bend, Wash. • Connolly’s Do it Best Hardware & Rental has acquired Umber’s Do it Best Hardware in Fort Wayne, Ind. • Jim Benedict has opened Benedict’s Ace Hardware in Mountain View, Wyo. • Skip King is opening his sixth store, King’s Ace Hardware, in Billings, Mont. • Gina Schafer and Marc Friedman of A Few Cool Hardware Stores have acquired Annie’s Ace Hardware’s Petworth location in Washington, D.C., which has been renamed Petworth Ace Hardware; and they also acquired Strosniders Hardware in Silver Spring, Md. • TAL Holdings has acquired familyowned Lake Chelan Building Supply in Chelan and Mason, Wash. • David Westphal and Nick Perry are the new owners of True Value www.TheHardwareConnection.com
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Home & Hardware in Mayville and Campbellsport, Wis. National Lumber opened a new lumberyard in Kingston, Mass. Tim Novak is the new owner of Bigari Ace Hardware in Iron River, Mich. Century Club retailer Salk’s Ace Hardware and Marine has opened its fourth location in South Kingstown, R.I. Nation’s Best has acquired three stores from Groom & Sons’ in Texas. Hartville Hardware & Lumber has acquired Centerra Hardware and Lumber Center in Middlefield, Ohio. Jacob Mason has acquired Callaway True Value in Callaway, Neb., from Ken Pitkin.
KUDOS TO: • Westhampton True Value in Westhampton Beach, N.Y. received top honors as True Value’s “Best Hardware Store in Town” for 2019. Also honored were Island True Value Tackle & Hardware, Carolina Beach, N.C.; M&M True Value Hardware, Steubenville, Ohio; Ross True Value, El Reno, Okla.; Slavens True Value Hardware, Cortez, Colo.; Portland True Value, Portland, Ind.; Tatfat Home Depot & Hardware, Aruba; Table Rock True Value THE HARDWARE Connection ■ March 2020 ■ 53
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Hardware, Kimberling City, Mo.; Howard’s True Value, Glendale, Ariz.; True Value Willmantic, Willmantic, Conn.; Arrowhead Builders Supply True Value, Longville, Minn.; Wilco Farm Store, Battle Ground, Wash.; and Sunshine True Value Hardware, Hawi, Hawaii. Family-owned Lansing Building Products, with over 70 locations, is celebrating its 65th anniversary this year. Forslund Building Supply, with stores in Ironwood and Caspian, Mich., is marking its 70th anniversary this year. Hiawatha Lumber Co. of Minneapolis is celebrating its 80th anniversary this year. The Howard family is celebrating the 65th anniversary of Howard’s Hardware Hank & Rental in Arcadia, Wis. Lochard Hardware Do it Center in Sidney, Ohio, is marking its 75th anniversary. Lloyd and Donna Boeder are celebrating the 125th anniversary of Hartmann’s Hardware Hank in Pierz, Minn. Scott and Patty Stratman are celebrating the 30th anniversary of Stratman Lumber & Hardware in Malden, Mo. Studz Hardware in Dearborn Heights, Mich., is celebrating its 65th anniversary.
54 ■ THE HARDWARE Connection ■ March 2020
PEOPLE ON THE MOVE: • Do it Best Corp. has hired Laurie Schaeffer as merchandise manager for housewares.
WHOLESALERS IN THE NEWS: • Ace Hardware Corp. reported 4Q revenues of $1.5 billion, up 6.1% from last year. Full-year revenue for 2019 was $6.1 billion, up 6.2%, and net income rose 9.5% to $140.4 million. The patronage dividend to shareholders increased 28% to $182.2 million. Retail revenues from Ace Retail Holdings LLC were $121.4 million in 4Q 2019, a 44.7% increase from the prior year. Ace added 168 new domestic stores in fiscal 2019 and cancelled 88 stores. Debt decreased $50.8 million versus the prior year. • Do it Best Corp. has launched the Do it Best Foundation to distribute grants to organizations that align with its giving pillars and generate the biggest impact in their communities to help them be great places to live, work and play.
OTHER NEWS: • Master Magnetics has introduced a new website: www. mastermagnetics.com. • Gordon Kushner, senior vice president, general counsel and secretary for ECi Software Solutions, was recognized as a 2020 Top 50 Corporate www.TheHardwareConnection.com
Counsel Award winner at the OnConferences Icon Awards program. • Independent We Stand has launched the fifth annual America’s Main Streets contest. The threemonth, web-driven contest helps consumers, small business owners and Main Street organizations reward a deserving Main Street with $25,000 in cash and sponsorrelated prizes. All nominations and voting take place on www. MainStreetContest.com. STIHL Inc. is the presenting sponsor and supporting sponsors include Do it Best Corp., PPG Paints and the Paint & Decorating Retailers Association. • Lowe’s Canada has agreed to sell the assets of the Ace Canada business to Peavey Industries, which operates 92 farm, ranch and hardware stores across Canada under the Peavey Mart, MainStreet Hardware and TSC banners.
