Issuu

Vol. 69 • Issue 5 • November 2026 • PDRmag.com

Published by the North American Hardware and Paint Association

Focused on the Future How 1 Retailer Navigated the Bumps of Succession Planning Page 14 The Paint Colors Turning Heads in 2027 Page 22 Lean Into Brand Loyalty to Sell Hand Tools Page 36

NOVEMBER ISSUE SPONSOR

Cost of Doing Business Study

Improve Financial Performance GAIN ACTIONABLE INSIGHTS WITH THE INDUSTRY’S BENCHMARK TOOL

Scan the QR Code to learn more and take the survey.

2026

NHPA’s Cost of Doing Business Study shows you where you stand in the paint retail industry. Your participation ensures the benchmarks reflect the latest trends and challenges, helping you plan for growth and profitability.

Why Participate? Your financial results compared to the industry’s best retailers Benchmarks for eachlLine item on your profit and loss Participants receive quarterly updates on financial and operational KPIs Schedule a financial gap analysis with an NHPA strategic consultant to review your results

Participate in the survey, share your data and help shape this year’s industry benchmark.

Vol. 69 • Issue 5 • November 2026 • PDRmag.com

Published by the North American Hardware and Paint Association

Focused on the Future How 1 Retailer Navigated the Bumps of Succession Planning Page 14 The Paint Colors Turning Heads in 2027 Page 22 Lean Into Brand Loyalty to Sell Hand Tools Page 36

Have Questions? Contact Cody Goeppner at cgoeppner@YourNHPA.org

Your Daily Dose of Microtraining NHPA’s RetailWise Plus, an AI-powered program, delivers 365 two-minute lessons in English, Spanish and French-Canadian. Built for independent hardware, paint and lumber retailers, it fits seamlessly into your store’s day—no long classes, no complicated schedules. Strengthen skills, service and team culture, one lesson at a time.

WHAT’S NEW

“Two minutes may seem short, but when that time is intentional and focused, it becomes incredibly powerful. These micro-lessons help retailers strengthen their teams without pulling them off the salesfloor.”

365+ Microtraining Videos 14 Educational Categories 100% Device Accessibility Seasonal & Quarterly Updates

Subscribe Today! Scan the QR Code to sign up for RetailWise Plus or visit YourNHPA.org/retailwise.

Cody Goeppner Director of Education and Training, NHPA

U A RT

E RS

1025 E. 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org COMMUNICATIONS

COMING IN JANUARY

OUR MISSION

Does Your Operation Measure Up?

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.

Coming in January, the 2027 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.

Lindsey Thompson lthompson@YourNHPA.org Editor and Associate Publisher Jacob Musselman jmusselman@YourNHPA.org News & Digital Editor Annie Dameworth adameworth@YourNHPA.org Content Development Coordinator Autumn Ricketts Senior Designer Olivia Shroyer Marketing Manager Samantha Mitchell Production & Design Assistant Freda Creech Sales & Production Assistant

ASSOCIATION PROGRAMS 800-772-4424 | NHPA@YourNHPA.org

PAINT & DECORATING RETAILER Paint & Decorating Retailer (ISSN 0011_8910), Copyright © 2026 by the North American Hardware and Paint Association (NHPA), is published four (4) times per year (January, April, July, October) by the North American Hardware and Paint Association, 1025 E 54 St, Indianapolis, IN 46220. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/ year. Canada $75/year. All other countries $110/ year. Single copy $7. The Annual Report issue can be purchased for $30. Business and Editorial Offices: 1025 E 54 St. Indianapolis, IN 46220

Jesse Carleton jcarleton@YourNHPA.org Training Manager & Editor

Accounting and Circulation Offices: The North American Hardware and Paint Association, 1025 E 54 St., Indianapolis, IN 46220. Call 317-275-9400 to subscribe.

SALES Austin Vance avance@YourNHPA.org Director of Media Sales Jordan Rice 217-808-1641 | jrice@YourNHPA.org Regional Sales Director Jake Cutter 317-363-0776 | jcutter@YourNHPA.org Regional Sales Representative—Central Dan Beck 518-852-9624 | dbeck@YourNHPA.org Regional Sales Manager—West

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES CIRCULATION DIRECTOR Richard Jarrett, 314-432-7511, Fax: 314-432-7665 gcscs8@gmail.com

Bob Cutter CEO Scott Wright President & Publisher Dan Tratensek Chief Operating Officer

Cody Goeppner cgoeppner@YourNHPA.org Director of Education & Training

Christina Kane ckane@YourNHPA.org Member Services & Event Coordinator

NHPA EXECUTIVE STAFF

Periodicals postage is paid at Indianapolis, IN and additional mailing offices. POSTMASTER: Send address changes to Paint & Decorating Retailer, P.O. Box 16709, St. Louis, MO 63105-1209.

David Gowan Chief Financial Officer & Executive Vice President, Business Services

NHPA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia EXECUTIVE VICE CHAIRMAN Ash Ebbo, Clement’s Paint, Austin, Texas IMMEDIATE PAST CHAIRMAN Ned Green, Weider’s Paint & Hardware, Rochester, New York DIRECTORS Christian Herrick, Randy’s Do it Best Hardware, Jackson, Virginia Michelle Meny, Meny’s True Value, Jasper, Indiana Jeremy Peterson, Family Hardware, Florida Katie Prus, Abbotsford Paint and Decorating, British Columbia, Canada Michael Sacks, FLC Holdings, LaGrange, Texas Emily Wood, Wood’s Ace Hardware, Bolts & Brews SECRETARY-TREASURER Bob Cutter, NHPA

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 Osborne St. N. Winnipeg, MB R3C 1V4

November 2026 | PAINT & DECORATING RETAILER

N T E N TS

Volume 69 | Issue 5 | November 2026 Paint&DecoratingRetailer

PDRMagazine

DEPARTMENTS

FEATURES

Association Viewpoint: Dan Tratensek..........................................4

Colors Galore.......................................................22

Association Viewpoint: Scott Wright............................................... 5 Industry Viewpoint: Mike Aylen............................................................ 6 Fresh Coat................................................................................................................ 8

We’ve compiled all of the 2027 Color of the Year picks announced so far to give you leg up on the hot colors coming in the next year. See what each of the major paint manufacturers have chosen to grace the walls in any home.

New Products.................................................................................................... .10 Newsmakers.......................................................................................................42 Calendar.................................................................................................................43 Finish.........................................................................................................................44

14 COVER STORY

What Happens After You When it’s time to sell your business, will you be ready? Learn how one retailer successfully navigated the challenges of shifting ownership from one generation to the next.

Building Stronger Defenses.....................26 Fraudsters are using AI and automation to scale their cyberattacks, and independent home improvement stores are attractive targets. Learn the warning signs of retail fraud and practical steps independent stores can take to protect their businesses.

Frontline Leadership..................................... 30 Hear from a Navy SEAL turned CEO and an Army National Guard veteran leading a lumberyard and how their military experience has informed their success in the independent channel.

Handy Strategies..............................................36 Two retailers share tips on impulse merchandising, curated product assortments and managing vendor relationships to boost sales in the hand tools, knives and blades category.

