U N D E R S TA N D I N G T H E 1 0 P R I N C I P L E S O F R E TA I L I N G
November 2021 Vol. 13, No. 7
THE INDUSTRY’S DIGITAL LEADER
How America’s Biggest &
Best Hardware Store Got Better
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CONTENTS November 2021 ■ Vol. 13, No. 7
22
38
PRODUCT SPOTLIGHT: LEARN MORE ABOUT THE SEASON’S HOTTEST PRODUCTS
MAIN FEATURE: HOW AMERICA’S BIGGEST AND BEST HARDWARE STORE GOT BETTER
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware Cartoon: Scott Jensen Amazing But True Hardware Stories Shop Talk: Hardware Products Review Main Feature: How America’s Biggest and Best Hardware Store Got Better Technology Update: John Henry Product Spotlight Breakthrough Retailing: Jim Inglis Orgill’s Tifton DC Turns 25 Category Report: Electrical & Lighting An Inside Look: Ribbon-Cutting Ceremonies In the News Upcoming Events Retail Ideas Behind the Numbers The Hardware Connection app is available for iPhone, iPad, Android and Amazon. Download here.
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4 ■ THE HARDWARE Connection ■ November 2021
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Connection
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As Do it Best continues to introduce many innovative new programs unique to the industry, our goal will always be the same — to help you grow and achieve your dreams. A complete store design program overhaul is just one of the many examples, combining modern style, bright open floor plans, and engaging displays to create a superior customer experience. Add a wide range of products and resources with the flexibility to run your business your way, and you see why Do it Best is the first, best, and only choice to move your business forward.
Embrace what Do it Best can do for you. Join the thousands of Do it Best members who feel like they are our only member.
Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestonline.com
WATCH AND LEARN
ADVERTISERS’ INDEX A.O. Smith/Reliance Water Heaters | www.RelianceWaterHeaters.com . . 20 Do it Best Corp. | www.doitbestonline.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . . . . . . . .9 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . . . 18 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . . . . 19 JH Specialty | www.jhspecialty.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3 Rescue/Sterling International Inc. | www.rescue.com . . . . . . . . . . . . . . . . . . . .7 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . . . 21 Taiwan Excellence Hardware Showcase/Taiwan Trade Center www.taiwanexcellence.org . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Connection
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91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
6 ■ THE HARDWARE Connection ■ November 2021
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624 Contributing Writers: Doug Donaldson, Gary Pittsford, John Fix III The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2021 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
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editor’s note
By Chris Jensen
Innovation is Always on Display at Hartville Hardware
Y
ou know you have developed a successful retail operation when tour buses literally drop large groups of people at your door, and these hardware tourists spend the entire day browsing around your business. That certainly happens regularly at Hartville Hardware in Hartville, Ohio, but that doesn’t mean the store is just a stop for idle curiosity. It’s hard to resist a stop next door for a delicious homestyle meal at Hartville Kitchen, where the bakery smell assaults your willpower as soon as you walk inside. America’s largest hardware store— independent or big box—features a 305,000-square-foot sales floor brimming with merchandise. The merchandising is creative and inviting, and the employees are knowledgeable and friendly. Who doesn’t want to shop at a store where everyone is happy? You can spend hours wandering around the main store, especially once you step inside the 1,850-square-foot Idea House, which has served as inspiration for many DIY projects. Hartville Hardware has developed dominant assortments in so many categories with a refined store-within-a-store approach that they don’t have to worry about what the big boxes are doing, but the big boxes sure need to worry about them. 8 ■ The hARDWARe Connection ■ November 2021
Hartville Hardware is still owned and operated by the same family after 50 years, which is another impressive feat. Adding branch stores has created greater opportunity for more family members to get involved. Brothers Howard and Wayne Miller were honored by The Hardware Connection with the Beacon Award for Best New Store in 2013 not just because they built the largest, most impressive hardware store we’ve ever seen, but also because they did it out of obligation to provide future generations of family members with a strong business that could withstand big-box competition. Read this month’s cover story starting on page 22 to find out how America’s biggest and best hardware store found new ways to get better over the past nine years. Speaking of award-winning performance, The Hardware Connection is proud to announce it received honorable mention recognition in the 2021 FOLIO Eddie and Ozzie Awards for Best Single Article (B2B/Retail) and Best Profile or Q&A (B2B). Both awards were for our April 2021 cover story on “The Next Big Thing in Home Improvement Retailing.” That gives us 14 awards for editorial excellence in the past eight years. Our issues will continue to cover your issues. n www.ThehardwareConnection.com
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trend watch
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By Craig Cope
Right to Repair Battle Has Lasting Consequences
here has been a fight going on between consumers and manufacturers dating back to 2003, but it has received little publicly until now. The fight began in the consumer electronics market but now impacts every consumer in the U.S. The impact is so great that President Biden signed an executive order on July 21, 2021, requesting the Federal Trade Commission take the issue more seriously. The issue is called “the right to repair” or R2R. Imagine for a minute you purchased a new car and now it’s time for the first oil change and checkup. The local independent mechanic has worked on all your cars for years, and you schedule your appointment for service. When you arrive, you learn the mechanic can no longer service your vehicle and you must have all your service performed by either the dealership or an authorized agent. Little did you know when you purchased your car you also signed a complex Extended Use License Agreement (EULA) banning unauthorized repairs and a host of other restrictions. Manufacturers enforce these by limiting access to key tools or software required for repairs. Sounds
crazy right? It has already happened in one industry. While R2R might have started with the consumer electronics industry it’s farmers who have brought this movement to the forefront. American farmers are suing John Deere for the right to repair their tractors. Modernday farming equipment is extremely complex and John Deere employs more software engineers than mechanical engineers. Everything in a tractor is monitored from the moment the cabin door opens and is transmitted to a server via cellular data. John Deere views their software as proprietary and blocks access to this critical component that is needed for common repairs. Companies like John Deere argue in court that they must restrict access to the software to comply with various laws (e.g. emissions, safety features). If they allow non-factory trained personnel access to the code, they could inadvertently impact something downstream in the code, making the tractor no longer compliant with current laws. The problem is further compounded when the hardware ($800,000 tractor) becomes too old for the new software updates, making it unsupported. It’s
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taIwan eXceLLence’S “hOt hand tOOLS” weBInar hIGhLIGhtS InnOVatIVe PrOdUctS FrOM taIwan
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he United States is the largest market for imported hand tools, valued at US$3.7 billion, (source: Global Trade). Taiwan is North America’s 4th largest hand tools trade partner and a major supplier of the world’s medium- and high-end hand tools. Taiwan Excellence – the symbol of innovative Taiwanese products – recently held a “Hot Hand Tools – Innovations from Taiwan for the US Hardware Market” webinar, offering buyers a first look at technologically advanced tools designed to improve performance and durability for a variety of industries, including construction, upholstery and auto repairs. The event featured opening remarks from Joe Derochowski, vice president and home improvement industry advisor for the market research firm NPD Group. Available on Taiwan Excellence’s YouTube channel, the webinar spotlights advancements from four trailblazing companies: APACH and AirBoss, pioneers in pneumatic tool design, Mitcorp, a leader in industrial videoscope inspection devices and Unitacker, an ingenious staple gun developer.
1. aIrBOSS aIr tOOLS
AirBoss unveiled two new pneumatic hand tools. Its Mini Air Impact Wrench, the world’s shortest at only 3.3 inches (84mm), has been adapted into a long handle version, with 40% higher torque compared to similar products. AirBoss also showcased a new 1-inch swing hammer which is 25% lighter than other tools.
adVertISeMent
2. aPach IndUStrIaL
APACH demonstrated Super Stubby. Super Stubby is like having multiple power tools in one! Flexible enough for a variety of industries from automotive repairs to packaging, crates and pallets. Its design allows the tool to be used with one-hand for forward, reverse, and 3 positions for each side.
