Paint & Decorating Retailer October 2023

& FINISHES MASTERED

Easy Application | Superior Color Control

Old Masters Wiping Stain is a thick, robust stain with good open time and superior color control, making it ideal for those new to wood finishing.

• Best for interior wood such as pine, birch, maple, poplar, and cherry

• Can be intermixed or tinted to achieve custom colors

• Available in 24 trend forward colors

• Ideal for general woodworking and difficult to stain woods, veneers, and faux wood graining

• Excels on previously finished surfaces including fiberglass, metal, and composition surfaces, achieving a rich, uniform color in a single application

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

COMMUNICATIONS

Melanie Moul Communications & Content Manager mmoul@YourNHPA.org

Lindsey Thompson Senior Editor lthompson@YourNHPA.org

Carly Froderman Associate Editor cfroderman@YourNHPA.org

Jess Lee Retail Training Editor jtillman@YourNHPA.org

Autumn Ricketts Graphic Designer

Olivia Adam Graphic Designer

Austin Vance Production Manager

Freda Creech Sales & Production Assistant

Kevin Trehan Digital Media Specialist

Julie Leinwand Marketing Manager

ASSOCIATION PROGRAMS

800-772-4424 | nhpa@YourNHPA.org

Katie McHone-Jones kmchone-jones@YourNHPA.org

Director, Member Services & Events

Kim Peffley kpeffley@YourNHPA.org

Director, Organizational Development & Consulting

Jesse Carleton jcarleton@YourNHPA.org

Training Manager & Editor

Renee Changnon rchangnon@YourNHPA.org Retail Engagement Specialist

SALES

Jordan Rice 217-808-1641 | jrice@YourNHPA.org

Regional Sales Director

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

Expand Your Digital Boundaries

It takes more than a web address on the internet and a few social media posts to build a digital presence and connect with customers online. Next month, Paint & Decorating Retailer begins a series on successful strategies for improving your digital presence, focusing on the importance of offering an engaging website.

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, 2023.

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA EXECUTIVE STAFF

Bob Cutter President & CEO

Dan Tratensek

Chief Operating Officer & Publisher

David Gowan

Chief Financial Officer & Executive Vice President, Business Services

Scott Wright

Executive Director, Advanced Retail Education Programs

Whitney Mancuso

Executive Director, Innovation & Engagement

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

EXECUTIVE VICE CHAIRMAN

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ned Green, Weiders Paint & Hardware, Rochester, New York

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

SECRETARY-TREASURER

Bob Cutter, NHPA President & CEO

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

COVER STORY

Communicating for Engagement

See how three retailers found different ways to establish accountability, improve communication and define leadership within their operations to increase overall employee engagement and retention.

The Home Improvement Research Institute (HIRI) puts a spotlight on the recent surge in flooring projects and interior wood care product purchases.

CATEGORY Specializing in Interior Wood Care

Taking his operation’s interior wood care department to a new level, see how one retailer increased his inventory and product variety to accommodate the needs of customers.

Cover photos by Olivia Adam | NHPA

& TRENDS

Get the Latest Updates

Scan this QR code or visit PDRmag.com/october to see these stories and more resources for your operation.

FIND MORE ONLINE

OPERATIONS

Accommodating Busy

Offering employees a flexible work schedule can increase engagement and improve retention by allowing for a better work-life balance.

CATEGORY Brushing Up With Specialty Paint

Mission: Engagement

Recent studies have shown that half of today’s workforce is disengaged, which can cause major issues in an operation. Turn to Page 20 to learn different techniques to engage employees, and check out the stories below to see how culture and training are key to employee retention.

Positive Career Results

Meet two retailers who turned their part-time jobs into full-time careers thanks to a positive company culture.

Think Outside the Box

Retailers from outside the home improvement industry share different ways to engage employees.

Mindful Managers

Train managers to be collaborative, receptive and engage with employees to increase retention and improve company culture.

Adding specialty paints and products to your operation can set you apart as the go-to place for all your customer’s paint needs.

PODCAST

Meet

the Young Retailer of the Year Honorees

With a record 11 retailers, this year’s class of Young Retailer of the Year honorees proves the future of the independent channel is in good hands. In this episode, the third in the five-episode series, we’ll meet Austin Diehl and Katie Prus and hear about the ways they want to improve their operations and better serve customers.

Scan the QR code or visit the website below to listen.

YourNHPA.org/podcast

CONNECTIONS

How to Reach Dan

Dan Tratensek dant@YourNHPA.org

A Focus On Change

Ever since I was a kid, fall has been my favorite season. I’m sure this autumnal attraction likely had to do with the fact that my birthday is in September, I’m nuts for Halloween and fall weather suits me well.

For many of us, the things we liked as kids have a way of changing as we age. I used to love to stay up late. Now, 10 p.m. is past my bedtime. I used to like bologna sandwiches. Now…just no. And don’t get me started on how much I used to love candy corn.

