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November 2019 Vol. 11, No. 7
THE INDUSTRY’S DIGITAL LEADER
Opening a New Store That
Stands Out
ALSO INSIDE: How to Stop Employees and Customers From Robbing You Blind
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CELEBRATING 10 YEARS OF DIGBY’S HARDWARE CARTOON
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All The Products We Need Orgill’s Inventory Selection Keeps Our Shelves Fully Stocked!
“Orgill offers a full selection of high-quality products, which makes it easy to provide my customers with exactly what they need.” Taylor Baker l Foothills Hardware & Builders Supply, North Carolina l An Orgill customer since 2015
Why We Like Working With Orgill: • Strong vendor partnerships • Broad product selection • Strong retail programs that help us improve our store
Watch the video to learn about the partnership between Orgill and Foothills Hardware!
1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com/about-us
CONTENTS November 2019 n Vol. 11, No. 7
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DEALER PROFILE: M&M BUILDING SUPPLY
CATEGORY REPORT: ELECTRICAL & LIGHTING
Editor’s Note: Chris Jensen
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Trend Watch: Craig Cope
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Digby’s Hardware cartoon: Scott Jensen
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Amazing But True Hardware Stories
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How’s Business? Regional Reports on Business Conditions
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From Tom’s Shop: Hardware Products Review
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Main Feature: How to Stop Employees and Customers From Robbing You Blind
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Dealer Profile: M&M Building Supply
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Delivery Options to Compete with Online Sellers
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Digby’s Hardware Cartoon Marks 10th Anniversary
43
Category Report: Electrical and Lighting
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In the News
50
Upcoming Events
55
Retail Ideas
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Behind the Numbers
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The Hardware Connection app is available for iPhone, iPad, Android and Amazon. Download here. www.TheHardwareConnection.com
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THE HARDWARE Connection ■ November 2019 ■ 3
ADVERTISER’S INDEX Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 A.O. Smith-Reliance Water Heaters | www.RelianceWaterHeaters.com . . . . . . 21 Do it Best Corp. | www.doitbestonline.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Duracell | www.duracell.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . . . . . . 15, 17 Epicor Software Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . . . . . 25 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . . . . . . . 31 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Sunnyside | www.sunnysidecorp.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Vayyar Imaging | www.walabot.com/diy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 13
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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: Andy Curry, Doug Donaldson, Gary Pittsford The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2019 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
THE HARDWARE Connection ■ November 2019 ■ 5
EDITOR’S NOTE
By Chris Jensen
An Amusing Look at Hardware Retailing Life
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his issue marks a culmination of achievement, with a lot of hard work along the way. It has been exactly 10 years since the first issue of The Hardware Connection bounced around the industry in a digital format. That Winter 2009 issue was distributed to about 13,000 industry people, mainly retailers, and we were a quarterly publication. Now we mark our 10th anniversary as a digital publisher, and this issue will be distributed to slightly more than 60,000 readers, including over 53,000 retailers. That is the largest circulation of any industry publication, by quite a bit. We have come a long way over the past decade, and the hardware channel has come a long way too, dipping its toes ever gently into the world of technology. I would be remiss if I didn’t mention another important milestone. Digby’s Hardware cartoon, which is created and drawn by my brother, Scott Jensen, is also celebrating its 10th anniversary. The cartoon has been a big part of our magazine’s appeal since the very first issue. The cartoon strip has combined with “Amazing But True Hardware
6 ■ THE HARDWARE Connection ■ November 2019
Stories” to give our readers a chance to laugh at the amusing things that happen every day in their stores. Growing up, Scott’s school notebooks were covered with doodles. He started winning art awards at an early age. At family reunions when we were still young, distant relatives would come up to us and go, “Which one of you boys is that amazingly talented artist?” I would sheepishly point at Scott, annoyed that I got no recognition for my freakish ability to line up Matchbox cars in a row. In this issue is the 59th Digby’s Hardware cartoon strip. I think every single one has been funny, even accounting for my bias. Turn to page 43 for an inside look at the Digby’s cartoon and the talented artist who creates it. Scott has also been doing a line of greeting cards for Oatmeal Studios for 33 years. I’ve stumbled onto my brother’s greeting cards at hardware stores and card shops in Vermont, Chicago, Florida and even the Cayman Islands. If your town doesn’t have a place to buy greeting cards, consider adding the Oatmeal Studios greeting card line to your mix. It’s a good way to spur add-on sales. n www.TheHardwareConnection.com
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TREND WATCH
By Craig Cope
Celebrating a Decade of Publishing Innovation
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his year marks a milestone for The Hardware Connection magazine marking 10 years of digital publishing. This achievement pales in comparison to the amazing retailers, wholesalers and manufacturers we featured earlier this year in our special twopart series on The Century Club. However, 10 years in the digital world can seem like a lifetime.
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When Tom Chasteen and Chris Jensen published the first issue of The Hardware Connection in November 2009, no one other than Steve Jobs had heard of an iPad. It was six months later when the iPad was first launched and that innovative device has gone on to sell more than 360 million units through seven generations of development. 8 ■ THE HARDWARE Connection ■ November 2019
Facebook had “only” 500 million active users back in 2009. Now the social media giant has 2.4 billion users—almost one-third of the world’s population. Not to belabor the point, but obviously, the digital landscape is constantly changing and evolving at a pace not seen in the history of the world. Some people in the hardware channel were quick to predict the demise of the new “digital-only” magazine that was launched in an industry not known for early adoption of technology. Fast forward to the present and The Hardware Connection has received more awards for editorial excellence than any other publication in the channel—seven in the past six years! Some of those awards were won against the entire field of wellestablished trade and consumer print magazines. Which leads me to the point of my article. Bringing award-winning editorial to your inbox would not be possible without the support of our amazing advertisers throughout the years. The independent hardware channel is our www.TheHardwareConnection.com
TREND WATCH
passion and partnering with companies to achieve their market objectives is what keeps us going. However, there are two companies that have been with us since the very first issue: Epicor (formerly Activant) and WD-40. Partnering with the new kid on the block who publishes a digital-only magazine took a true leap of faith. However, Epicor and WD-40 were quick to identify a coming change in the way people consumed their media. Digital had started to impact the traditional print industry, but little did anyone know how far or how fast digital communication would go. Virtually all stores place their orders electronically, PDFs and websites have replaced the traditional manufacturer catalog and email has become the preferred communication medium for most store owners, making the fax machine virtually obsolete. Hardware stores are implementing various e-commerce strategies
to include buy online pick up instore (BOPIS), as Amazon and other e-retailers continue to apply pressure to brick and mortar stores. So what does the next 10 years hold for the independent hardware channel? Robots greeting customers at the door, scanning inventory and mopping the floor? Stores completely void of a cashier and processing all transactions electronically as the customer leaves the store? Drones delivering products? All of those technology concepts are currently being testing in various forms. I do know one thing for certain: the success of the independent hardware retailer will rely on the support of the outstanding manufacturers, service providers and wholesalers of this great channel. To our friends at Epicor and WD-40, thank you for your leadership and support of the independent hardware channel. You are part of the pillars that support this industry with innovation and technology while recognizing the unique nature of its entrepreneurial spirit. From the team at The Hardware Connection magazine, we thank you for everything you do and we look forward to another decade of partnership. n
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HARDWARE HUMOR
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E
HARDWARE HUMOR
very winter, the Chris tmas parade went by the fro nt of the store. My parents wou ld tell me to go up to the second floor to watch the parade, and they ha d to stay on the ground floor to w ait on customers. A little while ago, I was watching a documentary on loca l television about the history of Ra leigh and one person talked about ho w my father always played Santa in the Christmas parade. I had no idea. It wasn’t until I was 57 years old that I found out my father was Santa durin g the parades. Evelyn Briggs Davis Briggs Hardware | Ra leigh, N.C.
Amazing but TRUE
HARDWARE
STORIES
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e had back stock in both an attic area and a basement. We used Motorola radios to pull stock from these areas. One of the teenage stockboy initiation rituals was to send the newbie looking for the fallopian tubes by himself. They used the radios to have him look all over while they laughed at him. Almost every newbie has fallen prey to this. Also, a contractor customer would send a newbie to us to get his hammer balanced. Jim Ertzman Retired retailer | Pittsburgh, Pa..
