Guidance From a Name You Trust
The North American Hardware and Paint Association (NHPA) is excited to launch a new service—NHPA Strategic Consulting—which connects independent retailers one on one with trusted industry experts, to tackle your most pressing business challenges.
Our consultants have spent their careers working for top independent retailers. They know what works and how to help your business grow. Each consultant brings deep expertise in key areas of running a home improvement retail operation, backed by a proven record of innovation and success.
Like NHPA, our consultants are unbiased and fully vetted by your association. Their guidance is rooted in real-world experience, giving you practical solutions to take your business to the next level. When you partner with NHPA, you gain access to retail professionals who’ve been there, led teams and built success from the ground up.
As a trade association, it’s our mission to connect you with the best retail minds in the industry who can provide the best solutions for your specific needs.
Mission Focused & Non-Biased
Our consultants are NHPA-focused and loyal only to your business.
Extensive Retail Experience
Decades of experience in leadership roles at leading independent home improvement stores.
Specialized Retail Expertise
Each consultant specialize in core areas that drive your business.
Proven Industry Leaders
Renowned experts shaping NHPA’s programs, education and trade magazines.
Trusted NHPA Vetted Advisors
Active in NHPA’s roundtables, guiding key industry discussions for independent retailers.
Scan the QR Code or visit YourNHPA.org/Consulting to sign up and learn more.
HEADQUARTERS
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COMMUNICATIONS
Lindsey Thompson lthompson@YourNHPA.org Editor and Director of Content Development
Austin Vance avance@YourNHPA.org Director of Sales & Marketing
Jacob Musselman jmusselman@YourNHPA.org News & Digital Editor
Annie Palmer apalmer@YourNHPA.org Content Development Coordinator
Autumn Ricketts Lead Graphic Designer
Olivia Shroyer Marketing Manager
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Cassie Reed Marketing & Digital Content Assistant
Freda Creech Sales & Production Assistant
ASSOCIATION PROGRAMS
800-772-4424 | NHPA@YourNHPA.org
Cody Goeppner cgoeppner@YourNHPA.org Director of Education & Training
Jesse Carleton jcarleton@YourNHPA.org Training Manager & Editor
Amy Hayes Operations Coordinator—Advanced Education & Training SALES
Jordan Rice 217-808-1641 | jrice@YourNHPA.org Regional Sales Director
Renee Changnon 217-621-7363 | rchangnon@YourNHPA.org
Senior Business Development Representative—West Coast
CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES
CIRCULATION DIRECTOR
Richard Jarrett, 314-432-7511, Fax: 314-432-7665 gcscs8@gmail.com
COMING IN JANUARY
OUR MISSION
The North American Hardware and Paint Association (NHPA) helps independent home improvement, paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.
Look Back, Move Forward
Coming in January, the 2026 Market Measure report will give an in-depth look at the state of the independent home improvement industry. See where the industry is heading and how the opportunities and challenges of the past year will propel the channel forward.
PAINT & DECORATING RETAILER
(ISSN 1096-6927): Published monthly except December by the North American Hardware and Paint Association, 1025 E. 54th St., Indianapolis, IN 46220. Phone: 800-737-0107. Subscription rates: January through November issues, $50 in U.S., payable in advance. Canada $75 per year. All other countries $100 per year. Single copy $7, except July issue, $25. Periodicals postage paid at Indianapolis, Indiana, and additional mailing offices. Postmaster: Send address changes to Paint & Decorating Retailer, P.O. Box 16709, St. Louis, MO 63105-1209. Returns (Canada): Return undeliverable magazines to P.O. Box 2600, Mississauga, Ontario L4T 0A8. PM# 41450540. Copyright © North American Hardware and Paint Association, 2024.
NHPA EXECUTIVE STAFF
Bob Cutter President & CEO
Dan Tratensek
Chief Operating Officer
David Gowan
Chief Financial Officer & Executive Vice President, Business Services
Scott Wright Vice President of Content Development & Publisher
NHPA BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD
Ned Green, Weider’s Paint & Hardware, Rochester, New York
EXECUTIVE VICE CHAIRMAN
Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia DIRECTORS
Alesia Anderson, Handy Ace Hardware, Tucker, Georgia
Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri
Ash Ebbo, Clement’s Paint, Austin, Texas Christian Herrick, Randy’s Do it Best Hardware, Jackson, Virginia
Michelle Meny, Meny’s True Value, Jasper, Indiana
Michael Sacks, FLC Holdings, LaGrange, Texas
SECRETARY-TREASURER
Bob Cutter, NHPA President & CEO
NHPA CANADA
EXECUTIVE ASSISTANT
Rebekah Doerksen Supply-Build Canada
Direct: 204.953.1692 | Cell: 204.990.3536 Toll-Free: 1.800.661.0253 ext. 103 102-226
More Than Marginal
As the economy continues to shift, retailers are seeking effective strategies to safeguard their margins. Learn from fellow retailers who share practical approaches—both large and small—for managing costs, optimizing pricing, improving operations and more to protect profitability.
INDUSTRY VIEWPOINT
Gain a Competitive Advantage Industry expert and consultant Darrell Baker shares insights on the latest Sherwin-Williams news and how independent paint retailers can compete against the paint big-box by leaning into their value propositions.
While a normal part of operations, emails coming into your inbox offer an opportunity for scammers to redirect money or sensitive information. Learn more about the common business email compromise scams that show up in retailers’ inboxes and how to avoid them.
PROFILE
Guiding Principles
When his future after high school was uncertain, the military provided direction for Kane Wilbanks, this month’s Helmets to Home Improvement honoree. Plus, meet all of this year’s honorees in the 2025 Helmets to Home Improvement e-book.
A specialty paint category is a vital component of any operation serving both commercial and residential customers. See how one retailer relies on intentional customer conversations to push his coatings category off the shelves.
How to Reach Dan Dan
dant@YourNHPA.org
Tratensek
FROM THE ASSOCIATION
Gratitude in Action
AROUND THIS TIME OF YEAR, we all start to (or should) reflect on the things we are thankful for in our lives. While it is somewhat disheartening to think that we may only focus on gratitude during this little window of time when the leaves turn color, there are ways to turn these thoughts into actions that can resonate year-round.
If I were to wager, I would assume the top few items most business leaders would toss into the “thankful for” column on their spreadsheet would include some variation of these three things: my employees, my family and my customers. Hopefully, a few toss in “my association” for good measure.
While these are all things that are very deserving of a business leaders’ gratitude, I don’t know that all of our grateful thoughts always translate to grateful actions. This is the year to make sure we change that.
I know I’m getting ahead of myself with the seasons, but being grateful one month out of the year is a lot like Scrooge being a nice guy on Christmas Day and then back to his old self on December 26.
“If you are a business that is thankful for purchases but not truly grateful for your patrons, your thanks carry little impact.”
To avoid this, I am encouraging all of us to truly reflect on the things in our professional lives that we are grateful for right now and then writing them down. But don’t stop there: add to this list some things you can do to show gratitude to each of these different groups.
If it’s your employees, ask yourself if your day-to-day policies, behavior and culture mirror the gratitude you feel towards them. If not, make changes. And if you don’t make changes, save your thanks because they are just words.
If it’s your family, ask yourself if you are doing everything you can to ensure that your business is aligned to meet the needs of the next generation. Do you have a succession plan in place? Do you listen to input from your family? Do you place enough emphasis on work-life balance? If you aren’t addressing these concerns, then your thanks simply rings hollow.
If it’s your customers, ask yourself: “How do I keep the needs of my customers central to every business decision I make?” Understand that, without your customers, you are out of business. If you are a business that is thankful for purchases but not truly grateful for your patrons, your thanks carry little impact.
So, while this may be the month for listing all the things you are thankful for and celebrating those things with turkey, beer and football, I want to remind everyone that there are still 11 other months where you can show how you respond to that gratitude.
