E XC L U S I V E R E P O R T: S U P P LY C H A N N E L U P D AT E O N C O V I D - 1 9
May/June 2020 Vol. 12, No. 4
THE INDUSTRY’S DIGITAL LEADER
A RAY OF SUNSHINE in CHALLENGING TIMES ALSO INSIDE: Remodeling/Housing Market Outlook Report on Business Conditions Around the Country
Being Independent Orgill provides solutions that drive profits and help us grow our business!
“Working with Orgill, we have the freedom to be Hooten’s Hardware, not a generic cookie-cutter store. We run the business the way we know it needs to be run.” Kirk Reams l Hooten’s Hardware, Texas l An Orgill customer since 2005
Why We Like Working With Orgill: • Flexible, comprehensive retail programs • Broad product selection • Impressive retail knowledge • Supportive of our independence
Responding to COVID-19 For current coronavirus information and support, visit orgill.com/COVID.
Click the video link to find out how Orgill’s offerings help Hooten’s be successful!
1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com
CONTENTS May/June 2020 ■ Vol. 12, No. 4
34
DEALER PROFILE: A RAY OF SUNSHINE IN CHALLENGING TIMES
HOW’S BUSINESS: BUSINESS CONDITIONS FROM AROUND THE COUNTRY
6 8 14 16 18 28 34 38 42 43 46 51 54 55 57 58 60
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 Dealer Profile: A Ray of Sunshine In Challenging Times Exclusive Report: Supply Channel Update The Faces of COVID-19 What is the Outlook for the Remodeling and Housing Markets? Hardlines Digest: Hardware Retailers Wrestle With Safety Issues Category Report: Hardware/Fasteners Beacon Awards Program Recognizes Top Retailers 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
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THE HARDWARE Connection ■ May/June 2020 ■ 3
WE’RE HERE TO helpYOU BE THERE.
DO IT BEST HELPS LOCAL STORES SERVE THEIR COMMUNITIES. In times like these, communities count on their local hardware stores for
“No one offers the inventory flexibility that Do it Best does –
the essential products they need to stay safe, productive, and comfortable.
they make it easy to always be
And member-owners like Frank Herrera of Fischers Do it Best Hardware
there for my customers.”
®
count on Do it Best to help them succeed every day. Using his knowledge of each community he serves, Frank worked closely with his Do it Best team to customize product mixes to meet the unique customer expectations at each of his three locations. He is able to maintain a steady inventory of plumbing, electrical, hardware, and paint products so that his customers can be confident that Fischers Do it Best® Hardware is ready to help. In the same way, Frank knows that he has the backing of the nation’s only single source provider to help his business and his communities stay strong.
» Do it Best is ready to help you be there for your customers and your community. Call us today at 888-DO-IT-BEST (888.364.8237) or visit doitbestretail.com.
Frank Herrera Fischers Do it Best® Hardware
ADVERTISERS’ INDEX A.O. Smith/Reliance Water Heaters | www.RelianceWaterHeaters.com . . . 29 Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Blue Rhino | www.bluerhino.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Do it Best Corp. | www.doitbestonline.com . . . . . . . . . . . . . . . . . . . . . . . . 4 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . . 15 Epicor Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz. . . . . 25 Hardlines Digest | www.hardlinesdigest.com . . . . . . . . . . . . . . . . . . . . . 50 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Police Security Flashlights | www.policesecurity.com . . . . . . . . . . . . 12, 13 RapidFix / LHB Industries | www.rapidfix.com . . . . . . . . . . . . . . . . . . . . 23 Rescue Sterling International Inc. | www.rescue.com . . . . . . . . . . . . 24, 31 STIHL USA | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SureCan Inc. | www.surecanusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Tear Mender / LHB Industries | www.tearmender.com. . . . . . . . . . . . . . 32 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 19
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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 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
www.TheHardwareConnection.com
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624 Contributing Writers: John Fix III, Doug Donaldson, Gary Pittsford 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.
THE HARDWARE Connection ■ May/June 2020 ■ 5
editor’s note By Chris Jensen
R
Life During a Pandemic Is Not All Bad
etailers know what it’s like to be busy during the spring selling season, but no one expected it to be like this. Many are operating short of staff and for fewer hours, while seeing customer counts and sales go through the roof. Forget keeping masks and hand sanitizer in stock—they can’t keep up with the demand for paint and lawn and garden products. Working hard day after day is exhausting, but what really takes a toll is worrying about the safety of your employees and customers. Are the safety protocols that have been adopted such as plexiglass shields, wiping down everything and maintaining the proper social distance in the checkout line enough to keep the virus away? Being an essential business is definitely more blessing than curse, but it bestows a weighty responsibility on those lucky enough for that designation. With all states now fully or partially reopened, whether to wear or not wear a mask has become a political issue that pits neighbor against neighbor. My parents in upstate New York have barely left the house in the past 10 weeks and when they do, they are horrified to see how many people are wandering
6 ■ The hARDWARe Connection ■ May/June 2020
around without masks. I noticed during a recent trip to a big-box store that all the homeowners seemed to be wearing masks, while all the contractors were not wearing masks. Personal preference and peer pressure take on new meaning during a pandemic. No one knows what the new normal will look like for hardware and home improvement retailers when the pandemic ends, but the retail landscape will look different. Many small businesses on Main Street will be forced to close, which creates opportunity for independent hardware retailers willing to branch into new categories like toys, greeting cards, giftware, sporting goods and office products. Perhaps the job market for retail workers will be more promising than it has been, but I guarantee your current employees all know how good you take care of your staff. Turn to page 34 and read about a retailer who does an extraordinary job of taking care of associates, neighbors and the whole community—Michael Wynn of Sunshine Ace Hardware in Florida. They are doing all the right things, and it’s a pretty good blueprint to follow for the post-pandemic world. n www.ThehardwareConnection.com
trend watch
By Craig Cope
Privacy Concerns Abound with Contact Tracing App
O
n April 10, 2020, Apple and Google announced a joint effort to help the government and health agencies with a COVID-19 contact tracing app utilizing Bluetooth technology. While this announcement represents unprecedented cooperation between two of the wealthiest companies in the world, it also leaves businesses and private employers with yet another decision. Can or will you make your employees participate in the program? How about requiring customers to show proof of participation to enter your store? However, before I dive into the controversy let’s review contact tracing, what the app does and how it functions. The current contact tracing process requires the individual who tested positive to provide information about their recent activities. A public health worker then notifies the potentially impacted people to take appropriate action. The process requires us to know the people we have been in contact with recently. How can you possibly know everyone you have contacted at the grocery store, gas station or your hardware store? This project utilizes technology to help speed the notification process,
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but also helps identify those individuals we interact with and do not know their identities. The two-phase approach will utilize Bluetooth technology to send out a beacon with a random string of numbers that change every 10-20 minutes. These numbers are stored on the user’s phone and compared daily to a list of updated beacon keys. If a match occurs the user is notified and given options about reporting. Click here to view a simple illustration of the process. When the project was first launched many began to ask privacy-related questions. Who has access to the data? Does it track my daily movements? Can the data be used to personally ID an individual user? The choice to participate is an individual one, but regarding privacy, Apple has a long history of maintaining their user’s privacy even if it’s not popular. Apple is constantly asked by law enforcement officials to unlock iPhones of suspected terrorists and usually declines those requests over privacy concerns. The companies have released detailed documents outlining the specifications and privacy requirements for www.ThehardwareConnection.com
trend watch software developers. Click here to view the documents. I will not pretend to understand everything covered in those documents, but I wanted to highlight the privacy requirement. “Maintaining user privacy is an essential requirement in the design of this specification. The protocol maintains privacy by the following means: • The Exposure Notification Bluetooth Specification does not use location for proximity detection. It strictly uses Bluetooth beaconing to detect proximity. • A user’s Rolling Proximity Identifier changes on average every 15 minutes, and needs the Temporary Exposure Key to be correlated to a contact. This behavior reduces the risk of privacy loss from broadcasting the identifiers. • Proximity identifiers obtained from other devices are processed exclusively on device. • Users decide whether to contribute to exposure notification. • If diagnosed with COVID-19, users must provide their consent to share Diagnosis Keys with the server. • Users have transparency into their participation in exposure notification.” I have bolded the protocols which concern most privacy experts and how they are proceeding. The first is the use of Bluetooth only and not paired with the phone’s GPS information to determine location. Second, the data
is stored on the user’s phone and not transmitted to a server, which could lead to individual identification. The last two requirements put the user and not government or public health officials in charge of notifications. The announcement of the project has also prompted the ACLU and various government entities to release statements and guidance on privacy/ use. One topic of particular interest is private employers requiring their employees to participate. On May 1, 2020, Ropes&Gray, a global law firm, published a detailed document on the topic—click here to view. They concluded, “private employers likely could lawfully mandate that employees utilize a contact-tracing app, provided that the mandatory program is administered in a manner that is no more intrusive than necessary to meet the legitimate business concern.” The ACLU has compared the requirement to use the app to drug testing as a condition of employment. Some have even speculated stores could require proof of the app as a condition to enter. On its face, it seems outlandish, but I never envisioned a time that I would be required to wear a mask to enter my bank. For the app to be effective it will need about 60 percent of the population to consistently use. Other countries have launched similar programs and could only gain about half of the required amount to voluntarily participate. ■
10 ■ The hARDWARe Connection ■ May/June 2020
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It takes strength and perseverance to own a small business. It takes dedication, hard work, and sacrifice. Many of you continue to operate to provide essential services to our communities. As the backbone of America, you play a vital role in the recovery of our economy. Together, we’ll come out stronger than ever. We see you, we need you and we thank you.