• Originally posted on Hardlines Digest
entleman come had an elderly g ask if we could in the store and t him that did no make a key for e I told him that w work. Jokingly, en me while not ev do that all the ti id that I was curi trying. I then sa st ver had a reque ous and had ne a sad yet sheep like that. He got ce and said he ish look on his fa re splitting up and his wife we to t bring himself and he could no s e house. He wa kick her out of th n nging her key o planning on cha ith the non-work her keychain w uld not get back ing key so she co guy looked The into the house. 0 years old. like he was 80-9
I
Chuck Hank re e Value Hardwa Hank Bros. Tru Paducah, Ky. Digest on Hardlines • Originally posted
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e now stock ordinary size window panes, regular vacuum cleaner bags and belts (one for the red ones and one for the black ones), universal kerosene wicks (for the regular kerosene heaters that you fill up with kerosene), regular size cpvc pipe, regular size faucet washers and larger space heaters (1500 watt) that are bigger and put out more heat than the small ones (1500 watt). Maurice White | White Hardware, McCormick, S.C. • Originally posted on Hardlines Digest
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How’s Business? MIDWEST
Sales and customer counts in 2019? It’s been a very good year. We’re up about 18 percent over last year. My daughter, Lisa, has taken over running the store. The low unemployment has been beneficial, even though prices have gone through the roof. How proud are you of your status as a Century Club retailer? We’ve been in business in the same family for 132 years. We have been able to stay in business that long because we take care of our customers. I love what I do, and my daughter loves what she does. My dad told me that business changes every 10 years. Now, it seems like every 10 minutes the business changes because of the barrage of information. Key moments in company history? In 1929, we opened a second store, and it only lasted 15 months before we closed it because of the Depression. Surviving and living through World War II was a traumatic experience for my grandparents.
Trevor Hardware back in 1948.
They would survive with barter skills and trade nuts and bolts for chickens. The lesson is that everything may look rosy one day, then conditions go south the next day. Seeing the juggernaut Sears die is an example of that. Another key moment: In 1990, they widened the street out in front of the store. It took them about a year to finish, and it just about killed us. There are no side streets to the store, so it was really hard for customers to get in the store. Keys to your company’s longevity? You have to love what you do and like people. Also, be willing to change. In 1995, we had 600,000 square feet of bigbox stores move nearby. But we adapted, brought in the True Value rental and that really helped. New initiatives planned for 2020? Not anything on the horizon. We want to constantly improve the sales floor and do more service work. We have an agreement to service the power equipment Menards sells and that draws customers to our door we wouldn’t otherwise see. Over the years, we always repaired lamps and that continues to be a nice niche along with fixing storm windows and screens. Butch Trevor Trevor True Value Hardware—Founded 1887 Moline, Ill.
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NORTHEAST
Sales and customer counts in 2019? Business has been very good. We had a big, 100-year anniversary sale and that had something to do with it. How proud are you of your status as a Century Club retailer? We’re extremely proud, and it’s remarkable any business can last that long, especially in a rural community. Personally, I feel a very big responsibility to keep the business open. I remember seeing my dad coming to work every day for 30 years and that’s my inspiration. Key moments in company history? We changed from food wholesaler to hardware in 1953. In the mid-1970s, the store burned down and we rebuilt it. In the new building, we’ve added on a few times and it keeps growing. Keys to your company’s longevity? Probably the ability to have a lot of products and attentiveness to customer service. That’s something we’re really big on. New initiatives planned for 2020? We’d like to expand our inventory and start selling some new products, and we’re in the process of coming up with ideas. Jon Strollo Strollo’s True Value Home Center—Founded 1919 Northern Cambria, Pa.
Jon Strollo (right) and his son Ben are celebrating the 100th anniversary of Strollo’s True Value this year.
SOUTH
Sales and customer counts in 2019? Amazing. We doubled what we did the year before. The economy is great and people are spending. How proud are you of your status as a Century Club retailer? It means everything to me. It’s my heritage. It’s the history of our great city of Raleigh. It’s simply who I am and what I do. That’s why I bought the name from my father and brother and reopened
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OUR 60,000+ READERS AREN’T THE ONLY ONES WHO’VE NOTICED OUR EXCEPTIONAL EDITORIAL!
2019 Eddies Award
2019 Digital Awards
2018 Bronze Award
2018 Eddies Digital
2017 Eddies Digital
Finalist for Full
Honorable Mention
for Best E-Zine
Award for Breaking
Award for Best
Issue
for Best Digital
American Society of
News Coverage
Standalone B2B
FOLIO: Magazine
Magazine
Business Publication
FOLIO: Magazine
Digital Magazine
FOLIO: Magazine
Editors
The Hardware Connection has won seven awards for editorial excellence in the past six years. We were named a 2019 Eddies Award finalist from FOLIO for Best Full Issue and received a 2019 FOLIO Digital Awards honorable mention for Best Digital Magazine. This follows winning a 2018 Eddies Digital Award for Breaking News Coverage, a 2018 Regional Bronze Award for Best E-Zine from the
FOLIO: Magazine
American Society of Business Publication Editors and a 2017 Eddies Digital Award from FOLIO for Best Standalone Digital Magazine in the B2B category. We strive to bring our readers editorial content that is relevant and retail-focused, and these awards demonstrate the quality and credibility of our editorial content.
Just Another Reason Why We Are the Industry’s Digital Leader!
How’s Business? the store downtown. I felt I owed it to my ancestors. I’ll have people come in here and tell stories about how their grandparents took them in here to buy Christmas presents. I hear such tales almost daily. Key moments in company history? I think one of the big ones was leaving our downtown location. Closing those doors and walking away was the most difficult moment. The second was during the recession and my father closed a store. After that, that’s when I made the decision to come back downtown and reopen a block from where we started. We survived the Depression and recession and just being able to say that is huge.
Keys to your company’s longevity? A few things: customer service, willingness to change with the times and diversifying. As quick as Raleigh is growing, we had to adapt to the generation that surrounds us. We used to be Raleigh’s only toy store, and now after Toys ‘R’ Us and Kmart went out of business, we’re back in the toy business. We’ve seen it come full circle. New initiatives planned for 2020? We hope to be double our current size. My end goal is to get back to Fayetteville Street, back to where we started. We were the fifth family here, and we cut down the trees to make streets here. Evelyn Briggs Davis Briggs Hardware—Founded 1865 Raleigh, N.C.
SOUTHWEST
Evelyn Briggs Davis shows off a painting of Thomas Briggs, who founded the family business 154 years ago.
Sales and customer counts in 2019? They have been better than the past three years. The election really helped us. We’ve been holding even for the last three years. The oil fields helped and the change of presidents helped.
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How proud are you of your status as a Century Club retailer? My granddad started the company, and then my dad ran it. I’ve been here all my life, running the business since my dad died in 2001. We’re small, and I know most of the customers when they walk in the door. We have a responsibility to customers and the community to stay open. Yes, I feel a responsibility. I’m 65 and not planning on going home, but I’m going to slow down. I’d love to stay here as long as I’m able to. Key moments in company history? The economy dictates everything. In this area, the oil fields, timber, poultry and cattle are the markets that affect
us. If one market is down, usually another is going to pick us up. Keys to your company’s longevity? It’s our customer base. Most all the people here know each other. I try to spend my money where I make my money, and they do too. If it wasn’t for the one-on-one personal aspect of my business, it wouldn’t work. A lot of customers come up at 7 p.m. after we’re closed and I’ll still help them. Everybody looks out for each other. New initiatives planned for 2020? I’m not really planning on getting any bigger. As long as I can keep the doors open, that’s what I’m going to do. Rodney Dean Dean’s Hardware—Founded 1919 Joaquin, Texas
WEST
Sales and customer counts in 2019? Sales have been pretty good, except for the last couple of months. With lumber commodity prices down 20 to 25 percent, that’s a big part of the recent downturn. How proud are you of your status as a Century Club retailer? Personally, it means a lot to me. I enjoy the history and community, being the oldest settlement West of the Rockies. My kids are still young, but I hope they follow in the business. Key moments in company history? We had a hurricane in 2007 with winds over 100 mph and no power for a week. Jeff Newenhof
We were able to get a delivery with generators and supplies that first day from Do it Best. Keys to your company’s longevity? My family has owned the store since 1975. We’re careful and cautious not to overextend, and our respect for history makes sure we keep moving forward. New initiatives planned for 2020? We’re updating all trucks and upgrading our back office system to go paperless. We’re going to roll out more training for employees over the winter. Jeff Newenhof City Lumber—Founded 1904 Astoria, Ore.