3. MItcOrP
Mitcorp unveiled two new non-destructive inspection products: a portable highquality Pipe Inspection System with a self-leveling camera ensuring the camera always stays upright, and a X750 videoscope with ultra-high resolution and intuitive software to meet a wide range of complex industrial applications.
4. UnItacKer
Unitacker displayed a ground-breaking 3-in-1 staple gun. With the faceplate’s special design, the stapler can perform two extra functions – one as a paper stapler to fasten up to 50 sheets of A4 paper; the other, as a stapler for temporary construction fixes with easy to remove staples. These innovative companies are poised to help expand the US hand tools industry. For one-on-one briefings, contact: Mr. Jon Lewis, SKC Inc. (408) 761-4014 jon@skc-pr.com
The hARDWARe Connection ■ November 2021 ■ 11
one thing when your old desktop computer cannot support the latest update, but it’s another thing completely when dealing with a nearly million-dollar piece of equipment. Farmers are not alone in this fight to defend their “right to repair.” The Digital Right to Repair Coalition (repair.org) was founded in 2013 with the primary purpose of lobbying for repair-friendly legislation, standards and regulations. Repair.org believes the R2R will fall to the state legislatures to write laws defending the R2R. Click here to see a map showing states with laws protecting the R2R. The Repair Association’s mission is to “drive repair-friendly legislation, regulations and standards for all products and all industries.” It has broken its mission into two key areas of focus: guaranteeing property rights and equal access. Guaranteeing property rights revolves around the fact many manufacturers make it impossible—whether inadvertently or intentionally—for consumers or independent repair technicians to fix their products, leaving consumers with few other options than to buy new. Any product that can have embedded electronics will eventually have embedded electronics. The equal access focus revolves around information. The Repair Association believes in making service manuals publicly accessible in an electronic format; make semiconductor diagrams and data sheets publicly
accessible; allow owners and independent service providers access to machine code and firmware patches and fixes; and make all contracts clearly identify which elements of the machine are not included in the sale. Do not allow companies to create contract language (End User License Agreements) that modify or limit support options in the future. I was introduced to the R2R when I wanted to upgrade the RAM in my iMac computer. The process is straightforward and, in the past, required no special tools—just a Phillips head screwdriver. When I started searching for the correct RAM, I discovered my iMac was not user upgradeable and the RAM was soldered down. Apparently, when I purchased the computer there was a warning that RAM was not upgradeable and if you wanted additional RAM you had to purchase when ordering. I remember thinking I will save a few dollars and replace the RAM myself, because Apple’s price was significantly higher than the market price. Oddly enough, Steve Wozniak, one of the founders of Apple Computers, recently released a YouTube video discussing the merits and importance of R2R. In the video he discusses growing up in an “open electronics” world and how it played a vital role in creating Apple Computers. Personally, I hope we can return to an open-source and R2R environment so the next generation of entrepreneurs can go on to create projects once deemed impossible. n
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READ AMAZING BUT TRUE HARDWARE STORIES
C E N T U R Y C L U B R E TA I L E R S E L L S B U S I N E S S TO E M P LOY E E S
May/June 2021 Vol. 13, No. 4
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PREVIEW OF 2021 HARDWARE CONFERENCE IN MARCO ISLAND
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Sept/Oct 2021 Vol. 13, No. 6
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Visit www.TheHardwareConnection.com and learn why The Hardware Connection has the industry’s most retailer subscribers. The Hardware Connection is a digital-only publication distributed 8 times a year via e-mail to more than 60,000 independent hardware retailers, wholesalers and hardware industry executives world-wide.
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HARDWARE HUMOR
www.DigbysHardware.com | facebook: @DigbysHardware 14 ■ THE HARDWARE Connection ■ November 2021
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Our 60K+ Readers Aren’t the Only Ones Who Have Noticed Our Exceptional Editorial
14 Awards in the Past 8 Years
MAZIN READ A
ARDW TRUE H G BUT
ORIE ARE ST
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April 2021 3 Vol. 13, No.
l lEADER Ry’S DIGITA THE INDUST
INGT IGrToH The NexmteBIm p vemeN in Ho reTAIlING
AL SO IN SID E:
Delivery Service ipment Best Practices for door Power Equ on Grills and Out Category Reports
Award-Winning Editorial That Connects with Retailers! The Hardware Connection has won 14 awards for editorial excellence in the past eight years including • 2020 FOLIO Special Recognition Award for the following: Editor of the Year. • 2021 FOLIO Eddie Award for Best Profile. • 2020 Regional Bronze Award for Best Individual • 2021 FOLIO Eddie Award for Best Single Article. Profile from the American Society of Business • 2020 FOLIO Special Recognition Award for Publication Editors. Overall Editorial Excellence. • 2017 Eddies Digital Award from FOLIO for • 2020 FOLIO Eddie Award for Best Single Article. Best Standalone Digital Magazine in the • 2020 FOLIO Eddie Award for Best Series of Articles. B2B category.
Just One More Reason We are the Industry’s Digital Leader
HARDWARE HUMOR
Amazing but TRUE
W
henever a contractor calls and asks to speak with someone in the plumbing de partment, we know they’re new to the area, because I’m the plumbing, fastener, cl eaning, everything depart ment. Barbara Werkheise r Nazareth Hometown Hardware Nazareth, Pa.
E R A W D HAR
S E I R STO
A
n employee saw someone shoplifting. We were having a raffletype promotion at the time, so the employee goes up to the shoplifter, gives him a raffle ticket and explains the raffle. After the shoplifter filled out the raffle ticket with his name and number, the employee slips it in his pocket and we turn over the information to police. Austin Willingham Willingham and Sons Building Supply Newberry, S.C.
modeled ears ago, we re lete store and did a comp ing the reset. I was work ht and it was late shift one nig n a large whe nearing 8 p.m., g ard me waggin man comes tow ’s id to me, “There his finger. He sa in hell for harda special place ou WHO KEEP ware guys like y ING!” TH MOVING EVERY e Maurice Whit White Hardware . McCormick, S.C es
Y
ed on Hardlin * Originally post Digest
A
little while ago, we cut a piece of glass for a customer and he came back in the store and we had a conversation that went a little like this: Customer: “I needed 18x24, not 24x18 piece of glass. You cut this wrong.” Me, as I flip the piece of glass 90 degrees: “I think I can take care of it.” Customer: “I think I’m an idiot.” Me: “No sir, just confused.” Tom Bradley | Complete Home Center | Hernando, Miss.