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HARDWARE HUMOR
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HARDWARE HUMOR
Amazing but TRUE
HARDWARE
STORIES
A
gentleman came in the other day after visiting another hardware stor e. He asked an associate at the other store if they had pre-hung doors. The as sociate had said, “We do n’t sell used doors.” Justin Nena Nena Ace Hardware Morton, Ill.
ore er come in the st m o st cu a d a h e y door. After tr n e l e e st r e h r for paint fo at pitch on the re g a e v a g n a our salesm -Oleum, the cusst u R m o fr t in a or P brand Front Do ut it will never b t, a re g s d n u at so tomer said “Th sked why. “I’m a n a sm le sa r u d, o work.” Perplexe plied the custom re ” r, o o d ck a b y trying to paint m er seriously. Brian Buswell o it Center . All American D nd Tomah, Wis a a rt a p S r, te n e Richland C
W
S
eeing the Black Kow TV advertising I was reminded of a funny story. I owned Merritt Island Ace Hardware and built the garden center next door. I hired a kid named Doug to load bagged goods on weekends. Doug was a big strong kid. I told him to just load bagged goods and whatever customers need loaded until you learn something about my business. Wouldn’t you know a customer called asking for cow manure and the cashier handed the phone to Doug on his first day. Customer: “Do you stock cow manure?” Doug: “Yes ma’am.” Customer: “Is it Black Kow?” Doug: “It is cow manure.” This went on and on until Doug finally said, “Lady, I don’t know what color the cow was that pooped into the bag.” Come to find out she was a friend of my wife’s. Next thing I knew my wife came up the office stairs two at a time demanding I fire Doug. I did not and he became one of my best young employees. To this day, whenever I see Doug we laugh about Black Kow. Dick Beal Retired retailer | Merritt Island, Fla. Originally posted on Hardlines Digest
16 ■ THE HARDWARE Connection ■ May/June 2020
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Keys & more
Key Machines & more
Auto & more
Hardware & more
Kaba Ilco Corp. • 1.800.334.1381 • www.ilco.us
COVID-19 UPDATE:
How’s
Business? Paint has been a big seller at Nena Ace Hardware.
MIDWEST
How are sales and customer counts since COVID-19 outbreak? Between our three stores, sales have been up 35 to 40 percent. The biggest impact on our business has been staffing. Keeping up with the online orders has been a challenge. What’s selling well besides gloves, masks and cleaning products? Paint has been huge. Lawn and garden has sold well, and grills and plumbing have also been selling really well. People now have the time to do the projects they’ve been putting off. They are using that time to fix their homes. Any adjustments to staffing, hours and operations? We did adjust store hours and have had some staffing issues. We went from being open from 7 a.m. to 9 p.m. and changed to 8 a.m. to 6 p.m. We take that time to sanitize at the end of the night and before we open each
The garden center at Nena Ace has been a popular draw.
day. We do offer curbside pickup through our Ace online ordering. The Ace app tells us what’s been ordered, whether we need to assemble it or if it needs delivered. We put customers’ orders on shelves, tag them with names and give it to them on the curb when they arrive.
18 ■ THe HARDWARe Connection ■ May/June 2020
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How’s Business?:: COVID-19 UPDATE Any success with government loans? Yes, we did apply and received some money through the Small Business Administration Paycheck Protection Program. Justin Nena Nena Ace Hardware | Morton, Ill. How are sales and customer counts since COVID-19 outbreak? Sales were typical or up slightly for this time last year in January and February. March and April sales were up significantly and May so far has been very good; this includes retail and installed sales. Rental sales for the first part of the year were down for this time last year. April and the beginning of May have seen a marked increase beyond the normal warm weather uptick. Installed sales (construction) never saw a downturn. What’s selling well besides gloves, masks and cleaning products? Paint, rental, treated lumber, bulk and bag mulch, bulk rock, trees and shrubs, flowers and vegetable seeds for victory gardens. Any adjustments to staffing, hours and operations? Staffing is still an issue. Many staff members are working at home, which is less efficient than having face-to-face interaction. Team members with an at-risk family member are staying home. One part-time person who is anticipating being laid off from his full-time job has indicated he will not be 20 ■ THe HARDWARe Connection ■ May/June 2020
Brian Buswell operates three All American Do it Center stores.
seeking full time with us. He is choosing to be on unemployment and collect the almost thousand dollars a week in benefits rather than join us. We have cut weekday hours, closing at 5:00 p.m., which is a function of lowering exposure and risk for our people and also a function of a shortage of personnel. We cut weekend hours but restored them after customer demand. We instituted curbside pickup and have experienced some movement to this form of doing business, but it is really insignificant. Any success with government loans? We applied for PPP and received it very fast. Things seem to be holding right now, but who knows what is going to happen. There is an overabundance of uncertainty and that breeds caution and puts a damper on risk taking. Our pro sales group has had homes and agricultural projects put on hold or canceled altogether. Overall things are OK. In other years I would characterize things as being www.TheHardwareConnection.com
good, but there is this persistent atmosphere of impending doom hanging overhead. The government loans certainly provide a safety net this year. I guess we will need to worry about next year…next year. Brian Buswell All American Do it Center Richland Center, Sparta and Tomah, Wis.
NORTHEAST
• Deliver exceptional customer experience • Grow margins and profits • Optimize inventory • Cut costs by taking advantage of online, mobile, and wireless technologies
How are sales and customer counts since COVID-19 outbreak? It’s been quite an eye opener. We’ve had an increase in sales and customer counts by about 25 to 30 percent. What’s selling well besides gloves, masks and cleaning products? Believe it or not, everything has been selling. Customers have been settling into their homes and are looking for all kinds of projects, from painting to canning. We’ve been selling a lot of seed pods for germination. We’re also selling a lot of bagged goods, such as fertilizer. Any adjustments to staffing, hours and operations? We haven’t had any staffing issues and no one has been sick. The jump in sales has been quite a surprise, and we’re even looking www.TheHardwareConnection.com
How’s Business?:: COVID-19 UPDATE to hire new employees. The way we’ve set up our store with Ben Moore within our hardPaul Leahey is president of Schuele Ace, with two ware store has hardware and three paint really benefited stores in Buffalo, N.Y. us. As Home Depot reduced their hours, we’re open longer. We offer both curbside pickup and deliveries through Ace. We’ll deliver for free within a mile of the store. Any success with government loans? We did apply, and we were successful. The process was easy for us,
because we have a good relationship with our small, local bank. Our bank really cares about us and walked us through the program to get us to the finish line. Without that relationship, it may have never come to fruition. Paul Leahey Schuele Ace Hardware | Buffalo, N.Y.
SOUTH
How are sales and customer counts since the COVID-19 outbreak? We’ve been
How’s Business?:: COVID-19 UPDATE
Joey Hawkins’ family business roots date back to the 1920s.
busy. We haven’t run the numbers, but lawn and garden are up, even though we always do well in that department during this time of year. It’s been interesting to see how some folks have gotten very creative with homemade masks. We’ve really seen the entrepreneurial spirit during this time.
What’s selling well besides gloves, masks and cleaning products? Gardening products, lawnmower parts and potting soil. Any adjustments to staffing, hours and operations? There haven’t been any staffing issues, and we didn’t adjust hours. Pretty much remained the same. Any success with government loans? Yes, we received money from the Paycheck Protection Program. It wasn’t too bad to go through that process. Our accountants and bank did most of the work. Joey Hawkins Hawkins Home & Auto Center | Calhoun City, Miss.
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Richard Lee, Denise Lee and Jamie Bruner of Lee Hardware & Building Supply in Waycross, Ga.
How are sales and customer counts since the COVID-19 outbreak? Our sales and customer counts have greatly increased. We had the largest sales totals last month. We have increased our daily customer count by 25 to 30 percent. We have seen more cranky customers than ever before with short tempers. Our employees have taken it with grace and in stride. At this time in history, it has been rather stressful as a retailer trying to keep up with supply and demand. What’s selling well besides gloves, masks and cleaning products? Besides cleaning and PPE, we have sold more lumber than ever before. People are taking the opportunity to do repairs and upgrades to their homes. Any adjustments to staffing, hours or operations? We have not had staffing issues. None of our employees or family members have contracted COVID-19. We have put up plexiglass barriers at the sales counters. During the first weeks our employees wore masks www.TheHardwareConnection.com
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How’s Business?:: COVID-19 UPDATE and gloves. We shortened our hours by one in the afternoon for our employees to sanitize the store. For two weeks we limited the number of customers in the store at one time. Any success with government loans? We applied for both the $10,000 Economic Injury Disaster Loan and the PPP loan. We received the PPP loan but have not heard from the other one. Because our business has been so good it is not necessary at this time for maintaining staffing. Denise Lee Lee Hardware & Building Supply | Waycross, Ga.