Dan M. Tratensek Chief Operating Officer
CONNECTIONS
How to Reach Scott swright@YourNHPA.org Scott Wright
FROM THE PUBLISHER
Pulling It All Together to Set Independents Apart
IN TODAY’S COMPLEX retailing environment, the competitive advantages independent retailers have historically claimed—service and convenience—are under attack from every direction. New disruptors emerge daily, and the burden for independents to run a sophisticated retail operation with limited resources seems unattainable.
To arm you with solutions and resources, this month the North American Hardware and Paint Association (NHPA) will launch NHPA Strategic Consulting, a service designed to connect you with the industry’s most trusted retail experts and advisors.
Whether you need assistance in the operational areas of your business, such as inventory management, merchandising or marketing or need help in other areas such as financial analysis/KPIs, pricing and margin management, NHPA Strategic Consultants are here to help. They can also lead you through strategic planning, lease negotiations, business valuations or even succession planning.
“NHPA Strategic Consultants have walked a mile in your shoes, honing their skills in the aisles, back offices and yards at some of the most iconic independent retailers in our industry.”
NHPA Strategic Consultants have walked a mile in your shoes, honing their skills in the aisles, back offices and yards at some of the most iconic independent retailers in our industry. We know and trust them because they have participated in our programs and roundtables, they have won our awards and they have worked with us to develop curriculum for NHPA’s training courses. Their columns are featured in our publications each month (see Page 5 and Page 18 in this issue) because they are the best at what they do.
Each adviser focuses on their specific area of expertise. There are no “one-size-fits-all” gurus out there. Like NHPA, they have no bias toward any one entity, buying group or banner. They can work within your budget and make the meaningful changes you need. What sets NHPA Strategic Consultants apart is their focus and expertise
• Mission Focused & Non-Biased: They are mission focused—on your mission. They have no allegiance toward any business entity other than yours.
• Extensive Retail Experience: They have worked in retail most of their careers and have held top positions at some of the leading independent hardware stores, home centers, LBM and paint and decorating retailers in the U.S.
• Specific Retail Focus: They each specialize in specific areas of the business, keying in on the retail core competencies and strategic areas that matter most to your needs.
• Proven Subject Matter Experts: They have helped design curriculum for NHPA’s Retail Management Certification Program and NHPA’s Foundations of Retail educational programs. They teach in our programs and are regular contributors to Hardware Retailing and Paint & Decorating Retailer magazines. Their expertise is industry renowned and respected.
• Roundtable Moderators: They participate in NHPA roundtables and help lead the critical conversations that point the way forward for the most successful retailers in our industry. When they talk, their peers listen.
If you have a specific business challenge, need the help of an expert—someone who can bring a fresh perspective based on their experience and expertise—give me a call at 317-441-4136 or visit YourNHPA.org/consulting.
Scott Wright Vice President of Content Development and Publisher
OPERATION
Contingency Plan
When Plan A fell through, this retailer had to pivot his succession plan. See how his flexibility led to a successful handoff at PDRmag.com/succession-pivot.
Meet Curtis
Curtis Gillman has built a 20-plus-year career as a dynamic leader in the retail home improvement industry. Guided by the principles of servant leadership, accountability and KPI measurement, he successfully grew a six-store regional chain into an 18-location industry leader, driving operational excellence and sustainable growth. Curtis is passionate about helping family-owned businesses preserve and strengthen their legacy. He specializes in working with both incoming and exiting generations to develop strategic plans for growth, succession and long-term stability.
OPERATIONS
Don’t Leave Your Future in Limbo
Independent hardware, paint and building materials dealers excel at many things. We solve customer problems. We know how to sell and pick winning assortments that keep customers coming back. We coach our teams, put out fires and serve as community cornerstones.
But in today’s environment of fierce competition, volatile pricing and supply chains and ever-rising customer expectations, great service and a well-merchandised store are no longer enough. To thrive, we must also run a tight ship internally. That means sharp margins, efficient payroll and inventory that works for us with strong turns and GMROI. These KPIs can be the difference between surviving and thriving.
One area where independents often struggle is preparing for the future. Whether it’s generational succession or positioning a store for sale, readiness takes focus and discipline.
For family transitions, too many businesses neglect the hard work of building communication and trust between outgoing and incoming leaders. Regular, honest conversations about expectations are essential.
Buyers today are more discerning than ever. Community loyalty is important, but buyers want proof on the P&L. They expect healthy margins, clean payroll metrics and strong EBITDA.
The good news is help is available. Through the North American Hardware and Paint Association’s (NHPA) new consultancy program, which will bring in veteran industry leaders, independent dealers can now access trusted advisers in the areas they need it the most.
NHPA Strategic Consulting is a new service from the North American Hardware & Paint Association (NHPA) to connect independent retailers one on one with trusted retail experts and advisers to help you solve your most pressing business challenges.
NHPA consultants have spent their entire careers working for some of the leading independent retailers in our industry. They know how to help you grow your business because they each have specific areas of expertise within the greater framework of operating an independent home improvement retail operation. They have been in the retail trenches, and they know what works. The solutions they provide are deeply rooted in their experience and extensive track record for innovation and success. Like NHPA, they have no bias toward any one entity, and have been thoroughly vetted by your association. We trust their expertise and are confident they will be able to take your business to new levels of success. Learn more at the program at YourNHPA.org/consulting
As a 20-year industry veteran and longtime family business partner, I’m proud to consult with NHPA through my company, Legacy Retail Advisors. I specialize in enhancing business value in preparation for acquisition, navigating family business and succession dynamics, financial and productivity KPIs and leadership development. Independents already shine on the frontlines of retail. With the right focus and support, we can be just as strong behind the scenes and ensure our businesses succeed for the next generation.
Curtis Gillman Founder Legacy Retail Advisors
OPERATIONS
Bathed in Color
Keep customers on trend with these hot bathroom colors at PDRmag.com/bathroom-paint-trends
The Shades Shaping 2026
LOOKING at the 2026 Colors of the Year, warm tones in green, burgundy and beige are dominating the scene for the new year. Paint & Decorating Retailer has compiled the Colors of the Year from the industry’s biggest players.
C2 Paint EPERNAY
Clark+Kensington
Dutch Boy Paints
NEW PR ODUCTS
OUTREACH
Retailer Recommendations
Send an email to editorial@YourNHPA.org telling us about the products your customers love and why they are a hit in your business.
PAINTER’S BACKPACK
THE WOOSTER BRUSH COMPANY woosterbrush.com
The Wooster Brush Company’s Painter’s Backpack features dedicated slots for brushes, roller frames and covers, extension poles and prep tools, along with an ergonomic design for carrying gear comfortably to the job site.
ROOF COATING REPAIR KIT
EZ ON COAT ezoncoat.com
The EZ On Coat Roof Coating Repair kit includes acrylic roof coating, repair material, seam tape, an applicator brush and a roller all in one package, designed for patching and restoring roof surfaces.
BLENDING PENCIL
MINWAX minwax.com
The Blend-Fil Pencil from Minwax is a no-mess touch-up tool designed to fill scratches, nail holes or minor blemishes in stained or finished wood. It is available in tones matched to Minwax Wood Finish stains or mixable to custom shades.
FOLDING UTILITY KNIFE
DEWALT
dewalt.com
The Push and Flip Folding Utility Knife from DEWALT features a metal body with a push-and-flip one-hand opening, a secure blade lock to prevent accidental release, a slide-and-click blade change system, a deep-carry reversible pocket clip and an integrated tether hole.
WALL PANEL DUCHATEAU
duchateau.com
The Crest is a 3-dimensional wood wall panel from Duchateau’s Inceptiv Crest collection, crafted with an oak veneer, a light wire-brushed texture and interlocking edges to make installation easy while adding depth and warmth to interior walls.