City Lumber as it looked in 1935.
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PRODUCT #1-3: PRO TECH TOOLKIT, ESSENTIAL ELECTRONICS TOOLKIT, MAKO DRIVER KIT iFIXIT iFixit is a global repair community with a line of industry-leading tools you may have never heard of before. iFixit was started in 2003 by two college students in California trying to fix an old computer with no instructions or the right tools. As computers, gadgets and other devices have exploded, so has iFixit with the tools and know-how for the average consumer to repair everything from their smartphone to common household items. iFixit currently offers more than 50,000 free repair manuals and 150,000 solutions covering over 20,000 devices. iFixit toolkits are created using the information from thousands of repair manuals and expert teardowns to ensure the average consumer has everything they need in one kit to tackle even the most complex repairs. Our testers had the opportunity to utilize a few of their flagship toolkits including the Pro Tech Toolkit, Essential Electronics Toolkit and Mako Driver Kit. The Mako Driver Kit includes a 4 mm screwdriver handle with magnetic bit socket and 64 bits including some of the most unique bits: torx, torx security,
pentalobe (Apple’s security bit), JIS and hex, just to name a few. The Essential Electronics Toolkit contains 16 4 mm screwdriver bits, suction cup handle and various prying/opening tools. The Pro Tech Toolkit is their signature all-in-one kit combining the bit set and the essential kit. Our testers raved about the build quality of the tools, backed by a lifetime warranty, but also just how often they made use of the kits during common household
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PRODUCT #4: WALABOT DIY PLUS VAYYAR IMAGING LTD.
repairs for power tools, kitchenware, vehicles, etc. As manufacturers expand their use of security and proprietary bits, having a well-stocked toolkit is essential. As we enter the holiday shopping season, iFixit toolkits make a great addition to your gift idea inventory. The company’s website has an interactive map showing all retail locations offering their kits, which helps drive traffic to stores from their thousands of daily visitors. To see a video, click here.
Walabot DIY Plus has brought new technology to the stud finder category, as it has the ability to quickly identify studs, pipes, wires, Cat5 cabling and so much more. Walabot utilizes Vayyar’s 3D imaging technology used worldwide in numerous industries from construction, medical and robotics, just to name a few. This enables the sensor to work on drywall, concrete, lath and plaster. The Walabot DIY Plus stud finder connects to Android smartphones with an app from the Google Play store. Once the sensor is connected and calibrated the app offers three modes
to show what is behind the wall. The first mode is the Pan Mode creating a panoramic view of what is behind the wall to include the distance between objects. The second is Image Mode giving a visual classification to quickly identify studs, pipes, wires and cables.The last mode is Expert mode displaying the raw data from the sensor, which can be used to trace wire, plumbing or even the presence of a rodent/pest behind the wall. The reviews we received from our testers all shared one common theme—the ability to get a clear picture of what is
behind the wall before the first nail, screw or drill bit is a game-changer. Our testers all preferred the Image Mode when trying to quickly identify a stud, electrical wire or pipe. The mode takes all the guesswork out of what the sensor is detecting. However, one tester noted the Expert Mode enabled them to trace an electrical wire back to its junction box, making for a much faster and less evasive repair. Walabot also offers a line of sensors called the Maker Packs. Using the sensor’s 3D imaging technology coupled to a small computer the three versions of the Maker Packs give the user the ability to create their own uses for this powerful sensor while unleashing the power of radio frequency. For more information, go to walabot.com/diy or view this video.
PRODUCT #5-7: PRO PLIERS, MINI PLIERS, FIBER OPTIC KEVLAR SHEARS VAMPIRE TOOLS Vampire Tools is a hand tool company established in 2012 that is looking to break into the hardware channel with a line of premium pliers, shears and knives. The tools are made from S58C, a high-strength medium carbon steel, which is immediately noticeable when picked up. High-quality materials are only one way Vampire’s tools stand out, but it’s the innovation our testers immediately identified. The pliers feature a unique vertical and horizontal serration at the tip (see picture) for gripping a screw head or nut/bolt. The serrations create a non-slip grip, making them a perfect tool to remove stripped, rusted or otherwise damaged fasteners in a confined space with ease. Our testers had the opportunity to review the 8” Pro Pliers, 4” Mini Pliers and 6.5” Fiber Optic Kevlar Cutting Shears. The 8” pliers, in addition to their unique tip, feature a wire cutter and cushioned ergonomical grip. The 4” pliers offer similar features excluding the wire cutter. While our testers
were extremely impressed at how well both pliers perform as a screw extractor, they were more impressed with the quality. As one tester noted, “It just feels like a high-quality tool the instant you pick it up.” The 6.5” shears feature the same high-quality materials and excellent design like the pliers. They can cut numerous materials including
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Kevlar®, carbon fiber, canvas cloth and other materials requiring a sharp cutting surface. The blades also features micro-serrations to reduce slippage while cutting. The pivot point is also adjustable, allowing for modifying the tension. If you are looking to expand your hand tool line with highquality, purpose-driven tools, then take a look at Vampire Tools. Go to www.vampiretools.com for more information.
LOSS PREVENTION
How to Stop
Employees and Customers
From Robbing You
BLIND R
By Chris Jensen
etailers cringe every time they see headlines about an employee caught embezzling or stealing. They know it could be them, and in too many cases, it has been them. A Montana woman was just arrested for embezzling $46,000 from two companies after previously being charged with stealing thousands of dollars from an Ace Hardware store. Bad habits are hard to break. A Colorado woman was arrested last December and charged with felony theft for allegedly stealing $258,000 from Offen Ace Hardware (now Hykes Ace) in Greeley over a four-year period. Not only were the owners grooming www.TheHardwareConnection.com
her to take over the business one day, they had helped pay for her degree in accounting, according to a report in the Craig Press. After discovering his former bookkeeper embezzled about $66,000 from him over an 18-month period between 2004 and 2006, Marc Gillson now handles the bookkeeping himself. “We had procedures in place, but we didn’t follow them,” says the third-generation owner of Mount Pleasant True Value Hardware in Providence, R.I. Some early warning signs were overlooked: checks that did not appear in bank statements and cash sums listed on bank deposit slips that did not match
THE HARDWARE Connection ■ November 2019 ■ 29
LOSS PREVENTION amounts deposited. “When you have an employee that goes beyond what you normally expect and always volunteers to stay late, then you should be guarded—maybe they are disguising something else,” says Gillson, whose grandfather started the business in 1923. Gillson noticed that when she handled payments for U-Haul truck rentals that the cash didn’t seem sufficient for the transaction. “It should have sent off warning signs, but we did change some procedures. It just made her change the way she stole from us, so the next round was different,” he adds. As Gillson explains, “We went back through all the paperwork and discovered her patterns of deceit, then took it to the police. They said we had to do our own investigation, so we took it to our accountant. Again, we didn’t want to believe it to be true. Did she really do this to us?” Luckily, Gillson was not overextended in the business, but he had struggled to figure out why their numbers were worse off those years. “For the first time we weren’t able to hand out Christmas bonuses to the staff. Then we saw that in the second week of February she stole $2,800 from us, so we knew we had a thief working for us.” The former bookkeeper was sentenced to six months in jail and given six months home confinement, followed by 14 years of probation. She
was ordered to pay back nearly $66,000 in restitution to the Gillsons. “It’s very disturbing to think that you can’t really trust anyone. If you can’t pay bills, you can’t get inventory and without inventory you can’t make sales, so it starts a vicious death spiral for your business if you don’t stop it,” Gillson says. Gary Calvin, owner of Cedarville Ace in Cedarville, Mich., had an employee who was charged with stealing between $20,000 and $50,000 in 2010 and 2011 via phony returns and pocketing cash, although Calvin says the actual amount was about $65,000. “I kept wondering why we didn’t have as much sales and income in 2011. In talking with other retailers, we felt we should have been up but we weren’t,” he explains. Calvin recalls one night when this employee was left in the store by himself. “The next day I asked him how things went and he said it was real slow. I looked at our POS and discovered the last hour there was a deficit—there were more returns than sales,” he says. What was even more unusual was the fact that someone had returned a $250 roll of Romex wire. “We don’t sell a lot of that, so I looked at our sales history and found multiple returns of that item. In fact, there were more returns than sales,” Calvin points out Calvin went to the local police and prosecutor and they started investigating. “They didn’t want us to confront this
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employee yet, but they installed microscopic cameras by the checkout. It took a while to get proof, but we got clear video of him stealing from us,” he says. This employee started off taking small amounts here and there, and then it started adding up to hundreds of dollars each day. That level of deception can be a death sentence to a small business. Faced with the video evidence, the employee still denied he had been stealing. Although he pled not guilty with his first lawyer, he later switched lawyers and eventually pled guilty. He was ordered to make restitution over time.