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k l a T p Sho TS R C U D O R P E HARDWAR
By Craig Cope
EVIEW
PRODUCT #1: BEYOND PAINT Over the past few years, there has been an explosion of DIY home repair and makeover shows. Sometimes during a rainy weekend day, I get sucked into watching one or two of these shows. They all follow the same formula and during the “reveal” there is always something that is reused from the “before,” but cleaned up and painted to match the new decor. What they never show is the hours of prep time required to make the old item look new again. It’s not so easy to sand and strip cabinets or furniture to deliver a like-new finish. Beyond Paint offers a solution to all that time-consuming and often back-breaking prep work with its All-in-One paint. Beyond Paint is a no sanding, no priming all-in-one paint that is a bonder, primer and finisher. Once cured the paint is washable and only requires two coats. There is virtually no limit to what it www.TheHardwareConnection.com
THE HARDWARE Connection ■ November 2021 ■ 17
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can bond to including wood, metal, Formica, laminate, plastic, glass, linoleum, masonry, tile, concrete and even previously painted surfaces. Beyond Paint is applied using a 3/8” nap roller for larger surfaces and a paintbrush for those smaller areas. The paint is much thicker than normal paint and is self-leveling so it will not show brush marks. Another benefit of the paint is its durability—it covers three to four times more than the regular paint. It achieves extended coverage using nanotechnology, which increases the paint particles. Lastly, it’s eco-friendly and contains a low VOC so it’s safe around children or pets. Click here to view a quick company video. Since Beyond Paint can be applied to so many different surfaces and requires no real prep, we decided to recruit a few DIY homeowners with various home projects. When I supplied the paint I told each tester the only prep work required is to make sure the surface is clean, dry and free of grease. They all gave me a similar look of disbelief and one tester even commented, “yeah, I heard that before.” After their tests were completed each one raved about how easy the product was to apply, the overall coverage and how it shows no brush or roller marks. One tester is a mother who wanted an improved look for her son’s room, www.TheHardwareConnection.com
since all his furniture was secondhand IKEA-style items. However, she did not feel like spending the money on replacing every piece and decided to paint the bed and dresser. Her final comment to me sums it up nicely: “It looks better now than if I would have replaced everything with new furniture from IKEA.” Regardless of how large or small your store’s paint department is you definitely cleaning cloths. The company has a need to consider stocking Beyond Paint. simple goal: “No More Wimpy Wipes!” Crocodile Cloth is part of Nuvik, which is a UK company founded in 2016 to PRODUCT #2: develop, manufacture and distribCROCODILE CLOTH® ute unique, innovative cleaning and ® hygiene products. Crocodile Cloth is a relatively new Crocodile Cloths are oversized cleanentrant to the hardware channel with ing cloths measuring 15” x 10”, which is their industrial-strength disposable
HARDWARE COMPANY
January 7-8, 2022 Opryland Convention Center Nashville, TN We invite you to visit our Market and see what we have to offer: • Unmatched Super Savers • Lots of Cash Spiffs • Hot Deals at Bonus Buy Breakfasts • Unbeatable Prices • Easy Payment Terms and Dating • Industry Leading Vendor Participation • Exciting New Items
• Electronic Ordering • State-of-the-Art Marketing Program • Advertising & Merchandising Solutions • Educational Seminars • Travel Rewards • Room Reimbursement • Great Food & Entertainment
Register for our Dealer Market on etoolbox.net For more information about our Dealer Market, contact us today! 1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., Knoxville, TN 37914 • service@househasson.com
k l a T p o h S E PROD HARDWAR
UCTS REV
IEW
almost four times the size of traditional disposable wipes. The product is a nondrying, alcohol-free wipe that contains aloes so it’s gentle on the hands. Most wipes have the same texture on each side of the wipe. Crocodile Cloths are smooth on one side and textured on the other to help scrub and scour the surface. The other key feature that stands out is the overall strength of the wipe. In this company video, you can see someone trying to rip the cloth into two pieces—click here to view. We simulated this in the office and can attest that these wipes are extremely strong and as close to a
traditional towel as you will get in a disposable wipe. Crocodile Cloth Professional Series comes in three different versions: Original, Auto and Paint. They also have a Power Series and Consumer Series. We provided our testers with the Professional Series Original with an 80-wipe count per recyclable package. Our testers used the Crocodile Cloth in so many different applications ranging from cars, boats, barbecue grills, just to name a few. One tester reported cleaning up a spray lubricant from a hard surface and not only did it clean the surface it also removed the odor of
the lubricant. Another wanted to test the durability of the wipe and used it on his truck’s tailgate, which has an abrasive spray-on bed liner (similar to 50 grit sandpaper). He thought for sure it would shred it. Not only did it hold up it also cleaned up the tailgate. One tester’s comment stuck with me: “Normal wipes belong in the kitchen. Crocodile Cloths belong in the garage, shed, work truck or anywhere else where things get dirty.” Crocodile Cloth is a true no-brainer for any hardware store to stock. For more info go to: https://crocodilecloth.com/ products/. ■
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FEATURE
By Chris Jensen
How America’s Biggest &
Best Hardware Store Got Better
H
artville Hardware & Lumber’s mammoth 305,000-square foot
store in Hartville, Ohio, can literally be seen from a mile away, but the impressive parts are revealed one by one as you enter and navigate the aisles.
Above: Hartville Hardware’s 250 employees help differentiate America’s largest hardware store from the big boxes by delivering exceptional service to customers.
It doesn’t seem possible for a store this large to be shopper-friendly and bursting with creative merchandising, but it is. It doesn’t seem possible for such a huge store to be filled with cheerful and helpful employees in every department, but it is. The Hardware Connection first introduced Hartville Hardware’s groundbreaking store to readers in our July/August 2012 issue, a few months after it
22 ■ THE HARDWARE Connection ■ November 2021
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America’s largest hardware store, Hartville Hardware & Lumber, covers 305,000 square feet. Behind the store is Hartville Marketplace with indoor shops and 12 acres for outdoor sellers.
Click here to watch a video of Hartville Hardware
Hartville Hardware; his brother Gary Sommers, CEO of HRM Enterprises (see sidebar on page 34); and their cousin opened. Brothers Howard and Wayne Zach Coblentz, who is COO of HRM Miller—third-generation stewards of the family business—had felt the new, Enterprises. Howard and Wayne are larger store was necessary to keep the still involved but not active in the daybusiness strong for future generations to-day operations. Roughly 20 family members are either active in the busiof family members. ness or have an ownership stake. Mission accomplished. The torch Wouldn’t you like to know what has now been passed to the fourth is in the secret sauce at Hartville generation of the family, and they have discovered new ways to raise the Hardware? Read on to find out how America’s biggest and best hardware bar on performance. New ideas are store has spent the past nine years bound to come from the fifth-generation family members who have started getting even better. We break down the improvements into four areas: working there. merchandising, operations, technolThe family leadership team now ogy and employee training. includes Scott Sommers, president of
CLICK HERE TO SEE A GALLERY OF HARTVILLE HARDWARE PICTURES www.TheHardwareConnection.com
THE HARDWARE Connection ■ November 2021 ■ 23
feature Merchandising Big-box stores are not wowing anyone with their merchandising, so how does a store twice the size of a typical big box pull off that feat? Hartville Hardware is blessed with a talented merchandising team that is constantly looking for improvement. As a result, the Do it Best store looks dramatically different compared to nine years ago. “We take pride that customers are excited to come in here,” says Amanda Simms, store presentation manager. “I study everyone (other retailers). I want to see what they’re doing for products and colors. There’s a lot of online focus with other stores, but they’re dying inside the store.” She adds, “The focus for us is that every time a customer sees something in the store, we want to make sure they haven’t seen it anywhere else, even down to the little signs on the shelves.” As Scott Sommers points out, the focus when the store first opened was on customer service. “Now the focus is more on the customer experience, making how the store looks and feels as important as how the customer is interacted with. The store doesn’t feel stale as a result,” he says, adding that having someone (Amanda) in charge of visual merchandising is critically important. “We used to have vacuums at the front of the store,” says Simms. “We moved decor and the seasonal area up
Upper: A three-lane drive-thru lumberyard is also under roof. Middle: Hartville Hardware President Scott Sommers has a singular focus: just follow the mission statement Howard and Wayne Miller created, which has served the business well for decades—“To honor God by serving and providing for others.” Lower: Each year the holiday department takes on a different theme.
24 ■ The hARDWARe Connection ■ November 2021
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The 1,850-square-foot Idea House on the sales floor has been totally redone so it would continue to showcase the newest home-building, design, product and remodeling trends.