LONG-SLEEVE SHIRT
MISSION mission.com
The Cool Touch long-sleeve shirt from Mission is made of lightweight, stretchy fabric that activates with sweat to create a cooling effect, while blocking 98% of UV rays and maintaining a classic, comfortable fit.
PAINT BASE
GOLDEN PAINTWORKS goldenartistcolors.com
Golden Paintwork’s Metallic Paint Tintable Bases are specialty fluid bases designed to take on metallic pigments and tints, enabling artists to create custom metallic paints with consistent color and finish.
SUBWAY TILE MARBLE SYSTEMS marblesystems.com
The Chai Glossy Subway Thin Brick Tile from Marble Systems measures 2 ¾ by 9 ¾ inches and features a rich, deep brown hue with a glossy finish. The tiles are sold in boxes containing 32 pieces, covering a total of 5.96 square feet per box.
Smart Training Smarter Teams
RetailWise is NHPA’s new AI-powered micro-training program, built exclusively for independent hardware, paint, and lumber retailers. Designed for today’s fast-paced retail environment, RetailWise delivers 52 professionally scripted, two-minute video lessons—available in English, Spanish and French-Canadian that fit seamlessly into your store’s daily rhythm. No long classroom sessions or complicated schedules required.
100% DEVICE ACCESSIBILITY
RetailWise can be accessed across multiple platforms including, mobile devices, desktops and in-store screens.
Contact Cody Goeppner at cgoeppner@YourNHPA.org.
CMargin Safeguards
4 Strategies to Protect Against Margin Erosion
BY LINDSEY THOMPSON
onstant price changes from tariffs. Labor costs that continue to rise. A soft housing market and low consumer confidence. Looking at all the recent economic headlines, it can feel like there is little retailers can do to control eroding margins and protect their bottom lines.
But it is not all bad news—fortunately there are ways retailers can manage margin by addressing different operational areas, including payroll, operational expenses, pricing, inventory management and others.
It all starts with knowing your key performance indicators (KPIs) and using resources like the North American Hardware and Paint Association’s (NHPA) Cost of Doing Business Study to compare your KPIs to industry averages. Margin management has always been on the mind of owners and managers, but the recent ever-changing economic environment has made it even more crucial.
Glen Morosohk, general manager at Ricciardi Brothers, says many retailers are looking at the downturn in sales as the result of losing
The 2025 Cost of Doing Business Study provides detailed financial information from independent home improvement retailers, allowing operations to benchmark their operations against high-profit, typical, single location and multi-location operations. Purchase your copy at YourNHPA.org/CODB Download
OPERATIONS
Weather the Storm
In light of headline after headline warning of the impending impact of global economic shifts, prepare for any market uncertainties with these insights at PDRmag.com/navigating-market-volatility.
PINCH PAYROLL PENNIES 1.
At Ricciardi Brothers, Morosohk says payroll has always been an important factor in controlling profit margin but has become a laser focus, especially since it is the No. 1 expense for their operation and for most retailers. He and the leadership team are working to fill each of the store’s back office and sales positions and focusing on managing the appropriate number of hours for each employee rather than the number of employees.
“This strategy also allows us to minimize overtime, which is another large contributor to payroll costs,” Morosohk says. “To manage all of this, we recently implemented a proprietary software package to budget those hours, which is done on a biweekly schedule and based on a combination of gross profit in that particular store and gross sales with seasonal adjustments.”
business to competition when in reality, the pie is just smaller. Numerous factors have led to sales shrinkage in the paint and decorating industry, including housing prices, lack of housing inventory and uncertainty in the marketplace.
“What we need to do is go after a bigger slice of the market pie, everyone is fighting for a piece of a smaller pie,” he says. “When housing sales slump, it has a double impact on home improvement projects. We lose customers who are painting for an update and the new homeowner looking to redecorate. Without the sale of homes, we don’t have either of those going on right now. That’s why it’s smaller.”
As you work to mind your own margins, discover four strategies retailers are utilizing and the operational areas they are honing in on to expand and protect both profit and operational margin dollars in their businesses.
Payroll is the No. 1 operational area Hagan Ace Hardware looks at to manage profit margin, says George Ruckersfeldt, vice president of finance, human resources and information technology. Managers are given weekly payroll hour budgets and held accountable to those budgets. The operation has reduced tasks in the areas of inventory management by centralizing back office functions, moving them from the store level to centralized personnel.
“We are currently in the process of evaluating a more streamlined process using wireless handheld devices to check-in products, making the process quicker and more accurate,” he says. “We are always reviewing tasks to see how they can be minimized.”
Ricciardi Brothers general manager Glen Morosohk has put additional effort in controlling payroll expenses to protect margin.
GO LINE-BY-LINE ON OPERATIONAL EXPENSES 2.
Those bills you pay each month for electricity, garbage collection and more add up and can eat into any profit margins. The team at Ricciardi Brothers has made a concerted effort to examine each location’s operational expenses and find areas to cut costs.
“We’re reviewing all operational expenses that can be controlled or reduced such as our IP provider, trash collection, phones, cell phones, electricity and others,” Morosohk says. “Those can be controlled in various ways, depending on the store’s location or the company itself, but technology can help significantly in negotiating and reducing costs.”
Insurance is another major cost for many operations, so leadership at Ricciardi Brothers annually re-negotiates its healthcare and vehicle insurance policies. They have also brought on a fleet management company that negotiates contracts for service and vehicle maintenance and programs for the purchase of gasoline and diesel.
“We found that process to be an eye opener. Sometimes you hold onto a vehicle because it’s paid off, but in reality, even though it’s paid off, it’s costing you more money to maintain the vehicle as it is,” Morosohk says. “This company uses algorithms to determine what maintenance should or should not be performed on a vehicle so we can spend our money on vehicles in the best way possible.”
Ricciardi Brothers general manager Glen Morosohk has brought on a fleet management company to manage delivery vehicle costs and help with margin management.
Leadership at Ricciardi Brothers also annually renegotiates its employee healthcare programs and vehicle insurance policies.
Monitoring Costs
Every
day, George Ruckersfeldt, vice president of finance, human resources and information technology at Hagan Ace Hardware, reviews multiple pricing reports.
FIND THE RIGHT PRICE 3.
Pricing is tricky to get right in an ideal economic environment and is even more of a moving target when tariffs, soft spending and other factors play in.
Morosohk says in challenging economic times like these, purchasing and pricing become even more important. The team at Ricciardi Brothers keeps in close contact with manufacturers, particularly those who do a lot of importing.
“Keeping those conversations open helps us generate a strategy for moving forward,” he says. “Pricing reviews are happening daily. We run customized reports that break down sales and margin by product line, product category, store and customer, and we take action when margin cools in any of these areas.”
The team is also looking at variable pricing instead of automatically using the standard markup from the manufacturer.
“There are A, B, C and D items, but not all of them are highly visible,” Morosohk says. “So where you have to be competitive, you have to be competitive, but where you can spread those margins—particularly on those C and D items—it adds up. And every fraction of a point means something.”
Promotional pricing also plays a role in Ricciardi Brothers’ margin management strategies, and Morosohk says the company engages in promotional purchasing frequently to improve margins.
Minor Steps to Protect Margins
The path to greater profitability doesn’t have to include all major changes, but instead can consist of micro adjustments to your business. Learn more at PDRmag.com/protect-margins.
Embracing Promotions
Buyers at Ricciardi Brothers frequently take advantage of promotional purchasing to enhance the company’s margin management strategies.
“Promotional pricing is usually offset by promotional purchasing and that minimizes the impact on the margins,” Morosohk says. “While the promos negatively impact the margin percentage, the purpose is to turn cash flow and add margin dollars by increasing sales.”
Ruckersfeldt reviews pricing at Hagan Ace Hardware daily with multiple reports run each day showing product that has undergone a change in price. Daily reports show if the cost of an item has changed from the purchase order compared to the actual vendor’s receiving paperwork. All stores receive price changes weekly and make daily changes on items with immediate impacted costs.