PAINT & DECORATING RETAILER | November 2026

CONTROL THE STAIN

MASTER THE SURFACE

Old Masters® Gel Stain Stays Where It’s Put. The professional’s secret for fiberglass, metal, and wood

myoldmasters.com | (800) 747-3436 | SCAN QR CODE FOR MORE INFORMATION

WP OI N

CONNECT

dant@YourNHPA.org

Dan Tratensek

FROM THE ASSOCIATION

30 Years, 2 Names, 1 Mission

“While our name has changed, many of the faces representing the association have changed and the tools we use to educate, advocate and associate with the industry have changed, our mission remains the same.”

his month officially marks my 30th year working for NHPA. Actually, that’s only partially true. When I started working here late last century, this association went by a different name. Back then, we were the National Retail Hardware Association, or NRHA. That moniker evolved in the early aughts when we began offering services to retailers in Canada and adopted a more worldly meaning for our acronym, becoming the North American Retail Hardware Association. That changed once again about a half-dozen years ago when we expanded our membership to include paint and decorating retailers. From the ashes of NRHA, NHPA was born. Seems like a lot of evolution in three decades. Why, I’ve had the same name my entire life (except for that short stint when I borrowed the pseudonym Steve Beshakes). And who’s to say that five years from now NHPA will still be NHPA? In some ways, I hope it isn’t. I hope the association continues evolving to meet the changing needs of our members and the industry. Maybe it will be NHPRMNA or something. Who knows? But one thing I do know is that since the day a handsome young man with a head full of luxurious brown hair walked through NRHA’s front door (and I walked in right after him), this association has had the same purpose: helping independent retailers in this channel. As I head into my final few months as a regular, full-time employee of the association, I’m happy to say I don’t see this mission changing anytime soon. How we help retailers certainly has changed. When I started, Scantron sheets arrived literally by the truckload for our teams to grade employee training tests. Mailboxes overflowed with coupons and fliers for auditing co-op advertising claims and bookshelves were filled with three-ring binders holding training materials. Many of you are old enough to remember all of these references, but new times call for new solutions, and your association has responded. Today, we responsibly harness AI to help deliver training, host virtual roundtables to share ideas and have people working in laboratories around the world cloning my DNA so I can continue writing this column for centuries. Maybe not that last part. My point is that while our name has changed, many of the faces representing the association have changed and the tools we use to educate, advocate and associate with the industry have changed, our mission remains the same. It’s a mission I was proud of 30 years ago and remain proud of today: helping families secure their legacies, helping business owners serve their communities and giving a lot of good people a fighting chance against whatever retail Goliaths they happen to be facing this year. So, this is my long-winded way of saying thank you—and encouraging each of you not to resist change, but to recognize it and embrace it as a natural progression. After 30 years, I’ve learned that change doesn’t mean abandoning who you are. Sometimes, it’s exactly how you make sure you can keep doing what you’ve always done best.

Dan M. Tratensek Chief Operating Officer

PAINT & DECORATING RETAILER | November 2026

WP OI N

CONNECT

swright@YourNHPA.org

Scott Wright

FROM THE ASSOCIATION

Try Many Things, Some of Them Will Work

L “You must constantly be trying new things because remaining stagnant in today’s retailing environment will lead to your eventual demise.”

ast month I had the pleasure of taking one of North American Hardware and Paint Association’s roundtable groups to Hartville Hardware in Hartville, Ohio. If you haven’t made the pilgrimage to see it for yourself, you really don’t know what you’re missing. Words and pictures simply can’t describe its size and scope. It is a treat for the retailing senses, measuring in at 305,000 square feet and covering two floors. It even has a full, life-sized idea house on the salesfloor, which is completely changed out every few years to keep it fresh and full of the latest styles for any room in the home. It’s a testament to family owned independent home improvement retailing, and like Buc-ee’s, it’s a destination, complete with a full restaurant (Hartville Kitchen), as well as the Hartville Marketplace and Flea Market, which flank the hardware store in both directions. Perhaps what’s most amazing is that the population of Hartville (located between Akron and Canton) is a mere 3,329, which makes Hartville Hardware’s 50-acre campus on the edge of town stand out even more. The numbers really don’t add up, yet the synergies between it all seem to multiply. During our visit, the group took a full tour of the store and spent time with Scott Sommers, the third-generation president of the hardware store division, as well as Howard Miller, a second-generation owner who is now semi-retired, or so he says. Howard and his brother Wayne were the ones who took the chance back in 2012 and built what is still considered the industry’s largest independent home improvement store. The walls of the upstairs offices are decorated with plaques featuring magazine covers (including Hardware Retailing and Hardware Connection), as nearly every industry publication has featured the store on the cover. I first met Howard about 8 years ago, working with him when he sponsored a student (Cody Miller) in NHPA’s Retail Management Certification Program. Since then I’ve taken several other roundtable groups for a visit, and Howard has graciously taken time to give tours of the store and talk with our group members eager to discover the “secret sauce.” He has even accompanied our roundtable groups to visit other group members’ stores because of his passion for retailing and his love of finding new ideas. Which brings me to my point and something Howard said to our group that totally resonated because of its wisdom and simplicity: “Try many things…some of them will work.” The concept suggests that not everything you try in your business will be a home run. Some will be failures. But it’s the constant trial and error (or trial and success) that matters most. Whether it’s trying a new category, a new service or a new technology solution, you must constantly be trying new things because remaining stagnant in today’s retailing environment will lead to your eventual demise. And it’s not just a numbers game, either, although that’s a key part of it. I believe it’s more about developing a culture and curiosity of what’s working for your peers, whether the idea comes from a roundtable meeting, your wholesaler or simply something you gleaned in the pages of our publications.

Scott Wright NHPA President and Publisher

November 2026 | PAINT & DECORATING RETAILER

WP OI N

OPERATIONS

Pricing Strategy Basics See five pricing best practices that can help you keep your business competitive at PDRmag.com/profit-power.

FROM THE INDUSTRY

Maximizing Margins With Smart Category Price Plans

elcome to the fourth article in the “Inside the Margin” series where I will be looking at growing sales and protecting margin on your contractor/pro customers through the use of better category price plans. Let’s start at the beginning—the building of your customer groups that will be assigned a category price plan. If you are starting this from scratch, I recommend limiting your customer groups to no more than 10. Of course, there will always be the need to have certain customers on their own plan based on volume, so these will be on top of those. Limiting the number of customer groups will make it easier to do regular reviews of the activity in each group and make the necessary adjustments when needed.

You can decide what your customer groups are based on your market, but for this example I am going to use plumbers and painters. You will need others based on activity, which could include builders, concrete workers, property maintenance, local councils and others. Use your current customer base to make your decisions. When deciding on a customer group, like painters or plumbers, the first step is to develop the criteria around why a customer gets allocated to a certain group. What day-to-day activities are they involved in? Is your decision based on sales volume? If so, you may need more than one group for each. I worked with a large retailer recently who developed three different groups—large, medium and small plumber—and discount rates based on monthly sales. The five main advantages of using this process are:

Meet Mike Aylen Mike Aylen has been working with hardware store owners in Australia and the U.S. to help them improve their retail pricing for over 15 years. With a no-nonsense approach, he guides retailers in using his SMART Pricing Program to develop more accurate and disciplined pricing strategies. These will grow sales and margin dollars on all items in the business, and importantly give retailers more confidence in their overall pricing direction.

CONNECT

Send Mike a Message mike@bloomretail.net Mike Aylen

It’s very easy to do your customer allocation based on current sales information.

You can reward customer loyalty. For example, you may have a customer, who based on your monthly sales criteria, only fits the medium group but gives you 100% of their business. You can reward this by advising them they are in your top group with the highest discount rates.

It enables you to make easy adjustments to your allocations when reviewing the customer sales information. This should be done at least twice a year and is easily accessible by running sales by customer reports. If you see a customer who has declining sales, you can organize a meeting to discover why.

The main advantage is that you can use it to grow sales. The more you know about each customer the better, so use this information to estimate what the potential monthly spend could be. Look at what they are buying from you and in what quantities. Find the gaps and then talk to the customer about why they are not buying all of their day-to-day needs from you. Advise them of your offer and what they could be getting if they put more business through your store.

You can easily set up a 60- or 90-day trial period group. Don’t just give a new customer your best deal right away. Too many times I have seen this happen, and the customer walks away after receiving the discount or promotion. Talk to the new customer about your criteria and how you hope this a beneficial relationship for both parties, then let them demonstrate that they can meet the criteria to be allocated into one of the permanent groups.

PAINT & DECORATING RETAILER | November 2026

CONSULT

Book a Consultation Scan the QR Code to book a consultation with Mike Aylen.

Category Price Plan Matrix

Customer Groups & Discount Rates

Department / Class

Plumber

Painter

Electrician

Builder

Concreter

Prop Mgr.