say we’re the best store in the state for grills by turning it into a year-round category with the Grill Zone. We moved to more of a store-within-a-store format.” “Hartville Hardware wants to own categories,” explains Katherine Merkle, marketing director. “Grill Zone is 3,000 square feet dedicated to grilling. We All the products showcased in the Idea House can be purchased at Hartville merchandise with products and visuals Hardware. and video screens.” Adds Matt Maranville, vice presidentbuilding materials, “We’re known as a front so the store looks more current destination for YETI, Milwaukee and and relevant.” Festool. We have the largest women’s Adds Sommers, “We carried grills before, but it was seasonal. Now we can Carhartt department in the country.” www.ThehardwareConnection.com
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feature “We continue to grow the YETI footprint,” says Merkle. “We added an engraver for YETI products and it’s busy all the time. We like dipping a toe to see if something takes off.” “We’re taking a vendor in a category and branding it with a dominant assortment,” adds Chris Price, hardware division manager. That strategy is evident with other featured brands such as Stihl, John Deere, Delta Faucet, Cambria, Mohawk, Traeger, Benjamin Moore and Schlage. Simms wanted the store to be like a gourmet specialty shop, so gourmet specialty foods were brought in. “It’s taken off and we keep increasing that footprint. That’s one of my favorite niche areas,” says Simms, who also designed the coffee wall to look like an Italian cafe. “I’m very proud of that,” she adds. The store is doing more with interior store signage and end caps, according to Sommers. “We had nothing in the main aisles before, and now our merchandising is driven by power aisles,” he says. “Our strategy now is lots of Creative attention is paid to end caps, SKUs leads to lots of sales. People with Store Presentation Manager Amanda want big, wide aisles, but it’s better to Simms using paper as a canvas background to make creative displays pop. sell more.” One fundamental change to the comcharge of buying before. Now, during pany has paid huge dividends the past two years. “We’ve become less general- the pandemic our buyers are working ized and more specialized as an organi- their tails off to find products and that zation,” says Sommers. “We separated effort has not impacted our sales.” Price makes an interesting confessales managers from the merchandission: 305,000 square feet may not be ing team. The sales department was in 26 ■ The hARDWARe Connection ■ November 2021
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do things that our competitors don’t,” says Price. For example, installed sales has turned into a major focus. “We’ve always done installed sales, but the push for retail customers has been huge,” says Maranville, who adds that they hired a guy from Lowe’s who had been in charge of installed sales for 21 stores. He adds, “We had gotten so big. We added the proper number of people so we could differentiate our store from the big boxes with service. It feels like it’s Hartville to the consumer even though it’s not employees doing the installations. It’s full-service do-it-for-me.” Upper: Switching to a checkout corral with The installed sales division had to a single line has sped up the checkout process for customers. shut down for three months during the pandemic, but has not slowed since, Lower: The 3,000-square-foot Grill Zone is according to Maranville. a year-round destination for Traeger, Weber and Big Green Egg grills and accessories. Retaining a personal touch has been one of the keys to their success, points big enough. “Howard (Miller) said we’d out Merkle. “We still send handwritten never outgrow this store, but we fill it up thank you cards to customers.” Adds Maranville, “We send two even with 305,000 square feet to work gift cards for a restaurant when we with,” he says. remodel a kitchen—that’s just a little thing we do.” OperatiOns “Our operational changes have At Hartville Hardware, leaders at all levels measure performance and adjust, made us more efficient,” says Price. never staying static. That prevents com- “Originally, we had four registers at each entrance. We realized we never placency from settling in. With a focus on continuous improve- wanted to leave a cashier station by itself. Now we have a checkout corral ment, Hartville Hardware does face unique challenges. “Customer expecta- with a single line that moves faster and tions are so high. They still expect us to speeds up checkout for customers.” www.ThehardwareConnection.com
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A year after the new, larger store opened, they added walkie talkies. “That has been a huge improvement,” says Sommers. “Every associate gets a walkie talkie with 12 channels and an earpiece. You can broadcast a question to five people so you know someone will chime in.” “Our departments got so big you could be five aisles down and not hear the phone ring,” adds Maranville. Now employees are using their radios to communicate across the campus. “If a customer needs something we don’t typically carry, they might have it at Hartville Tool,” points out Price. Off-site storage is now used for willcall orders. “We moved appliances
Stihl power equipment is one of the many featured brands.
off-site and Hartville Tool brings over orders if necessary,” says Sommers. Once a week the store scans out of stocks. “The game changer is the scorecard, a report that shows what we had in stock but was not on the shelf to be sold,” says Price. “It creates a gauge that sets goals for each department. We can’t always control our vendors, but we can control quantity available on shelf. That was low-hanging fruit.” Adds Sommers, “In merchandising, we made it our number one goal—product in stock available for sale on the shelf. Receiving and stocking are a big part of that.”
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Left: For YETI, there are gondolas filled with product on each side of an aisle. An engraver was added so customers can personalize their YETI, a service that has become very popular. Upper & Lower Right: The coffee wall was designed to look like an Italian cafe, making it a favorite daily stop for locals.
Thanks to Merkle’s efforts, store events have developed a more consistent look and feel, leading to increased foot traffic. “We have a historical calendar of events, which we had to pause during COVID. We took a single-day Carhartt fashion show and turned it into a fourweek event with a one-week sale,” Merkle notes. Hartville Hardware is famous for its semi-annual Tool Sale & Expo, which attracts customers from six states. Now they are taking the same approach with a grilling event—Grill Fest and BBQ Battle—that is growing in popularity. “We try unique things that fit in well with our core brands,” says Merkle. “We have the ability to take a large seasonal area and transform it into a Christmas shop. That’s a huge draw that fills a gap and keeps the store retail-focused.” www.ThehardwareConnection.com
technOlOgy Hartville Hardware has come a long way with its online presence, but there’s still room for improvement. “We know we’ve got to get better with online and e-commerce. We want to support bricks and mortar with online,” says Sommers. “Acquiring Lehman’s Hardware has given us better insights into that.” Adds Simms, “Where the website was to where it is now is a big change. Our customers are able to buy a lot more from us online.” For Maranville, seeing the IT team grow has been a big help. “There’s that many more people to assist when
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computers go down. Jade (Liechty) does a great job leading that team.” Sommers points to another investment that has paid off: buying an in-house printer. “We have a 60-inch printer that enables us to do most of our printing in-house now. It runs every day. We even print things for the Marketplace and the Kitchen,” he says. “Having the printer gives us the ability to be more flexible and the ability to integrate everything to send a consistent message to our customers,” Merkle points out. The store is experimenting with digital price tags in appliances, because prices change so often. That technology tool would be a big time-saver if eventually rolled out across the store.
Hartville Hardware is planning to do a tool reset next year to reallocate space in the massive department.
Installing grocery store scanners at the checkout counters has been a beneficial move, according to Sommers. “Any store would benefit from doing that. We’re also adding scanners to every work station—it makes it so easy to keep track of products with UPC codes,” he says. Technology plays out in other areas of the business, such as the move toward digital advertising. “We continue to diversify how we market the business and touch on most media platforms,” says Merkle. “We still do some print, radio and TV, but there’s a strong digital component
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specialists who are experts in their area, but they have to help customers wherever they are.” Adds Price, “Successful retailing revolves around the 4 P’s: people, product, place and process. We had people and product before, then added place (new location). Then we realized we had to grow our processes.” “As there’s more turnover in the industry, we realized we can’t keep relying on the old way of hiring and training,” says Sommers. “So, we hired a full-time trainer and purchased a learning management system to ensure everyone is trained the same way.” Adds Maranville, “Hiring an HR director was huge.” “We’ve leaned into that while our competitors have not. Lowe’s took their HR people out of the stores,” Price points out. “Why work at Hartville Hardware? Our reputation is still there through word of mouth from customers eMplOyee training and employees.” Hartville Hardware has about 250 Not using outsourced services for employees at its main store—380 if you human resources keeps them closer to count their three other stores. That is a their core values, according to Merkle. lot of people to hire, train and manage, “We document it, publicize it and but it is an area in which they excel. create a guidance statement,” says “We realized we needed to move to be more systems based from knowledge Sommers. “We have a public commitment to our purpose and core values. In and operations based,” says Sommers. recruitment, people self-select. It draws “We tried to build some flexibility in people and pushes others away who with our service levels,” says Price. don’t buy into it.” “The store used to be department He adds, “Howard and Wayne lived focused, now there are more area or those guiding documents every day. zone managers. We’ve got to be able We’re doing everything we can to keep to move people around. We still have
with programmatic display advertising and geofencing in certain areas plus audio streaming.” Programmatic display advertising uses intelligent software to automatically buy digital advertisements and target specific audiences. Hartville Hardware got away from newspaper advertising and replaced it with direct mail to customers who had been active over the last 18 months. “We send that to a list of 30,000 to 40,000 active customers,” Merkle notes. During Grill Fest, they identified other grill locations and served a geofence message to come to Hartville Hardware for Grill Fest. “Then once they came to the store, they were served a new message, so we were able to track our conversion rate. Geofencing has the ability to draw people here based on a category,” Merkle notes.