But my affinity for fall is one childhood love that remains to this day. Along with the birthday presents, spooky goings on and crisp weather, another aspect of fall I have come to appreciate as an adult is that it is the time to start planning for the next year. So many people associate making changes with New Year’s Day, but for me the real time to focus on change is when the first frosty morning greets you.

Honestly, New Year’s Day is just too late to make meaningful changes. In the fall, you are doing budgets, making plans and putting earnest thought into how to make improvements in your personal and business life.

So, as the seasons change and we all start putting on our thinking caps and sharpening our pencils to plan for the future, I want to pass along this little tip to make the most out of your strategizing, something I call the 3+3 principle of planning. This principle is rooted in the idea of keeping your planning simple and should allow anyone to come up with an actionable plan for making improvements.

Too many times I see people frozen in their planning because they get what’s referred to as “paralysis through analysis.” They just look at all the factors that could figure into developing a plan and are overwhelmed by the options. To break through this paralysis, I recommend the 3+3 method.

Here’s what I mean. For the sake of this column, let’s focus on business improvement planning.

The first step in the 3+3 plan is to identify what areas of your business you want to improve on. Let’s say you want to focus on driving bottom line profitability.

Now, pick three things you and your team could do that would effectively impact your bottom line. Maybe it’s increasing transaction size, getting a few extra basis points on margin and shaving a few off payroll expense.

Now, take each of these three goals and write down three things you and the team can do to impact each of them (3+3). Then work this plan. Set up checkpoints throughout the year to see how you’re doing and adjust as necessary.

While this sounds super simple to do, you might be surprised (or maybe not) at how few retailers who I talk to go into the New Year with any kind of plan like this.

The 3+3 plan is easy because it isn’t overcomplicated, it is easily explained to the rest of your team and is simple to monitor. It is also not overwhelming and can be applied to big or small projects.

Obviously, the more comfortable you become with planning the more complex you can make your processes. But for now, starting with something easy like the 3+3 plan is infinitely better than no plan at all, and keeping it simple takes at least a little bit of the scary out of the fall season.

Dan M. Tratensek Chief Operating Officer & Publisher

“The 3+3 plan is easy because it isn’t overcomplicated, it is easily explained to the rest of your team and is simple to monitor.”

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org

OPERATIONS

Inspiration All Around

Store Decor Spurs Customers to the Right Design Choices

The store decor at the Providence location of The Paint Shoppes, which has five locations in that area of Rhode Island, serves multiple purposes: it creates a warm and welcoming atmosphere and helps customers with their design choices.

Several large frames hang on the walls, but instead of traditional artwork, they feature large samples of different wallpapers the store sells.

“Wallpaper books are fine, but the large sample posters allow customers to see the wallpaper

better, especially the full pattern on wallpapers with large or bold designs,” says Jessica Saben, design and color specialist for The Paint Shoppes.

To further enhance customer experience in making design choices, the team at the Providence store repaints a large wall behind the register with the Benjamin Moore Color of the Year every year.

“Typically, the color of the year is a bold choice, so it’s beneficial to have that color painted on a large area so customers can see what it looks like up close and in a real setting,” Saben says.

Customers at The Paint Shoppes get extra help with design inspiration thanks to the wallpaper posters and painted walls.

RESOURCES

Customize Your Training

Learn more about NHPA’s custom training program options to strengthen your team and operation at YourNHPA.org/development

TRAINING

Transform Your Selling Culture

Get started with a free consultation. Schedule an appointment with NHPA’s Kim Peffley at YourNHPA.org/development

DOES YOUR OPERATION PRIORITIZE a culture of selling? A culture of selling is one where everyone at the business is actively involved in increasing sales and working toward the same goals. The North American Hardware and Paint Association (NHPA) now offers custom team training on the topic to help retailers grow their sales.

Team culture of selling training offers the tools to build employee confidence, measure progress for accountability and celebrate wins.

5 Training Objectives:

• Establishing your goals

• Defining your numbers

• Creating a culture of selling

• Leadership lessons to implement and drive sales

• Actionable ways to improve the average ticket

To help raise his operation’s average ticket, Peter Jackson, owner of Miller Industrial in Elk Grove Village, Illinois, worked with NHPA’s Kim Peffley, director of organizational development and consulting.

“Kim changed my point of view,” he says. “I used to think that in a macro environment—when things like inflation and foot traffic trends create headwinds—there is nothing we can do. But that is a self-limiting belief. There is always something we can take ownership of and create additional action for improvement.”

RESEARCH

2023 Cost of Doing Business Stud

To purchase the complete 2023 study, visit YourNHPA.org/codb

NHPA’S 2023 Cost of Doing Business Study is now available. For more than 100 years, independent home improvement retailers have trusted this annual benchmarking tool to understand how their businesses compare financially to typical and high-profit operations and strategize for the future.

The study offers a wealth of data to help retailers make informed decisions for their operations—with

Kim Peffley Director of Organizational Development & Consulting, NHPA

Meet the Expert

Nearly 30 years ago, Kim Peffley began her career working at her family-owned True Value, and then served as general manager for a seven-store Ace chain. As a certified Everything DiSC® Facilitator and Consultant, Peffley uses her industry-specific retail management and leadership experience to offer professional training and support to retailers.