Cleaning

5.0%

10.0%

Paint

5.0%

15.0%

5.0%

8.0%

5.0%

Class - Liquid Paint

5.0%

20.0%

5.0%

8.0%

5.0%

Class - Ladders

5.0%

Plumbing

15.0%

5.0%

10.0%

Class - PVC Pipe

20.0%

5.0%

10.0%

Class - Fittings

20.0%

5.0%

10.0%

Class - Hot Water Units

0.0%

Electrical

5.0%

15.0%

10.0%

5.0%

10.0%

Class - Bulk Wire

5.0%

20.0%

10.0%

5.0%

10.0%

Class - Switches & Outlets

5.0%

20.0%

10.0%

5.0%

10.0%

Once your customer groups have been built, you can then decide on what your discount rates can be for each group. Do not make the mistake of putting a global discount across all departments because this is too generic and will cost you sales in many areas on commodity lines and margin on others where the discount is too high and unnecessary. If you are a Margin Master or Epicor Pricing Planner user, this is a great way to use your software for more than just setting retail pricing. You can look at each department and what the selling prices will be by offering a discount off retail price, just make sure your rounding is turned off when you do so. This will help you determine the correct discount rate at the department level and where the rate needs to be adjusted down to the class, fineline or

even SKU level. If you are not using either of these two pieces of software, you can do this manually in Excel. The reason you need to look at each department separately is to find the right discount rate for each group that helps you grow sales but protects margin by not giving it away accidentally. For example, I have seen retailers offer 15% off retail globally to groups of plumbers and painters. For the plumbers at 15% off, good luck making any money on hot water units or other low-margin, high-value items they might buy. For painters, offering 15% off will lead you to selling many ladders at a loss. I worked with a retailer who had set up a plumbers plan at cost plus 28% on all plumbing items. This sounded great in theory until I showed them they were selling a clamp at 94

cents when their competition was selling at $1.64. Do the work required to get your plans correct. Use a simple Excel spreadsheet to finalize discount rates for each group in each department and if there needs to be further breakdown into classes and finelines (see above for a snapshot of a plan I built recently) then build the category price plans into your system and allocate your customers accordingly. And please remember, if you are going to put a SKU-level exception on a plan, never lock it in at a certain price and make sure to use an expiration date. I look forward to bringing you the next topic in our “Inside the Margin” series.

Mike Aylen

Industry Expert and NHPA Strategic Consultant

November 2026 | PAINT & DECORATING RETAILER

S H COA

TRENDS

Pattern Play

These five tiles will inspire your customers in their bathroom renovations. Learn more at PDRmag.com/tile-trends.

Refining the Retreat Key Insights Into Homeowner Motivations for Remodeling Bathrooms M A S T E R B A T H R O O M remodels remain a popular renovation project for many homeowners in an effort to increase comfort, functionality and durability while keeping up with trends and curating a luxurious space to relax. For paint retailers, bathroom remodels present opportunities to embrace trends to sell paint, tile and flooring. Discover recent insights from The Home Improvement Research Institute (HIRI) about bathroom remodeling and see where to focus your inventory in this category.

Bathroom Remodel Project Completion

72% projects used contractors

Top Reasons Homeowners Hire Professionals

Ease and

55% convenience

Work

76% quality

22% projects used both DIY and contractors

60% expertise

Technical

6% projects used only DIY and/or help from family/friends

Top Paint Colors for Bathrooms

Fast facts on bathroom remodels in Q1: • The average total timeline from idea to project completion was 42 weeks • Over one-third of all project ideas originated in Q1 • 53% of project decisions were made December through March

Valspar

Clark+Kensington

Cottage Door

Vantage Point

• 20% of bathroom remodel starts happened in March Sources of information for ideas or advice on bathroom remodels: • Home improvement apps/websites: 30% • Social media: 25% • Manufacturer/store displays/brochures: 15% • Retailer websites: 14%

Benjamin Moore

Sherwin-Williams

Webster Green

Drift of Mist

PAINT & DECORATING RETAILER | November 2026

• Manufacturer websites: 11% Source: HIRI’s 2025 Project Decision Study for Interior Finish

Cost of Doing Business Study

Improve Financial Performance GAIN ACTIONABLE INSIGHTS WITH THE INDUSTRY’S BENCHMARK TOOL

Scan the QR Code to learn more and take the survey.

Participate in the survey, share your data and help shape this year’s industry benchmark.

PR O D U

C TS

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.

PORTABLE WATER TANK

The 2-Gallon GoSpout from WaterPORT is a portable pressurized water tank designed for cleaning, rinsing and outdoor use. It features a built-in hand pump, five-pattern spray nozzle, hose and nozzle holder, and it is made from food-grade plastic. WaterPORT | waterport.com

WORK GLOVES

SmartSkin Gloves from Brass Knuckle are lightweight protective gloves designed for cleaning, maintenance and general work applications. The gloves provide hand protection while allowing users to maintain dexterity for tasks that require handling smaller objects. Brass Knuckle | brassknuckleprotection.com

DOOR HARDWARE

The Capetown Trim from Kwikset is a door hardware collection designed for use across interior and exterior doors. The trim can be paired with compatible Kwikset knobs, levers and locking hardware to maintain a consistent design throughout a home. Kwikset | kwikset.com

PAINT & DECORATING RETAILER | November 2026

ROLLER FRAME

The Wooster Shergrip Roller Frame features a soft-grip handle, chrome-plated shaft, five-wire cage and threaded end with a Quik-Click connection for Sherlock GT extension poles and is available in 4-inch and 9-inch sizes. The Wooster Brush Company | woosterbrush.com

EPOXY DOSING GUN

The EASY-Q High Performance Dosing Gun from Repair Care dispenses the company’s two-component epoxy repair products in the proper ratio. The applicator is designed for repeated use during professional wood repair projects. Repair Care | repair-care.com

CORDLESS TOOL BATTERY

The BP 18 TBX 8 ASI Tabless Battery from Festool is an 18-volt, 8.0 Ah lithium-ion battery designed for high-demand cordless tools. It features tabless cell technology to reduce heat and internal resistance, AIRSTREAM cooling for faster charging and Bluetooth connectivity for compatible Festool dust extractors and the Festool app. Festool | festoolusa.com

November 2026 | PAINT & DECORATING RETAILER

POWDERED SPORTS DRINK

All Sport Zero Sonic Cherry Limeade Drink Mix is a sugar-free powdered electrolyte drink mix packaged in individual serving sticks. The mix is designed to be added to water for hydration during work, sports and outdoor activities. All Sport | drinkallsport.com

PAINT HARDENER

Rock Solid Paint Hardener from Spill Hero is designed to solidify leftover latex and acrylic paint for disposal. The powdered material is mixed into unused paint to turn the liquid into a solid material. Spill Hero | spillhero.com

MAGNETIC BELT PHONE CLIP

The RokLock Belt Clip with MagSafe combines a magnetic phone attachment with the company’s twist-lock mounting system. It attaches to belts, bags or straps to keep a compatible phone accessible while leaving the user’s hands free. Rokform | rokform.com

PAINT & DECORATING RETAILER | November 2026

Guidance From a Name You Trust NHPA now offers one-on-one consulting that connects independent retailers directly with trusted industry experts who’ve spent their careers leading top-performing home improvement and paint and decorating operations.

Why NHPA Strategic Consulting? Extensive Retail Experience Decades of experience in leadership roles at leading independent home improvement stores.

Specialized Areas of Expertise

Our consultants are seasoned pros—unbiased, vetted by your association, and deeply experienced in every major area of running a successful retail business. They’ve been in your shoes, led teams, solved complex challenges and driven growth from the ground up.

Each consultant specializes in core areas that drive your business.

With NHPA Strategic Consulting, you get practical, real-world solutions tailored to your store’s needs. It’s our mission to connect you with experts who can strengthen your operation, solve challenges and move your business forward faster, with confidence.

Renowned experts shaping NHPA’s programs, education and trade magazines.