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their legacy going strong. It boils down Decor and seasonal displays were moved to the front, giving the store a fresh look to to leadership development.” customers every time they visit. A massive, ongoing commitment to leadership development might be the store’s biggest, most impactful improve- on character development and humility, which helped us focus our culture. ment since opening in 2012. As Price explains, “What prompted it Then LEAD (Leadership Education and Development) was more intentional,” was having some of our people attend says Price, who serves as a teacher with the Leadership Development Institute other team leaders. His background as a from Do it Best.” Adds Sommers, “It was so impactful, pastor helps facilitate the development of servant leaders who understand the we asked: why not do it here?” Christian principles behind the store’s They partnered with Bruce Hamsher mission statement. and ProVia, who taught them a lot, COO Zach Coblentz was also instruaccording to Price. Then, they moved mental in developing these two protheir leadership development efforts grams. GROW and LEAD offer Hartville in-house after they hired an HR director. Although COVID slowed things for a employees a tiered, dedicated approach little while, they have seen great results to understanding the value and appeal of a career in the home improvement from two distinct programs. industry, and provides them with “We have GROW, which involves the expertise and resources to begin mentoring employees for 10 weeks 32 ■ The hARDWARe Connection ■ November 2021
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building a path toward continuous improvement and development. They typically have 10-12 team members from all their businesses attend the leadership sessions, which end with a capstone project. The first year they built a playhouse at the Ronald McDonald house. The second year was the Heart2Heart employee assistance program self-funded by employees. The third year they had to postpone the capstone project due to COVID. “We would rather invest in people and lose them than not invest in them,” says Price. “GROW is something we do from the bottom up. We set aside an hour and discuss things for 10 weeks. LEAD used to be an entire year, but now it’s down to 12 weeks,” he adds. With one huge store and an everexpanding family of businesses, www.TheHardwareConnection.com
Carhartt is one of many departments that feature a dominant assortment designed to make the store a destination for the category.
Hartville Hardware’s management team knew people were the real key to future success. “We had to add more leaders and these programs developed more leaders for us,” says Sommers. More importantly, their leaders now come from a common platform. As Maranville points, the company hired nearly 100 employees the first year when they moved to the new store. “That was a huge change for us. We needed to ensure everyone understands the core values of the company.” Adds Price, “Matt and I are not in the same roles we were in. We’re nonfamily. This can’t just be operated by the family, because it’s too big a business. So, let’s put the right people in the right positions.”
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Hartville Hardware’s ever-expanding empire Next door to Hartville Hardware is Hartville Kitchen, a restaurant, bakery and gift shop also owned by the family business.
HRM Enterprises, the family corporate umbrella, includes five businesses: Hartville Hardware, Hartville Marketplace, Hartville Kitchen, Top Advantage Surfaces and Lehman’s. Hartville Hardware’s roots date back to 1972, when Howard Miller Sr. bought an existing hardware store and let his 19-year-old son, Howard Jr., run it as True Value Hardware. Hartville True Value became Hartville Hardware when they switched to Do it Best in 2002. Henry Bierce Co. in Tallmadge, Ohio, was purchased in April 2018 and converted into 10,000-square-foot Hartville Hardware 2. Centerra Hardware and Lumber Center in Middlefield, Ohio, was acquired in February 2020, followed by Hartville Contractors Supply in June 2020. Those entities were converted into 11,240-square-foot Hartville Hardware & Lumber. Adding more stores gives more family members a chance to branch out into leadership roles. Lehman’s, an iconic 32,000-squarefoot store in nearby Kidron with a large online catalog business, was acquired in
January 2021 and operates as a standalone business. Hartville Hardware also encompasses Hartville Tool, an online complement to the massive tool and hardware department in the main store. Hartville Marketplace, which dates back to 1939 as a cattle auction, features 12 acres of outdoor vendor space for up to 1,000 flea market vendors. It also includes three acres of indoor shopping featuring over 60 unique shops in apparel, home furnishings, antiques, fresh produce, meat, cheese and more. Top Advantage Surfaces, which was acquired in 2006, fabricates, installs and repairs countertops in Ohio and Pennsylvania. Hartville Kitchen is comprised of The Shops at Hartville Kitchen, which includes a Children’s Shop and Candy Shop in 20,000 square feet; Hartville Kitchen Foods (salad dressings sold in several states); and Hartville Kitchen Restaurant & Bakery, which serves homestyle meals to carry on the tradition Howard and Sarah Miller started with a small restaurant in 1966. n
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By John Henry III
technoloGy update
Expertise + Availability =
Instant Gratification
W
e all know that retail has changed. I personally think that one of the biggest drivers of this phenomenon started in the mid-1990s with an idea that had a competitive advantage that no one had witnessed prior. An idea that a platform could completely disrupt how a person gets product. A platform that would establish new norms on what consumers expected. A platform that was funded by Wall Street and took four years to even show a profit. Most entrepreneurs do not have this runway or luxury. People today call the platform a marketplace. Marketplace ecommerce introduced consumers to a broad product selection that was fulfilled by multiple providers. It brought the product to the consumer, as opposed to the consumer to the product. It created the perception of free shipping which helped consumers justify not leaving their home or office. In many cases, the marketplaces wanted customers www.TheHardwareConnection.com
over profit, so they would offer prices that defied business logic. Marketplace ecommerce is directly responsible for the demise of multiple brick and mortar brands that simply could not, or would not, change the way they positioned themselves with their consumers. It has cut into profits or worse, closed countless independently owned small businesses. I agree this article has started off depressing. Here is the climactic change in tone. Are you ready? I think that brick and mortar businesses have an extremely unique time to launch their counterattack. Consumers have wizened up the marketplace. They realize that pricing is no longer a deal, and they have realized that free shipping really isn’t free. Online vendors who once profited selling on marketplaces are being squeezed out or left with little to no profit when trying to meet the demands the marketplaces pass on. THe HARDWARe Connection ■ November 2021 ■ 35
technoloGy update Consumers have become impatient. I am not just talking about the way they buy products. I am talking about the way they live. I am talking about the way they consume content. I am talking about the way that social media and other technology-driven media have affected their perception of reality. Consumers need help, and they are not learning how past generations have learned. They are not planners; they are reactors to the environment that is immediately in front of them. They can be impulsive when they want something, and when they want it, they want it now. Consumers realize what buying on marketplaces is doing to their local economy. Consumers are showing a larger interest in shopping local. Consumers want to interact with people, and they want a better customer experience. Marketplace commerce had deeper pockets and moved faster than most could as they entered the space. Today, most independent retailers have access to technology partners who can allow them to leverage their distinct competitive advantages against the marketplace. Today is the time to utilize technology to create relationships with consumers who want to do business with them. While consumers want to shop local, they will not do it unless you are meeting their basic demands.
Consumers want to know what products are on your shelves. They want to buy the products on your shelves. They want to buy the products on your shelves in the next 15-30 minutes. They do not want to waste their time visiting your store to find out that the product they want is not there. If they can’t confirm it online, they likely will not call the store to find out. Statistically, it is believed that more than 75 percent of the consumers will check product availability online before visiting the store. Independent home improvement retailers come in a variety of sizes and shapes. Most are filled with a good mix of needs and wants for consumers. Each of these categories is ripe for the taking if retailers are presenting the information where shoppers want to consume it. I live in the second-largest city in Indiana, Fort Wayne. Based on the 2020 census, the population of Fort Wayne is 260,000+ people. Fort Wayne is the 86th largest populated city in the country. As you are reading this article the largest marketplace ecommerce operator is building two distribution centers that will employ thousands of people. They are making this kind of investment because they know that twoday delivery is simply not cutting it anymore. They are investing this money because they want to meet
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the needs of the instant gratification consumer. They are spending this kind of money in the 86th largest city in the U.S. Now is the time for independent retailers to yell from the rooftops that you have the products people want, the products people need and the customer service that is unmatched. Tell consumers you are willing to invest in technology so they do not have to wait two days for a product, they can have it now. The supply chain is tough right now, and if you retailers don’t have what your customers want, then show them how you can help them get it. Tell consumers you appreciate their
business and look forward to sponsoring the local baseball team. Create a buying relationship now, before someone else tries to get it tomorrow. n John Henry III started JH Specialty in 1998 as a full-service digital solutions company. Results driven, John prides himself on collectively helping his clients sell over $550 million through Ecommerce on the MOCE platform. Go to www.jhspecialty.com and contact him at john@jhspecialty.com.