IN MEMORY: • David Helfenberger, former vice presidentmarketing for HouseHasson Hardware, passed away March David 2 at the age of 68. He Helfenberger retired in January 2018 after working for House-Hasson for 34 years. Moved to regional sales manager in 1993, Helfenberger was www.TheHardwareConnection.com
promoted to vp-marketing in 1996. “Under David’s tenure we became one of the best companies in the industry at doing store sets and new stores,” stated House-Hasson President Don Hasson. David is survived by his wife Shelley; son Ryan Helfenberger (Amy); granddaughter Harlyn; and sisters Diane Clark and Deborah Sumner.
FOR THE FULL STORY: • Ace Hardware is preparing to relaunch Ace Handyman Services. Click here.
ORGILL ANNOUNCES CHANGES TO EXECUTIVE TEAM Orgill has announced a number of changes in the executive teams at Orgill and Tyndale Advisors. These changes are designed to help more closely align Orgill and the efforts of Central Network Retail Group (CNRG) and Tyndale Advisors to provide the distributor and its customers with broader retail insights and support. Phillip Walker, who had previously served as Orgill’s senior vice president of merchandising services, has assumed the role of president of Tyndale Advisors. Chris Freader has been promoted to vice president of merchandising services for Orgill and will lead its conversion, store design and retail services teams. John Sieggreen was previously named Orgill’s executive vice president of THE HARDWARE Connection ■ March 2020 ■ 55
retail and will continue to serve as president of CNRG. “We started Tyndale Advisors in 2010 as we began planning for CNRG, which we launched in 2011,” says Orgill’s President and CEO Boyden Moore. “From the beginning, our plan was to build the management and technical infrastructure that we would need to manage CNRG inside of Tyndale Advisors so that we could share that infrastructure, insight and tools with all Orgill dealers.” Currently CNRG successfully operates 109 retail stores comprising 16 different brands, in markets throughout the United States. Orgill utilizes the insights and information gathered from these varied store brands to test and improve retail programs, services, assortments and merchandising ideas that it makes available to all of its retail customers. “Because we operate stores under different brands in different markets, we have access to a very unique resource for gathering real-world retail insights at CNRG,” says Sieggreen. “We actually refer to our various brands as a laboratory of sorts, where we gather information on which products, programs, and services work best. By doing so, we assist Tyndale and Orgill Retail Services in providing services to Orgill customers of all formats and sizes. What we’re doing is truly unique in the industry.” 56 ■ THE HARDWARE Connection ■ March 2020
From l to r: John Sieggreen, Chris Freader and Phillip Walker were recently promoted at Orgill.
ORGILL RETAILERS GATHER IN ORLANDO Thousands of independent home improvement retailers gathered in Orlando to attend the Orgill Spring Dealer Market, held Feb. 27-29. The market covered nearly 1 million square feet of the Orange County Convention Center. “Our dealer markets are designed to be a complete showcase of what Orgill and our vendor community can offer our customers,” says Boyden Moore, Orgill’s president and CEO. “Not only do we want to highlight the latest products and assortments they can bring into their stores, but we want the dealer market to be a place where dealers share ideas, find inspiration, competitive advantages and learn how Orgill can best help them execute their vision.” Orgill featured its new Paint & Paint Sundries Showcase at the market. This area included 18,000 square feet of paint and paint sundries products from top vendors, as well as Orgill’s enhanced Paint Works program. Richard Lee of Lee Hardware & Building Supply in Waycross, Ga., said he enjoys attending the Orgill markets. “We always find lots of great deals and find it valuable to talk to the vendors,” he said. At this market, Orgill showcased two model stores: Pinnacle Hardware & www.TheHardwareConnection.com
Orgill retailers saw best-in-class merchandising at two model stores on the show floor.
Paint and All Pro Building Supply. The 16,000-square-foot Pinnacle Hardware & Paint store concept demonstrated a high-performance paint department with offerings from leading vendors and Orgill’s new Paint Works program. The All Pro Building Supply model store featured 7,000 square feet of assortments and products designed to attract the professional contractor market. More than a hundred dealers traveled early to Orlando and participated in an E-commerce Symposium. This half-day session brought together high-performing retailers from across the independent channel to share experiences, best practices and learn from one another. Attendees also had the opportunity to get updates from Orgill’s e-commerce team about the latest programs and technologies available to help them better compete online.