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.

Real Retail Experience. Proven Solutions.

Scan the QR Code or visit YourNHPA.org/Consulting to sign up and learn more.

Proven Industry Thought Leaders

Trusted & NHPA-Vetted Active in NHPA’s roundtables, guiding key industry discussions for independent retailers.

Mission Focused & Non-Biased Our consultants are NHPA-focused and loyal only to your business.

A Legacy Continues

Sean and Tyger Paul, along with their daughter Evie, are the seventh generation in their family to own Dugan’s Paint and Flooring Center.

PAINT & DECORATING RETAILER | November 2026

R STO

Ready Handoff for the

Dugan’s Paint Successfully Meets the 7th Generation BY JESSE CARLETON

hen Sean Paul purchased Dugan’s Paint and Flooring Center six years ago, just the fact that he was the seventh-generation owner was an accomplishment in itself. But the real headline is that, in successfully moving from one generation to the next, the business was able to succeed where many others have failed. A study by the McKinsey Institute showed that in 2022 (just a year after Paul’s purchase of Dugan’s) 510,000 small businesses exited the market and 92% ended in a total closure, rather than a sale or transition.

November 2026 | PAINT & DECORATING RETAILER

These and other similarly startling statistics regarding the state of small business ownership could make it easy to despair about the future of independent retailing. But take a closer look at Dugan’s story and you’ll realize a successful ownership transition isn’t impossible, it just takes some hard work. Selling a small business is usually fraught with complicated conversations. You need more than an attorney to close the deal. Family businesses, in particular, must address emotional and operational issues that, if not dealt with properly, can doom the process from the start. Dugan’s provides a case study of how one business continues to thrive after navigating the challenges of a sale.

PAINT & DECORATING RETAILER | November 2026

An Industry in Crisis

While the ownership change at Dugan’s was successful, it’s unfortunately in the minority. A study by Project Equity shows there are 2.9 million U.S. businesses owned by people 55 or older. Those businesses represent about $6.5 trillion in annual revenue, including $1.3 trillion paid in wages. The Exit Planning Institute’s State of Owner Readiness research indicates that only 20% to 30% of small businesses that go to market sell successfully. Up to 80% of businesses that go to market do not achieve a sale. Taking all those statistics together, the future of the independent retail industry is troubling. A closed business is a lost job for the employees and lost investment in the community. Locally owned

In the U.S., 2.9 million businesses are owned by people age 55 or older, with $6.5 trillion in annual revenue generated by these businesses. Source: The Silver Tsunami of Retiring Business Owners, Project Equity

businesses generate revenue for the local economy by providing economic stability, supporting local nonprofits and offering a source for goods and services. According to the U.S. Small Business Administration, small businesses contribute nearly half of the nation’s entire gross domestic product. In addition to what can be for some the daunting task of finding a successor, retiring owners in the home improvement industry face additional pressures from the market. Increased consolidation has pulled independent retailers into larger networks, raising the stakes for owners who haven’t planned for their own transition. Post-COVID shifts in real estate value have changed how businesses

are valued. And there are fewer members of the next generation who want to enter the family business, leaving it vulnerable to consolidation. A successful transition can take years, so retiring owners who don’t plan ahead can find themselves struggling to find a willing buyer and reap the benefits of their hard work. Common mistakes center on waiting too long to start a succession plan, failing to prepare future leaders and approaching the sale as a purely legal transaction. Those who are successful take a holistic approach to creating a business that is operationally and organizationally healthy long before signing a sell agreement.

November 2026 | PAINT & DECORATING RETAILER

Determining Fair Value Gets Complicated

When it’s time to sell, every retailer will ask: How much is my business worth? Prior to coming to Dugan’s, Paul spent several years as a CPA and knew how to answer that question. He had facilitated many business valuations and acquisitions. Yet in 2015 when he joined his wife, Tyger, working at Dugan’s, business valuation got a lot more complicated. Dugan’s, which has locations in Sedalia, Laurie and Osage Beach, Missouri, had been in his wife’s family since 1871—there was a rich family legacy to preserve. They knew that eventually his father-in-law, Chuck Kempton, would need to sell the business. Paul came up with what he thought was a fair value of the business and began breaching the subject of an eventual sale. His father-in-

PAINT & DECORATING RETAILER | November 2026

law, however, resisted the idea. He was willing to elevate Paul to a leadership role within the company, but was non-committal about a complete transfer of ownership. “It took me a while to understand what was behind his hesitation, because I’d offered him a fair price and he still wasn’t ready to move forward,” Paul says. “What I eventually realized was that he wanted to make sure the business would benefit both of his daughters equally, not just whichever one ended up running it. Their future well-being was 100% his biggest concern.” Once Paul understood the real motivation behind his father-in-law’s indecision, he was able to come up with a better proposal. In his new plan, instead of proposing a lump sum, he created a payment structure that gave his father-in-law a fixed income and included a provision for the other daughter. What his father-in-law really wanted, Paul says, was someone to manage the cash flow.

5 Succession Planning Mistakes

COMIN

There are early warning signs a succession plan might not succeed or that an owner doesn’t have one. Here are five common mistakes retailers make when planning for the future.

SOON

Viewing succession as a purely financial and legal event. Don’t ignore the emotional and operational aspects of a change in ownership. In fact, the emotional side of succession can be the most difficult and unexpected.

Waiting until a “significant event” forces succession. It can take years to plan for a change in ownership. Whatever significant event triggers a succession likely comes with an emotional strain, further complicating the already difficult process of succession.

Poor communication. Succession affects everyone. Don’t ignore the employee and customer relationships built around the outgoing owner. Be as transparent as possible about the change in ownership. Poor communication can result in lost trust and lost business.

Failing to let go. Exiting owners who stay involved with the business after the transition and don’t let the new owner take full control will undermine success. Second-guessing decisions or withholding information from the new owner creates tension in leadership and the wider team.

Not having a written plan. Will your business survive you? Hoping that someone else could lead in your place is not a business strategy. Having a well documented and communicated succession plan will facilitate a transition, even if you’re not around to see it.

NHPA’s New Course on Succession Planning Coming in 2027

If you’ve been putting off thinking about succession planning, then you’ve already waited too long. Succession planning is not a retirement conversation, it’s a business strategy. Preparing for a successful ownership transition requires intentional leadership development, operational readiness, business optimization and strategic planning. And today, many business transitions fail because they don’t prepare properly.

NHPA’s new Foundations of Succession Planning course, coming in 2027, is designed to help retailers understand how to successfully transfer ownership by building a stronger, sustainable business. The course will help you: • • • • • •

Understand why ownership transitions fail Assess your readiness for succession Identify the right successor Understand what your business is worth Protect your team during the transition Create a blueprint for succession

November 2026 | PAINT & DECORATING RETAILER

“I think this is true for a lot of business owners,” he says. “They have worked hard and have made very good lives for themselves, but they’ve never had a huge chunk of money to show up at one time. It’s hard to manage, and I don’t think most people want that. The payment structure was more important to him than the total amount.” Paul and his father-in-law finally came to an agreement on a sale, and it wasn’t an unbiased, market-based valuation, either. As is likely the case with many family owned businesses, there was both a financial and emotional aspect to the sale. “When you’re selling to a third party, the business is worth whatever someone is willing to give you,” he says. “When you’re selling to a family member, it’s worth whatever is deemed as fair. Coming up with a fair price was difficult because I had to get inside his mind and understand what he really wanted. How much money did he want to get out of the business to feel good about it? He wanted his daughters to be taken care of. And he wanted to feel good about turning over the reins to me, knowing I would honor his family legacy.”