“Available Now” still beats “Next Day” for your customers. MOCE empowers thousands of independent home improvement stores to meet their customers where they are and when they’re ready to buy.
Shop In-store Inventory Delivery
mocecom.com
Ship-to-Address Ship-to-Store
Ecommerce preferred partner
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retail management
understanding the 10 Principles of retailing
B
reakthrough Retailing: How a Bleeding Orange Culture Can Change Everything by longtime Home Depot executive Jim Inglis is the inside story of how The Home Depot grew from its first few stores in 1979 to become the largest home improvement retailer in the world. The book chronicles the founding, growth, stagnation and rebirth of this American success story. The first half of the book describes how the magic of a “Bleeding Orange” culture made such success possible and revolutionized the way building material products are sold. The second half of Inglis’ book delves into the 10 principles of high-performance retailing gleaned from Depot’s success story. What follows are excerpts from the book that help define the 10 principles.
A good merchant can walk into a store and smell success or failure. The key to long-run success is to make the running changes required to remain relevant, while keeping the company’s compass on true north, which is, always, delighting the customer.
PrinciPle 2: your brand is your most valuable asset—and it resides in the mind oF the customer.
The art of great merchandising requires great merchants. Merchandising talent consists partly of experience and partly innate proclivity. Good merchants make decisions based upon their intuition and feel for the market. They have intricate knowledge of the products and insight into the customers’ feelings and attitudes.
The retailer’s most valuable resource is its brand. The brand gives customers the assurance of future satisfaction based upon past experiences. Customers’ preference for a brand can also be a result of their perception that they and the company share values. Brand preference can resemble the devotion a fan has for a favorite sports team. Retailers must make sure the customer knows they exist, but this alone will not create loyalty. The only way to protect and grow your brand is to provide the customers with a reason to choose your store. This involves providing customers with a promise that you are relevant to their lives. Then all policies and interactions with customers must reinforce that promise.
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PrinciPle 1: merchandising is an art embracing change.
retail management
sheet, which has the inventory number— a significant element in the investment PrinciPle 3: the right Price is solely required to operate the business. determined by customer PercePtion. The better way to evaluate success is Retailers often search for the magic for- using the GMROI index number, which mula to maximize sales and profits. They compares the gross margin dollars from tend to use established formulas that may the profit and the loss statement with the inventory numbers found on the balance have worked in the past but are not relevant to the customer today. But there is a sheet. This becomes a great tool to combetter way to identify that “sweet spot” to pare the productivity of departments, categories, or even individual SKU productivity. price a given product. The focus must be on understanding the customer’s perception of your prices, in an effort to use pric- PrinciPle 5: everyday low Price demands everyday low costs. ing to gain long-term customer loyalty. The pricing philosophy of The Home If everyday low price is the goal of every Depot during the time of its most phesmart retailer, everyday low cost is also nomenal growth was always focused on a must. You must be certain you always constantly increasing gross margin dollar have the ultimate cost advantage. This is contribution. The best method to achieve facilitated by a culture that abhors waste, this was to gain the customer’s trust by purchases directly from the prime sources pricing on an EDLP (everyday low price) and uses the best technology to create an basis. We would then measure our sucefficient logistic system. cess by the increase in GMROI (gross margin return on inventory investment). PrinciPle 6: advertising is an in-
PrinciPle 4: success is measured by gmroi (gross margin return on inventory investment). Most retailers measure success by focusing on their profit and loss statement. This puts a spotlight on the gross margin percentage, since all expenses are deducted from that number. Therefore, it would seem that the higher the gross margin percentage, the more net profit can be achieved, assuming that expenses are held constant. However, this is only half the equation. It ignores the balance
vestment, not an exPense.
Today, the retailer must clearly identify and define its own unique, sustainable, compelling, competitive advantage. Next this advantage must be turned into a story that is true, emotionally engaging and believable. It must be communicated via new digital channels that the customer is actually using. And the message itself? It is no longer just a price story about a single sale item. It is now all about connecting with customers so they will trust the brand, and, in fact, identify with the company it represents.
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PrinciPle 7: selF-service is the best service.
people can perform at an extraordinary level, given the right circumstances. Customers can quickly sense employThe store design must enhance the ee attitude when it comes to taking pride customer’s shopping experience by making it easy to access all the available in customer service. The key to strong morale is providing both monetary and choices and to quickly obtain merchanemotional rewards for a job well done. dise. At the same time, operating costs must be kept low to assure price leaderPrinciPle 10: culture drives ship in the market. Therefore, the goal PerFormance. must be to strive for the best practice, which drives costs down while simulAll the principles and guidelines boil taneously increasing customer satisdown to the search for that ingredient faction. The mantra must be to make that separates mediocrity from supethe stores easy to stock, easy to sell and riority. That one thing for The Home easy to buy. This is the KISS method: Depot was its Bleeding Orange culture. Keep it Simple, Stupid. The culture of a company is set by the values, beliefs, ethics, ideals, integrity PrinciPle 8: retailing must tran- and code of conduct exemplified by the sition From Product orientation CEO and the rest of the C-suite. ■
to a service agenda.
The digital revolution in retailing is about a lot more than simply allowing the customer to shop online at home. It also goes way beyond pricing. It is about making all the company’s resources available to the customer and personalizing that experience. It’s about establishing your brand as the trusted solution provider for all the customer’s wants, needs and project requirements.
PrinciPle 9: hire the right PeoPle, train the right PeoPle, KeeP the right PeoPle. Great people create great companies. The reverse is also true. Great companies develop great people. Ordinary www.ThehardwareConnection.com
Jim Inglis is a world-renowned expert with 60 years of experience in the retail home improvement industry. He spent 13 years at The Home Depot as vice president of Jim Inglis merchandising, West Coast; executive vice president of merchandising; and executive vice president, strategic development, as well as a corporate board member. Jim has served as a special adviser to the boards of leading home improvement retailers around the world including Sodimac, the largest home center company in South America; Hornbach, one of the largest home center chains in Germany; Bunnings Warehouse, the dominant home center operator in Australia and New Zealand; and Komeri, which operates more than 1,200 stores selling hardware and ag supplies in Japan. Find out more at www.breakthroughretailing.com.
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WHOLESALING
Orgill Celebrates 25-
Year Milestone for Tifton DC
T
his week, Orgill marked a milestone for its distribution network as its Tifton, Ga., distribution center celebrated its 25th anniversary. Tifton was the first distribution facility Orgill opened outside of the Memphis region and represented a major step in the company’s growth from a regional supplier to its position today as the world’s largest independently owned hardlines distributor. “A quarter century ago, the Orgill team had a vision for how the company could grow beyond its regional roots and broaden its mission to help retailers be more successful across the country and around the world,” says Boyden Moore, Orgill president and CEO. “The opening of the Tifton distribution center was a significant step in this process and helped Orgill become the company it is today.” When it opened in February 1995, the Tifton facility measured 330,000 square feet and was a model in distribution efficiency. It also allowed Orgill to provide more efficient service to its growing customer base throughout the southeastern United States.
These employees have worked at Orgill’s Tifton, Ga., DC throughout its 25 years.