“The whole situation was upsetting, but what can you do? It was mostly by chance that I caught it. You have to be aware of what’s going on in your business and pay attention to your POS software,” Calvin advises. When Calvin comes across articles about embezzlement it’s an unsettling reminder of what he endured. “The unfortunate thing is that this employee was good with customers and always showed up for work. I guess he was pretty eager to show up and steal from us,” he says. When it comes to deterring customer theft, more hardware retailers are turning to social media to identify and
LOSS PREVENTION The average dollar loss per shoplifting incident was $546.67 in 2018, on par with the previous year. Nearly 22 percent of shoplifting incidents were above $500. The average dollar loss per dishonest employee was $1,264 in 2018, with 22 percent of incidents rising above $2,000. Over half (53.7 percent) of NRSS IS THEFT ON THE RISE? The average shrink rate of 1.38 per- respondents reported employee-related cent has remained steady the past few theft was less than $1,000, which is the years, according to the National Retail national average felony threshold. Loss prevention specialists point out Federation’s 2019 National Retail Security Survey (NRSS). In 2018, 10.9 that the difficult hiring market makes it tougher to screen out potential internal percent of retailers reported a shrink thieves. Roughly 55 percent of retailers rate above 3 percent. say they are implementing POS anaNot surprisingly, the rapid growth lytics to combat theft, although these in online sales has led to a major survey numbers skew toward larger, upswing in online sales fraud. chain retailers. Roughly half of the surveyed retailers said they are paying much more or somewhat more of a priority to ADVICE FROM AN EXPERT return fraud. Nathan Looman, president of The greatest increase in fraud still Watcher Total Protection, says a sound comes from in-store only sales—42.9 loss prevention strategy does not have percent—but multichannel sales such to be costly. as buy online and pick up in store Public display monitors reduce account for 22.2 percent of fraud, theft by up to 80 percent, according to according to the NRSS. “We got burned to the tune of $1,500 with fraudulent phone credit card transaction,” said Tom McKeithen of McKeithen’s True Value in Statesboro, Ga., in a posting on Hardlines Digest. “We no longer take cards over the phone unless it is one of our regulars, but with most of them we have the card on file anyway.” shame the thieves. They are placing video from their surveillance systems on the store Facebook page and asking for help to identify the culprits. To see an example from Family Hardware in Cape Coral, Fla., click here.
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Looman. “They are primarily used at the entrance door but are now being deployed in high-theft areas. It makes people aware they are being watched. Thieves will case areas. Putting one in is a good strategy on a limited budget,” he said. EAS (electronic article surveillance) can be a final line of defense for theft. “It’s good if you have clothing and workwear. You have to train staff to call people back in. It’s a proven technology, and tags are inexpensive and effective,” Looman said. Looman notes that power tools are the third most popular item to shoplift, so he recommends tethering power tools to the display shelf to protect the battery and tool. Light motion alarms can prevent concealment, while antisweep hooks can be used to protect high-theft areas. He said retailers should be aware of cash handling red flags: resistance to new procedures, often repeating counts, sale control, expressed money anxiety, tracking items (pennies, paper clips on register), excessive merchandise returns, staying late or being left alone. Looman suggests the following cash control recommendations: define protocols and procedures, assign drawers to employee, verify tills before and after every shift, cross train or rotate responsibilities, daily drawer audits during shifts, reduce cash expenses, limit counting time, take deposits to bank at www.TheHardwareConnection.com
different times during daylight hours, and paper audit trail with signatures. Counterfeit money is everywhere, according to Looman. “You can buy a $17,000 stack of bills for $75 that looks real. It’s legal to sell for film purposes, but people then try to use. A counterfeit detection scanner will tell you pass or fail and it scans the bill in less than one second,” he said, adding that retailers should establish cash procedures and mandate verification of all $20, $50 and $100 bills before accepting at POS. Rick Schwartz of Schwartz Ace Hardware in Fall River, Mass., uses an automatic counterfeit detector for all bills $50 and over, and has cashiers put a mark on the bill to confirm it’s been checked. “If the counterfeit reader does not accept the bill, we do not accept the sale. We do ask for other tender, but I just lost one sale even though the customer claimed the bank gave him the $100 bill. Our bank also uses a reader on all paper money and they are strict,” Schwartz says. n
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DEALER PROFILE
Opening a New Store That
STANDS OUT By Chris Jensen
Kathryn Tatterson and Sterling Hudgins made sure their new Do it Best store’s design paid tribute to the local history of fishing, crabbing and oyster harvesting, with the checkout counter shaped like a boat stern.
W
hen Sterling Hudgins and his wife Kathryn Tatterson were planning the design for their third M&M Building Supply store in Mathews, Va., they knew they wanted to pay tribute to the local community. What resulted was a beautiful new store that weaves the culture and character of the
region’s roots in commercial fishing, crabbing and oyster harvesting throughout the store.
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“We are both natives of the community and wanted it to be about where we’re from. Our town is a peninsula on the Chesapeake Bay that is almost an island with only 87 square miles of land and 214 miles of shoreline. It’s got colonial history,” explains Kathryn. “There’s a history of farming, fishing and boat building in this area. All these industries are not what they used to be, so we wanted to pay tribute to that history.” Working with planners from Do it Best Corp., the new store is highlighted by a checkout counter that was built in the shape of a boat stern. Not just any boat stern, but a Chesapeake Bay deadrise workboat, which is the official state boat of Virginia. These wooden-hulled boats were a common sight in the first half of the 20th century working the Chesapeake for oysters, crabs and fish. They commissioned local boat artist Langley Deagle to paint “Miss Mathews” on the checkout stern, which seemed fitting. “It’s very similar to a workboat that Sterling has a model of at home. It was used for clamming,” says Kathryn. Adds Sterling, “We searched for a name. It’s traditional for a boat to be named ‘Miss’ and the store is in Mathews, so we named it Miss Mathews. Do it Best was all for this boat idea, and we had such great support from the design team headed by Matt Soper.” Scattered around the store are large historical photos such as one of the New Point Comfort Lighthouse, which was www.TheHardwareConnection.com
Top: The large fasteners department makes a statement. Bottom: Bob Taylor, Do it Best president emeritus (left), was on hand to join owners Kathryn Tatterson and Sterling Hudgins for the grand opening of M&M Building Supply’s third store. On the back wall is a historical painting of the New Point Comfort Lighthouse, the third-oldest surviving light on the bay.
THE HARDWARE Connection ■ November 2019 ■ 35
M&M Building Supply’s third store in Mathews, Va., opened in March 2019.
M&M Building Supply’s new checkout counter was built to look like the stern of a deadrise workboat, the type of boat that used to be prevalent in their seafaring community of Mathews, Va.