Getting the Business Ready for the Sale

One common reason succession fails is that the business is not operationally ready for a new owner. As the incoming owner, Paul wanted to see growth potential in the business, so he started zeroing in on potential blocks to that growth. One of the most obvious was that his father-in-law managed many of the store processes and decision-making. “He did an amazing job growing the business, really through hard work and dedication,” says Paul. “Like a

PAINT & DECORATING RETAILER | November 2026

lot of owners who’ve built something over decades, most decisions ran through him—so for him to walk away, we needed to build out a team who could carry that forward.” In the two years prior to closing the sale, Paul began building a team to take the business forward. He began streamlining processes and procedures, which often involved some difficult decisions. For example, at one of the company’s locations, the manager in charge was an outstanding salesman, but was struggling with managing day-to-day operations. Paul recast his role to be a sales manager, letting him focus on what he did best and found someone else to be the store manager. As a result, the location ran more efficiently because the new manager was able to focus on operations rather than sales. Similar changes throughout the company helped streamline responsibilities so that salespeople could focus on sales, while other staff handled supportive administrative tasks. “I spent a lot of time just making sure we had the right people in the right positions and then giving them the ability to make decisions,” he says. “The changes have allowed us to grow, and that growth came through increased efficiency, which allowed us to scale and take on more jobs while adding customers.” To further help in the transfer of responsibilities, Paul acquired a building across the street from the company’s main location in Sedalia. Then both he and his father-in-law moved their offices to that building, reducing the chance that customers could come directly to them when they had a question.

“I spent a lot of time just making sure we had the right people in the right positions and then giving them the ability to make decisions.” —Sean Paul, Dugan’s Paint and Flooring Center

Instead, Paul began directing those questions to other staff, retraining customers to realize they didn’t have to consult the boss on every project. Then, over the next year and a half, both of them also made personal visits to customer accounts, introducing the appropriate salesperson as the new point of contact. A more difficult task, admits Paul, was earning the trust of the staff. He had already worked his way through the company, learning every position, from the warehouse to sales to operations, so he understood how each department operated. He approached each job with an attitude that he was there to serve his team and make their jobs easier. “Whenever I was helping an employee or whenever they brought a concern to me, I took care of it immediately,” he says. “I wanted to make sure they were never waiting on me for something; I’d rather be waiting on them. It took a lot of time, but helped to earn their trust. Everyone realizes this is a team environment. We’re here to help each other.” He also changed the employees’ pay structure to pay them the highest wage the business could afford. That, of course, made everyone happy.

Closing the Deal

After working out a buying price, streamlining operations, communicating the change in ownership to customers and gaining the trust of his employees, Paul and his father-in-law were ready to sign the final papers. They started the legal process about nine months before the closing date. They had already worked out all of the hard questions, so all that was left was finalizing the legal paperwork with their attorneys. This final stage of the transition was fast and easy. Paul and his wife took ownership on Jan. 1, 2021. Paul’s father-in-law, in

return, agreed to make that his last day in the store, giving full control to the next generation. “He asked if he could still stop in from time to time, and I told him I thought a clean break would give the transition the best chance to succeed,” says Paul. “We agreed that if people kept bringing questions to him, and he answered them a little differently than I would have, it could send mixed signals during an important stretch. It wasn’t personal—it was about setting the new structure up to work.” Today, Paul and his father-in-law have a good relationship and the business is thriving. In the past six years, sales have doubled. He credits the successful transition to their willingness to have the hard conversations early, not ignoring the operational and emotional issues that could jeopardize the business later. “Have the difficult conversations sooner than later and don’t be offended by what everyone else is feeling,” he says. “I think a lot of people are too afraid to say what they’re really thinking, but if you don’t say it, you won’t be able to deal with it.” Today, Paul gives back to the paint industry as treasurer for the ALLPRO board of directors. From that vantage point, he can see succession planning as a crisis affecting the entire industry. “There are many paint retailers in the same situation I was in, where the parent needs to move on and the kids are trying to grow the business, but there’s a lot the outgoing generation just doesn’t want to talk about,” Paul says. “The hardest part of the succession process for us was having those difficult conversations. But it’s far better to have those conversations ahead of time rather than later. Once those were done, we had a smooth transition.”

November 2026 | PAINT & DECORATING RETAILER

RATI O N

The Right Hue The Paint Colors to Pay Attention to in 2027

BY LINDSEY THOMPSON

lue is a clear winner for paint colors in 2027, with several major paint manufacturers choosing a shade of blue as their Color of the Year pick. Soft browns and beiges were also a popular option, bringing warmth into any room in the home. Read on for a look at all the Color of the Year picks announced so far.

Help your customers stay on trend by stocking these colors of the year and their complementary palettes.

PAINT & DECORATING RETAILER | November 2026

PPG | Country Soil Country Soil is a warm, saturated hue that blends beige, taupe and gray. Country Soil draws inspiration from the natural world, evoking clay-rich earth and weathered stone. The color is part of PPG’s 2027 global color theme, Foundations, which includes three palettes: Solid Ground, Quiet Zone and Life Shared. Country Soil is designed for slowing down. For 2027, we have selected a grounding color that acts as a solid foundation for any project. Inspired by the warm, natural hues of clay, it provides a base layer with a soft, neutral tone. Rather than treating wall color as a decorative surface layer, Country Soil creates a space to settle and recharge.” —Irina Hanhisalo, Color Category Lead, PPG

California Paints | Quiet Peace Quiet Peace, a deep, moody blue, evokes tranquility and calm at a time when homeowners and consumers are seeking it out more than ever before. Quiet Peace is a rich and enveloping color and is ideal for creating a serene atmosphere in living rooms, bedrooms, dining rooms and other interior spaces where peace is a priority. Consumers today are looking for connection, optimism, balance, humanity and joy in a world that can feel increasingly overstimulating and uncertain. Quiet Peace delivers on that need, offering serenity with a touch of the bold to help homeowners turn their spaces into a true retreat from the everyday.” —Dani Doerge, Marketing Manager, California Paints

Clark+Kensington | Vantage Point A sophisticated take on blue, Vantage Point adds depth and dimension to the 2027 Clark+Kensington Color Trends collection. Selected by color trend forecasting partner Color Hive in collaboration with the Clark+Kensington design team, Vantage Point reflects a growing desire for interiors that feel both uplifting and restorative. Homeowners are looking for more moments of connection at home, and color can have a powerful impact on how a space makes us feel. Vantage Point brings a sense of warmth and character to interiors, offering a versatile blue that feels fresh for 2027 yet timeless enough to live with for years to come.” —Kim Lefko, Chief Marketing Officer, Ace Hardware

November 2026 | PAINT & DECORATING RETAILER

Sherwin-Williams and HGTV Home | Celery A soft, muted green with subtle yellow undertones, Celery offers a fresh perspective on comfort and calm, bringing a light and airy presence to interiors while encouraging a renewed sense of balance in daily life. The shared Color of the Year reflects both brands’ commitment to color leadership while strengthening their position as trusted resources for homeowners, designers and professionals seeking inspiration for the year ahead. Celery was chosen as the 2027 Color of the Year because it reflects today’s priorities: wellness, balance and connection. Homeowners and designers are increasingly prioritizing wellness at home, seeking soothing environments that support mental health and overall well‑being. This shift has also fueled interest in eco-inspired design, with a greater emphasis on bringing elements of the natural world indoors through color, while a sustainability mindset is shaping preferences for hues that feel enduring.” —Ashley Banbury, Color Marketing Manager, Sherwin-Williams

Pittsburgh Paints Brand | Artifact A warm, smoky blue, Artifact brings a steady sense of calm to both residential and commercial spaces, emphasizing authenticity over perfection. Homeowners and professionals are opting for colors that give them authorship over their own personal spaces. Artifact calls on homeowners to draw on authenticity over perfection. Artifact invites reflection and calls us to pause, reassess and reconnect with what’s essential and gives meaning to our lives. Artifact creates balance without feeling flat. It is nostalgic, but not regressive, by pulling forward what was good from the past and reshaping it into something newly personal and curated. This color feels rare, not because it is loud, but because it is used intentionally.” —Michelle Vincent, Color and Design Manager, Pittsburgh Paints

Valspar | Cottage Door Cottage Door, a mid-tone neutral blue paint color, blends warm and cool undertones. Balance Cottage Door’s grounded mood with the soft and joyful tones of Moon Shot and Apricot Blush. The warmth and optimism of these hues bring a gentle lift to any space. Together, these paint colors form a palette that speaks to emotional well-being, intentional living and subtle expression, while light wood tones enhance the authenticity of the look. Cottage Door celebrates the unique beauty inside us all. This mid-tone neutral blue is reflective and warm, with timeless appeal that feels personal and grounding. Cottage Door captures blue’s natural sense of security and trust while serving as a colorful new neutral that layers effortlessly into the home. It creates spaces that feel balanced, comforting and inviting.” —Sue Kim, Director of Color Marketing, Valspar

PAINT & DECORATING RETAILER | November 2026

Home Hardware BeautiTone | Rosewater The soft, radiant pink balances comfort with sophistication, offering a fresh take on creating calm, lived-in spaces. Rosewater marks a shift from the deeper, moodier hues of recent years, including 2026 Color of the Year Muse, an earthy green, and 2025’s Midnight Flora, a dramatic red purple. For 2027, BeautiTone’s color experts are seeing a move toward softer hues that bring a sense of warmth and optimism into the home.