In 2003, with Orgill’s business rapidly expanding, the company made an investment to double the size of the Tifton facility to 660,000 square feet. Since then, Orgill has continued to invest in enhancing and modernizing the internal logistics systems at the Tifton DC, adding features such as new conveyor lines, voice picking and more to drive efficiency. Most recently, Orgill added a second shift at Tifton to keep up with surging demand. “Opening this facility was a big step for the company, and here we are 25 years later and the facility has grown, Orgill has grown and we continue to grow,” says Randy Williams, Orgill’s executive vice president of distribution. “We are pleased to acknowledge this milestone and our hardworking team of managers, warehouse personnel, drivers and all the other team members who keep the facility running efficiently.” While Tifton was originally Orgill’s first distribution center outside of the Memphis area, Orgill now operates
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Orgill’s Tifton, Ga., distribution center is celebrating its 25th year of operation.
center of this celebration.” This was an important distinction for employees like facility manager Mike Newbern, who is one of about two dozen employees who have been with the Tifton DC since it opened. eight state-of-the art distribution “A lot has changed since I first facilities throughout the United States started here 25 years ago,” Newbern and Canada. says. “When I started here, I was pick“It’s fantastic that we are marking ing orders in the warehouse, and we this milestone for Tifton,” says Bill did so many things manually that are Richardson, Orgill’s vice president of now automated. We used to write southeast distribution and a lifelong things down using paper and a pen, Tifton resident. “But when you think and now we are using scanners and about the fact that Tifton is Orgill’s voice-picking headsets. The technololdest facility, you really understand how truly modern our distribution net- ogy has just come so far that it allows us to be very efficient.” work is.” Newbern, who was born in the To honor Tifton’s anniversary and Tifton area, says he has enjoyed seethe employees who made it posing his career grow along with the sible, Orgill hosted a lunch and provided commemorative gifts to the 375 facility and Orgill. “Orgill is a good employees at the distribution center on company with good values,” he says. “Having a solid company like Orgill October 21. that is committed to growth in the “We had executives fly in and we community is definitely a good thing. I invited back some of the past distriknow I have been working here for 25 bution center managers to join us in celebrating this occasion,” Richardson years, and that’s a long time, but in a lot of ways it seems like it has gone by says. “We thought it was important so fast.” n that we put our employees at the www.TheHardwareConnection.com
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catEgOrY rEPOrt
ELECTRICAL & LIGHTING TRENDS Sales of Selected Light Fixtures (Independent Hardware Channel) 12 Months % Change vs. Year Ago Selected Light Fixtures: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-7.1% Selected Light Fixtures: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-4.7% Source: Epicor’s Industry Data Analytics
Unit Sales Breakdown for Selected Light Fixtures Total of 3,025 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.6% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.2% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.4% Source: Epicor’s Industry Data Analytics
Seasonality 150 of Sales of Selected Light Fixtures (Index=100) 150 130 110 90 70 50
130 11091
97
109
118
132 129 106
92
100 80
90 70July
2020
Aug. Sept. Oct. 2020 2020 2020
79
68
Nov. Dec. Jan. Feb. March Apr. May June 2020 2020 2021 2021 2021 2021 2021 2021
50 Industry Data Analytics Source: Epicor’s
Selected Light Fixtures Share of Sales (Latest 12 Months) Worklight Security (Motion) Shoplight 0 5 Decorative LED Recessed Wraparounds Undercabinet Light Dusk-to-Dawn Floodlight Photocell Strip Fixture Landscape Flood Exit/Emergency Light Other
10
2.4% 1.6%
0
15
9.4% 20 8.5% 7.4% 6.7% 5.8% 5.3% 4.4% 4.0%
16.8%
12.1% 11.9%
Source: Epicor’s Industry Data Analytics
3.7%
5
10
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15
20
Epicor’s Industry Data Analytics tracking information is based on sales from a representative sample of hardlines retailers located throughout the U.S. For more information, call 512278-5800 or email epicorindustryanalytics@epicor.com.
www.TheHardwareConnection.com
ElEctrical & lighting MErchandising : Upper Left: Bomberger’s Store in Lititz, Pa. Middle Left: Engel’s Hardware in Cincinnati. Lower Left: University Ace in Oviedo, Fla. Upper Right: Keim in Charm, Ohio. Middle Right: Spahn & Rose Lumber in Dubuque, Iowa. Lower Right: Thatcher’s Ace Hardware in Baker City, Ore. www.TheHardwareConnection.com
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AN INSIDE LOOK
RIBBONCUTTING CEREMONIES
T
he Hardware Connection provides a pictorial look at the clever and creative ways that stores have staged a ribboncutting ceremony. Send pictures to chris@thehardwareconnection.com.
South Bay Hardware, Redondo Beach, Calif.
Bedford Ace Hardware, Bedford, N.Y.
Custer Ace Hardware, Custer, S.D.
Medley’s Hardware, Sullivan, Ind. Gillman Do it Best Home Center, Gas City, Ind.
Gypsum Eagle Ace Hardware, Gypsum, Colo.
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McCoy’s Building Supply, Midlothian, Texas
St. Charles Hardware in St. Charles, Ill.
Niehaus Lumber, Vincennes, Ind.
Heisler’s Hardware, Spearfish, S.D. Sanford Do it Best Hardware, Sanford, Mich.
Pleasants Hardware, Quinton, Va.
Red Bluff Ace Hardware, Red Bluff, Calif.
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Quitman True Value, Quitman, Texas
Weathers Ace Hardware, Madison, Ala.
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IN THE NEWS NEW STORES:
• C&D Hardware and Gifts in Houston, Texas, is celebrating its • Gillman Home Center is opening a 70th anniversary. new store in Hartford City, Ind., and building a new store in Muncie, Ind. • Big C Lumber in Granger, Ind., is celebrating its 100th anniversary. • Kodiak Building Partners has acquired Carl’s Building Supply in Irondale, Wash. • Family Farm & Home has opened its 67th store in Clarion, Pa. • Westlake Ace Hardware is opening a new store in Twin Oaks, Mo. • Nick and Kirby Kuklenski have purchased Kroegers Ace Hardware in Durango, Colo., and Ace Hardware of Farmington (N.M.). • Genesee Lumber has acquired Smith Lumber and Hardware Center in Lakeville, N.Y. • Mill Creek Lumber & Supply has Big C Lumber’s Vice President Bill Kuminecz acquired Fox Building Supply in (left) and President Bill Wallace (right) with Oklahoma City. recognition plaque from Do it Best Corp. • US LBM has acquired Century Club retailer Oldham Lumber Company in Dallas. PEOPLE ON THE MOVE: • St. Charles Do it Best Hardware • Lowe’s has promoted held a grand opening for a new store Mike Shady to senior vice in St. Charles, Ill. president, online. • US LBM has named Don Riley executive vice KUDOS TO: Mike Jones president and COO and • Meads Hardware in Las Vegas, Nev., promoted Pat Managan is celebrating its 50th anniversary. to senior vice president, • American Hardware & Lumber supply chain. Insurance is marking its 50th • Do it Best Corp. has anniversary. hired Mike Jones as • Mi-T-M Corp. is celebrating its 50th Brittany Pearler western LBM sales anniversary. 50 ■ THE HARDWARE Connection ■ November 2021
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•
•
•
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manager, Brittany Pearler as associate merchandise manager for global sourcing Justin and promoted Justin Hanford Hanford to divisional merchandise manager and John Branigan to national retail performance manager. Michael Traub has been John Branigan named chairman of the executive board of STIHL AG, succeeding Dr. Bertram Kandziora, who is retiring. Also, Ingrid Jägering will become Michael the new chief financial Traub officer and information technology officer. Ron Ridenour has been promoted to vice president-retail sales and Ingrid marketing at Leviton. Jägering The Home Depot has named John Deaton executive vice president of supply chain and product development. Apex Tool Group appointed Bob Heisner senior vice president and chief marketing officer.