Contact Kim Peffley kpeffley@YourNHPA.org | 219-776-0094

Learn more about NHPA’s organizational development training, and how it can boost your employee engagement, on Page 22

y Now Available

operational and financial data collected from more than 1,000 independent hardware stores, home centers, lumberyards and paint and decorating outlets. The complete study is now available for purchase. Retailers who participated in the study will receive a free digital copy along with a personalized financial analysis. Visit YourNHPA.org/codb to order your copy today.

Make the Most of Your NHPA Membership

Learn more about what the association can do for you at YourNHPA.org/membership

Explore NHPA’s Business Services

Learn more about NHPA’s business service partners at YourNHPA.org/business-services

NHPA SUPPORTS independent home improvement retailers through its partnerships with business service organizations. Learn more about the available services below.

SBA Small Business Loans

Whether you’re looking to build, buy or expand your business, Live Oak Bank offers small business loans to independent retailers.

Retail Marketplace

The NHPA Retail Marketplace connects buyers and sellers of home improvement operations and provides retailers with a cost-effective solution to advertise their locations for sale. The program also includes valuation services, SBA lending and job listings.

Health Insurance

The NHPA Health Insurance Program is designed for independent home improvement retailers and offers great benefits with low group rates and the flexibility to choose your plan design.

Workers’ Compensation and Liability Insurance

American Hardware & Lumber Insurance (AHLI) provides risk management and insurance services and education to independent home improvement retailers.

Credit Card Processing and Payment Services

Clearent provides payment solutions with low credit card processing fees and payment service technology, including mobile, wireless and e-commerce options.

TRAINING

An Easy Solution to Forklift Training

To get started with training, visit the NHPA Training Store at YourNHPA.org/training-store

FOR MANY home improvement retailers, it is important to have employees who can safely operate a forklift. Getting your key employees the proper certification should be the easiest part of putting together your training curriculum with the forklift training program available through NHPA. The program is just one of many workplace safety and HR compliance training courses NHPA makes available to retailers, including sexual harassment prevention training, workplace safety, first aid basics and back safety. The courses are available from NHPA through its partnership with JJ Keller & Associates, Inc., a trusted

Available Courses

• Back Safety

Diversity and Discrimination

Fire Extinguisher Use

FMLA for Supervisors

• Forklift Training

name in compliance training. The courses can help you stay in compliance with the Occupational Safety and Health Administration (OSHA) and other federal regulations. Retailers can purchase courses a la carte in NHPA’s Training Store, and several courses are available in both English and Spanish. While these courses will help meet regulations, retailers will still need to check with their local authorities for any additional requirements they must meet for full compliance. See the full list of courses with descriptions and prices at YourNHPA.org/training-store and get started with training today.

How to Prepare and Respond to an Active Shooter Threat

Sexual Harassment Prevention Training

• Workplace Bullying and Violence

• Workplace Safety Basics

• CDL Driver Training

Non-CDL Defensive Driving

Hot Work Safety

Lockout/Tagout Training

• Substance Abuse

OUTREACH

Retailer Recommendations

Send an email to editorial@YourNHPA.org telling us about the products your customers love and why they are such a hit in your business.

MULTIPURPOSE LUBRICANT

GEAR HUGGER® | gear-hugger.com

Gear Hugger Multipurpose Lubricant is plant-based, nontoxic, odorless and biodegradable. The dispenser features a built-in safety device to prevent leaks, allowing it to be sprayed from any angle. Gear Hugger is safe for use around people and pets and is USDA-certified as 96% biobased.

PAINT CAN LID SPOUT

SHUR-LINE | shurline.com

Shur-line Paint Can Lids stretch to fit most plastic and metal gallon-size paint cans, providing mess-free pouring. They are designed for all water-based paints and stains and provide an airtight seal that keeps paint fresh between projects.

SOY CANDLES

ROAM HOMEGROWN | roamhomegrown.com

Made by ROAM Homegrown, a woman-owned and Austin-based company, these large soy candles feature authentic scents made with phthalate-free fragrance, soy wax and 100% cotton wicks. The candles are available in four collections—Classic, Smoke, Cream and Retro—and include scents ranging from best-selling Lavender + Driftwood to festive Christmas Hearth to alluring Dry Gin + Cypress.

HEAT GUN

BOSCH | www.boschtools.com/us/en/

With a quick heat-up time, the Bosch 18V Heat Gun provides a max temperature of 930 F and can heat up to 570 F in six seconds. The lockout switch prevents accidental activation when traveling or not in use, and the temperature switch offers two temperatures, supporting a variety of applications.