Coffee Club, who are all retired watermen or boat captains.” Another picture shows Sterling’s father, grandfather and great-grandfather commercial fishing together. “Our first store in Port Haywood has photographs that my father has collected over the years of fishing with family and friends. Also on display is a collection of old carpenter tools,” Sterling says. “That store has old-fashioned appeal.”
EARLY BUSINESS ROOTS
Adopting The Color Bar paint department has led to strong sales in paint.
finished in 1804 and is the third-oldest surviving light on the bay. They have had a lot of positive comments from customers who appreciate the nod to local history. “One woman came in and started to cry, because her grandfather was in a picture on the wall from the early 1980s while mending fishing nets,” says Kathryn. “One man from that photo still comes into the store. He’s part of the Port Haywood
Sterling and his father Grady were builders who opened a lumberyard in 1997 in a former gas station in Port Haywood. He named it M&M Building Supply after his two daughters: Madeline and Morgan. Madeline is the manager of the Port Haywood store, while Morgan is the bookkeeper and office manager for all three locations and oversees advertising and social media. M&M’s original location happened to be across the street from a wholesale greenhouse operated by Kathryn’s family, Tatterson Greenhouses. “I finished college early and my parents needed help desperately, so I revamped all the office functions,” Kathryn explains. “I had my niche in the garden center and
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they focused on the wholesale side. I increased the garden center business by 400 to 500 percent in five years, then in 2003 I took over the business from my parents.” Sterling and Kathryn married in 2004 and have a son, Ray, who is currently in sixth grade and works occasionally after school as a part-time sales associate in the business. They always talked about doing something together, so in late 2010 they bought their first store together in Hartfield. “It was already a Do it Best store, but we liquidated all the hardware inventory and started over,” Sterling notes. Adds Kathryn, “We didn’t intend to stay with Do it Best initially, but we really liked doing business with them.”
The 12,000-square-foot garden center is a return to Kathryn Tatterson’s family roots with a wholesale greenhouse business. Their retail philosophy is to serve others the way they would want to be served.
LIFE AFTER GROCERY Six years ago, Sterling and Kathryn bought a building in Mathews that housed a grocery store. When the owner later decided to retire from the grocery business, Sterling and Kathryn thought it would be a good idea to take it over. “We tried the grocery business for two years, but we had bought the grocery business with our heart and not our mind,” Sterling says. Kathryn points out, “We’ve always gotten a lot of support from Do it Best, but you don’t get the same support from your grocery wholesaler when you’re a small independent.” www.TheHardwareConnection.com
Kathryn had closed the wholesale garden business after her mom died tragically in late 2016. She moved her garden center and some of the inventory to the grocery store, establishing lawn and garden as a small niche. “We tried a combo with grocery and hardware, but that wasn’t cutting it. The grocery business was not for us,” Kathryn admits. They shut down the grocery store in August 2018. They quickly rebounded from that business setback to convert the THE HARDWARE Connection ■ November 2019 ■ 37
11,000-square-foot grocery space into their third home improvement store. “We knew we had enough space. The Hartfield store is 7,000 square feet, and we’ve always wanted more product there. We wanted to give a good customer experience that was preferable to the big-box store,” says Kathryn. The nearest big box is 20 miles away. She adds, “Do it Best was willing to listen to us and support our ideas and run with it. They totally understood what we wanted to accomplish with the store design.” They now have more depth to core categories. The store features wider aisles so carts can get up and down. A large door was added to access the 12,000-square-foot garden center, and when customers come back inside they have a clear sightline to The Color Bar™. “Adopting The Color Bar paint department has really worked out great,” says Sterling. “Overall sales are great so far, and every day we see a new face we haven’t seen before.” Adds Kathryn, “With The Color Bar, interesting end caps make the difference. We have a large area of seasonal gifts, rugs and flower pots—so many women are coming in now.” The new store is capturing 80 percent of sales from homeowners and 20 percent from pros, which is flipped from what they experience with their other two stores. Future initiatives include adding more inventory—“You can’t sell it if you don’t have it,” Sterling points
The new store has a niche in fishing supplies.
Family members involved in the business include l to r: Morgan Hudgins, Sterling Hudgins, Grady Hudgins, Kathryn Tatterson, Ray Hudgins and Madeline Hudgins.
out—and then implementing in Hartfield some of the things they did in the new store like The Color Bar. Future expansion may be on the horizon, according to Kathryn, who says, “Sterling was ready for a fourth store before this new one was finished.” n
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Connection
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COMPETITIVE STRATEGIES
Expanding Delivery Options to Compete with Online Sellers
H
ardware retailers, like all other types of U.S. retailers, are finding that consumers—and some commercial customers—are buying more merchandise on the internet. So how are they going to compete? This ranks as the number one problem conventional retailers are facing today. It is easy for someone to order online and have the merchandise delivered to their home or business, thus avoiding the need to go to a retail store, walk the aisles to find the merchandise, go through the checkout process and then take the product home. Online sellers have been working hard to shorten the delivery times, with some, such as online giant Amazon, offering next-day delivery in most parts of America and same-day delivery in select cities. This shortened delivery time has made online buying even more attractive. Ace Hardware Corp., which is celebrating its 95th anniversary this year, is trying a variety of ways to help its 4,600 dealerowners compete. What Ace is currently stressing is for members to offer customers a series of delivery options that enable customers to buy online, from Ace itself or from its dealers, and have the merchandise delivered or picked up at the store without having to go through the find-it, pay-for-it process in person.
Many Ace dealers have been offering buy-online, pickup in store on their own. This process, known by the acronym BOPIS, is also offered by many other retailers, including giants like Walmart. This option has been promoted by Ace for more than a decade. In the past, Ace said that 80 percent of online orders utilized BOPIS.
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Blackhawk Hardware in Charlotte promotes free store pickup or delivery for online orders.
Ace management has been working to broaden the delivery options and is now using its website to announce them to the world. On Acehardware. com, it now offers three options: Free store pickup, Delivery from Store or Ship to Home. It calls Delivery from Store BODFS. This strategy was announced in the summer and by late September 2019, about 60 percent of its stores were participating. These delivery options, Ace believes, are helping its dealers be more competitive with Amazon and all the other online sellers. Dealers participating in these programs are enjoying online sales 62 percent greater than nonparticipating stores, Ace reports. Ace’s overall web sales were up 59 percent through late September 2019. Delivery from Store is available only at participating Ace stores. Customers can find the products they need online and have them delivered by a helpful Ace associate as early as the same day if the customer is trying to complete a project quickly, wants to get larger-sized items to home or job site or if the customer just cannot make it to the store for the BOPIS offer. Ace’s website outlines all the details of the program, including the few limitations, such as delivery distances, which vary by store, but must be within the local store’s trading area. Schedules are arranged, and in some cases, unattended delivery is possible. During the online checkout process, a delivery date can be established. www.TheHardwareConnection.com
University Ace in Oviedo, Fla., has a designated spot for in-store pickup of online orders.
Ship-to-Home is completely different. Customers shop their local store on acehardware.com, select the item or items and then will learn if the item can be shipped to their home. Next day or two-day shipping is available for customer selection. Standard ground shipping arrives in three to eight business days. There are shipping costs for this service and those charges are shown before final checkout. Charges vary based on weight of the total order. Multiple-item orders get a discount. As a further incentive, Ace Reward customers whose purchase is greater than $50 receive free next-day or two-day delivery. What makes these programs possible is the fact that when anyone goes to Ace’s website, they have access to local
THE HARDWARE Connection ■ November 2019 ■ 41
inventory from all Ace stores and Ace distribution center inventory. If a customer orders from the Ace website and a local store does not stock the item, Ace can supply it from its various distribution centers. Ace President John Venhuizen says Ace has $2.2 billion of inventory within 15 minutes of 75 percent of U. S. homes and businesses. An additional $1 billion of inventory is available for BOPIS within two to seven days. As one might expect with a base of more than 4,000 U.S. stores, many Ace retailers are supporting the new delivery programs and reporting encouraging results. Proctor Ace Hardware, with three stores in the greater Jacksonville, Fla., market, reports that each of its stores has been getting several delivery orders a week, mostly for delivery only. Very few are for assembly of products as well. Much more successful is the store’s experience with BOPIS, with Joe Proctor, coowner, reporting that each of their stores are getting between 20 and 30 online orders a month being picked up in each store. Proctor says he believes Ace’s efforts in offering assembly and/or delivery to customers is one way to establish better relationships between retailers and their customers. Randy Grace, an Ace dealer with two stores in Michigan, believes Ace is making the right moves to make shopping convenient for customers by offering multiple ways to buy online, in addition to buying in the stores themselves. As a smaller retailer,
Ace is offering expanded delivery options for online orders such as ship to home or delivery from store.