Right: Paula Ervin is a third-generation owner of Randall Lumber & Hardware, which joins the Century Club next year. Below: Staff at Randall Lumber & Hardware are taking precautions to stay safe.
SOUTHWEST
How are sales and customer counts since the COVID-19 outbreak? Actually, sales are up because we’re considered an essential business. We’re up about 30 percent over last April. What’s selling well besides gloves, masks and cleaning products? What’s been a surprise: toilets and water heaters. With people home more, they’ve found older appliances that need replaced. Lots of homeowners are doing projects they have been putting off. People can only binge watch so much television, then they work on their houses. Any adjustments to staffing, hours or operations? Sales have been good, but it’s challenging because of staffing. About 11 percent of our staff
had to take time off. We haven’t had any illnesses, but staff members are taking care of elderly parents or have schoolage kids. We’re really busy and running short-staffed. We’re starting to see more applicants and are finding some temporary staff to fill in. About 60 percent of our customers are contractors, so we were already delivering to jobsites. A few customers have requested curbside pickups and we accommodate them.
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Any success with government loans? We did apply and were successful. The process wasn’t bad, considering all the documentation required. Online, the government website said the process would take eight minutes, but that’s totally unrealistic. Our bank really helped us and made it simple for us to get in the Paycheck Protection Program. What is the key to your longevity? This is a family business—our 99th year in business. I’m a third-generation owner with my brother, sister and brother-in-law. We feel like employees are family, and we’ve had seven generations of one family work for us. We have very loyal employees with the average term of service 15 to 20 years. One employee worked for us for 55 years. Paula Ervin Randall Lumber & Hardware | Taos, N.M.
WEST
How are sales and customer counts since the COVID-19 outbreak? Right now, we’re up 35 percent. It’s been tough and demanding on employees, managers and owners. It’s very, very difficult working 7 days week, 10 to 11 hours a day just to keep things stocked. When Ace is out of what we www.TheHardwareConnection.com
need, we scramble to keep up. It’s a big job keeping stock up. What’s selling well besides gloves, masks and cleaning products? Kiddie pools. Because all the kids are home and it’s hot here in Southern California, we can’t keep them in stock. We keep calling for more. Plumbing has also been popular. People seem to have a lot of plumbing problems. Paint sales have doubled since last month. Any adjustments to staffing, hours or operations? Staffing has been real tough. Some employees have just decided not to come to work. We’re working short-staffed. Managers, owners, everyone is in all-hands-on-deck mode. To make it easier on our staff, we’ve shortened hours, only having six-hour shifts for 30 hours a week, but we still pay for full-time week. Our employees are our lifeline. I’m planning for bonuses, too. We had to close our screen business, because it was too much work when we needed to put the hours elsewhere in the store. We do offer curbside pickup. We decided to keep the store hours the same. Any success with government loans? We did and are waiting to find out. We applied late, because we didn’t have a full-time accountant. We’re hoping the money comes through so we can hire extra help. Tyler Barnes Long Beach Ace Hardware Long Beach, Calif. THe HARDWARe Connection ■ May/June 2020 ■ 27
k l a T Shop H
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TIHL, the number-one selling brand of gasoline-powered handheld outdoor power equipment in America, needs no introduction. However, in 2017 STIHL introduced a complete line of consumer and professional battery products. According to a 2019 Business Wire study, the global outdoor power equipment market is forecasted to grow from $22.3 billion in 2019 to $26.1 billion in 2024 with electric-powered equipment showing the highest annual growth rate. There are many reasons consumers prefer battery-powered equipment over traditional gasoline-powered. Batterypowered equipment has zero exhaust, does not require a flammable fuel source, offers virtually no maintenance,
By Craig Cope
and is lightweight and extremely quiet. Capitalizing on this market trend, STIHL offers three different lines: AI Series, AK Series and AP Series. The AI Series is designed for smaller projects with an integrated battery that plugs directly into the wall socket. The AK series offers increased power and is intended for frequent use by the weekend homeowner. The AP series is the professional-grade line for extensive use. We had the opportunity to test three battery-powered outdoor equipment: • RMA 510 V, a self-propelled lawnmower, which is part of the AP Series. • FSA 57, a household trimmer, in the AK Series. • GTA 26, a handheld garden pruner and versatile cutting tool.
PRODUCT #1: RMA 510 V The first self-propelled batterypowered mower within the AP Series, the RMA 510 V is more than just a battery-powered mower. It also offers innovative ideas, making lawn mowing a convenient user experience. The absence of a gasoline-powered engine means the user just has to squeeze one lever, which 28 ■ THE HARDWARE Connection ■ May/June 2020
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activates the blade. Squeezing the second lever engages the self-propelled drive and the mowing process is underway. The 21” deck has a 20” cutting width powered with a 36-volt battery, enabling it to mow a 2,583-squarefoot yard on a single charge. For homeowners with larger yards, the RMA 510 V offers a second battery storage compartment to easily swap out the battery to continue mowing. The adjustment of the deck is also simple and controlled by a single lever and has seven different cutting heights. Controlling of the
self-propelled speed is also done with a single lever and gives the user a range of speeds between 0.6 mph and 2.8 mph. Our testers found the RMA 510 V a versatile and feature-packed lawnmower. It’s minimal noise allowed one of our users to mow their yard first thing in the morning, which with a traditional gas-powered would have created a noise complaint from neighbors. The RMA 510 V can do anything a traditional gas-powered mower can do, but only quieter with instant start-up, no exhaust smell and minimal maintenance.
Only in your neighborhood. With a range of gas, electric and hybrid heat pump technology, you can feel confident that Reliance’s full line of water heaters will help you meet the needs of any customer. And they’re only available at local hardware stores, making you the best stop in the neighborhood for hot water.
Reliance® Water Heaters are proudly sold at
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PRODUCT #2: FSA 57 The FSA 57 is a battery-powered line trimmer designed for the typical homeowner use. The FSA 57 has numerous features making trimming quicker, convenient and less strenuous for the user. The trimmer is extremely lightweight at only 7.5 lbs with an adjustable shaft and handle. This helps to eliminate the back strain some users get when using heavier non-adjustable trimmers. The ability to customize the height and handle angle also provides an ergonomic feeling while in use. The FSA 57 battery has up to 20 minutes of run time and since it’s part of the AK Series the batteries are interchangeable between equipment. One common complaint among traditional trimmer users is the battle with feeding the line. STIHL has designed a trimmer head called the AutoCut® head, which feeds the trimmer line with a simple tap on the ground but also does not require the user to disassemble the head when it’s time to reload the line. Our testers were extremely impressed with the adjustable shaft and handle to accommodate user height. One tester raved about the bump guard, which is a metal flip guard that limits the cutting range for www.TheHardwareConnection.com
PROUDLY PATRIOTIC
trimming around obstacles. This particular user has a vinyl fence and has done some damage in the past when the trimmer string came in contact with the fence. The FSA 57 is an excellent and versatile trimmer that coupled with the ability to swap batteries within the series makes it a perfect entry point for homeowners.
PRODUCT #3: GTA 26 The GTA 26 garden pruner is one of those products that does not fit within existing categories of outdoor power tools. It features a 4” guide bar with a traditional saw chain but is not like any traditional chain saw. The pruner is designed for pruning trees and shrubs, but performs such clean cuts it can also be used on woodworking projects or timber-based construction. The GTA 26 10.8V battery offers up to 25 minutes of run time and weighs www.TheHardwareConnection.com
rescue.com
THANK YOU TO OUR RETAIL PARTNERS AND ALL ESSENTIAL SERVICE PERSONNEL SERVING THEIR COMMUNITIES.
k l a T p o h S E PROD HARDWAR
UCTS REV
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only 3.1 lbs. It’s small size and light weight can easily be used with one hand until you remember this is a chain saw capable of inflicting serious harm. STIHL designed a unique two-handed system that can best be described as an upside “cup and saucer” hand placement—one hand on top the second on the handle/trigger. This design gives excellent control during operation. All of our testers could not stop commenting about the overall versatility and endless applications of the GTA 26. One of our female testers does not feel comfortable using
a traditional chain saw and does her tree pruning with large shears. Over time this has become more difficult and strenuous. The GTA 26 with its small size, light weight and ease of use were a game-changer for her. This is one of those tools you did not realize you needed until you use it, and then you cannot imagine working without it.
Sponsors:
Co-Sponsors:
Honoring the Industry’s Best Retailers With the 2020 BEACON AWARDS This important recognition program honors the best of the best dealers who represent the future of the industry.
recognizing the retailers that have gone above and beyond to serve their communities during the COVID-19 pandemic.