PAINTER’S PANTS

TRUE WERK | truewerk.com

Featuring superior durability and four-way stretch in a lightweight softshell package, the T1 WerkPant is engineered to keep wearers cool and covered when the heat is on. The T1 fabric is designed with maximum airflow and “float yarns” to make the material breezy and comfortable next to the skin. To combat the hot weather, the wicking finish on the pant’s interior transports sweat away from the body four times faster than untreated fabric. These pants feature articulated knees, eight functional pockets, double-stitched seams and fast-drying/tear-resistant fabric.

CRAFTING SHEARS

BLACK+DECKER | blackanddecker.com

BLACK+DECKER Crafting Shears feature stainless steel blades that separate for easy cleaning. They can cut through thick materials and include a convenient paint can opener.

THERMAL SOCKS

HEATHOLDER | heatholders.com

Thick and chunky with a thermal rating of 2.34 tog, Heat Holders® are made from a specially developed heavy bulk yarn that has extreme thermal qualities. With long pile cushioning, these thermal socks help keep feet comfortable and supported. The inside of each sock has been intensively brushed to feel extra soft and trap warm air close to the skin to keep your feet warmer for longer.

make it a joy to use.

BENCHTOP SPECTROPHOTOMETER BYK-GARDENER USA

byk-instruments.com or 301-483-6500

The color2view Benchtop Spectrophotometer is easy to operate and features intuitive navigation using an icon-based touchscreen. An integrated camera permits a live preview of the measurement. It combines a spectrophotometer and fluorimeter to open new perspectives for controlling color quality and guaranteeing long-term color stability.

is ideal for use on molding and trim. Once cured, it provides a paintable seal with exceptional strength and durability. Painters choose ACCURA

because it's formulated to work with today’s high performance trim paints.

ENCLOSED BLINDS

BLINK® BLINDS + GLASS

blinkblinds.com or 866-472-0042

Blink®’s Blinds-Between-Glass are now available for entry doors. The enclosed blind solution keeps blinds in pristine condition, allowing homeowners to adjust the light and privacy level of their entry door without worrying about dusty, bent or tangled blinds. They’re available in two standard colors: white and tan, and in four premium colors: slate gray, espresso, sand and silver moon.

MADE TO STAND OUT.

Golden Paintworks Pre-Tinted Metallic Paints are professional quality, easy-to-use interior acrylic paints that are highly pigmented with iridescent mica to produce brilliant metallic effects. Now featuring an expanded palette of 27 new tint-on-demand colors, this line is perfect for decorative projects or for adding drama to featured spaces. Learn more at goldenpaintworks.com

New Berlin, NY  607-847-6154  paintworks@goldenpaints.com

©2023 Golden Artist Colors, Inc.

KEYCHAIN FLASHLIGHT ALLIANCE SPORTS GROUP

nebo.acgbrands.com or 800-255-6061

NEBO ®’s MYCRO Rechargeable Turbo

Keychain Flashlight includes six light modes, including the 400-lumen turbo mode and three LED color options. It is small enough to be concealed in the hand or fit on a key ring. It includes a micro-USB to USB charging cable, stainless steel necklace and wrist lanyard.

NEW STRATEGY

Hirshfield’s refreshed its team’s communication strategy to put emphasis on the “why” of the business.

OPERATIONS

Hire for Culture

Discover how to develop a culturally minded hiring process to find the best employees at PDRmag.com/crafting-job-descriptions

How Engaging Employees Increases Your Bottom Line Rock the Boat

BY JESS LEE

Imagine you’re 13 years old at summer camp, eagerly waiting on the dock in front of a line of row boats. You and five other campers scramble into the first boat. You’re sitting up front, ready to lead the way to the other side of the lake. As you go along your journey, you realize it’s becoming difficult to steer the boat in one direction. You peer over your shoulder and discover only one other camper is helping you paddle. Three campers in the middle are recording TikToks and the one in the back is actively rowing backward and complaining about how hard the work is.

“Aren’t you going to help?” you ask the three in the middle. They shrug and each start rowing an oar, but in opposite directions, making no difference in your progress.

If this scenario reminds you of people in your business, you’re not alone. According to Gallup’s Annual Employee Engagement in the U.S. Report, only 34% of U.S. employees are engaged with their jobs. All other employees are either not engaged or actively disengaged.

Think back to rowing the boat at summer camp. You and another camper are rowing the

boat forward across the lake to get to the other side. The two of you are engaged and working towards the goal.

The three people on their phones and not rowing in the same direction are not engaged—they are just there to say they were there. These three in the middle represent 52% of the U.S. workforce.

Finally, the person in the back rowing in the wrong direction and being more of a hindrance than a help is actively disengaged. They aren’t moving towards the goal but are instead actively moving away from it, bringing the whole team down. Actively disengaged employees make up the remaining 17% of the U.S. workforce.

Comparing today’s employee engagement to peak levels, which reached 37% in 2020, current engagement is down three points with projected engagement numbers to continue in a downward trend, according to the Gallup report.

Three retailers who are working to change the tide in their operations shared their best practices with Paint & Decorating Retailer. Apply their strategies to keep your boat from sinking and improve accountability, increase communication and promote positive employee engagement.