DO IT BEST SPRING MARKET DRIVES MEMBER PROFITABILITY During its spring market in Indianapolis, Do it Best Corp. kicked off a year-long celebration of the co-op’s 75th anniversary www.TheHardwareConnection.com
while highlighting ways for member-owners to increase their profitability. The market, held February 7-10, featured thousands of innovative new products, exclusive vendor programs, informative seminars, customizable programs and fun networking events to help member-owners compete and win in today’s dynamic marketplace. A popular feature on the market floor was Core Solutions, a comprehensive display of the best of the best assortments in the hand and power tool departments. Members were able to order tailored planogram layouts at significant discounts so they could enhance their profitability in these core categories. Friday afternoon, Do it Best kept the energy going with its market kickoff event. President and CEO Dan Starr took the stage to share a mid-year performance update and highlight the strategic investments being made to fuel member profitability and long-term growth. “We’re kicking off a milestone year. After 75 years, we are still committed to being your best, first choice,” Starr told retailers in attendance. “We live in a perpetual time of disruption, but the joy of what we do is to help you drive profitability and grow your business into the future.” Starr added, “We’re starting the first quarter very strong and are well ahead of where we were last year. Growth is imperative, and we’re making improvements to our supply chain, marketing and training and we’re putting analytics to everything.” THE HARDWARE Connection ■ March 2020 ■ 57
Rich Lynch, vice president-marketing, said retailers today are competing in a more digital world. “We launched a new e-commerce platform on December 26 that is much more robust. We have consumer marketing specialists that are helping members position their stores for success with digital marketing and Best Rewards. We’re investing resources into a digital dashboard that integrates with the website,” Lynch said.
Do it Best President Dan Starr highlighted the strategic investments being made to fuel member profitability.
In addition to providing the company’s employees a more collaborative, open and efficient work environment, Electric DO IT BEST CORP. PLANS MOVE TO NEW Works will strengthen Do it Best’s ability COMPANY HEADQUARTERS to retain and attract skilled talent from Do it Best Corp. has signed a letacross the country in an increasingly ter of intent to locate its corporate multigenerational labor market. headquarters at Electric Works in “Being at Electric Works will help us Fort Wayne, Ind. Indiana Gov. Eric be an employer of first choice, retaining Holcomb, Fort Wayne Mayor Tom and attracting top multi-generational Henry and other local regional and talent not only from here in Fort Wayne, state leaders joined Do it Best Corp. but also on a broader scale,” said Do it CEO Dan Starr and representatives of RTM Ventures, the development team Best Corp. President and CEO Dan Starr. “It enables us to keep our roots in the behind Electric Works, in making the community we’ve called home for 75 announcement on February 13. The letter of intent calls for Do it Best Corp. years, while at the same time positioning us for a bright future. to occupy almost 200,000 square feet Do it Best Corp. is the largest privately of space on multiple floors on the projheld company in the state of Indiana. ect’s West Campus, with the ability to Construction at Electric Works is expectadd up to 20,000 square feet more if ed to begin this summer. needed for expansion. 58 ■ THE HARDWARE Connection ■ March 2020
www.TheHardwareConnection.com
UPCOMING EVENTS MARCH Ace Hardware Corp. Spring Convention — CANCELED Blish-Mize Spring Buying Market March 19-21, Overland Park Convention Center, Overland Park, Kan. Hearth, Patio & Barbecue Expo March 12-14, Ernest N. Morial Convention Center, New Orleans International Home & Housewares Show — CANCELED National Lumber & Building Material Dealers Association Legislative Conference March 23-25, Westin Washington City Center, Washington, D.C. PACOA Spring Market March 13-15, Fitzgerald Gymnasium at Queens College, Queens, N.Y. Wallace Hardware Spring Dealer Market March 25-27, LeConte Center, Pigeon Forge, Tenn.
APRIL Home Hardware Spring Market April 5-7, Home Hardware Stores, St. Jacobs, Ont.
National Hardware Show May 5-7, Las Vegas Convention Center, Las Vegas, Nev.
JUNE House-Hasson Summer Dealer Market June 18-20, Sevierville Events Center, Sevierville, Tenn. PRO Group 2020 Group Merchandising Conference June 22-24, Embassy Suites Atlanta, Downtown at Centennial Olympic Park, Atlanta United Hardware Fall and Winter Buying Market June 26-28, Minneapolis Convention Center, Minneapolis
JULY Reporting and Analytics Webinar July 15, Webinar Series by Epicor; Learn More
AUGUST Independent Garden Center Show August 11-13, Lakeside McCormick, Chicago The Hardware Conference August 21-23, JW Marriott Marco Island Beach Resort, Marco Island, Fla. — www.thehardwareconference.com
Improving Customer Service/Adding Value Webinar Orgill Fall Market April 1, Webinar Series by Epicor; Learn More August 27-29, Sands Expo and Convention Center, Las Vegas, Nev.