Home is where we recharge, reconnect and find moments of calm amid busy lives. Across Canada, we’re seeing homeowners move away from stark, high contrast interiors toward colors that feel warmer, more approachable and enduring. Rosewater brings that warmth and softness into the home while maintaining a refined look that homeowners can build around for years to come.” —Donna Robertson, Paint Consultant, BeautiTone Paint and Home Products

BEHR Paint Company | Grounded An earthy olive green that captures restorative essence and quiet energy, this natural shade moves effortlessly between olive and moss, anchored by subtle brown undertones that bring the outdoors in. Grounded is part of the BEHR® 2027 Color Trends Palette, a curated collection of complementary hues inspired by the beauty and balance of the natural world. Spanning warm neutrals, earthy tones, muted pinks, clay hues and airy blues, the palette offers endless versatility for creating layered, harmonious spaces. Grounded is a reminder that the most meaningful spaces are the ones that help us connect with the rhythms of everyday life. The shade’s organic warmth creates a sense of calm and renewal, making every room feel inviting and effortlessly livable.” —Kayla Kratz, Head of Color, BEHR Paint Company

Dutch Boy Paints | Deep Rooted Inspired by the warmth of nature, Deep Rooted brings grounded optimism and comfort to a room, helping create a space that feels personal and effortlessly lived in. In addition to its Color of the Year, Dutch Boy Paints unveiled its full 2027 Color Trends Forecast, including three curated color palettes that showcase Deep Rooted’s versatility: the Essence Palette, Bliss Palette and Clarity Palette. Our 2027 Color of the Year feels alive with possibility while being rooted in the familiar warmth of nature. Deep Rooted offers a color that feels rich, grounding and deeply human. Its earthy orange tone creates a versatile foundation for spaces that celebrate individuality through bold contrasts and layered textures.” —Lisbeth Parada, Color Marketing Manager, Dutch Boy Paints

November 2026 | PAINT & DECORATING RETAILER

Proactive Protection OPERATIONS

What Small Business Owners Need to Know About Fraud Prevention

BY LUKE VANDER LINDEN

etail fraud has long been a threat to businesses, but fraudsters have never been able to go after so many different targets at once. New technologies like artificial intelligence (AI) and automation can help bad actors scale scams and make impersonation attempts more convincing, putting businesses at greater risk of financial loss and theft. And with e-commerce accounting for 16.4% of total U.S. retail sales in 2025, opportunities for fraud are increasingly expanding across channels.

PAINT & DECORATING RETAILER | November 2026

Though large, national brands may seem like the most lucrative targets, no business is immune to modern fraud threats. In fact, small-scale retailers, such as independent home improvement stores, can be particularly alluring marks as they often carry easy-to-resell, high-value, merchandise and operate with little to no dedicated fraud-prevention resources. Here’s what small business owners should watch for to recognize fraud early, plus practical steps to build stronger defenses.

16.4% E-commerce made up 16.4% of total U.S. retail sales in 2025. That means nearly 1 in every 6 sales were made online in 2025, putting businesses at greater risk of financial loss. Source: Quarterly Retail E-Commerce Sales, U.S. Census Bureau

November 2026 | PAINT & DECORATING RETAILER

Practical Steps to Prevent Fraud With multiple potential entry points to commit fraud, a small business’s defenses must be similarly layered.

Implement Strong POS and Payment Security Controls Because point-of-sale (POS) systems touch nearly every transaction, they come with high potential for fraud and abuse. For example, outside attackers could use software vulnerabilities to gain unauthorized access, while staff working from the inside could abuse POS access to issue fake refunds. Keep POS software updated, restrict administrative access and require manager approval for high-risk actions, like large refunds or overrides.

Use Multi-Factor Authentication All banking, email and other accounts that can authorize payments or expose sensitive information should be padlocked with multi-factor authentication (MFA). Requiring a verification code, authentication app, biometric check or other second factor in addition to a standard password makes it harder for fraudsters to gain access with just stolen credentials.

Require Verification for Refunds and Vendor Payment Changes

Whether fraudsters walk through the front door or work behind the scenes through a compromised account, they often try to move quickly, urging employees to bypass standard procedures or make exceptions to store policies. Provide clear instructions for processing refunds, authorizing vendor payment changes and handling unusual payment requests so employees aren’t left on their own to make judgment calls under pressure. An established clear line of communication for employees to easily escalate suspicious activity is also recommended.

Regularly Review Transactions and Inventory Records In the everyday store bustle, an unusual refund or missing item might slip by unnoticed, but looking at the numbers can reveal hints of a fraudster’s scheme. For example, multiple chargebacks for similar transactions or repeated high-value refunds tied to the same account could indicate a recurring issue and inform where additional controls may be needed.

PAINT & DECORATING RETAILER | November 2026

Common Fraud Threats Facing Hardware Stores

There are many ways fraudsters can con hardware stores and other retailers out of money and merchandise, such as returning stolen goods, using fake receipts to claim refunds or sending back counterfeit merchandise for full-value refunds. In 2025, the retail industry was projected to process $849.9 billion in merchandise returns, but not all those returns were legitimate with 9% classified as fraudulent. Return fraud isn’t the only way bad actors can defraud small business owners. Payment card fraud and stolen card use remain persistent threats, too. According to The Federal Reserve’s Economic Well Being of U.S. Households in 2025 report, 16% of U.S. adults reported experiencing credit card fraud. Though retailers may not be the direct target when a customer’s card information is stolen, they can still feel the impact through lost merchandise or chargebacks when fraudulent purchases are reversed. Criminals can run similar plays with gift cards, either purchasing them with stolen information or physically tampering with the cards to steal card numbers and claim the balance after legitimate activation. Though many retailers have defenses in place to block suspicious transactions, some fraudsters can get around those protections by committing fraud through a known customer’s account. For example, by using stolen credentials to take over loyalty or other online accounts, bad actors can pose as legitimate shoppers to slip past security controls that rely on trusted account signals to assess fraud risk.

Fraud Warning Signs

Fraud tactics continue to evolve, but retailers do have one advantage: criminals tend to recycle approaches that work, regardless of industry. That means despite new technologies that increase the speed and scale of fraud, in many cases, the warning signs remain familiar. One of the most reliable indications of fraud is unusual behavior. For example, the average customer may buy a high-ticket item, like a power tool, once a year or so. But repeated purchases of the same high-value items within a short period could be a signal of foul play. Similarly, if one customer attempts to process several returns—all without furnishing a receipt—then it may indicate return-policy abuse or an attempt to return stolen merchandise. Bear in mind that bad actors seeking to defraud retailers don’t always pose as customers. Store owners should also watch out for suspicious vendor behavior. For instance, if a known supplier suddenly requests an invoice payment be sent to a new bank account, it’s worth investigating if the vendor’s email account was compromised. Be especially cautious if the supplier urgently presses employees to bypass standard verification procedures, writes from a new email address or uses unusual language or phrasing.