OPERATIONS

Retain Your Employees

Purchase the Employee Retention Toolkit to learn about engagement opportunities, stay interviews and more at YourNHPA.org/employee-retention

Clear Cut Communication

One key component for encouraging higher levels of employee engagement is effective communication.

Established over a century ago, Hirshfield’s has been supplying communities in Minnesota and the surrounding states with paint, sundries, window treatments and wallcoverings. Decor division manager Shannon Scarrella says the operation’s communications strategy is well established, but it had become stale and ineffective in several crucial areas.

Hirshfield’s managers and sales directors began revamping their internal communication system by taking a communication test to explore the ways staff receive and share information among different personality types.

Scarrella, along with Corey Sellman, paint and sundries department manager, took communication and personality tests before they met Peffley at an ALLPRO event.

“We both knew we needed to hire Kim after seeing her presentation,” Sellman says.

Following conversations with Hirshfield’s leadership team, Peffley customized an organizational development program with a key focus on communication.

The main goal of the refreshed communication strategy was to share with employees the “why” of the business. Explaining the why means elaborating on the reasons a change aligns with the company’s core values or contributes to the operation’s culture. Scarrella and Sellman began opening up additional lines of communication and encouraging conversations not only between department heads and managers, but also managers and employees.

“When we revamped and reintroduced our core values, we made sure to explain why the company made these changes to better align with goals and culture,” Scarrella says. “Explaining the ‘why’ of each action encourages inclusion and gives employees a sense of empowerment and responsibility. We have seen a positive impact from this approach.”

Fostering a sense of control and ownership in employees and being clear on upcoming changes encourages engagement.

“When employees are involved in decisions and have access to information, they feel important to the business,” Sellman says.

With a focus on improving communication, Hirshfield’s employees have taken personality assessments.

Building Accountability

Centrally located in metro New Orleans, Louisiana, Mike’s Hardware & Supply was built from the ground up in 1981. Current owners and brothers Lee and Rob LaFleur purchased the business from their parents in 2012.

“We grew up in the store, living in the apartment upstairs for eight years while our parents got the business up and running,” Lee says. “Rob and I began considering taking over the business after working at the store most of our adult lives and purchased it in 2012. We own and operate the business, but our parents still own the building.”

Lee reached out to the North American Hardware and Paint Association (NHPA) to contribute information to the annual Cost of Doing Business Study and discovered the association’s broad spectrum of organizational development programs. Rob reached out to Kim Peffley, NHPA’s director organizational development and consulting, to learn more.

“The intention wasn’t to go looking for development programs, but after talking to Kim, we decided to bring her to our store to have an outside voice that could see things from a different perspective and help us grow even more,” Rob says.

After a few phone calls with Peffley, the brothers knew they wanted to create more structure and a sense of accountability for their employees, along with improving workflow and best practices.

The brothers chose TeamBuilder, a three-month program designed to strengthen teams, define company values and create best practices to fit the company’s goals.

“We want our staff to be happy and comfortable with their positions in the store. To do that, we started by creating an org chart to show how the business operated, share who reported to whom and define the tasks and goals for each position,” Lee says. “Letting staff members know we’ve invested in resources to keep everyone accountable has made them feel more involved with the business.”

The LaFleurs also worked with Peffley to implement a web-based workplace task management tool that allowed management and staff to map out the necessary tasks and projects to be assigned to the appropriate staff on a daily, weekly and monthly basis.

“There are always those who may be reluctant to follow through with the change, and since we have partnered with NHPA and Kim, we have seen less of that reluctance and more buy-in from our staff,” Rob says. “Our crew is enjoying the changes, and we have seen improvements across the board.”

Empowering Employees

WORKING HARD

employees are empowered to take ownership of their roles.

Sean and Allison Ploskina, current owners of Bill’s True Value in Arlington, Virginia, came into the business a bit unexpectedly. Sean’s father, the original owner of Bill’s True Value, died at the beginning of 2021, transitioning store ownership to Sean and his wife Allison.

Mike’s Hardware & Supply

Photo credit: Scott Myers | Scott Myers Photography

Develop Your Team

The North American Hardware and Paint Association (NHPA) offers a variety of organizational development programs to help grow your business, create engaged teams and increase your bottom line. Learn about each program from Kim Peffley, director of organizational development and consulting for NHPA, and why she loves to help businesses through each step of each program.

TeamBuilder

“TeamBuilder helps you discover how to get your staff working more cohesively as a team and set processes in motion to help maximize the potential of your staff and improve your company culture. In a three-phase process, we get to know your team, evaluate your structure and offer support based on the information we gain during our meetings, including an on-site two-day visit. Together we create a plan to help you grow your business and unite and focus your team.”

Everything DiSC®

“DiSC assessments provide team members with personalized insights on themselves and others to improve self-awareness and awareness of the communication styles of others. The skills I learned through my DiSC assessment are the most powerful tools in my leadership toolbox. I work directly with teams sharing this tool to help them improve communication, productivity and overall effectiveness. Leaders can also use this tool to coach their teams more efficiently and reduce conflict.”