Making retail changes in your store before you have to buy at a higher cost is ideal, but it requires monitoring cost changes on the vendor side instead of waiting for a vendor
invoice to tell you a cost has changed. Many retailers wait until their landed cost changes, losing the opportunity to make more money when the market will support a higher retail price.
“Our buyers are always reviewing vendors and vendor programs to purchase products at lower costs, while maintaining retails and keeping margins equal or improving them,” Ruckersfeldt says.
Promotions currently do not play a large part in the margin strategy process at Hagan Ace, but Ruckersfeldt says they are making more buying decisions on closeout products they can promote below competitors and, in most cases, online retailers.
“Promoting at these lower prices while maintaining more margin allows us to show customers we are sometimes less expensive than the competition and that we can offer great deals,” he says.
MAKE MERCHANDISING WORK HARDER 4.
Another way to manage margins already exists in every brick-and-mortar store—merchandising. In early 2025, the North American Hardware and Paint Association (NHPA) conducted the third iteration of the Merchandising for Profit Study and shared the findings with retailers.
For the study, NHPA selected products that lent themselves to the technique being tested and were commonly stocked in hardware stores and home centers. Retailers agreed to leave the items stocked in their in-aisle position, but also stock the product using the featured merchandising technique.
Sales were monitored during a 30-day period following the remerchandising. Sales at a similar “control” store for each retailer were also recorded during the same period. The results from test stores and control stores were then compared and reported. The study found that a number of merchandising techniques provided significant sales lift, with higher sales in high-margin products helping to improve languishing margins.
The power aisle stack out technique showed an increase of 150% in sales when tested with trash cans. This technique works best with a single SKU larger items that can be bulk stacked and placed in strategic locations throughout a retailer’s store.
A service counter display resulted in an increase of 105% in sales, while a checkout display led to a 300% increase in sales. Both work best with a single SKU of smaller items that can be easily added to a purchase at the last minute.
Other techniques that boosted sales included clip strips (200% increase), a feature endcap (109%) and a feature endcap with a percent-off sign (125%).
One of the most economical ways to increase sales is by increasing the average transaction value with the customers already in the store. When promotional spaces are managed with intent, and not just randomly merchandised, these spaces will provide those positive results. The retailer creates a more complete shopping experience for the customer, while meeting the overarching objective of merchandising management to optimize the performance of the inventory and the retail floor space.
“When promotional spaces are managed with purpose and intent, and not just randomly merchandised, these spaces will provide those positive results,” says Tony Corsberg, industry expert and founder of Merchant5 Advisors. “The retailer creates a more complete shopping experience for the customer, while meeting the overarching objective of merchandising management to optimize the performance of the inventory and the retail floor space.”
Smart merchandising in promotional areas boosts sales and protects sensitive profit margins.
IThe How, Why and When of Cycle Counting
BY DARRELL BAKER
f you hear team members (or yourself) saying, “the system shows we have this on hand, but it’s probably wrong” then you may have an inventory accuracy issue to address. But even if the issue isn’t that obvious, there may be an opportunity to explore cycle counting.
Cycle counting your inventory is widely hailed as a mandatory practice in many well-run retail operations and a way to enhance profit margin by ensuring accurate inventory data. But to determine if it’s right for you, take a pulse in these areas before deciding on your cycle count strategy.
Shrink. What have your historical shrink numbers looked like? If you are not cycle counting today, how are you generating your shrink data? If your inventory shrink is of concern, cycle counting should be seriously considered. If shrink is occurring in certain areas of the store or in certain departments, cycle counting should be undertaken more frequently in those areas.
E-Commerce. If you are displaying any inventory online, inventory accuracy is massively important. This activity makes the investment in cycle counts even more vital.
Inventory Control Procedures. Oscillations in inventory counts are symptoms of other problems. Simply engaging in cycle counting without addressing underlying issues that impact inventory accuracy will not ultimately benefit operations. Proper item set up, purchase order processing, receiving practices, special order processing, point of sale procedures, theft prevention practices and other inventory-impacting processes all factor into inventory accuracy. If there are deficiencies in any of these areas, fix these areas first before engaging in a substantial cycle counting investment. Theoretically, if everything else goes right with all these processes and procedures, your inventory will always be accurate. Inaccurate inventory points to opportunities in operational areas that should be addressed.
It’s also helpful to ask yourself these questions. Does your system facilitate cycle counts efficiently? If cycle counting is clunky and unnecessarily time consuming, consider working with your software provider to optimize the process. If you can’t efficiently count and update your inventory, it will adversely impact the return on your time invested. Do you have the personnel in place to manage cycle counting? If you aren’t going to be able to dedicate the personnel resources to the effort to count and post changes quickly and efficiently, you may make more errors than you fix. Make sure those involved in cycle counts are very detail oriented and have high trust. Do you have an employee who questions a $2 return and wants to see the receipt? They are probably a good candidate.
Once you determine that cycle counting is for your operation, follow these best practices for success. Start small. Target a specific area, category or department you think may be a problem area and test your processes there. Don’t try to cycle count the entire store every day.
Implement a cadence you can sustain. Pick a small area once a week to work on. High value items like power tools are a high theft risk and can therefore be a good area to focus on first. High traffic areas could also use some attention. Put that idle cashier to work counting the candy bars every once in a while.
Focus on the biggest opportunities. Keep track of the biggest dollar and quantity movements in your cycle count efforts and focus more attention on areas where you see the most significant movement. If you saw a significant shrink on one hook, cycle count adjacent hooks to see if the product moved to the wrong hook.
Keep all inventory movements in consideration. Track items in overstock, backstock, in the receiving area, in the returns area, committed on a special order, in a customer’s shopping cart, etc. Be sure to take into consideration every possible location an item could exist in your facility or on paper that would impact your inventory accuracy.
Leave time to investigate and correct discrepancies. There’s no point in counting if you’re not going to be able to fix the error.
Look to refine processes and procedures. In many cases, there are opportunities to refine purchasing, receiving, returns processing or special order processing that all may help keep inventory more accurate.
Look at zero audits. If a significant cycle count effort isn’t in the cards, consider at least doing regular zero audits. This involves walking the store and making sure the system shows zero on hand for anything that isn’t on display. Make sure backstock is moved into the selling position first and go hunting
for any discrepancies; just doing this one step can pay off by making sure you aren’t losing sales. Update the item setup in the system if it’s no longer available from a supplier and remove the tag from the display.
Like many operational optimizations, they sound really good on paper, but can be challenging to execute in your individual situation. Make sure you get the most bang for the buck for your efforts. You need to take a complete and comprehensive look at your inventory control practices throughout the organization in order to extract the most value out of a cycle count effort. Your cash flow and customer satisfaction depend on it.
If any step along the inventory control journey is problematic, inventory accuracy will be nearly impossible to achieve. By looking at inventory control as a comprehensive program, including a robust and measured cycle count program, you can keep extremely accurate inventory that will keep your accountants and your customers happy. Hopefully staff won’t have to make excuses for bad counts in front of customers anymore.
About Darrell
Growing up in his family’s toy store, Darrell Baker was sweeping floors at 10 years old and running his own department in his teens, as the company computerized its inventory.
Fast forward past college and a stint running a concrete R&D company, Darrell returned to the family business to be a part of doubling sales in a short period of time, including launching transactional e-commerce with live inventory before Amazon existed. Local dynamics ultimately led to selling off the business, and he joined another family business with four locations in the hardware and building materials market. From there, he moved on to support distributor operations before becoming vice president of marketing and merchandising at Aubuchon Hardware.