MAY
Inventory Management/Inventory Control Webinar May 6, Webinar Series by Epicor; Learn More
For a complete listing of calendar dates, click here. www.TheHardwareConnection.com
THE HARDWARE Connection ■ March 2020 ■ 59
Retail ideaS
Something iS Cooking at Revell aCe haRdwaRe The Rooks family is marking the 70th anniversary of Revell Ace Hardware, which dates back to 1950. With six locations in Mississippi, Revell Ace Hardware’s newest store in Jackson incorporates a Revell @ Home Department that rivals Williams Sonoma for selection. Actually, it’s not all that surprising when you learn Lisa Rooks used to work at Williams Sonoma. “I’m a basic Southern cook, and we opened with what we thought were the best sellers at Williams Sonoma,” she says. It’s all kitchen-related products, not floral or picture frames. “I wanted to stay focused on the kitchen, cooking and food items, because I feel like most of our customers are women and they are the target audience, even though some men like to cook,” Rooks says. They carry KitchenAid mixers, All-Clad cookware, Cuisinart food processors, Top: Lisa Rooks has turned her love of cooking into a specialty kitchen shop, where she hosts weekly cooking demonstrations. Upper Middle: Handmade soy candles are among the Mississippi-made items on display. Lower Middle: Cookbooks are a top-selling item in Revell @ Home. Bottom: Specialty gourmet foods are developing a loyal customer base at Revell Ace’s newest store in Jackson, Miss. 60 ■ The hARDWARe Connection ■ March 2020
www.ThehardwareConnection.com
The store offers a gift-wrapping service to go with His & Her Wedding Registry. They offer free cooking demonstrations every Saturday. “We’ll post on Facebook what we’re doing and might get up to 15 people. We feature a product we sell, do a recipe out of a cookbook or demo knife The His & Her Wedding Registry is enhanced skills. It might be soup in the Vitamix with a gift-wrapping service. or a pizza on the Big Green Egg. A lot of people just gather once we get startBreville coffee makers, Caspari paper ed,” Rooks says. products, Messermeister cutlery, Mason She adds, “We have a working kitchCash mixing bowls, Mosser Glass glassware, Farmhouse Pottery, Lodge cast-iron en and two tables that look ready for cookware and Vitamix blenders. Revell @ dinner with place settings and center pieces. That shows our customers how Home also sells cookbooks, handmade to arrange a table and hopefully sparks soy candles, premium coffee, specialty ideas. We’re trying to show the softer gourmet foods and Mississippi-made side of hardware.” items like handmade soy candles.
theSe StoReS aRe one-Stop ShopS no matteR the oCCaSion
Pittsville Farm & Home Center in Pittsville, Wis., also includes The Flower Shop, which offers fresh flowers for weddings, funerals and other occasions; fruit and gift baskets; house plants; balloon bouquets and stuffed animals; artificial flowers; greeting cards; scented candles; baby gifts and candy/chocolate. www.ThehardwareConnection.com
The Home Gallery has been part of Forsyth Hardware & Home Center in Forsyth, Mont., since 2013. The three-story historic building includes everything from appliances, mattresses and flooring to quality furniture, kitchen gifts and home decor accessories. The hARDWARe Connection ■ March 2020 ■ 61
e h t d n i h e B Numbers 81%
Percentage of respondents who belong to one of two shopper groups: Value-based consumers who want convenience and products and brands that simplify their lives (41%), strikes them, often while doing and purpose-based consumers who something else. seek products and services aligned with their personal values (40%), according to the National Retail Federation (NRF). Percentage of consumers who buy home improvement categories that like to shop both in-store and online and make an average of 13.8 purchases across both channels, according to The NPD Group.
20%
52%
Percentage of shoppers who say half or more of their purchases are influenced by convenience, according to the NRF.
35%
Percentage of consumers who shop in “micromoments” at least weekly and up to multiple times daily, according to the NRF. That means rather than shopping as a planned activity, they shop whenever and wherever the mood 62 ■ The hARDWARe Connection ■ March 2020
70%
Percentage of consumers who shop online home improvement retailer sites for their DIY needs, according to The NPD Group.
66%
Percentage of consumers who currently pay for a delivery service such as Amazon Prime or Shipt, including 82% of parents, according to the NRF. www.ThehardwareConnection.com