Vision Process

“Vision Process is a yearlong journey focused on strengthening your team, defining company values and building processes and best practices that fit your company’s goals. Our goal is to help your business experience a shift in culture, productivity and profit by helping you streamline operations, open lines of communication, implement best practices and develop your entire team to offer the best possible customer experience.”

Consulting

“Consulting sessions are a helpful tool to bounce ideas off someone else, ask for feedback, get help with accountability, troubleshoot and connect with others within the industry. Topics include owner support, manager mentoring, operational support, employee engagement, hiring tips, improved retention, conflict resolution, development planning and more.”

TIME FOR CHANGE

“After my father passed away and we took over the store, we were a bit overwhelmed with everything,” Sean says. “It was a whole new industry for us. I come from fire and rescue and Allison comes from pharmaceutical sales. There was a huge learning curve for both of us.”

There was another major challenge the Ploskinas faced when taking ownership of Bill’s True Value—the couple lived over four hours away.

“I was having trouble figuring out the best way to manage our team remotely. I’m not in the store every day, so it was hard for us to track employee accountability on a daily basis,” Sean says. “So the questions became, ‘How do we hold employees accountable?’ and ‘How do we empower them but also make sure tasks are completed and customers’ needs are met?’”

In 2022, the Ploskinas attended an employee engagement presentation from Peffley at the Fall True Value Reunion. Following the presentation and a discussion with Peffley, the couple signed up for Vision Process.

Vision Process is a yearlong program designed to strengthen teams, define core values and create best practices to fit each business’s unique goals. Because the Ploskinas lived remotely, there was an added goal of creating a digital accountability system where everyone could check and verify tasks were completed. The program aligned with their goal to develop leadership skills in their current employees and encourage a sense of ownership within the staff.

The team at Bill’s True Value started their Vision Process journey by taking the Everything DiSC® assessments, which help define different communication types and the ways each type shares and receives information.

“DiSC was eye opening. I could see how I would explain something one way and another employee would interpret it a different way,” Sean says. “With the results from DiSC, we were able to communicate more efficiently with one another to make sure we were all on the same page when it comes to moving the business forward.”

In order to create a solid communication path, the Ploskinas worked with Peffley to introduce a web-based

teamwork project management software. This system simplified the process of creating daily checklists, goal tracking and sharing sales figures, and it allowed employees to easily show progress on tasks.

Once the program was in place and all employees were trained on how to complete their tasks, the Ploskinas moved on to improving key performance metrics.

“We were considering alternative options for effective management of the store because we needed to drive overall growth,” Sean says. “My father had never been one to delegate, so when he passed, many day-to-day operations had to evolve to make sure the company remained profitable.”

The couple began assigning roles to various employees to make sure the store would run smoothly.

“Since then, employees are seeing our key metrics improve and the number of customers increase because they have become more involved with the business and can keep the store moving forward,” Sean says. “They are empowered.”

Encouraging empowerment also improved the overall operations of the business.

“Because we live over four hours away, we rely on the manager and shift supervisors to be in constant communication with us at all times,” Allison says. “They can delegate necessary tasks and projects, and the team is empowered to take charge in a specific section of the store and make it their own.”

Letting employees know they have the support of the leadership and the flexibility to take ownership has helped the team at Bill’s True Value create a better work environment for themselves and a better shopping experience for customers. The Ploskinas offer bonuses to all employees when they increase sales or receive five-star reviews. If a review lists specific employees, they receive an additional bonus, encouraging employees to remain engaged.

“You can see it in our bottom line, our customer feedback and increased ticket sales,” Sean says. “Employees can see it too and can be proud of the work they have done to make the store a profitable and engaging place to work.”

Allison Ploskina (left) and Sean Ploskina (middle), owners of Bill’s True Value, took part in NHPA’s Vision Process program to improve communications between employees and develop their leadership skills.

Shifting

Landscapes

BY CARLY FRODERMAN

In recent years, independent operators have expanded their businesses by way of acquisition, due to a number of factors, leading to consolidation in the industry.

To gain insight on consolidation trends, Paint & Decorating Retailer consulted an expert in home improvement business transition and two retailers who have been at the forefront of mergers and acquisitions in their own operations.

JIM MALLORY

founded Mallory Paint Store in 2006, opening its first location in Woodinville, Washington.

The operation has since grown to include 27 locations in Washington and Idaho, and Mallory’s next expansion goal is to reach 36 stores by 2026.

GARY PITTSFORD

is the partner and chief valuation officer of Creative Planning Business Services and has been guiding retailers through the succession planning process and consulting on acquisitions and sales for more than 40 years.

CHRIS MILLER

started in the home improvement industry at the age of 15. He established Nation’s Best Holdings in January 2019, which has since grown to 51 stores in 15 states.

Paint & Decorating Retailer (PDR): Within the industry, we’re seeing a lot of consolidation and merger and acquisition (M&A) activity. What is your perspective on this trend?