however, he thinks making deliveries might entail some problems such as the need to purchase a delivery vehicle. However, he is willing to embrace the concept. Most retailers realize that when customers buy online and do pickup at a store, it gives them an opportunity to establish a relationship with that customer. Many times, the buyer is someone who has not been a regular customer, so the retailer or an employee can greet the person, ask if they need any help with the product or project, and can encourage them to take advantage of the store’s broad inventory and employee knowledge. Richard Baalman Jr. of Rick’s Ace Hardware & Garden Center, with five stores in Illinois and Missouri, says they were a pilot store for Ace’s new delivery program and they do three to five deliveries a week, while also averaging about 20 in-store pickups per store over the past six months. “I believe we are in the infancy for how the consumer views service. We will continue to see folks demand faster and better buying options including same-day delivery. Retailers like myself will need to continue to redefine our model in order to meet these demands, if not we will die,” Baalman says. n
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10 YEARS OF DIGBY’S
Digby’s Hardware Cartoon Marks
10th Anniversary T
he Hardware Connection is celebrating its 10th anniversary this year, and one thing that has helped the industry’s first alldigital magazine stand out is the continued presence of Digby’s Hardware cartoon, created and drawn by Scott Jensen. The amusing antics of Digby’s Hardware have been portrayed in the pages of The Hardware Connection since the very first issue came out in November 2009. The first four cartoons were called “The Hardware Life” and then the strip’s name was changed to “Digby’s Hardware,” which is the fictional name of the hardware store depicted in the four-panel strip. Scott is the older brother of Chris Jensen, who is editor, co-founder and principal of The Hardware Connection. Scott has been cartooning for more www.TheHardwareConnection.com
Scott Jensen has been drawing Digby’s Hardware cartoon since the first issue of The Hardware Connection. He is shown here at Railroad Avenue Supply in Stamford, N.Y., where he shops frequently.
THE HARDWARE Connection ■ November 2019 ■ 43
Each strip is drawn first in pencil, where all the details are refined.
than 40 years, getting his start drawing editorial cartoons for the local newspaper at age 14. He once drew a weekly comic strip for Grit newspaper called “Barner’s Hollow.” For 33 years, Scott has drawn a line of humorous greeting cards for Oatmeal Studios that are sold by some hardware retailers around the country. He is a member of the National Cartoonists Society, serving as a regional chapter chairman. Scott is an associate professor who teaches visual communications at Cazenovia College in Cazenovia, N.Y., and lives in Hobart, N.Y., with his wife Eleanor and sons Kevin and David on a farm that has been in her
family for five generations. “We raise chickens. Chickens are really very funny,” Scott says. He notes that he passes five independent hardware and building
The counter is covered with funny little notices pulled from strips over the years.
This is a favorite strip from February 2019.
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Shown here is the first sketch of the Digby’s characters in pencil and how it looks in the end after being further developed and colored digitally.
supply retailers on his daily commute, which is two hours each way. “I visit a hardware or building supply store weekly, even if I don’t need anything,” he says. In addition to Hobart Hardware Plus in town, he frequently stops in Railroad Avenue Supply, an Ace store in nearby Stamford, N.Y., that was featured on the February 2019 cover of the magazine.
UNDERSTANDING THE WORLD OF DIGBY’S Hardware retailing can be a funny business, and no one knows it better than the gang at Digby’s Hardware. Owner/Manager Ed Digby is ostensibly in charge, though sometimes he finds himself wondering exactly what he’s in charge of. Ed’s son, Alan, has worked his way up the career ladder from gofer to assistant manager (that’s pretty much the whole ladder). Working for www.TheHardwareConnection.com
dad can be pretty darn amusing, and their back-and-forth interactions will sound familiar to many retailers. Penny is the bookkeeper, which means she also works the floor, the storeroom and anywhere else she’s needed. Her efficiency only makes the part-time kids who help on weekends look that much more hapless. For Digby’s, Scott draws upon his past experience working for Agway Inc., as well as his wife’s experience working as a store manager, management trainer and product manager for Agway. “I’m sure I’m also influenced by my customer experiences at the independent hardware stores in all the communities I’ve lived in. I am a big fan of my local hardware store,” he says. Scott adds, “Many of the themes are universal to any retail business, but I seem particularly drawn to
THE HARDWARE Connection ■ November 2019 ■ 45
10 YEARS OF DIGBY’S
This is the first Digby’s cartoon (originally named “The Hardware Life”) that appeared in the Winter 2009 issue of The Hardware Connection.
Digby’s Hardware has its own gags involving sales reps, consultants, Facebook page. Click here to follow changing practices and technologies, the page. n and customer expectations. The cartoon ideas are a family collaboration. “I sometimes brainstorm with my wife, who sees things from a store manager’s viewpoint, and my sons, who are really good at letting me know when something’s just not funny,” Scott says. Each Digby’s strip starts with a gag idea, then the strip is drawn first in pencil—that’s where every detail is worked out and refined. The detailed pencil is then scanned into the computer, then printed out in non-photo blue on special paper for inking. The inked, backline art is then rescanned into the computer, cleaned up and colored digitally. Work from Scott’s Digby’s Hardware strip and his Oatmeal Studios greeting card line were on display earlier this year at a gallery exhibition in Spain at Le Centre d’Art La Rectoria in Saint Pere De Vilamajor Barcelona. This is another favorite strip from Fall 2011. 46 ■ THE HARDWARE Connection ■ November 2019
www.TheHardwareConnection.com
CATEGORY REPORT
ELECTRICAL TRENDS Sales of Light Fixtures (Independent Hardware Channel) 12 Months % Change vs. Year Ago Light Fixtures: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -8 .0% Light Fixtures: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-4 .3% Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Light Fixtures Total of 3,040 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 .7% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 .2% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 .5% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 .1% Source: Vista Information Services, div. of Epicor Software Corp.
Seasonality of Sales of Light Fixtures (Index=100) 220 176 132 88 44 0
220 176 13279
94
92
124 135 135 115
89
92
86
83
76
88 July 442018
Aug. Sept. Oct. 2018 2018 2018
Nov. Dec. Jan. Feb. March April May June 2018 2018 2019 2019 2019 2019 2019 2019
Source: Vista 0 Information Services, div. of Epicor Software Corp.
Light Fixtures Share of Sales by Type (Latest 12 Months) Worklight Security Motion Light Shoplight 0 5 Wraparounds Recessed Decorative LED Undercabinet Light Dusk-to-Dawn Strip Fixture Photo Cell Floodlight All Others
10
0
13 .4% 20 12 .3%
15
6 .7% 6 .6% 6 .5% 6 .3% 6 .0% 5 .4% 5 .0% 4 .6%
5
www.TheHardwareConnection.com
17 .9%
9 .3%
10
15
20
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 ■ November 2019 ■ 47
CATEGORY REPORT CATEGORY REPORT
Agricola Do it Best Hardware & Lumber in Lucedale, Miss., offers lots of options for light fixtures.
Hensel’s Ace in Arcata, Calif., uses an end cap to promote light bulbs to rewards club members.
Southaven Supply in Southaven, Miss., displays specialty light fixtures in its kitchen and bath showroom.
Clarkston Ace in Clarkston, Mich., makes sure it stays in stock with key items.
University Ace in Oviedo, Fla., gives prominent placement to linear LED lights.