In addition to Retail Beacon Awards for each of the participating wholesalers, the 2020 Beacon Awards program will honor the industry’s best hardware and LBM stores in the category of community service,
Traditionally, the Beacon Awards are held at The Hardware Conference. However, due to the pandemic, the 2020 Hardware Conference is canceled. Look for full coverage of all winners in the Sept./Oct. 2020 issue later this fall.
Learn more at www.TheHardwareConnection.com
Dealer Profile By Chris Jensen
A Ray of SunShine in Challenging TimeS
M
ichael Wynn is president of Sunshine Ace Hardware, which was recognized with Ace’s “Coolest Hardware Store” Award in 2011. The company operates eight Sunshine Ace Hardware stores, two Crowder Bros. Ace stores and Sunshine Commercial Paint, all in Florida. The first Sunshine Hardware store was opened in 1958 by Don Wynn, Michael’s grandfather. How have sales and customer counts been since the COVID-19 outbreak happened? We certainly have seen some positive, strong sales. It depends on the category. Overall sales have fared well, but
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Michael Wynn SunShine ace harDWare Bonita SPringS, fla. Michael Wynn, president of Sunshine Ace Hardware, is in front. Behind him l to r: Kaitlyn Pena, Mike Karp, Dan Granville, Scott Puch, Ray Chapa and Wendy King.
early in the outbreak we saw our customer counts negative. We had to close two gift stores that were not deemed essential, but they are back open now. We also had some B2B business that was tied to restaurants. We’ve experienced the highs and lows before with hurricanes, so we’re as prepared as a retailer can be. We’ve developed coping strategies for inventory management and ordering for a time period when there are unusual circumstances. What has the overall impact been on your business? There has been strong demand for paint, grills, lawn and garden, fishing, pool and patio. People are nesting in their homes and www.ThehardwareConnection.com
recognizing all the deferred maintenance projects they have the opportunity to fix up. With all the volatility in the stock market, more people are seeing their home as a good investment, so we are benefiting from this new appreciation for home improvement. Have you had any staffing issues? Operating in South Florida, we have a high percentage of associates over the age of 60—53 percent. Many of them are concerned about being at high risk, so they took a leave of absence. Some had specific health issues and felt they needed to take leave. The majority of those are back now. We also gave people an opportunity to work in non-customer facing positions such as back office or administrative work. What adjustments to operations have you made? There are concerns with offering hazard pay, since we didn’t know how to define the beginning and end of the situation. So, we’ve looked for opportunities to provide thank you bonuses. Our quarterly bonus in April was equivalent to 85 percent of the total bonuses paid in all of 2019. We reduced store hours for two months. This provided some relief to our team while allowing more time for cleaning protocols. We returned to normal hours on May 18. What safety protocols have you adopted? In addition to our team cleaning protocols, we have outside professional cleaning companies come in multiple times a week. All associates as well as outside vendors have their temperature taken at the beginning of their shift—we’ve been doing that for at least 30 days. We’ve been blessed that associates listened to our encouragement to stay home if they have a fever or any other symptoms. Only a handful of employees have been sent home with a fever. Plexiglass shields have been installed at registers. All associates have been required to wear face coverings since early May. Are customers taking the proper precautions to keep your associates safe? Customer use of www.ThehardwareConnection.com
Upper: Sunshine Ace’s Light It Blue campaign supported first responders and healthcare workers. Middle: Care packages were organized for all 5,000 employees of NCH Healthcare Systems. Lower: One of the core values of Sunshine Ace is “care for your neighbor,” which the retailer does in many ways.
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Dealer Profile masks depends on location. In some markets where the average customer age is higher you see 70 percent wearing masks, while in other markets it’s 30-40 percent. We strongly encourage customers to wear masks for everyone’s safety. Safety protocols can be turned into a political issue. If too many people are inside the store and there’s not enough social distancing, we’ve empowered our managers to have the ability to limit access to the store. We have also identified a social distancing officer for each store to guide people to the right behavior—they’ve only had to step in a couple of times. How has Sunshine Ace found new ways to serve the community? People and community organizations know to reach out to us due to our reputation and core values. One of our core values is “Care for your neighbor.” When we see a need, we are proactive in reaching out. A local healthcare company, NCH Healthcare System, reached out for help. It’s not easy to secure products on the scale they need, but we’re used to sourcing products from various suppliers. We put together two sets of care packages for every one of their 5,000 team members. We were able to secure 5,000 rolls of toilet paper and 5,000 rolls of paper towels plus bleach and other essentials. We’ve also donated a number of COVID-related items such as gloves, masks and disinfectants. It gets our team excited to know they played a part in helping out.
The team at Sunshine Ace showed appreciation for the hard work of Ace’s Retail Support Center in Tampa with a handsigned thank you letter and by buying lunch for the entire RSC team.
When the schools shut down, the Collier County School District reached out to us for help with bags, which were needed for the 100,000 meals they provide to kids each week. We donated 100,000 Ace bags to bridge the gap for them. Our B2B team members are focused on selling products, but they know what to do when they spot a need. We had a nursing home say they needed help with supplies, so we found a way to take care of them. The feedback we got was “If it wasn’t for Tom finding us these supplies we’d be in deep trouble.” When it’s the people who are the most vulnerable it’s a privilege to help out. The Light It Blue campaign was started on May 6 for National Nurses Day, but it was designed to recognize all first responders and to encourage the community to show their support by displaying blue lights. A local grower partnered with us so first responders could receive care packages. The emotional gratitude
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Sunshine Ace donated 100,000 bags so the Collier County School District could maintain its weekly meal program for kids.
you see in these frontline heroes is so uplifting—just being able to help them recharge their batteries with a small token of gratitude goes a long way. Care packages have been a big theme for us. We helped with care packages for childcare centers for the Salvation Army. We spent $35,000 for lunches and dinners for our team members, which was aimed at supporting local independent restaurants. We also provided meals to feed a family of four for each of our 400 associates. We had some people in tears when they saw what we did for them, but we were just giving back to the valued associates who kept us afloat. We’ve always done that for our associates who are in need. Your generosity also extended back to Ace? Ace’s RSC team makes what we do possible. They work hard to get two trucks out a week to us to, so we can keep our stores stocked with what our customers need. As a thank you to our Tampa RSC, we made them a hand-signed Thank You poster with words of appreciation. We also bought lunch for the entire team. What other ways do you show support to associates? When Hurricane www.ThehardwareConnection.com
Irma came through in 2017, we set up a foundation with $77,000 to help any team member with unplanned expenses. We spent $40,000 initially to team members who were facing hardship, so we had funds remaining to help out during the pandemic. We want our associates to know we are a big family and we mean it. We’ve got their back, whether it’s a hurricane, cancer or a pandemic—which gives people a sense they’re part of something bigger than them. When the pandemic hit, we couldn’t predict the future but our goal was that anyone who needed a job would have one. We didn’t know if we’d have to shut down or not, but our associates know we stick together. How do you pivot to maintain safety now that your state has fully reopened? We’ve been very blessed we haven’t had one positive case yet, so our protocols have worked. I can see these cleaning protocols will stay in place in one way or another even after the pandemic ends. I can see temperature checks staying for a while—it’s easy to do and there’s a payoff. Our HR department does illness tracking, so we keep a record of what illness it was and for how long they were out. We’re able to get help to associates when needed. As long as everyone stays focused on their tasks, we’ll be able to come out of this a stronger company. No matter what, we’re grateful! n
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coViD-19
eXcluSiVe rePort: Supply
R
Channel Update
etailers all over the country are seeing customer counts and sales skyrocket, especially with all states now in full or partial stages of reopening. However, the COVID-19 pandemic has had a huge impact on the supply channel, as unprecedented demand has led to inevitable shortages of in-demand items such as gloves, masks and cleaning products. Read on to learn how three industry wholesalers are working to keep the supply channel moving during this challenging period.