Jim Mallory (JM): I think large operations will continue to grow, using their significant cash flow to acquire more stores and improve operations at every location, which will lead to fewer independent retailers competing against each other because there will be fewer in the market. The majority of independent home improvement retailers are between 60 and 80 years old and have done exceptionally well over the last couple of years. Many of our acquisitions come from owners wanting to retire who don’t have another option for their business. These owners’ children are growing up, seeing how hard everybody’s working and then going to school to pursue other interests. Sometimes they return to the business after working out in the world, but not always.

Gary Pittsford (GP): Consolidation is occurring at a rate unlike any other over the last 30 years. I estimate about 50% to 60% of independent home improvement operations are acquired by industry buyers, a stat that has risen over time and drastically in the past five years. I attribute the rise in industry acquisitions to retailers who don’t have family or staff who are prepared to take over their business. In many cases, retailers don’t create a succession plan in enough time to prepare for retirement, and selling to an independent home improvement retail buyer is a more immediate solution.

Chris Miller (CM): There are still over 12,000 independently owned hardware stores and lumberyards in America, and I only see the consolidation of our industry continuing at an even faster pace over the next few years. Through acquisitions, we find expert associates in many different fields, and we use that experience and knowledge to improve the company. I still believe our model of keeping local brands intact and focusing on the development of our newly acquired associates is the most sustainable model out there.

stores allows operators to create more efficiencies as the business functions on a larger scale.

CM: I think acquisition activity has subsided since 2021 due to buyers being more cautious in the face of economic uncertainty. Lumber deflation and the pandemic have also made it difficult to properly value businesses. Our acquisition strategy has stayed fairly consistent since our inception in 2019. We still want to partner with best-in-class hardware stores and lumberyards that have long-standing roots in their respective communities and are already the dominant player in their geographic regions. Having the right management in place before the acquisition is important in our decision-making process. We want “business as usual” after a closing, and placing new management in stores causes disruption, or at least the perception of disruption. I would advise anyone thinking of selling to concentrate on putting the right people in the right places for at least a full year before seeking a buyer.

PDR: What are some other trends you think will be prevalent in the future because of the consolidation happening now?

JM: The prevalence of consolidation in the industry will lead to multistore operations with better pricing as they take advantage of buying opportunities more readily because they can shift inventory between locations if needed. This sets up the independent retailer to become more relevant and compete with big-box stores and even grow their contractor customer base.

PDR:

What changes have you noticed in the M&A market in recent years?

JM: We haven’t noticed much of a change since we began acquiring in 2008 and have kept a consistent acquisition strategy. We look for a healthy company culture, a strong profit margin and a similar product mix to what we carry in our other locations.

GP: Looking back 20 or 30 years ago, there weren’t a lot of buyers, and there definitely weren’t as many as there are now. It also wasn’t as common for an owner to have multiple stores. The technology available today makes it a lot easier to run multiple locations, and having more

Source: 2022 Business Owner Perspectives Study, MassMutual

46% of small business owners plan to retire within the next decade

OPERATIONS The Next Chapters

Explore three business transition strategies for your operation at PDRmag.com/business-transition-strategies.

Solutions Harness Effective

OPERATIONAL TOOLS FOR BUYERS AND SELLERS

Your association has the tools, programs and experts to help you develop your business growth or to prepare your business to pass on to its next owner. Reach out to nhpa@YourNHPA.org to learn more about any of these tools and start the conversation about your future today.

TO IMPROVE COMPANY CULTURE

Organizational Development & Consulting Services

NHPA offers multiple initiatives to improve company culture including Vision Process, TeamBuilder and Everything DiSC®, in addition to consulting and mentoring services. Visit YourNPA.org/development to find the right fit for your business.

TO BUILD BETTER LEADERS Retail Management Certification Program

This college-level course strengthens the management capabilities of owners and high-potential employees and provides actionable knowledge to make a difference in your business immediately. Visit YourNHPA.org/rmcp to learn more.

TO BENCHMARK YOUR BUSINESS Cost of Doing Business Study

This annual industry resource aggregates key operational metrics from independent home improvement operations to help retailers increase their profits and strategize for the future. Visit YourNHPA.org/codb to purchase the 2023 study.

TO BUY OR SELL A BUSINESS NHPA Retail Marketplace

This industry-specific platform provides operators with a cost-effective way to advertise their businesses for sale, their interest in buying or open job positions. With valuation and financing services also available, this comprehensive service can put you on the path to growth. Visit YourNHPA.org/marketplace for more information.

All in the Family

Listen to Gordon’s Ace Hardware’s business transition story on Episode 85 of NHPA’s Taking Care of Business podcast at YourNHPA.org/podcast

Support Rallying

GP: To avoid competing against independent chains that may have better advertising and pricing, small business operators are acquiring stores in their markets when possible, leading to even more consolidation. Consolidation leads to shared technology, best practices, knowledge and more between an increased number of stores. It also often leads to more cash flow, which companies can reinvest in their business to further improve it. As more stores reach higher standards of operation, the industry becomes better as a whole.