Building a Culture of Awareness

Though fraud may spike during the busy shopping seasons, it is a constant, around-the-clock threat, and bad actors are constantly leveling up their tactics to evade new defenses. Technology and security controls can help, but they cannot eliminate one of the most frequently exploited weak points: people. In fact, human involvement played a role in 60% of breaches in 2025. For this reason, the best defense against fraud is ongoing, shared education. Every employee, from cashiers to managers, should participate in fraud and security awareness training to understand how criminals operate, how to recognize suspicious activity and what steps to take when they suspect fraud. A single workshop during onboarding, however, isn’t enough. One study showed it took 12 months of security awareness training and simulated phishing for employee susceptibility to simulated phishing to fall by 86%. To stay resilient as fraud tactics evolve, schedule regular meetings to update staff on warning signs, new scams and suspicious behavior. Develop and update a fraud response plan with clear instructions on when to stop a transaction, what to document and whom to contact. Most importantly, store owners should encourage employees to speak up when something looks unusual, even if they’re not certain it’s fraud. Real-world examples help teams understand the larger impact of missed warning signs, while open communication makes it easier for them to come forward when something looks amiss.

The Value of Industry Collaboration

Unfortunately, when bad actors have success defrauding one business, they’re likely to rinse and repeat the tactic elsewhere. But if criminals can operate in numbers, store owners can, too. By working together to share threat intelligence, exchange best practices and participate in industry training and benchmarking, even small independent store owners can learn about emerging threats sooner, improve fraud training and collectively strengthen defenses across the industry. Retailers can build these connections by communicating with industry peers or joining organizations like the Retail & Hospitality ISAC (RH-ISAC), the global, trusted cybersecurity community organization for retail- and hospitality-focused intelligence. Retail fraud takes many forms, and bad actors don’t hesitate to go after small businesses with the same tactics they use on national chains. But by combining practical safeguards with continuing education, employee awareness and industry collaboration, retailers of any size can reduce exposure and bolster defenses for everyone.

November 2026 | PAINT & DECORATING RETAILER

FROM SEAL TEAM TO SMALL BUSINESS How Navy Veteran Sam Mackey Found a New Calling in Independent Retail BY

ZO E

BE N SON

or 20 years, Sam Mackey served in the U.S. military, working his way through the ranks in the U.S. Navy to become a Navy SEAL. Inspired to join after watching the movie “Navy SEALs,” Mackey enlisted in January 2004 and graduated BUD/S Class 266 in Coronado, California.

PAINT & DECORATING RETAILER | November 2026

ANNI E

DAM EWO RT H

“I came up through every enlisted billet in a platoon—lead petty officer to platoon chief and then qualified at the Naval Special Warfare Sniper Course along the way,” Mackey says. “I closed out my career as an instructor at our Advanced Training Command.”

ASSOCIATION

An Honor to Serve

NHPA will share the stories of these hometown heroes in all of its media brands. Visit YourNHPA.org/veterans to learn more and nominate a veteran from your business to honor.

A New Way to Serve NHPA Program Honors Military Veterans Who Have Served Our Country, Channel 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. NHPA honors the ongoing impact military veterans make throughout the home improvement industry through its Helmets to Home Improvement recognition program, with the Hardlines Supplier Event and DIY CON as the program’s official founding sponsor and venue partner.

November 2026 | PAINT & DECORATING RETAILER

ASSOCIATION

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.

While in the Navy, he completed eight combat deployments in the Middle East and South America and deployed with every East Coast SEAL Team. Mackey is grateful for his experiences on the SEAL team and for the teammates he met along the way. After retiring in 2024, Mackey co-founded Outsider, a premium American drinkware company. Outsider entered the independent channel when Do it Best provided the company with one of their first opportunities to sell products in stores. “They believed in us early, picked us up across nine distribution centers and the reorders started running,” Mackey says. “That opened the door to the rest of the independent world.” Mackey says SEAL teams run on trust, relationships and reliability, similar to how the independent channel operates, making the channel a good fit for veterans. “Veterans show up, they tell you the truth and take care of their people. That’s what independent retail rewards,” Mackey says. “The big-box world runs on volume and algorithms; the independent channel runs on handshakes and follow-through—and that’s the language every veteran already speaks.” Mackey says the people are the best part of running Outsider. “These are multi-generational, family-run businesses—owners who actually pick up the phone. You shake a hand and it means something,” Mackey says. “That’s a community, not a transaction.”

T H A N K YOU TO O U R PR O GR A M S PO N S O R S

PAINT & DECORATING RETAILER | November 2026

LEADING WITH INTEGRITY Daniel Keliikoa’s Military Background Informs His Leadership Role at Hardware Hawaii BY

ZO E

BE N SON

ometimes, not knowing where you are going can actually lead you down the right path. Ikaika “Daniel” Keliikoa was unsure what path he wanted to pursue after graduating high school, but felt a pull to join the military. He felt called to do something for his country

ANNI E

DAM EWO RT H

and decided military service was one way to answer that calling. Keliikoa enlisted in the Army National Guard in 2000. While serving, his primary job was artillery with a secondary job in infantry. Keliikoa enjoyed the camaraderie he experienced with fellow service members, the

November 2026 | PAINT & DECORATING RETAILER

ASSOCIATION

An Honor to Serve

NHPA will share the stories of these hometown heroes in all of its media brands. Visit YourNHPA.org/veterans to learn more and nominate a veteran from your business to honor.

34 PAINT & DECORATING RETAILER | November 2026

ASSOCIATION

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.

opportunity to travel the world and the job itself. “I got to travel around the world while serving,” he says. “And I love the job.” After COVID-19, Keliikoa began to look for a career, ultimately given an opportunity to work for Hardware Hawaii, stepping foot into the independent home improvement channel. Today, Keliikoa works as a lumber supervisor at the company. “I supervise all the guys in the lumberyard and help customers, alongside with giving some advice about materials,” Keliikoa says. As a leader at Hardware Hawaii, Keliikoa says it’s important to him that he leads with integrity and excellence. He says the military helped enable him to be someone his team could rely on. “Leadership is a big role I have working here,” he says. “The military helped me to be a better leader.” Keliikoa believes the loyal and hardworking nature of veterans equips them well for the home improvement channel. “Military guys are loyal and respectful,” he says. “They come from hardworking backgrounds, and they know how it feels starting from the bottom and working your way up the ranks.”

T H A N K YOU TO O U R PR O GR A M S PO N S O R S

November 2026 | PAINT & DECORATING RETAILER

GO RY F O

TOOLS

TRADE

OF THE

Merchandising Meets Vendor Management in Hand Tools BY

ANNIE

DAM EWO RTH

and tools, knives and blades are key categories in any independent paint operation, essential for both professional contractors and DIY enthusiasts, but maximizing profitability in this category requires more than simply stocking shelves. From managing brand loyalty to tailoring product selection based on customer demographics, Adeline Smith, president of Old Western Paint Co. in Denver, focuses on

impulse merchandising, curated assortments and smart vendor management to lead to increased sales in this category. Smith has mastered how to sell hand tools of all types to her contractor-heavy customer base. Located in an industrial park and only open on weekdays, Old Western Paint Co. primarily serves professional painters as well as a variety of institutions, including schools, hospitals and county, city and state parks.

PAINT & DECORATING RETAILER | November 2026

November 2026 | PAINT & DECORATING RETAILER

PAINT & DECORATING RETAILER | November 2026

Anderson Paint Ann Arbor, Michigan

Relationships Matter At Anderson Paint, which operates two locations in Ann Arbor, Michigan, balancing inventory and avoiding overcommitment is a strategy general manager John Rudolph also utilizes in his hand tools category. “Sometimes a sales rep comes in with a new product and says it’s better and cheaper,” Rudolph says. “But if we bring it in, we risk splitting our volume among multiple vendors, making it harder to hit minimums and potentially inflating our inventory.” Rudolph says he checks to make sure a new product doesn’t conflict with current inventory items before bringing it in. “If a customer asks for a specific type of tape and you bring it in, then another brand releases a similar product with slight variation and you add that too, before you know it, you have four different products that all serve the same purpose and take up shelf space,” Rudolph says. Having a productive working relationship with vendor representatives plays a major role in how Rudolph selects products and stays on top of industry trends.