Darrell now pursues his dream of helping as many retailers as he can as the owner of Prescott Business Advisors. He serves as a consultant with the NHPA Strategic Consulting program with a focus on retail operations assessment and planning, inventory management and change management. He was a graduate of the NHPA Retail Management Certification Program class of 2015 and has been a participant in the NHPA Marketing & Merchandising Roundtable since 2013.
Learn more about Darrell and the other consultants at YourNHPA.org/consulting
Darrell Baker
Know Thy Competitor
How to Stay Competitive in Your Market Against Sherwin-Williams
BY DARRELL BAKER
We all know Sherwin-Williams is the behemoth of the coatings industry. Last November, it displaced Dow Chemical to take over the 30th position in the Dow Industrials Index. Let that sink in.
At 64,000 employees and $23 billion in sales, it is the largest coatings manufacturer in the world followed by PPG. Sherwin-Williams occupies space in every vertical in our industry, from raw materials production to trucking with their own fleet to owning sundry brands and of course, operating over 5,000 retail stores supported by more than 3,800 field service reps.
Baker
Let’s take a minute to explore past the headlines covering the 401(k) no-more-match news from midyear and the Cleveland colossus—the new $860 million headquarter complex in Cleveland expected to support 4,000 employees in a million square feet and opening soon after nearly four years of construction. Of course, every one of your markets is unique if you boil it down to the smallest parts of who staffs your local Sherwin-Williams store or local Lowe’s paint desk. But it’s clear that Sherwin-Williams affects all independents that sell paint.
How well do we understand Sherwin-Williams and how does that affect how an independent paint store operates?
Let’s first take a deeper dive into the numbers.
Sherwin-Williams Revenue
Photo courtesy of: The Sherwin-Williams Company
Darrell
Performance Highlights
See how Sherwin-Williams, PPG and other industry players performed in Q3 2025 at PDRmag.com/Q3-2025-roundup
One of the major investments that Sherwin-Williams has made is the opening of the Morikis Global Technology Center in Brecksville, Ohio, which will be responsible for product development, coatings research, color technology and process engineering.
In 2016, Sherwin-Williams celebrated 150 years. They had 4,800 company-owned stores and $11.8 billion in sales. From that dominant position, they entered an agreement to acquire Valspar. At the time, CEO John Morikis referred to the move as “the most transformational acquisition in our company’s history.” With $3 billion in added sales, this acquisition kicked off a trend of growth that has survived through today. The company share price in 2016 was below $100 and doubled within three years of the Valspar acquisition. This year, it nearly hit $400 before settling in the mid $300s, despite the stagnation in housing churn that so many rely on for residential repaint and home improvement sales.
Since the Valspar acquisition, Sherwin-Williams has experienced steady growth across all three key divisions: Stores, Coatings and Industrial. Alongside sales and profit improvements, Sherwin-Williams continues to invest and focus on their operational proficiency. In 2023 for example, they completed 283 continuous improvement projects focused on sustainability and operational efficiencies at all manufacturing sites. They have invested heavily in digital tools in the consumer and pro segments with job estimators and color
visualization tools for their end users. They even found success with their 2025 price increase strategy that kicked off in January.
In my time as a merchandiser, one of my struggles was deciding how much money I wanted to put in Sherwin-Williams’ pocket by carrying their products. Their brands like Minwax, Purdy and Thompson’s are strong and recognizable. But we stood on the principle of not supporting our competitor and eliminated as much Sherwin-Williams product as we could from our stores. We replaced Purdy with Wooster and Minwax with Old Masters, among other conversions. As far as we could tell, we never missed a beat. Many contractors even preferred buying products not associated with a giant corporation.
Staying Competitive in Your Market
On the Q3 2024 earnings call, Sherwin-Williams CEO Heidi Petz credits “distracted” competitors for an “unprecedented” market share opportunity due to competitors being “distracted or inconsistent in their execution” while Sherwin-Williams focuses on “consistency, stability and reliability.” Rather than operating distractedly, retailers need to lean on those value propositions that set them apart.
Photo courtesy of: The Sherwin-Williams Company
One way to avoid being distracted in your market is with your personal connection to your customers. That said, sometimes we fool ourselves into thinking that our personal relationships will keep our customers 100% loyal. Even your best customer is probably picking up some sundries online or at the big-box store. Some may buy paint or primer elsewhere from time to time. Retailers need to evaluate their operations to verify they are providing all the convenience and service they can to their best customers.
Relationships are critical, but they must be supported by robust and sustainable strategies for strong operations. For instance, when your most knowledgeable employee can’t be at the paint counter, you need to assure that the top tier contractor will still get a great stain match.
Independent operators also need to have solid and comprehensive operational procedures that are executed reliably in order to compete most effectively. This includes everything from having your tint machines and shakers maintained on a rigorous schedule to training everyone at the paint desk in all aspects of paint selling and customer service. Independents beat the behemoth by caring more, working harder and simply doing it better. But that requires relentless attention to detail.
Several dealers across the country shared experiences from their markets in competing with Sherwin-Williams. A Chicago area dealer leverages their diversity of product offering to go up against Sherwin-Williams as they have a smaller portfolio of solutions they can sell from.
Most dealers agree that the local Sherwin-Williams store and reps usually prioritize sales of gallons and market share as the top priority. There’s a perceived disconnect in some instances where corporate may set profit goals, but local and regional sales operations may have volume goals that supersede profit incentives. This leads to things like local stores and reps setting some crazy pricing practices, right down to giving away pails of primer to your best customer just to try to win a little favor with them and disrupt your relationship. As one Minnesota seller put it, “they can just buy the business.”
Despite this perception, Sherwin-Williams has reported 12 straight quarters of year-over-year margin expansion in their Stores group through six months of this year, so they have figured out a way to maintain the low price image and still be profitable.
Independent paint retailers should be paying attention in their market to see if their customers are getting free product from Sherwin-Williams. Pro tip: walk the paint out to the contractor’s van and see for yourself if your best customers are buying elsewhere.
Product differentiation is another path, though it can be tough to communicate. When a contractor is bidding a job, a $10-$40 per gallon difference in paint can make a significant difference in how much they make on the job, even though labor typically makes up over 75% of the job cost. Even when you extol the virtues of a product you sell versus a competitor, it’s difficult to get the contractor or homeowner to really care about the quality of the finish or to understand what the quality differences might mean to them.
Sherwin-Williams CEO Heidi Petz speaks at an event marking progress at the new headquarters in Cleveland, Ohio.
Photo courtesy of: The Sherwin-Williams Company
Darrell Baker is one of NHPA’s Strategic Consulting advisers. NHPA
Strategic Consulting is a new service from NHPA to connect independent retailers one on one with trusted retail experts and advisers to help you solve your most pressing business challenges.
NHPA consultants have spent their entire careers working for some of the leading independent retailers in our industry. They know how to help you grow your business because they each have specific areas of expertise within the greater framework of operating an independent home improvement retail operation. They have been in the retail trenches, and they know what works. The solutions they provide are deeply rooted in their experience and extensive track record for innovation and success. Like NHPA, they have no bias toward any one entity, and have been thoroughly vetted by your association.
Learn more at about the program by visiting YourNHPA.org/consulting
That’s why sales training is so important. Your staff should be able to effectively explain the value of Benjamin Moore’s Aura versus Regal or PPG’s SPEEDHIDE versus PROMINENCE. If you sell Benjamin Moore, your team needs to be able to explain the Gennex system and its value. Beyond architectural coatings, many independent dealers find success with more specialty coatings like epoxy and urethanes, especially if you’re NACE-certified and can work with a good manufacturer rep to provide formal bid specs. Of course, there’s always window coverings, wallpaper and flooring as additional revenue possibilities that the competition may not be tapping into.
A Rhode Island dealer with all of these product options also wins by buying big on promotion. With dedicated warehouse space, they are able to stock up on key items when sellers need to sell thus staying competitive on price and building margin.