Left: Do it Best’s warehouse staff have been working long hours to keep products flowing to members. Right: Some team members in Do it Best’s Retail Support Center in Montgomery, N.Y., feel more comfortable wearing masks..
vice president of sales and business development, offered their perspective on how the global supply chain has been challenged by the COVID-19 pandemic. Johnson identified four key factors that have been going on throughout the pandemic that have impacted the supply chain for Do it Best and its member-owners. “First, when all of this started, China SuPPly channel uPDate froM experienced some significant delays in Do it BeSt corP. their manufacturing. After the Chinese To keep their store owners up-to-date on the rapidly changing supply chain, Do New Year, which was obviously planned, there was a four- to six-week delay due it Best Corp. launched a podcast called “What You Should Know” that is distrib- to the pandemic in getting factories up and running, which created another fouruted several times a week. Following a recent session, Dent Johnson, vice presi- to six-week gap that we’ve all had to deal dent of merchandising, and Nick Talarico, with. While this only directly impacts
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a small percentage of our products, it touches on many more in some way or another, even from domestic suppliers,” Johnson said. He added, “We were actively working to set up a war room all the way back in January to deal with that situation. Many domestic suppliers source products in China or they have raw materials that come from China. Things like nozzle sprayers or others you may not think of have an impact on a wide range of products when either raw materials or component parts from China are unavailable. There are a lot of tentacles that can reach out and impact a number of products.” Johnson continued, “Two, a bit more recently—we’re working with domestic factories that have been dealing with this pandemic in a couple of ways. We know governments in many states across the country have enacted closures or stay-athome orders, so we’ve had quite a few factories that have been closed. More than 50 are still closed today. Internationally, there have been different rules. We had quite a large group of factories in Mexico that were recently shut down, on the spot, and we learned about it an hour after it happened. Fortunately, we have a team that’s been extremely agile in finding alternate sources of supply.” He added, “Three, the capacity of these factories has been heavily impacted either by someone getting sick in the factory and causing an immediate shut down for a couple of days until appropriate cleaning has taken place, or more www.ThehardwareConnection.com
Left: Dent Johnson is vice president of merchandising at Do it Best Corp. Right: Nick Talarico is vice president of sales and business development at Do it Best Corp.
significantly—a reduced capacity based on social distancing, because factories have to reconfigure their production lines based on guidelines issued by the CDC (Centers for Disease Control and Prevention). We’ve seen some of our major suppliers suffer serious reductions in capacity precisely when demand is up as much as 50 percent.” Johnson said, “The fourth and final factor is allocation. There are quite a number of vendors, specifically those selling COVID-19 related emergency products that have allocated supply. Basically, the demand far outpaces their capacity and they are trying to be fair to their customers and they’ve put all of their customers on allocation. If we normally have 5 percent of the capacity for hand sanitizer from a given vendor, then they are willing to sell us 5 percent of that capacity but no more. That puts a lot of limits on everyone’s ability to source more products.” Talarico pointed out, “Across the country, the shelter in place orders have had a big impact on consumer spending, which has been down about 7.5 percent overall. However, we’re seeing more intentionality in consumers’ spending,
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coViD-19 with one of the biggest benefactors being essential businesses providing home improvement products. Almost every Do Do it Best trucks are doing their best to keep members stocked it Best member I’ve talked to has seen a with product. positive impact on their business.” increases, with especially strong He added, “It’s more than just the growth in seasonal, paint and houseCOVID-19 products—we’re seeing unbewares categories. lievably high demand in categories like • At the same time, supply issues conlawn and garden, outdoor living and tinue due to decreased product availpaint, just to name a few. Demand for our ability and increased vendors’ lead products is very high across numerous times. Our senior category managers departments. As Dent mentioned, a lot are working closely with manufacturof our members are seeing record sales, ers to overcome these challenges and which corresponds with record sales for provide our customers with weekly Do it Best Corp. We have the supply side supply chain updates as well as prodpressures and the demand side presuct alternatives as needed. sures—all of this has added complexity • The good news is that we are beginto the supply chain. It’s been a heavy ning to see signs of an uptick in responsibility for everyone, but no one domestic production as a whole. The would argue when I say our logistics number of factory closings continued teams, our staff working to keep pace to stabilize this week. However, due to with demand in our warehouses, are social distancing standards, many supsome of the biggest heroes.” pliers are finding it difficult to maxiJohnson interjected, “We’ve also mize production. Domestic factories increased staffing in our warehouses. are reopening on schedule and only Well over 100 people have been hired in two U.S. factories remain closed. All very short order to react to this pandemfactories in Canada have reopened. ic and the increased demand.” Some factories in Mexico and elsewhere remain closed, but the number SuPPly channel uPDate froM orgill is down from a high of 15 to now nine. Kristyl Lawson, director-communications for Orgill Inc., provided the following over- • The availability of PPE, especially face masks, has improved. view of supply channel activity at Orgill. • Sales demand and growth this month • Our most up-to-date COVID-19 information and resources are available to have been up significantly over the Orgill dealers on a dedicated page on same time period last year. All departOrgill.com, which includes: ments are experiencing double-digit 40 ■ The hARDWARe Connection ■ May/June 2020
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as much as possible, keep sick people home and stagger breaks. The state of Tennessee reopened on May 1, so we want to give a pat on the back to all those who worked through April during challenging conditions.” Hasson added, “Our current situation is that business is booming out of our warehouses. It’s hard to describe how good it is, because there are obviously some unusual purchasing trends. Our warehouse team is working as late as midnight filling orders.” He continued, “Hardware stores were deemed essential and allowed to remain open, and our dealers are viewed as a trusted and reliable source in the communities they serve. If anything, the pandemic has made people more inclined to visit their local hardware store or lumberyard than a big box, which is a trend that should continue in the future. Any disruptions in the supply channel are short term and limited to a few items, and we continue to strive for high fill rates.” n
o Weekly supply chain updates for each product department. o Product alert updates, updated immediately as inventories arrive on COVID-19 related products. o Pandemic marketing and communication resources for our customers to utilize. o Financial updates to help our customers understand the CARES Act and Paycheck Protection Program (PPP) loans. Most of our headquarters staff and any workers at our distribution centers who were able to manage their roles from home continue to work remotely. Our sales representatives and drivers are abiding by strict social distancing guidelines and local regulations while visiting customers’ stores. We are following increased safety protocols in our DCs, which include cleaning and disinfecting work areas, as well as social distancing guidelines that protect both our employees and customers.
SuPPly channel uPDate froM houSe-haSSon harDWare Don Hasson, president and CEO of House-Hasson Hardware, said, “The warehouse staff and our truck drivers are our frontline workers, and they are doing a terrific job getting products out the door to our retail customers. We abide by all federal guidelines and provide gloves, masks and hand sanitizer to warehouse staff while cleaning the facility continuously. We keep workers apart www.ThehardwareConnection.com
House-Hasson just completed a 100,000-square-foot expansion of its warehouse in Knoxville, Tenn., which has enabled them to stock up on items in demand.
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coViD-19
the faceS of coViD-19
Drew and Renee Hubiak and the staff at Bernardsville Hardware are finding new ways to serve their customers in Bernardsville, N.J.
All employees at Celina Lumber in Celina, Tenn., get their temperature taken to make sure they are safe to work.
Alex Pyle is manager at Brandywine Ace Pet & Farm in West Chester, Pa.
Isaac Smith is co-owner and vp-purchasing of Matt’s Building Materials in Texas.
Latham’s Do it Best Hardware in Milan, Mich., has the essentials.
Lauren Bohnert is manager of pet and wild bird departments of Brandywine Ace Pet & Farm in West Chester, Pa.
Michael Finley is manager of Jabo’s Ace in Coppell, Texas.
Staff at Marv’s True Value and Rental in Princeton, Minn., wear shirts that stress safety tips.
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Matt’s Building Materials is keeping up with demand for gloves in its three stores in Texas.
www.ThehardwareConnection.com
Housing trends
What is the outlook for the remodeling and Housing Markets?
T
he U.S. housing and remodeling markets were doing just fine in 2020 until the pandemic hit. Now, those old forecasts are out the window. Let’s examine the current situation and see what new forecasts are saying about these two important industries, which have a major impact on the fortunes of hardware and home improve- Housing construction activity is projected to slow down in the first half of 2020 before ment retailers. picking back up in the third quarter. America’s longest economic expansion in history ended in the first quarter, as the U.S. Commerce Department plummeted 40 percent to a rate of reports that GDP contracted 4.8 percent. 241,000 units. Although conditions will worsen in the According to Whitney Airgoodsecond quarter, most economists do Obrycki, a research associate at the Joint predict improved economic activity in Center for Housing Studies of Harvard the second half of 2020 as employment University, before the pandemic, multibegins to stabilize. family housing construction was booming, with a new cycle high of 403,000 starts in 2019. Single-family construction Housing Market to stall had remained depressed since the last Housing starts in the U.S. hit a fiveyear low in April, with builders forced to recession, with 12 straight years of starts halt activity in the midst of the COVID-19 under 1 million, but were growing, albeit slowly, over the last eight years, reachpandemic. Home construction activity ing 888,000 starts in 2019. was not deemed an essential business The construction pipeline was also in a number of states, but builders put projects on hold even in states where it robust with 1.2 million units currently under construction, including 652,000 was allowed. Single-family housing starts dropped units in multifamily buildings. The housing market was set to have some big 25 percent to an annual rate of 650,000 completion numbers in coming years, units in April, while multifamily units www.TheHardwareConnection.com
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Housing trends likely contract in the majority of metros (24), while 15 could still see gains of 1-3 percent, compared to 2019 activity. Abbe Will, associate project director in the Remodeling Futures Program at the Center, said, “The largest remodeling spending declines are not isolated to any one region, but are projected to occur in markets throughout the country including Orlando, Kansas City, Omaha, San Jose and Portland.” Sophia Wedeen, research assistant in the Center’s Remodeling Futures Program, says, “Although the pandemic is lowering prospects for remodeling everywhere, relatively more affordable metros in the Midwest and Sunbelt should be among the brighter spots for home improvements this year with annual gains of about 2-3 percent in Cleveland and Cincinnati, as well as reModeling activity to sHrink Spending on remodeling is projected Charlotte, Atlanta, Tampa and Phoenix.” Owner expenditures for home renoto decline in most of the nation’s largest metropolitan areas this year in response vations and repairs are expected to decline at least through the first quarto the severe economic impacts of the ter of next year due to fallout from COVID-19 pandemic, according to new projections released by the Remodeling the COVID-19 pandemic, according to Futures Program at the Joint Center for the Leading Indicator of Remodeling Activity (LIRA) released April 20 by the Housing Studies of Harvard University. Even before the pandemic hit, nearly Remodeling Futures Program at the all of the 47 tracked metros were expect- Joint Center for Housing Studies of Harvard University. ed to see slowdowns in improvement Pre-pandemic, the LIRA pointed to spending through 2020, with growth of a healthy rebound in home remodel1-5 percent expected in 37 metros and ing spending with annual growth of 3.9 declines in nine metros. The COVIDpercent by the first quarter of 2021, but adjusted projections show annual the latest data incorporating both actual homeowner remodeling spending will
but delays in construction mean those numbers almost certainly will be lower than expected, Airgood-Obrycki reports. She outlines four reasons why construction projects may be delayed in the near term: local building services offices are closed or adopting new processes, shutdown of nonessential construction, supply chains have been disrupted and the construction labor force is at risk with a shortage of N-95 masks. One factor boosting the housing market is the fact mortgage rates remain near historic lows. After hitting their all-time low mark of 3.23 percent in early May, mortgage rates rose to 3.28 percent for the week ending May 14, according to Freddie Mac. A year ago, mortgage rates averaged 4.07 percent.