WHOLESALERS IN THE NEWS:
Bob Heisner
• Ace Hardware Corp. moved up to #4 in the Annual Franchise Times Top 400 List. www.TheHardwareConnection.com
• Do it Best Corp. named its 2021 Vendors of the Year: Duracell, Quikrete, Metal Sales (LBM excellence), Bertch Cabinets, Libman, Philips Signify Co., SteelWorks by Hillman, Channellock, The Hillman Group, Mr. Heater, E. Mishan & Sons, Universal Forest, Scotts Miracle-Gro Co. (outstanding products and service), Canfor, UFPI Deckorators, Traeger Grills, Milwaukee Tool, Sunnyside, Linzer Products, SharkBite, Stanley Black & Decker (overall sales growth), Bobcat Co., Global Harvest Foods (supply chain excellence) and RoyOMartin.
OTHER NEWS: • The Wooster Brush Company, which is marking its 170th anniversary, has started construction on a new 608,400-square-foot manufacturing and warehouse facility that doubles their property size. The existing facility will still be utilized going forward. • Hillman Solutions has opened a new distribution center in Jacksonville, Fla. • GreatStar Tools USA has acquired SK Professional Tools. THE HARDWARE Connection ■ November 2021 ■ 51
UPCOMING EVENTS NOVEMBER Distribution America and PRO Group Executive Planning Conference November 16-18, Sawgrass Marriott Golf Resort, Ponte Vedra, Fla. Epicor Insights LBM User Conference November 15-17, San Antonio
Orgill Spring Dealer Market and Online Buying Event February 24-26, Orange County Convention Center, Orlando, Fla. True Value Hardware Reunion February 18-20, George R. Brown Convention Center, Houston
MARCH 2022
NAWLA Traders Market November 10-12, Kentucky International Convention Center, Louisville, Ky.
Ace Hardware Spring Convention March 8-10, Las Vegas Convention Center, Las Vegas, Nev.
JANUARY 2022
Blish-Mize Spring Dealer Market March 18-19, Overland Park Convention Center, Overland Park, Kan.
House-Hasson Hardware New Year New Beginnings Dealer Market January 6-8, Opryland Convention Center, Nashville, Tenn.
FEBRUARY 2022 Do it Best Spring Market February 11-14, Indiana Convention Center, Indianapolis International Builders’ Show February 8-10, Orange County Convention Center, Orlando, Fla. LBM Advantage Annual Buying Show & Shareholders Meeting February 21-23, Gaylord Palms Resort & Convention Center, Kissimmee, Fla. Monroe Hardware Spring Dealers Market February 12-13, Myrtle Beach Convention Center, Myrtle Beach, S.C.
Eisenwarenmesse International Hardware Fair March 6-9, Koelnmesse, Cologne, Germany Emery Jensen Edge Spring Show March 11-12, Las Vegas Convention Center, Las Vegas, Nev. Hearth Patio & Barbecue Expo March 2-5, Georgia World Congress Center, Atlanta The Inspired Home Show March 5-8, McCormick Place, Chicago Wallace Hardware 100th Anniversary Market March 22-24, LeConte Center, Pigeon Forge, Tenn.
For a complete listing of calendar dates, click here. 52 ■ THE HARDWARE Connection ■ November 2021
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Virtual Kate a Hit at JosePHs’ HardWare & HoMe Center A couple years ago, the local plumbing supply store in Fort Collins, Colo., closed, presenting Josephs’ Hardware & Home Center owner Matt Chavez with an opportunity he couldn’t pass up. He immediately hired Kate Curtis, the plumbing store’s former owner. “Kate is an iconic figure in this part of the state—she turned into a regional expert on residential faucets,” he explains. This was a huge gain for the business to have that kind of expert knowledge and community credibility working in their plumbing department, including the many clients she brought with her. A few months ago, Kate and her husband decided to move several hours away, although she was not ready to stop working. She had been a valued part of the team and Chavez did not want to lose her. So, he thought of a virtual solution to keep her connected to Josephs’ customers. As Chavez explains, “We had conducted a few meetings by Zoom, and she suggested doing something with Skype. Our IT team found an app, 8x8, which offers a Virtual Office Mobile function,” he says. “Unlike Facetime or Skype, you are not consuming phone minutes.” He adds, “We get her on an 8x8 phone session and then leave her on screen all day. She’s got remote access, so she can see inventory, what’s selling www.ThehardwareConnection.com
retail ideas
Josephs’ Hardware & Home Center came up with an ingenious solution when their plumbing expert left town—they turned her into a virtual assistant. Kate Curtis now remotely helps plumbing customers choose the right plumbing parts with the help of an app and an iPad.
and write POs. She’s always available to us on screen.” By her own admission, Kate is very non-techy. “Since everyone else has been working virtually, we thought it was worth a shot,” she says. “Kate on a stick,” as everyone jokingly calls her, is placed on a roll-around iPad stand and Kate Curtis is shown beside Virtual Kate, who remotely assists plumbing customers at Josephs’ Hardware & Home Center.
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retail ideas positioned between two plumbing aisles. “Customers sometimes wonder where the voice is coming from. Pro plumbers just walk up to the screen and say ‘Hey Kate, I need your help,’” says Chavez, who adds he gets comments of gratitude from customers that he didn’t let such a knowledgeable person get away. Their regular customers have now become accustomed to “Virtual Kate” and will even roll her down the aisle themselves if they need help finding the right piece for their plumbing project. “I’ll say, ‘Take me for a walk’ and have them move me so I’m facing the shelves,” Kate says. “She helped us reset the plumbing department remotely and has done pricing benchmarks for us,” Chavez says. “She issues two POs to Do it Best each week plus to other suppliers. She’s also equipped with a business cell phone and she’s called directly to do special orders.” The whole setup works even better now as Kate is able to return to the store the first week of each month, so she can learn of any store updates or new products added to their assortments. “This is the most I’ve ever worked on a computer. I’m learning the hang of it. It’s been fun. The staff at Josephs’ Hardware likes learning along while I’m taking care of a customer,” says Kate, who typically takes care of 20 customers a day. “I like plumbing and I’m good at it.”
Customers flock to Cohen & Co. Hardware for fresh-baked bread.
Century Club retailer Finds suCCess loaFing around Mitchell Cohen, the fourth-generation owner of Century Club retailer Cohen & Co. Hardware in downtown Philadelphia, has unearthed a successful niche selling fresh-baked bread. Ran Betite, an Israeli immigrant, began baking bread to keep busy during the pandemic. He turned it into a business, Metuka Freshly Baked, attracting the attention of Cohen, who welcomed him to sell it at his hardware store. That partnership has been so successful that Cohen Hardware, which has been around since 1913, is now the only place to find Metuka Bread.
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After a devastating flood wiped out Sanford Hardware, the owners were determined to reopen.
MiCHigan toWn gets its HardWare store baCK Sanford Do it Best Hardware in Sanford, Mich., recently held a grand reopening ceremony that brought real joy to the community. When two dams gave way in May 2020 the catastrophic flooding wiped out Sanford’s downtown, including Sanford Hardware. The store ended up under 12 feet of water. The store’s propane tanks were washed 10 miles away, while bags of potting soil were later found on the roof during cleanup. The Sian family was determined to rebuild. In just 12 months, the store was completely rebuilt, with a soft opening on June 13 and a grand reopening ceremony on July 31. You can even buy a t-shirt that reads: “The Best Dam Hardware Store in the State—Sanford Hardware.” ■ www.ThehardwareConnection.com
Sanford Do it Best Hardware reopened a year after it was wiped out by a flood.
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e h t d n i h e B Numbers 1,850
Total square feet of the fully furnished Idea House that can be viewed on the Hartville Hardware sales floor.
250 305,000
Approximate number of employees working at Hartville Hardware.
Total square feet of Hartville Hardware’s main store, which comprises 7 acres in Hartville, Ohio, and opened in April 2012.
1947
The year Hartville Hardware was founded as a general farm store by Maynard Oswald, Howard Seneften and Lawrence Shomaker, so the store will be celebrating its 75th anniversary in 2022 as well as 50 years of Miller family ownership.
16,000+
Total square feet of the hardware and tool department of Hartville Hardware.
80,000
Total number of SKUs stocked at Hartville Hardware.
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