48 ■ THE HARDWARE Connection ■ November 2019
Parkrose Hardware in Portland, Ore., features a dominant assortment of light bulbs.
www.TheHardwareConnection.com
ELECTRICAL PRODUCTS
LED RETROFIT KIT • LED Retrofit Kits are designed for a variety of uses and applications and feature longer life cycle, low maintenance costs, simple installation, affordability, versatility and high-performance energy efficiency. • Energy-efficient, high-quality design means that the end user will enjoy energy savings without any drop in performance . You will be able to sell superior illumination and cost-cutting operation with one product able to replace many existing fixtures. • Heat is the most significant enemy of efficiency and a longer life cycle. The hotter any lighting system operates at, the shorter lifespan it will have . This is why Optilumen spends more time on thermal management than any other competitor . • Other manufacturers will often accept operating temperatures of 70-100 Celsius, but Optilumen does not settle for such high temps. Its RKT linear fluorescent lighting fixture retrofit kits have a standard average operating temperature of 38-42° Celsius . Optilumen 844-438-5444 www.optilumen.com www.TheHardwareConnection.com
OPTIMUM ALKALINE BATTERIES
• Duracell has introduced 1 .5-Volt Optimum Alkaline AA and AAA batteries as part of its lineup of batteries . The all-new Duracell Optimum alkaline battery has a new, proprietary cathode system that can deliver extra life in some devices or extra power in other devices, versus other AA and AAA batteries . • Duracell Optimum Batteries are packaged in a new slider pack with a resealable storage tray that provides a more organized way to store your batteries . • Available in AA and AAA battery sizes in: 4 pack, 6 pack, 8 pack and 12 pack . • Best uses are for personal care devices, toys and gaming console controllers . Duracell 800-551-2355 www.duracell.com
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IN THE NEWS NEW STORES:
• Aubuchon Hardware is opening a new store in Monroe, Conn. • The Graf family opened Canfield Ace Hardware in Canfield, Ohio. • Steve and Monica Sorenson bought Simpson’s True Value in Madelia, Minn., and renamed it Sorenson True Value. • Gary and Michelle Meny opened their third Meny’s True Value to replace the shuttered Muller True Value in Ferdinand, Ind. • Jamie and Toma Leveto opened Handyman Supply’s fourth store in Struthers, Ohio. • John and Kate Vinelli have opened Ace Hardware & Lumber of Bradford (Pa.). • Busy Beaver relocated to a new location in Canton, Ohio, that formerly housed Sears Hardware and is rebranding that store as True Value Hardware. • Timberline Enterprises has acquired Braintree Lumber Co. in Braintree, Mass. • Kodiak Building Partners acquired Jenkins Lumber & Hardware in Alpine, Wyo. • The Heuser family is opened their second Heuser Ace Hardware in Hardeeville, S.C. • Westlake Ace Hardware has opened Ace Hardware of Chico (Calif.) to replace a former Orchard Supply Hardware store. • Russell Building Supply has opened a new location in Auburn, Ala. 50 ■ THE HARDWARE Connection ■ November 2019
• US LBM Holdings has acquired Forge Lumber with locations in Cincinnati and Erlanger, Ky.
KUDOS TO:
• Century Club retailer Anders Hardware, with stores in Northport and Tuscaloosa, Ala., was honored with the Alabama Centennial Retailer Award from the Alabama Retail Association. Anders Hardware began as J.H. Anders Mercantile Co. in Northport in 1909 and is now operated by fourthgeneration owner Rich Anders. • Kenneth and Donna Malone are celebrating the 80th anniversary of Beaty Hardware in Cleveland, Tenn. • Will Cook Ace Hardware, operated by three generations of the Muersch family in Homer Glen, Ill., is celebrating its 40th anniversary. • Kortendick Ace Hardware was named Best Neighborhood Hardware Store for the 11th straight year in Best of Racine voting. • Alper’s True Value Hardware, a Century Club retailer in Port Washington, N.Y., was recognized for its contributions to the community and the state as the recipient of the 2019 state Senate Empire Award. • McCoy True Value in Indianola, Iowa, and Taylorsville Hardware in Taylorsville, Ky., were named quarterfinalists in the Independent www.TheHardwareConnection.com
We Stand “Independent Small Business of the Year Award.” The Indie Awards are presented by STIHL Inc., with supporting sponsors Do it Best Corp., PPG Paints and Nationwide Marketing Group. To vote, go to www.IndieBizAward.com. • Diana Newton and David Sturdivant were elected to the Do it Best Corp. board of directors. Newton is vice president of Bay Hardware in Seal Beach, Calif., and Lunada Bay Hardware in Palos Verdes Estates, Calif., while Sturdivant serves as COO/CFO of Russell Lands, which operates Russell Do it Center, with nine home centers in central Alabama.
Diana Newton
VP of distribution and supply chain innovation at Ace Hardware Corp.
WHOLESALERS IN THE NEWS:
• True Value Company landed the top spot in Newsweek’s 2020 list of America’s Best Customer Service Brands in the ‘Home Improvement Stores’ category. • At the House-Hasson Hardware Fall Dealer Market in Sevierville, Tenn., President and CEO Don Hasson reported record sales for the company, up 20% through the first 3 quarters of 2019. Hasson also noted the company’s 100,000-squarefoot expansion of its Knoxville warehouse is progressing nicely.
David Sturdivant
PEOPLE ON THE MOVE:
• Doug Audette has been named the new president and CEO of United Hardware Distributing Company, replacing the retiring Steve Draeger. • Do it Best Corp. has promoted Shane Burnsworth to power tools merchandise manager and Lyndsey Steffen to store design planner. • Kirk Armstrong has been hired as www.TheHardwareConnection.com
Don Hasson
OTHER NEWS:
• Tecum Capital Partners has provided equity to back JPB Partners’ acquisition of The Helpful Hardware Company, a chain of 8 Ace Hardware stores headquartered in Midway, Ga. CEO Darin Workman
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STIHL’s new headquarters.
•
• • • •
STIHL Brand Experience.
art installation, crafted out of more retains a minority stake and will remain with the company. than 30 STIHL chain saws dating back to 1936, representing how chain saw ECi Software Solutions innovation is part of the STIHL legacy. announced that CEO Ron Books • Mayhew Tools has acquired was named the Fort Worth BestWay Tools. Business Press’ 2019 Top Private Company CEO, while President and COO Trevor Gruenewald IN MEMORY: was honored with the 2019 Forth • Michael Simpson, who worked for Worth Business Press C-Suite the family hardware business in South Award and a Gold Stevie® for Portland, Maine, died September 6 at Lifetime Achievement in the 2019 the age of 41 after a long battle with International Business Awards. brain cancer. He began working at ECI was also named one of the Achievers 50 Most Engaged Shoppers True Value Hardware ™ Workplaces in North America for in 2005, working alongside his father the fourth year in a row. Thomas and sister Jessica. He is also Hultafors Group of Sweden has survived by his wife Laurie Shannon, acquired Custom LeatherCraft Mfg. daughter Rosie and brother Alejandro. Signify has entered into an agreement • Terry Toney, president of Whit to acquire Cooper Lighting Solutions Davis Lumber Plus, with four from Eaton for $1.4 billion. stores in central Arkansas, passed Old Masters has launched a new away October 25 at the age of 50. He website at www.myoldmasters.com. was on the board for First Arkansas STIHL Inc. celebrated the opening of a new 80,000-square-foot Bank and Trust, Jacksonville Boys administration building and campus and Girls Club and Jacksonville improvements in Virginia Beach, Va. Youth Baseball. He is survived by his It features a state-of-the-art training wife Dena, children Tyler and Trent, center for authorized STIHL dealers, parents Howard and Carolyn, and outdoor demonstration area, STIHL brothers Howard and Edward. concept store and a chain saw “Helix”
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Do it Best President and CEO Dan Starr delivered his President’s Address to Shareholders.