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and forecasted impacts of the economic shutdown point to spending declines this year with further worsening into 2021. “While there is still considerable uncertainty surrounding the near- and longer-term impacts of the pandemic, the best available evidence suggests substantial downturns in key remodeling indicators of new home construction, home sales and values of existing homes over the coming quarters,” says Chris Herbert, managing director of the Joint Center for Housing Studies. “Homeowners who are concerned about losses of income, home equity and other forms of wealth are anxious about making large investments in improving their homes in this economic environment.” With the unprecedented changes to the U.S. economy since mid-March, the Remodeling Futures Program is providing a downside range for the home remodeling outlook, which incorporates forecasts for several core model inputs—retail sales of building materials, home prices and GDP. “Quarterly spending for improvements and repairs to the owner-occupied housing stock is projected to turn negative by the third quarter, and annual expenditures are expected to fall to $322 billion by early next year with potential for even more severe declines to follow,” says Will. “Beyond the start of next year, remodeling activity that would typically result from expanding homebuilding, sales of existing homes www.TheHardwareConnection.com
and rising home prices mean the greatest downturn could come later in 2021 with recovery depending on what occurs in housing markets over the remainder of this year.” To see the U.S. map showing Metro Area Home Improvement Projections, click here.
HouseHold groWtH sloWs The pandemic could result in a long-lasting slowdown in household growth that was starting to emerge before the crisis, reports Daniel McCue, senior research associate at the Joint Center for Housing Studies of Harvard University, who adds that halting immigration would slow things even more. Entering 2020, household growth was at its highest level since before the Great Recession. The Census Bureau’s Housing Vacancy Survey revealed the number of U.S. households increased by 1.4 million in 2019. There were signs over the past year, however, that household growth was about to slow. According to Census Bureau estimates, growth in the U.S. population slowed to a near crawl in 2019, increasing by just 0.48 percent, which the Brookings Institution observed to be the “lowest annual growth rate since 1918.” The 1.55 million annual population growth recorded in 2019 was a more rapid slowing than last projected by Census, which had projected gains of 1.3 million per year until 2030. n
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HardLines digest
HARDWARE RETAILERS WRESTLE WITH
Safety Issues T By John Fix III
he COVID-19 pandemic has brought new levels of stress to hardware retailers, who now must find new ways to operate while balancing the health and safety of customers and employees. No one knows yet what the new normal of retail looks like. Many issues related to COVID-19 have been popular discussion topics on Hardlines Digest for the past several months. Read on to see what retailers were sharing.
Wearing masKs On May 15, Susan Harlan of Vickery Ace Hardware in Smyrna, Ga., posted, “I had a customer today tell me she was no longer shopping at the
Above: Employees at Plummer’s Ace have been wearing masks since the end of March.
(independent hardware) near her house because they were not wearing masks. I was really surprised. We are all wearing masks at my store and it made me wonder what the rest of you retailers are doing? I was wearing gloves too, but now it seems it’s better not to.” Jody Bryan of H. Houst & Son in Woodstock in N.Y., replied, “We have been wearing masks since the first week of April. 99.9 percent of our customers are wearing them when shopping in our store.” Alan Talman of Karp’s Hardware in East Northport, N.Y., said, “We wear
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Barone Hardware & Auto installed a plexiglass sneeze shield to protect staff.
masks. I’ve had more than one complaint to the police department, because they thought they saw a person in my store not wearing a mask. I’ve also had emails complaining to me as well that the complainer saw a person in the store maskless.” Brandon Buckalew of East Grand Forks Hardware Hank in Minnesota said, “We have a mix. I let my staff go without while they aren’t on the floor. Every now and again they’ll try and go to the bathroom or something without one and end up helping a few customers. When that happens, the goal is to keep distance, and sanitize and clean up afterwards.” Bob Brame of Cadiz Ace Hardware in Cadiz, Ky., replied, “We are all wearing masks—probably 25 percent of customers are. We are cleaning nine times a day, plus other things.” Karla Robson of Slavens True Value in Cortez, Colo., said, “We are not wearing masks. Ninety percent of our customers are not wearing masks and that changes due to time of day. Certain times it’s probably 60 percent not wearing and 40 percent are wearing. We have a clear sign on all the doors stating that we are not and that many of our customers are not wearing masks, and if you feel your health is in danger please use curbside. We had a few complaints, but more www.ThehardwareConnection.com
customers are stopping me and saying how much they appreciate the ‘normalcy’ in our store, and to keep it up.” In our business at Cornell’s True Value, staff and customers must wear masks, that’s just good sense in our area but we also had an executive order from the governor in effect. There is the occasional customer that tries to enter without a mask, and we politely ask them to leave and get a scarf or other covering before entering. We are also still providing an hourly bonus for staff working during this stressful situation. We have not yet set an end date for the bonus. Scott Lawson at Berea Ace Hardware in Kentucky said, “We had not been wearing masks, until May 11 when our governor mandated that employees must wear masks and highly recommended that customers wear masks. About 30 percent of our customers were wearing masks before the mandate and now about 40 percent. Ironically, our State Representative was in today (May 15) with no mask and stated he disagreed with the governor’s mask mandate.
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HardLines digest Fortunately, our county only has 32 cases with 27 fully recovered.” Cynthia Martini-Kreckman of Martini Hardware in Houston, replied, “We are strongly urged to wear mask in Houston. Some employees wear them and some don’t. Cashiers are behind a plexiglass wall and prefer not to wear them, because customers were having a difficult time understanding them. Only about half of our customers are wearing masks and surprisingly it’s the over 50 customers who are not wearing masks. Employees do their best to keep their distance with all customers. We have had very little request for curbside service. I guess with us being a smaller store, they feel more comfortable shopping here.” Scott Plummer at Plummer’s Ace Hardware in Farmington, Mo., posted, “We have been wearing masks since the end of March. We only have 33 cases in our county (as of mid-May) and probably only 20 percent of the customers are wearing them, but I think it shows respect to our customers. I do not wear a mask while going to other stores (but I keep my distance), but I feel better about the business if they are wearing masks.”
Hazard Pay Bruce Phillips of Crowder Bros. Ace Hardware in Lakeland, Fla., wondered if other retailers were still offering hazard pay on paychecks. “I’ve done them for the past two payroll periods (one
month) and am wondering about how long to continue,” he posted. Ruth Meredith Vickery of McDonald Hardware taped off Center in Virginia spots for replied, “Our customers to stand in line. company did them for the past two paychecks. Virginia is starting to open back up this Friday (May 15), so we have discontinued it.” Jeremy Peterson of Family Hardware in Cape Coral, Fla., said, “We did $2 bonus per hour worked for the month of April only. Our state was shut down for basically all of April.” Joe Proctor of Proctor Ace in Florida, responded, “We most likely will be continuing our COVID bonus of 15 percent thru the end of May. You might want to call it something other than hazard pay for potential liability reasons.” Randy Patzer, with two Ace Hardware stores in Michigan, posted the following on May 13, “We are keeping it on until things return to normal. We are still missing 40 percent of our employees and our hours are still cut. The state is still saying a couple more weeks. The bonus is simply called a bonus.”