One final differentiator is how you treat people, especially your team. Some of my best paint hires over the years came from Sherwin-Williams where they have a fantastic training program, but many had become frustrated due to lack of opportunity or didn’t care for
the reality of flying solo in a paint store. Mark Lipton, an industry influencer who monitors Sherwin-Williams and the industry closely, agrees that treating your community with dignity and respect is something that resonates with customers. He’s bullish on the independent channel, particularly those that are supported by well-funded operations like Ace and Benjamin Moore among others.
Sherwin-Williams is a $23 billion dollar behemoth with over 50% U.S. market share by most estimates. Reading their quarterly earnings call transcripts is a great way to pick up relevant information on the broader market and keep up with what Sherwin-Williams is up to. You can also follow the Home Improvement Research Institute and look at other data provided by the North American Hardware and Paint Association to gain insight. Despite the headwinds, independent retail can still thrive in our respective markets by being proficient operators, focusing on the well being of our communities and building personal relationships with all that grace our doors. Know your market. Know your competition. Make them work for every penny. Our industry depends on it!
Treating your employees and customers with respect and providing them with the training to be successful is key to competing with the big boxes in your neighborhood.
URIGHT TURN
BY LINDSEY THOMPSON
nsure of what the future would hold or even what he wanted his future to look like, Kane Wilbanks turned to the military, joining the U.S. Marine Corps in 2017.
“The unknown really drove my motivation to join the Marines,” Kane says. “I was undecided on my education plans after high school, and this unknown phenomenon felt like a challenge that had to be conquered.”
Kane served in the Marines until 2021, working primarily as a purchasing agent and “holding billets” in several supply fields. In the military, a billet refers to a specific role or assignment, often fulfilling leadership or operational needs.
While being able to fulfill different roles was rewarding, Kane says it was the people he met and worked with along the way that made his experience truly satisfying.
“When I talk about my favorite part of serving, it’s always hands down the people,” Kane says. “The military as a whole is a melting pot of ethnicities, cultures and personalities that exposed me to so much more than the traditional small-town USA I grew up in. Everywhere I went, I met lifelong friends who I routinely still speak with.”
Kane Wilbanks Turns to Military to Map Out His
Future
Kane Wilbanks turned to the U.S. Marines Corps when he was looking for direction in his life after high school.
Honoring Those Who Served
The Helmets to Home Improvement program is dedicated to celebrating industry veterans for their service to our country and their contributions to the independent channel. Learn more about all the 2025 honorees by downloading our 2025 Helmets to Home Improvement e-book.
Taylor Cox Cox Hardware & Lumber
Cassie Cirisan Frankenmuth True Value
John Azaltovic Cole’s Hardware
Alex Porter Porters Building Centers Ace Hardware
James Kleinman Luu Color Center
John Wallace Wallace Distribution Co.
Dan Walton Do it Best
Chris McDaniel MANS Lumber
Michael Wallace Wallace Distribution Co.
Sam Ransdell Burney True Value
Andrew Horton Ziggy’s Home Improvement
Michael Almeida Sunset and Co.
OPERATIONS
Meet the Honorees
Helmets to Home Improvement has honored so many great veterans this year. Visit YourNHPA.org/veterans to download the special edition e-book and read the honorees’ stories.
PAYING TRIBUTE
While there is no way to repay the sacrifices made by veterans of the armed forces, the North American Hardware and Paint Association (NHPA) recognizes that not only have these individuals made a lasting impact on their country, but they are also a prominent and positive influence within the home improvement industry.
To honor the ongoing impact military veterans make throughout the home improvement industry, in 2025 NHPA launched the Helmets to Home Improvement recognition program, with the National Hardware Show (NHS) as the program’s official founding sponsor and venue partner.
We need your help honoring these amazing men and women. Please visit YourNHPA.org/veterans to nominate a Helmets to Home Improvement honoree.
Kane Wilbanks’ favorite part of serving in the military was the relationships he built and the
camaraderie he shared.
Brothers in Arms
Nominate a Veteran
Help us honor those who have served our country and our channel. Visit YourNHPA.org/veterans to nominate a veteran from your business to be recognized.
After hanging up his boots, Kane’s mother, Jennifer Gresham, introduced him to the independent home improvement channel.
“After my time in service, you could say she was the one who recruited me into my next chapter,” Kane says.
Kane is a sales representative for Orgill, serving the North Mississippi territory.
Just like his time in the Marines, Kane’s favorite part of being in the independent industry is the people.
“It is hard to narrow my favorite part of the channel into one singular part, but it would have to be my relationships with my customers,” Kane says. “After spending hours together every week, these relationships develop into family-like friendships, as much as professional colleagues.”
The combination of working with a variety of people while in uniform and his job as a purchasing agent made the transition into a sales role with Orgill seamless, Kane says.
“All of those skills go hand-in-hand with my current role,” he says. “I hold great gratitude for the men and women who shaped me into the person I am today. The experiences I gained along the way have given me direction on how to handle day-to-day operations, stressful deadlines, difficult projects and so much more.”
Military veterans are often looked at in a different light, Kane says, but he believes this is what makes them such an excellent fit for the independent channel.
“Veterans are disciplined, hardworking and subject matter experts in their respective fields. In this channel, I would say that is exactly what I would look for when seeking any role for a potential new hire,” Kane says. “These men and women have shown they have what it takes to learn and to be dependable and will continue to do so in this new channel.”
THANK YOU TO OUR PROGRAM SPONSORS
After leaving the military, Kane Wilbanks (left) starting serving in the independent channel as a sales rep for Orgill. A New Assignment
RESOURCES
Centralizing Security
Read more insights from RH-ISAC on how you can make cybersecurity a core part of your business strategy at PDRmag.com/cybersecurity-strategy
EMAIL & INVOICE FRAUD
The Cyberthreat That Looks Like Everyday Business
BY LUKE VANDER LINDEN, VP OF MEMBERSHIP & MARKETING, RETAIL & HOSPITALITY ISAC
EVERY DAY, retailers may receive hundreds, if not thousands, of emails, invoices and payment requests. While these communications may seem standard, they present enticing opportunities for cybercriminals to impersonate trusted contacts, exploit relationships and redirect money or sensitive information.
Here’s a look at common “business email compromise” scams that show up in retailers’ inboxes, how they work and how to recognize and avoid them.
Types of BEC Scams
Attackers can execute BEC scams in different forms, but the goal is consistent: to manipulate employees into sending money or revealing sensitive data.
Understanding the main types of BEC scams can help teams better recognize the red flags.
Domain Spoofing
In domain spoofing attacks, bad actors create email addresses that look like those of legitimate suppliers, partners or colleagues. For example, these lookalike domains may have added, removed or substituted just a single letter.
Their emails often also copy brand elements like logos, font, color and email signatures to appear more authentic.
Some hackers may even go as far as creating live websites that mimic real supplier or partner sites, adding another layer of legitimacy to fool cautious employees who are trying their best to verify a suspicious email.
Social Engineering
Another common tactic is manipulation, where hackers pose as a store manager or supplier executive requesting urgent payment.
Often, these attacks lean into personal authority, using urgent or even angry language to pressure employees into acting quickly. In some cases, serious hackers spend weeks building up rapport through emails to gain an employee’s confidence before making a fraudulent payment request.
Unfortunately, these attacks are becoming more common, with a recent report showing that BEC scams made up 58% of phishing attacks in Q3 2024, of which nearly 9 in 10 involved impersonation of authority figures, like CEOs and IT staff.
Compromised Accounts
BEC scams can extend beyond impersonation. Some attackers succeed in gaining direct access to a supplier’s actual email system, often through another phishing attack or by taking advantage of cybersecurity hygiene mistakes like password reuse.
From there, the hacker can monitor real-time communications with employees and then capitalize on a ripe opportunity to send a fraudulent invoice or alter payment details on a legitimate order.
These scams are particularly dangerous because the emails come from authentic domains, which means even the most security aware staff can still be tricked.