vendors, while The Color Bar design and layout raises the bar on the paint store experience to go with a very With a theme of “It all happens competitive brush program, he said. here,” the Do it Best Fall Market, held “We’ve recently added Benjamin October 18-21 in Indianapolis, shined Moore as a drop-ship vendor, so the spotlight on new products, new our members can carry those top programs and best practices. paint lines in addition to the Best The Core Solutions exhibit showLook private-label line and premium cased best-in-class plumbing and paints through Pratt & Lambert and electrical products, while an updated Valspar,” Johnson said. market floor was highlighted by a During his President’s Address to New Item Gallery and Launch Zone Shareholders, President and CEO displaying the latest product innoDan Starr noted the co-op closed vations. Friday’s program was centhe fiscal year with sales of nearly tered on a Celebration of Excellence, $3.5 billion, warehouse sales up 2.6 shining the spotlight on noteworthy percent and a member rebate of members and top vendors. $114 million. He touted Do it Best’s Dent Johnson, vice president-merinvestment in a state-of-the-art chandising, said new initiatives are transportation management system helping Do it Best members become a and new cloud-based forecasting destination for paint. A strategic partand replenishment system. nership with Paint Sundries Solutions LBM pricing volatility created provides access to dozens of new the first big challenge, with prices
DO IT BEST’S STARR TOUTS POSITIVE RESULTS FOR 2019
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sliding more than 50 percent from the previous June’s high mark, Starr said. “Our team renegotiated contracts with mills and became more agile with inventory control, managing reloads with lower levels of inventory in order to reduce our risk,” he said. Tariffs were the next major hurdle to overcome. “I’m extremely proud of our team’s proactive approach to managing the strategy and communication as these tariffs were implemented. Our merchandising team successfully managed five times as many price changes as normal over a four-month period. That meant we needed to develop a new method for quickly detecting retail price movement of competitors, so we could be more agile with suggested retails,” Starr said. Starr compared how Do it Best stacks up against its wholesale competition, while noting the co-op had a record number of new member conversions in 2019. He pointed out that True Value is now a forprofit company, where all profits go back to the investment company that owns them. “We have good data on what our competitors charge for product. And I’m very confident that we have a total delivered cost of goods advantage,” Starr said. “For every dollar of gross profit, how much of that comes back to you as a shareholder versus how much is absorbed by expenses? The answer to that question tells you everything about performance.” He told members in attendance, “For True Value, when they last
paid a rebate, only 10 cents of every dollar of gross profit went back to their members. Ace comes out at 21 cents of every dollar back into their members’ pockets. But look at Do it Best. Fully 55 cents of every dollar of gross profit is distributed back to you.” Starr closed by paying tribute to Don Wolf, the co-op’s distinguished former president who recently passed away. Starr said everyone at Do it Best continues to be inspired by Don’s mission to find ways to improve the value of the co-op for all members. Early in his career, Starr remarked that Don gave him a card—4 keys to a happy and productive life. They are: • Treat others as you would like to be treated. • Be happy and have an optimistic attitude. • Think for yourself. Don’t be a follower. • Hoe to the end of the row. Finish the job. “His widow, Ginny, told me that Don was still handing out those cards at the assisted living center. For Don Wolf, the mission was never accomplished. And on behalf of his second family, I’d like to close by saying thank you, Don. Thank you for all that you gave to so many— you truly hoed to the end of the row,” Starr concluded.
FOR THE FULL STORY:
Century Club retailer R.W. Shattuck Hardware buys another Century Club retailer, Bradford’s Ace Hardware. Click here. n
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UPCOMING EVENTS NOVEMBER Distribution America/PRO Group 2020 Executive Planning Conference November 20-22, Renaissance Vinoy, St. Petersburg, Fla.
Emery Jensen Distribution Spring Show February 13-14, Hynes Convention Center, Boston Orgill Spring Market February 27-29, Orange County Convention Center, Orlando, Fla.
STAFDA November 10-12, Music City Convention Center, Nashville, Tenn.
True Value Spring Reunion February 14-16, Ernest N. Morial Convention Center, New Orleans
West Coast Lumber and Building Material Association Annual Convention November 13-14, Embassy Suites, Sacramento, Calif.
MARCH 2020 Ace Hardware Corp. Spring Convention March 12-14, McCormick Place, Chicago
JANUARY 2020 House-Hasson Hardware Winter Dealer Market January 30-February 1, Opryland Convention Center, Nashville, Tenn.
Blish-Mize Spring Market March 19-21, Overland Park Convention Center, Overland Park, Kan.
International Builders’ Show January 21-23, Las Vegas Convention Center, Las Vegas, Nev.
Hearth, Patio & Barbecue Expo March 12-14, Ernest N. Morial Convention Center, New Orleans
Mid-States Rendezvous January 31-February 2, Phoenix Convention Center, Phoenix
International Hardware Fair March 1-4, Koelnmesse, Cologne, Germany
United Hardware Spring Buying Market January 10-12, Minneapolis Convention Center, Minneapolis
International Home & Housewares Show March 14-17, McCormick Place, Chicago
FEBRUARY 2020
LMC Annual Meeting March 4-6, Music City Center, Nashville, Tenn.
Do it Best Corp. Spring Market February 7-10, Indiana Convention Center, Indianapolis
For a complete listing of calendar dates, click here. www.TheHardwareConnection.com
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RETAIL IDEAS
BRIDGING THE GAP BETWEEN HARDWARE AND PINTEREST When Corrine Courtney opened Nailed It Hardware in Washingtonville, N.Y., in November 2015, she envisioned a store that bridges the gap between hardware and Pinterest. Nailed it Hardware holds regular workshops on craft, decor, home projects such as bottle etching, window gardens and repurposed old windows painted and divided in half with cage and chalkboard. Workshop fees range from free to $75. “We use the tools and techniques of good design to create an inviting and informative experience,” says Courtney. “The goal has always been to be a resource. We have many types of clients with all different needs. We support the decisions and bring you the process to achieve it.” She adds, “Hardware store means so much more here. I like to say hardware to house’wear.’ We have an entire section of the store dedicated to workshops. This is where we do the project with you. It generally produces a craft to be used or shared in your home.” Courtney says some of their most popular workshops are pallet signs, copper candelabras, farm table trays, wine racks and screwy pumpkins. “Paint is transformative. We help you personalize your space personally, and our team dedicates itself to helping you figure that out.” n
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Nailed It Hardware holds regular workshops to build a connection with customers who are looking to be inspired through craft projects.
www.TheHardwareConnection.com
RIDING FORWARD WITH E-BIKES Doug Long, owner of Q.P. Ace Hardware in Lincoln, Neb., discovered a unique niche while vacationing in Europe last year. After getting a chance to try out an electric bicycle, he liked it so much he decided his customers back home might enjoy the experience as well. He started small, selling e-bikes in just one of his stores, before expanding to all four of his Ace stores. The next step was to open a standalone e-bike shop, Speedy Pete’s, to promote and grow the healthy lifestyle exhibited by an e-bike community. To read more, click here. n
Q.P. Ace Hardware in Lincoln, Neb., has started selling electric bicycles.
Hudson Hardware, a Do it Best store in Minneapolis, features a large selection of puzzles that draw traffic into the store. Owners Jim and Lisa Hudson also display popcorn and oldfashioned soda alongside the puzzles for add-on sales.
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Some hardware stores host Ladies Night events, but Mitchell Hardware in New Bern, N.C., hosted a Date Night event for guys and their special ladies to come shop together. Held in February shortly after Valentine’s Day, the event offered everything from wine and desserts to a photo booth and scavenger hunt.
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BEHIND THE
NUMBERS
75%
Percentage of independent retailers who ranked the danger posed by Amazon as significant or extremely significant, making it the top threat to their businesses, according to the 2019 Independent Business Survey from the Institute for Local SelfReliance (ILSR).
67%
Percentage of independent retailers who ranked their top challenge as big competitors who receive better pricing and terms from suppliers, according to the ILSR survey.
70%
Percentage of small businesses who said Amazon’s market power should be investigated by antitrust regulators, according to the ILSR survey.
with just 6% saying rents have been growing slower than sales, according to the ILSR survey.
41%
Percentage of independent retailers that sought a loan in the past two years who did not receive the funding they needed, according to the ILSR survey. This figure was higher for businesses that are new, minority-owned or women-owned.
59%
Percentage of Americans who say Amazon is bad for small businesses, compared to 22% who say Amazon is good for small businesses, according to the CNBC Small Business Survey.
52%
Percentage of independent retailers in cities who reported that commercial rents have been rising faster than sales, 58 ■ THE HARDWARE Connection ■ November 2019
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