Limiting Customers In late April, Buckalew of East Grand Forks Hardware Hank wondered how other retailers are limiting customers in
48 ■ The hARDWARe Connection ■ May/June 2020
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Dave Barone of Barone Hardware & Auto in Bronson, Mich., replied, “We are a 6,500-square-foot store in a rural community. I posted a while back about going ‘solo’—no groups, only one person per shopping party. I had a number of people get upset and walk out. Some of them are my regular customers. I have been asking people for over 40 years to come to my store and shop and turning them away is truly painful, but I believe it is in the best interest of my staff and my customers.” Cadiz Ace Hardware Barone noted they went to modiplaced a sign at the fied curbside in late April. “We have entrance to caution of the need for social distancing. two doors at our parking lot, so we are allowing one customer just inside each door at a time. We put a table the store. “We have the floor spacers across each door and sneeze shield and we’ll have direction signs to keep and a POS station. It is a lot of legwork the flow of traffic from crossing. I’m for us, but we are serving most of our considering putting an extra person customers in two to three minutes. We on as security to get in people’s faces about it. Around here we have so many are taking orders by text, phone or walk-in—text orders are becoming people that don’t think this is serious,” very popular. The customer places the he posted. order, we fill it and let them know it Bob Brame of Cadiz Ace Hardware, posted, “Inside 7,000-square-foot store is ready for pickup. It cuts down the wait time for them when they are at (we allow) seven customers at one the store. I still have had some people time; outside we spread the flowers where they take up over twice the room upset because they can’t come and and still have problems with too many browse,” he posted. n gathered together. Our lady out there suggests the 6 feet to people, but I am John Fix started the Hardlines Digest in 1996. The list was run amazed at how few want to comply. for many years using servers in One-third wear masks and two-thirds John’s hardware store, but the list has migrated to Google Groups. don’t. Good sales but cannot find peoThere are currently more than 2,300 subscribers reading Hardlines ple to hire. Don’t feel comfortable hirDigest. To read more or subscribe, ing young people.” go to www.hardlinesdigest.com. www.ThehardwareConnection.com
The hARDWARe Connection ■ May/June 2020 ■ 49
Real-World Advice from Independent Hardware Store Owners
Join a growing community of thousands of independent hardware retailers Practical tips from fellow retailers delivered fresh daily to your email inbox Share your expertise and learn from your peers
Get in on the conversation at
www.hardlinesdigest.com
“ I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.” —John Fix Owner, Cornell’s Hardware Eastchester, NY
Proudly Independent. Powered by You.
100E% E! FR
Website
category report
HARDWARE & FASTENER TRENDS Sales of Door Locks (Independent Hardware Channel) 12 Months % Change vs. Year Ago Door Locks: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -2.7% Door Locks: Dollars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-1.2% Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Door Locks Total of 2,130 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.6% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.6% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38.1% Source: Vista Information Services, div. of Epicor Software Corp.
Seasonality of Sales of Door Locks (Index=100) 120
120 110
110
94
100
98
95
100
111
107
102
98
94
101
104 95
100
90 80
90
70
Apr. 80 2019
May June July 2019 2019 2019
Aug. Sept. Oct. Nov. Dec. Jan. Feb. March 2019 2019 2019 2019 2019 2020 2020 2020
Source: Vista70 Information Services, div. of Epicor Software Corp.
Door Locks Share of Sales by Type (Latest 12 Months) Keyed Entry 0
5
33.2%
10
Combo
15
20
25
30
35
Keyless
24.7% 22.7%
Deadbolt
16.7%
Others
2.6% 0
5
10
15
www.ThehardwareConnection.com
20
25
30
35
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 ■ May/June 2020 ■ 51
category report
Hardware & Fasteners MercHandising
Top Left: New Palestine Hardware in New Palestine, Ind., is becoming established as a destination for fasteners. Middle Left: Coconut the store greeter shows off the Rocky Mountain Hardware display at San Diego Hardware Company in San Diego. Lower Left: San Diego Hardware features an Ashley Norton wall of cabinet knobs. Top Right: Austin Hardware & Hardware in Santa Ana, Calif., has a huge selection of pulls and knobs. Middle Right: Mayson Hardware in Fresno, Calif., is known as the place to go for nuts and bolts. Lower Right: Southaven Supply in Southaven, Miss., displays decorative hardware in hundreds of old-fashioned wooden drawers. 52 ■ The hARDWARe Connection ■ May/June 2020
www.ThehardwareConnection.com
Hardware & Fastener prodUcts
teaMKeys™ • Fully functional painted house keys with large heads and designs to feature your favorite sports team logo from MLB, NFL, NBA and NHL. • Ilco TeamKeys™ are licensed by their respective leagues with the official hologram on the packing, ensuring that league-approved quality standards are met. • Ilco TeamKeys™ are proudly manufactured and painted in the USA. • Come packaged 5 per polybag.
Magnetic tooLMat • Flexible magnetic mat with durable black vinyl cover is ideal for holding tools, small parts and fasteners secure in the workshop, garage or jobsite. • Powerful ceramic magnets can hold hammers, wrenches and tools as well as tiny parts, nails, screws, washers, nuts and bolts. • Available in 3 sizes and featuring grommets and sewn-in fabric handle for additional mounting options. • Magnetic on both sides to attract to any ferrous metal surface.
Kaba Ilco www.ilco.us 800-334-1381
Master Magnetics Inc. www.magnetsource.com 888-293-9290
www.ThehardwareConnection.com
The hARDWARe Connection ■ May/June 2020 ■ 53
Beacon awards
Beacon Awards Program Recognizes Top Retailers
S
ince 2013, the industry’s premier event for the independent retail hardware channel has featured an awards program that recognizes the “best of the best” retailers. The Beacon Awards program continues for 2020 even though the 2020 Hardware Conference has been canceled due to the COVID-19 pandemic. In addition to Retail Beacon Awards for each of the participating wholesalers, the 2020 Beacon Awards program will honor the industry’s best hardware and LBM stores in the category of community service, recognizing the retailers that have gone above and beyond to serve their communities during the COVID-19 pandemic. The 2020 Beacon Award winners will receive all-expense paid trips for two to the 2021 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. The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection, with additional sponsorship support from Epicor, Ettore Products, Do it Best Corp. and Orgill.
54 ■ The hARDWARe Connection ■ May/June 2020
Judging will be based on the following criteria: community service (especially activity and programs related to COVID-19); use of social media to keep customers and community updated on COVID-19 changes; innovative retailing concepts; programs and products geared to kids during the pandemic; going above and beyond to support employees and employees’ families during the pandemic The deadline for nominations is June 15, 2020. Send individual Community Service nominations to: chris@thehardwareconnection.com. For questions about the 2020 Beacon Awards program, contact Editor Chris Jensen at 317-514-8864. A portion of Beacon program proceeds will be used to support Feeding America’s COVID-19 Response Fund. Feeding America is the nationwide network of 200 food banks that leads the fight against hunger in the United States. Together, they provide food to more than 46 million people through 60,000 food pantries and meal programs in communities across America. n www.ThehardwareConnection.com
IN THE NEWS NEW STORES: • Warren Pegram and Charleston Austin have opened Ace Hardware of South Fulton in Atlanta, Ga. • The Lester Group has opened a New River Valley Building Supply store in Christiansburg, Va. • Roger’s Family Foods and Lake City Ace Hardware opened in Lake City, Mich., the fourth grocery and ninth Ace Hardware store opened by the Clouse family, a member of The Hardware Connection Century Club.
KUDOS TO:
Centers in St. Charles, Mo., which has a heritage that extends back to 1815, is celebrating the 75th anniversary of Hackmann family ownership.