“We have vendor reps visiting our store about three times a year, sometimes quarterly,” Rudolph says. “Manufacturers introduce new products, and we evaluate them based on quality and price. But trade shows are where we get a sense of what’s out there.” Rudolph regularly attends trade shows for his distributors, and he says he values traveling to shows because he’s able to speak with his peers on products at booths to get a real sense of how the product and the vendor are. “At a trade show, I can talk to fellow independent store owners and ask if they’ve had success with a product,” Rudolph says. “I trust their feedback more than a sales rep who is naturally inclined to push their products.” Trade shows allow Rudolph to make smarter purchasing decisions. “A vendor might have a great product at a lower cost, but if switching to them means we have to split our purchasing volume and struggle to meet minimum order requirements, it may not be worth it,” he says. “Managing supplier relationships effectively means knowing when to say no.”

November 2026 | PAINT & DECORATING RETAILER

The hand tools category brings in only about 5% of revenue for the store, but packs a punch when it comes to selection. From brush spinners, bottle openers and paint combs to scrapers of all sizes, knives and sharpening files, Old Western Paint Co. stocks a wide range of tools for every painting need. Smith believes that having a wide product assortment of hand tools is a smart way to keep sales steady in this smaller-volume category. “We try to carry anything to cater to the professional painting contractor, because that’s who we serve,” Smith says. Most of these items are sourced from the store’s purchasing cooperative or vendors who visit the store. Maintaining strong relationships with vendors is essential to keep up inventory and build loyalty among your customers. A significant portion of Old Western Paint Co.’s knives and blades are located

40 PAINT & DECORATING RETAILER | November 2026

behind the counter, a move the store made in response to theft issues. Some larger hand tools are located on access walls at eye level, easily drawing the attention of customers. Smith says the hand tools at her store are mainly impulse sales and she sees the most success in this category when they’re marketed as such or added to the store’s sale shelf. “We rotate things on sale, so we’ll take one item, like a scraper, and we’ll put a promotion on it and run a sale for a month,” she says. Employees at Old Western Paint Co. are trained to sell hand tools like any other product in the store: highlighting promotions and sales, providing expert knowledge and pointing customers to the best tool for their project. “We train ourselves to market and trigger items we have on sale so we can get people to see more of our items, and then we try to rotate the sale items so that we can let people know what we have,” Smith says.

“We train ourselves to market and trigger items we have on sale so we can get people to see more of our items, and then we try to rotate the sale items so that we can let people know what we have.” —Adeline Smith, Old Western Paint Co.

November 2026 | PAINT & DECORATING RETAILER

S M A KE

RESOURCES

News to You Subscribe to our weekly newsletters at PDRmag.com/subscribe to get the latest news and trends.

Image via Sherwin-Williams

Sherwin-Williams Expands North Carolina Manufacturing Capacity

herwin-Williams’ architectural paint and coatings facility in Statesville, North Carolina, is the company’s largest plant in North America following an expansion that adds production capacity and improves material handling. The project includes nearly 50,000 square feet of improvements, with expanded production space and improved automation. The company says the upgrades will help support growing customer demand and improve operational efficiency. “With expanded production space, new rail infrastructure and greater automation, this facility gives us more flexibility and efficiency in how we manufacture and move products across our global supply network,” says Heidi Petz, chair, president and CEO of Sherwin-Williams.

42 PAINT & DECORATING RETAILER | November 2026

The expanded manufacturing facility also complements Sherwin-Williams’ distribution center, which is near the facility. Together the two facilities will support the company’s efforts to make its supply network more responsive. Sherwin-Williams has operated in Statesville since 1993. The company selected the site for expansion because of its access to transportation infrastructure, skilled workforce and location within its manufacturing and distribution network. “Sherwin-Williams has been an important part of the Statesville community for more than three decades, and we are proud to celebrate their continued investment in North Carolina,” says North Carolina Lt. Governor Rachel Hunt, who attended the grand opening of the new facility on Sept. 30. “This expansion strengthens Statesville’s role in advanced manufacturing, supports good jobs and reflects the confidence companies have in our people, infrastructure and business climate.”

CALENDAR

This index is provided for the convenience of our advertisers and readers. The publisher assumes no liability for errors or omissions.

Benjamin Moore.........................................................................................................................................................................................................................................IBC benjaminmoore.com NHPA Cost of Doing Business Study.........................................................................................................................................................................................9 YourNHPA.org/codb NHPA RetailWise Plus......................................................................................................................................................................................................................... IFC YourNHPA.org/retailwise NHPA Strategic Consulting................................................................................................................................................................................................................13 YourNHPA.org/consulting Old Masters................................................................................................................................................................................................................................................3 myoldmasters.com Pittsburgh Paints............................................................................................................................................................................................................................ BC pittsburghpaints.com

Industry Events NOV Orgill Winter Buying Event NOVEMBER 2-16 | OTTAWA, ON

Discover the essential products you need for your operation at Orgill’s virtual winter buying event. With exclusive deals and new products, attend this event to set your operation up for success.

Stay Informed Scan the QR code to see our full list of industry events. To add your event to the industry calendar, send an email to editorial@YourNHPA.org.

November 2026 | PAINT & DECORATING RETAILER

FINISH

RESEARCH

Fortify Your Business Strategy Visit YourNHPA.org/codb to purchase your copy of the 2026 Cost of Doing Business Study today.

Know Your Numbers See How Your Business Compares With the Industry’s Benchmarking Tool

or more than 100 years, the North American Hardware and Paint Association’s Cost of Doing Business Study has provided detailed financial information from hardware stores, home centers, lumber and building materials (LBM) outlets and paint and decorating outlets in the U.S. that independent retailers can use to benchmark their business. Now available for purchase, this comprehensive report is the ultimate resource for financial benchmarking in the independent home improvement industry. “The Cost of Doing Business Study is important for me to see where my company is compared to others in the industry,” says Peggy Sue Wingard, owner of O-Gee Paint Co. in Miami,

Florida. “The timeframe for completing the survey in late spring is perfect because I have the time then to think about the business metrics to complete the survey.” Wingard says she chooses a few key performance indicators (KPIs) each year to focus on, including sales, sales per customer, customer count and profit percentages. I try to tackle more of the pain points and low hanging fruit first.” Don’t miss the opportunity to fortify your business strategy with data-driven industry insights. Visit YourNHPA.org/codb to purchase your copy of the 2026 Cost of Doing Business Study today and take the first step toward a more successful and growth-filled future.

44 PAINT & DECORATING RETAILER | November 2026

Paint Stores in 2025: Gross Margin of 38.2% is down for the 4th year in a row Comp Sales were up 14.2% reversing a two-year down trend “I wish more companies knew and understood the intel gained from the Cost of Doing Business Study,” says Sherry Cothron, owner of Coastal Nail & Tool Building Supply Center. “The results and data are priceless.”

Trusted by Generations of Painting Pros

• Proprietary stain-release technology means stains wash clean • Unbeatable flow and leveling for professional results every time • Durable finish resists scuffing to preserve premium results

Contact your Benjamin Moore rep to learn more. To find your rep, call 1-866-708-9180, email info@benjaminmoore.com, or visit benjaminmoore.com.

NEW!

VELOURA TRIM, DOOR & CABINET

™

ENDURING BEAUTY

WITH UNPARALLELED, EFFORTLESS APPLICATION

WATERBORNE URETHANE ALKYD ENAMEL BEST-IN-CLASS HIDE & COVERAGE SMOOTH, FACTORY-LIKE FINISH BUILT TO WITHSTAND REPEATED CLEANING EXCELLENT BLOCK RESISTANCE & HARDNESS