What Are BEC Scams?
Business Email Compromise (BEC) scams describe a type of cyberattack where criminals impersonate trusted business contacts, such as suppliers or executives, to manipulate targets into sending money, sharing sensitive information or approving fraudulent transactions.
Unlike ransomware or malware attacks, BEC scams don’t rely on brute force. Instead, they’re a delicate combination of subtlety, timing and context, in which attackers make fraudulent requests to employees look like normal operations.
The effects can be startling. According to the FBI Internet Crime Complaint Center (IC3)’s 2024 Internet Crime Report , BEC is one of the top sources of financial loss among all cybercrimes and attackers continue to advance in scale and sophistication.
Why Hardware Stores Are Prime Targets for BEC Scams
All businesses are at risk of BEC scams. But hardware stores have a unique set of operational realities that make them particularly attractive, and vulnerable, to BEC scammers’ advances.
Heavy Reliance on Email
Hardware stores have a large network of external partners, including suppliers, manufacturers and logistics providers. Email is often the default for sending invoices, shipping notices, order updates and payment processing. With so many financial and operational touchpoints, hardware stores’ email systems create abundant opportunities for fraudsters to slip in malicious emails.
High Volume of Special Orders
Unlike standard retailers, hardware stores regularly manage custom orders for contractors and DIY customers. These transactions can often involve lengthy back-and-forth communication, prime conditions for invoice fraud or impersonation. Plus, the variability in order size makes even odd-sounding requests feel plausible.
Limited Cybersecurity Resources
Many hardware stores are small or family-run businesses without dedicated IT teams or enterprise-level security tools. This makes it harder to detect sophisticated threats or enforce cyber hygiene best practices. As a result, attackers often see these stores as low-hanging fruit.
Trust-Based Culture
Strong relationships with vendors and informal email habits are common in the hardware industry. Because employees may recognize a name or email address, they may be more likely to assume legitimacy and take action without verifying sender details or payment instructions. While trust is valuable in business relationships, it leaves the door open for BEC scam manipulation.
Common BEC Scams Hardware Stores Should Know
BEC scams are designed to look run-of-the-mill and ordinary, so it helps to know the warning signs. These are three common scenarios hardware store owners should be prepared to spot.
Fake Supplier Invoice
An attacker spoofs a trusted vendor’s email and sends what looks like a routine invoice. The formatting, logo and tone match previous communications, but crucially, the bank account details have been changed.
To reduce suspicion, the invoice may include a note that the supplier has “updated” their payment process. If the payment goes through, it’s the hacker who makes off with the funds.
Red flag to watch for: Be wary of sudden bank changes. Always verify requests using a trusted contact method like a phone call outside of email.
Executive Impersonation
An attacker poses as the store owner or manager and emails or calls an employee with an urgent payment request. These messages often arrive outside regular hours and lean into a sense of authority to create stress and pressure employees into processing payments fast without following typical approval protocols.
Red flag to watch for: Unusual timing and urgency from leadership should be concerning. Train employees to reject requests to bypass normal approval procedures, even when they appear to come from executives.
Customer Order Scam
An attacker pretends to be a customer placing a special order, and they even make a payment with a real credit card. But soon after, they request a refund—with the funds directed to a different account. What the employee doesn’t know is that the attacker has already “reported fraud” to their credit card company, who reverses the original charge, leaving the store covering the refund 100% out of pocket.
Red flag to watch for: Never send refunds to accounts that differ from the original payment method.
BEC scams succeed because they blend into the everyday flow of business. They look like regular emails, use trusted names and rely on urgency to override caution. For hardware stores managing frequent vendor, partner and customer interactions, the risk is significant—but defense starts simply with awareness and preparation.
Often, the most effective defense is resource- and community-building. By partnering with industry consortia, like RH-ISAC, hardware retailers can exchange threat intelligence, share best practices and access tools to support staff training.
With clear protocols and a community of shared knowledge, hardware store employees can move from being easy targets to a strong first line of cybersecurity defense.
Product Know-How
Employees at Mountain Paint & Decorating are trained and equipped to assist customers with coatings and specialty paint products, from simple to complex.
OPERATIONS
Coatings That Sell
Learn the marketing and training techniques to sell a specialty paint category at PDRmag.com/specialization-sells
CATEGORY FOCUS
Coatings Conversations
BY ANNIE PALMER
PRODUCT KNOWLEDGE DRIVES COATINGS OFF THE SHELVES
From high performance industrial paint to garage epoxies and coatings, a specialty paint category is an essential department in any operation serving both commercial and DIY customers.
At Mountain Paint & Decorating, with three locations in Asheville, North Carolina, the coatings and specialty paint category is an important revenue driver, thanks to the expert education and service that owner Ted Hughes and his employees provide to customers visiting the
store for specific projects. Nearly 70% of total sales at Mountain Paint comes from the coatings and specialty paint category.
“We carry a variety of specialty paints, from limewash masonry paint to metallic and chalkboard paint, concrete stains to industrial epoxies and urethanes,” Hughes says.
Hughes shares how he relies on intentional customer conversations and a curated product selection to move product in the coatings and specialty paints category.
Project Discussions
Mountain Paint’s coatings sales, and a significant portion of the store’s traditional paint sales, are not generated through traditional merchandising techniques such as elaborate product displays.
At Mountain Paint’s Biltmore store location, specialty paints live out of sight of customers.
The 5,000-square-foot store is divided in half by a firewall, with a retail salesfloor and the store’s merchandise on one side and a warehouse storing paints and coatings on the other side.
“Our coatings section is a conversation piece for us because customers have to ask to see those products and then we can guide them to the right one,” Hughes says.
Hughes says customers don’t typically come in asking for a specific coating, but rather find the right products by talking to employees about a project they are working on.
“We have brochures out on the salesfloor, so customers can learn more about our coatings without asking us, but typically people walk in the store, tell us what type of project they are working on and we tell them what to do,” Hughes says.
“We usually also print them a tech data sheet that has a lot of detail. We walk them through the whole process.”
—Ted Hughes, Mountain Paint and Decorating
All coatings at Mountain Paint & Decorating live behind the counter in the store’s warehouse, prompting employees to have intentional conversations to sell these products. Behind the Shelves
Accurate Application
Stocking the right paintbrushes and applicators for coatings and specialty paints can make a big difference in customer satisfaction and sales. From high-quality tools for professional painters to affordable options for DIYers, independent retailers have an opportunity to build trust and boost revenue by offering a well-rounded selection.
Natural Bristle Brushes
Ideal for oil-based paints, varnishes and shellac, natural bristle brushes hold more paint and ensure a smooth finish.
Blended Nylon and Polyester Brushes
Durable and precise, these brushes are easy to clean, work with latex paint and are built to complete paint projects several times.
Natural Roller Covers
Made of mohair or sheepskin, natural roller covers are used for oil-based paint.
Blended Roller Covers
Also durable, blended roller covers are often made of wool and polyester for durability and flexibility to use with all paint types.
Pad Applicators
Ideal for indoor and outdoor painting projects, pad applicators can be used for exterior siding, concrete block, shakes, shingles and fences, as well as on interior walls, ceilings, floors and doors.
With so many different variations, understanding specialty paints and coatings and knowing the best products to stock is a complex undertaking. Asking customers the right questions and offering them visual resources will help customers know how to use these products and the best projects to use them for, Hughes says.
Walking customers through their entire project, including the prep, application and cleanup, and presenting the information in a digestible way—especially when it involves a new product or the customer doesn’t have experience with the medium—is also important, ensuring the successful completion of their project and fewer errors.
“For a garage coating for example, we will grab the kit out of the back and show and talk to a customer about what’s in the kit. We usually also print them a tech data sheet that has a lot of detail that you have to think about when working with some of these products,” Hughes says. “We walk them through the whole process.”