PEOPLE ON THE MOVE: • Do it Best Corp. has promoted Brad Woolace to industrial commercial product manager. • PRO Group has promoted Shari Kalbach to vice president and chief operating ofShari ficer. Kalbach
WHOLESALERS IN THE NEWS:
• Atwoods Ranch & Home, with 63 • Ace Hardware Corp. collaborated stores in five states, is marking its with the Veterans of Foreign Wars 60th anniversary. (VFW) to give out 1 million American • Sorrento Ace Hardware in Sorrento, flags nationwide on Saturday, May 23. Fla., was honored as East Lake County Consumers who visited a participating Business of the Year. Ace store on May 23 received a free • Overland Hardware in Overland, Mo., 8 x 12 American flag, while a second is celebrating its 65th anniversary. flag was donated to a local VFW Post • Fischers Do it Best Hardware in La to be used for marking and honoring Porte, Texas, is marking its 75th anniveteran graves on Memorial Day. versary. • United Hardware has canceled its • Bob and Jennifer Heth are celebratJune buying market in Minneapolis and ing the 60th anniversary of Heth’s switched to a Virtual Market taking place Hardware Hank & Rental in La July 27-August 2. “We have expanded Crescent, Minn. our Market from three days to seven • Downtown Ace Hardware in Fort days to give our retailers additional time Collins, Colo., is marking its 30th to place their orders due to the increased anniversary. business our retailers are currently ex• Kerry Loosier is celebrating the 40th periencing,” said Chad Ruth, vice presanniversary of Southaven Supply in ident-sales and marketing. “We have Southaven, Miss. also opened our Market to all of our cur• Hackmann Lumber and Home rent retailers, which will allow more than www.TheHardwareConnection.com
THE HARDWARE Connection ■ May/June 2020 ■ 55
1987, 1992 and 2001. Yeager is survived double the number of retailers to purby his wife Shirley, daughter Deborah chase great deals from our vendors.” Clark and husband Scott; sister Carolyn • Hasson Hardware has completed a and husband Gary; brother Ernie and 100,000-square-foot expansion of its wife Florence; and four grandchildren. Knoxville, Tenn., warehouse. • Jimmy Payne, owner of Jimmy • Ace Hardware Corp. reported rePayne’s Coast to Coast Home and cord 1Q revenues of $1.43 billion, an Auto in Calhoun, Ga., died April 27 at increase of 3.8% from last year. U.S. the age of 79. He and his father Robsame-store-sales rose 4.2%, while ert opened the business as Economy Acehardware.com revenues were Auto in 1957. He is survived by his up 63%. Ace also reported record 1Q wife of 57 years, Sue; son Mitch and net income of $36.2 million, an inwife Tonya; son Michael and wife crease of 60.2% from last year. Christie; granddaughters Catelyn and Jessica; and sister Bobbie. OTHER NEWS: • Marian Gravenslund, who helped • General Tools & Instruments run Century Club retailer True Value and High Road Capital Partners Washington Hardware and Furhave acquired Garden Weasel from niture in Kennewick, Wash., for two Faultless Brands. generations, passed away April 27 at • Lumax has introduced its new 2020 the age of 86. She officially retired five product catalog. Download here. years ago after helping son John Jr. run • Walter Morris, owner and operator of the business following her husband H&M Lumber in West Helena, Ark., has John Sr.’s death in 1986. She is survived agreed to sell his business and operatby son John and wife Kim; daughter ing assets to Central Network Retail Victoria and husband Bill; grandGroup (CNRG). H&M Lumber, which daughter Kelley and husband Tom; was founded in 1961, will be rebrandand sister Ann and husband Wayne. ed as and operate as part of CNRG’s • Robert Lancz, former owner of CenHome Hardware Center brand. tury Club retailer Dunn Hardware in Richmond Heights, Ohio, passed away IN MEMORY: May 6 at the age of 81. He grew up • Ed Yeager, co-owner of four Yeager working in the family business, which Hardware stores in Van Buren and dates back to 1910 and had been purFort Smith, Ark., died April 27 at the chased by his father. In addition to his age of 78. He joined the family busiwife Lois and children Lisa, Cheryl ness started by his father Ernest in and Scott, he is survived by grandson 1966, buying the business from him in Blake and brother Gerald. ■ 1982. He opened additional locations in 56 ■ THE HARDWARE Connection ■ May/June 2020
www.TheHardwareConnection.com
UPCOMING EVENTS JUNE House-Hasson Virtual Summer Dealer Market June 25-26 PRO Group 2020 Virtual Group Merchandising Conference June 22-24
Reporting and Analytics Webinar July 15, Webinar Series by Epicor; Learn More
Monroe Hardware Fall Market September 11-13, Greenville Convention Center, Greenville, S.C.
United Hardware Virtual Market July 27-August 2
National Hardware Show September 1-3, Las Vegas Convention Center, Las Vegas, Nev.
AUGUST
OCTOBER
Florida Hardware Fall Virtual Market August 12-22
Ace Hardware Corp. Fall Convention October 20-22, Orange County Convention Center, Orlando, Fla.
Independent Garden Center Show— postponed! Orgill Fall Dealer Market—Canceled! Online buying event TBD The Hardware Conference—Canceled!
Blish-Mize Fall Dealer Market September 17-19, Overland Park Convention Center, Overland Park, Kan. Bostwick-Braun Fall Virtual Market Dates TBA
Home Hardware Fall Virtual Market September 13-20 Horizon Distribution Trade Show & Conference Expo September 11-13, Convention Center & Sundome, Yakima, Wash.
JULY
SEPTEMBER
Do it Best Fall Market September 11-14, Indiana Convention Center, Indianapolis
House-Hasson Fall Dealer Market October 22-24, Sevierville Events Center, Sevierville, Tenn. True Value Company Fall Convention October 2-4, Pennsylvania Convention Center, Philadelphia Wallace Hardware Fall Dealer Market October 14-16, LeConte Center, Pigeon Forge, Tenn.
For a complete listing of calendar dates, click here. www.TheHardwareConnection.com
THE HARDWARE Connection ■ May/June 2020 ■ 57
retAil ideAs
AkArd HArdwAre Goes BAck to tHe Bricks Leigh Ann Akard opened up a pop-up shop in early May that is a return to roots for her business, Akard True Value Hardware in Zionsville, Ind. Leigh Ann’s grandfather, JJ Akard, bought Zionsville Hardware in 1955, which was then located on the Brick Street, as Zionsville’s Main Street is affectionately called due to its brick pavement. He sold toys, gifts and hardware to a town that had a population of 1,822 in 1960. Today, Zionsville’s population is about 30,000. Her father, Steve, purchased the business in the late 1970s and then moved it one mile away to a 25,000-square-foot space in the Boone Village Shopping Center. With the business celebrating its 65th anniversary this year, a fortuitous event happened. The store’s original space on the Brick Street became available, so Leigh Ann decided it made sense to open up a pop-up shop there as a salute to her family’s legacy. She teased the opening with a Facebook post showing the storefront door and the messages “History can sometimes repeat itself” and “What business in Zionsville is celebrating 65 years this year by opening up a ‘pop up’ shop in their original location?” People were encouraged to find the new Top: Steve and Leigh Ann Akard are celebrating the 65th anniversary of Akard True Value Hardware by opening a pop-up shop in their former location on Zionsville’s Brick Street. Upper & Lower Middle: Everything from grill accessories and home decor to kitchen gadgets and signs is on display. Bottom: At the checkout counter is an antique cash register from an old True Value store that an employee had in storage. 58 ■ The hARDWARe Connection ■ May/June 2020
www.ThehardwareConnection.com
Back to the BricksAkard Village Hardware has opened where the family business got its start in 1955.
Facebook page (Back to the Bricks-Akard Village Hardware) and like, follow and share the page for a chance to win a $65 gift card to either location. Leigh Ann took over the space in March, but then her plans to open in April got stalled by the pandemic. “We’ve been so busy at the main store that it was tough to find time to work on the new store,” she says. A soft opening in early May will be followed by a grand opening and anniversary celebration when it is safe and appropriate for bigger crowds to gather, she adds.
Seeing a store reopen in the old space brings back memories for Steve, who says he thinks it’s neat to attract a new generation of shoppers Back to the Bricks. The pop-up shop is designed to complement the main store, offering grill accessories, hanging flower baskets, home decor, signs, and kitchen, gift and faith-based items. “I’ve got a one-year lease, so we’ll see what happens with this pop-up store,” Leigh Ann says. “We view it as just another way to serve the community that has been so good to our family for 65 years.”
retAiler sAves tHe dAy for fireworks Like many communities around the country, Gallipolis, Ohio, was facing the reality of life during a pandemic. There would be no fundraisers held for the Gallipolis River Recreation Festival Committee for the annual Fourth of July festival, which also meant there would be no fireworks display this year. Jim Thomas has operated Thomas Do it Center in Gallipolis since 1988, now joined by daughter Autumn as general manager. Blessed by the ability to stay open while other businesses have had to temporarily close, Jim and Autumn knew they needed to step in and help. They agreed to have Thomas Do it Center fully sponsor the fireworks display whenever it could be held. “As a long-time Chamber member and supporter, we wanted to help lift that burden and also ensure there would be a 2020 fireworks show and River Recreation Festival in Gallipolis,” said Autumn. For more on the story, click here. www.ThehardwareConnection.com
Jim Thomas of Thomas Do it Center in Gallipolis, Ohio, wanted to give back to the town that has supported his family business for 32 years.
The hARDWARe Connection ■ May/June 2020 ■ 59
e h t d n i h e B Numbers
70%
Percentage of Americans who said it is very important or somewhat important to buy U.S.-made products, according to a study by Reuters and Ipsos. A 2018 Thomas survey revealed 45% of Americans believe U.S.-made products are superior to those made offshore.
$305.43
Average revenue per person in U.S. snack food segment in 2020, according to Statista.
168
Number of new U.S. stores Ace Hardware Corp. opened in 2019, with 208 opened Percentage of consumers over age 35 globally. These new stores averaged $140/square foot in year one. who prefer to shop at physical store locations, according to Raydiant’s “The State of Consumer Behavior 2020” study. Percentage of consumers who say highest quality item matters most to them when shopping, followed by lowest price (30%), most convenient Percentage of consumers who had option (13%), brand’s values (12%) shopped for a better price online and overall brand (11%), according to after finding a product at a physical the National Retail Federation. store, according to Raydiant’s study.
57.5%
32%
68%
60 ■ The hARDWARe Connection ■ May/June 2020
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