News to You
Subscribe to our weekly newsletters at PDRmag.com/subscribe to get the latest news and trends.
A Reimagined NHS Coming in 2026
For 80 years, the National Hardware Show (NHS) has brought together the home improvement industry and has served as the premier trade event for the industry, connecting global manufacturers, retailers, associations and media to showcase innovations and discuss industry trends.
NHS has seen a number of evolutions over the years as it has continually worked to meet the needs of a dynamic home improvement industry and in 2026, is launching NHS Concept to Commerce.
NHS Concept to Commerce will be the only trade show in the home improvement industry uniting retailers, brands, manufacturers, distributors, inventors, private-label providers and global factories under one roof with one clear goal—to accelerate product discovery, strengthen manufacturing partnerships and speed up time to shelf.
“We listened to our customers and are responding to their needs,” says event director Hector Morfin Chong. “Faster trend cycles, tighter margins and the need for exclusive products now require retailers and brands to move quickly and source smarter.”
The newly reimagined event—which includes a redesigned, purposeful layout and curated programming—will take place March 31–April 2, 2026, at the Las Vegas Convention Center West Hall, preceded by an International Exhibitor Summit on March 30.
Whether attendees are looking to discover what’s next in the market, build private label lines or launch new products, this show delivers clear pathways to do it—faster, smarter and more competitively, Morfin Chong says.
Differentiation is top of mind for many independent retailers, and Concept to Commerce will offer a unique way for them to walk the floor and find new and innovative products they won’t see at other locations.
“NHS Concept to Commerce allows independent retailers to find those hottest products and bring in something new and different to their retail location that might not be offered to them at other places,” Morfin Chong says. “Being on the forefront of these new and innovative products gives independents a competitive advantage to other retailers in their neighborhood.”
Learn more about NHS Concept to Commerce at PDRmag.com/nhs-transforms
Guidance From a Name You Trust Why
NHPA Strategic Consulting?
Mission Focused & Non-Biased
The North American Hardware and Paint Association (NHPA) is excited to launch a new service—NHPA Strategic Consulting—which connects independent retailers one on one with trusted industry experts, to tackle your most pressing business challenges.
Our consultants have spent their careers working for top independent retailers. They know what works and how to help your business grow. Each consultant brings deep expertise in key areas of running a home improvement retail operation, backed by a proven record of innovation and success.
Like NHPA, our consultants are unbiased and fully vetted by your association. Their guidance is rooted in real-world experience, giving you practical solutions to take your business to the next level. When you partner with NHPA, you gain access to retail professionals who’ve been there, led teams and built success from the ground up.
As a trade association, it’s our mission to connect you with the best retail minds in the industry who can provide the best solutions for your specific needs.
Our consultants are NHPA-focused and loyal only to your business.
Extensive Retail Experience
Decades of experience in leadership roles at leading independent home improvement stores.
Specialized Retail Expertise
Each consultant specialize in core areas that drive your business.
Proven Industry Leaders
Renowned experts shaping NHPA’s programs, education and trade magazines.
Trusted NHPA Vetted Advisors
Active in NHPA’s roundtables, guiding key industry discussions for independent retailers.
14,920 14,782 9,804 9,248
10,174 9,617 4,407 4,962 112 38 4,519 5,000 14,693 14,617 227 165 14,920 14,782 69.2%
Buy a Store | Sell Your Business | Post a Job, Get a Business Valuation | Find a Lender and More
BUSINESS FOR SALE
Northwest Farm & Home Supply Co.
Location: Lemmon, SD
Gross Revenue: $3.21 million
The main building is a total 27,213 sq. ft. of retail and warehouse space on 4 acres. The main bldg. was constructed in 1994 with additions constructed in 2002 and 2004.
Single story with 22’ clear height in 11,459 sq. ft. of lumber warehouse, three grade level doors and two dock height doors.
BUSINESS FOR SALE
Hoosick True Value
Location: Hoosick Falls, NY
Gross Revenue: $1.26 million
Price: $1.875 million
This opportunity offers a turnkey sale of a general hardware business located in northeastern Rensselaer Co., New York. The business serves five towns and southwestern Bennington Co., Vermont, and 25 miles east of Troy, New York.
SEEKING BUSINESSES
The Aubuchon Company
For our next acquisition, we are looking for:
• Single-store and multi-store hardware operations
• Located in northeast and southeast United States
• Store size of 5,000-30,000 ft 2
• At least $3 million in average store sales
SEEKING BUSINESSES
BUSINESS FOR SALE
Home Improvement Supply Store
Location: Missouri
Gross Revenue: $1.04 million
This historic home improvement and hardware store is a staple of its community and operates from its headquarters in the Kansas City Metropolitan Area of Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products.
BUSINESS FOR SALE
Albrights Hardware & Garden Center
Location: Allentown, PA
Gross Revenue: $1.9 million
Price: $800,000
Albrights Hardware is an established hardware store with strong neighborhood ties and has been a Lehigh Valley staple for over 50 years. The current owners have owned the store since 1992. Albrights serves its loyal customer base by providing quality products and exceptional customer service.
SEEKING BUSINESSES
Bolster Hardware
We are looking for:
• Geography agnostic
• With or without real estate
• Store revenues of $1.5M+
• We prefer to honor the family name and heritage in the local community by not changing the name
• We prefer to keep all employees as part of the acquisition
JOB LISTING
The Helpful Hardware Company
We are looking for:
• Single-store units in the southeast and multi-store groups with 3+ units nationwide
• Store size of 5,000 ft2-35,000 ft2
• Supplier agnostic
• Store revenue: $1.75M+
BUSINESS FOR SALE
Central Vermont Paint, Flooring and Decorating Business
Location: Vermont
Gross Revenue: $2.82 million
Price: $1.1 million
Full-service decorating store providing flooring, paint, window treatments, kitchen/bathroom remodeling, cabinetry product offerings, design assistance, specialized service, and professional installation.
BUSINESS FOR SALE
Private Business
Location: Alabama
Gross Revenue: $2.21 million
Price: $649,000
BUSINESS FOR SALE
Private Business
Location: Pennsylvania
Gross Revenue: $1.6 million
SEEKING BUSINESSES
Gold Beach Lumber Yard
We are looking for:
• Single-store and multi-store hardware operations
• Located in the Pacific Northwest
• Store size of 5,000 ft2-30,000 ft2
Randall Lumber & Hardware, Inc.
Position: Hardware, Ranch and Feed Department Manager
• Annual Salary: $48,000-$55,000
• Bachelor’s Degree or 5 years of experience in similar role preferred
• Strong leadership skills and creative thinking are a bonus
Price It Right
As independent retailers examine their pricing strategies, discover what to keep in mind at PDRmag.com/effective-pricing
PROFIT POWER
The Basics of Pricing Strategy
Like many facets of retailing, pricing strategy is part art and part science. How a retailer sets prices will have a direct impact
on the viability of the business. Here are five pricing best practices that can help new managers keep their businesses competitive.
It’s Not All About Price
Pricing is only one component of a retail strategy that includes inventory management, marketing, merchandising, product choice and customer service. All components need to be running efficiently for a pricing strategy to work.
Control Your Price Image
Customers form a perception about your prices through sometimes subtle messaging. Merchandising, such as endcaps, dump bins and pallet displays, and running promotional events can send the message that you have low prices.
Stick to Your Prices
While you want to offer customers a reasonable price, don’t be afraid to hold your ground on what you know is a necessary price change to keep your business profitable.
Take Advantage of Bulk Purchases
Look for volume discounts or special buys from your wholesaler or vendors. Taking advantage of these discounts and stocking up will allow you to raise your margins while keeping your cost steady.
Educate Staff on Margin
Help employees understand the difference between margin and markup. Markup is the difference between the wholesale and retail price and margin is that same difference expressed as a percentage of sales and a better way of understanding profit.