CM: I think consolidation will create more financially powerful companies, and along with that, an increased focus on technology. With the big-boxes being the forerunners in the technology trend, we are forced to make significant investments in our technology platforms and offerings to compete and meet our customers’ needs.

PDR: What is one thing you wish all retailers knew about the business transition or acquisition process?

JM: Acquisitions are not personal, they’re business. I think the first thing retailers have to understand is their business is usually not worth what they think it is. It’s hard when it’s your blood, sweat and tears going into an operation, but when you start looking at profit and assets, you can see what it’s really worth, and the strength of their crew.

GP: Retailers need to have a succession plan in place as early as possible, not just six months before they want to sell. Having some sort of succession plan in place early, like upon acquisition, and reevaluating every five years or so will set their business up for success if something unexpected happens.

CM: The acquisition process can be stressful and full of emotion. It is critical that you partner with the right business that truly cares about your people. From the owners to the cashiers, if we all are aligned on the philosophy of always doing the right thing, it will drastically reduce that stress and emotion knowing the business and its employees will always come first.

Financial and business planning institutes and associations

Wholesalers and co-ops

The North American Hardware and Paint Association

WHERE TO FIND BUSINESS TRANSITION ADVICE

OPERATION In Case You Missed It

Learn more from the Home Improvement Research Institute and discover what’s driving tape, caulk and paint spraying equipment purchases at PDRmag.com/tape-caulk-sprayers-hiri

ESSENTIALS CATEGORY RESEARCH

PURCHASES OF CLEANERS AND INTERIOR STAINS SEE STEADY GROWTH

Providing data-backed insights covering the most important trends in the home improvement industry, the Home Improvement Research Institute (HIRI) shares that purchases of interior wood care products are growing.

Data from HIRI’s 2022 Product Purchase Tracking Study shows growth in product purchase incidence has been steadily occurring in the wood care products market since 2017 and provides insights into who is purchasing.

HIRI’s study shows that younger demographics are more likely to make wood cleaner and stripper purchases, and a majority of these purchases are made by male customers with children in the home. Older generations actively purchase interior stain products, but are comparatively inactive in purchasing wood cleaners.

These data points suggest that in lieu of replacement, younger generations embark on refinishing projects to improve their interior wood elements like flooring, cabinets and furniture.

ABOUT DAVE

Dave King joined The Home Improvement Research Institute (HIRI) as executive director in 2022. King has spent the past 25 years in the strategy, research and advanced analytics space. For the last 10 years, he has focused solely on the home improvement industry. HIRI’s insights are hyper-focused on the pro and homeowner trends most impactful to the home improvement industry.

Floored by Wood Care

According to HIRI’s Q2 2023 Quarterly Home Improvement Project Activity Tracker, a variety of flooring projects—from installing, repairing or replacing flooring—have been consistently undertaken as the second most common project type in living and family rooms, second only to painting projects.

In the kitchen, replacing or repairing flooring is also the second most common project that homeowners tackle, but homeowners undertaking kitchen flooring projects tend to have an annual household income greater than $160,000.

HIRI tracks the percentage of homeowners engaging in flooring refinishing projects on a biannual basis, which was 19% in 2019 and 17% in 2021. The 2023 findings of the Product Decision Study will be released to HIRI members in November 2023. These findings signal to what degree homeowners will demand interior wood care products and educational materials from manufacturers.

HIRI also tracks the incidence of homeowners choosing to install wood flooring during replacement projects, which signals the future demand trajectory for wood care products.

The incidence of wood flooring being used during projects has increased each year since 2015. In 2021, 41% of homeowners opted to install new wood flooring, up from 24% in 2015.

Explore Further

For more insights on homeowner behaviors driving the future of home improvement product sales, review the research and resources available at HIRI.org, including upcoming updated reports from both the Product Decision Study and the Quarterly Home Improvement Activity Tracker, available to HIRI members in November 2023.

Source: 2022 Home Improvement Product Purchase Tracking Study, Home Improvement Research Institute

2023 Data Available to HIRI Members November 2023

OPERATIONS

The Perfect Match

More customers are desiring a custom feel when it comes to stain colors. Learn more at PDRmag.com/stain-matching

SEGMENTED FOR

Success

DEVELOP YOUR INTERIOR WOOD CARE SELECTION TO MEET CUSTOMER NEEDS

BY JESS LEE

Since 1979, Painter’s Supply, with locations in Mesa and Deer Valley, Arizona, has offered a comprehensive selection of interior wood care products. The operation’s two 6,000-square-foot locations each have 3,000 square feet of selling space dedicated to interior wood care products.

General manager Joe Dudo, who grew up in the store under his father’s leadership, credits the category’s growth and success to the store’s educated employees and thoughtfully crafted product strategy.

Whether your interior wood care department consists of 50 square feet or 5,000, Dudo shares best practices for creating a highly successful interior wood care category that meets your customers’ needs.

Information Central

While wood is used for construction because of its sturdiness, it requires proper care to maintain its longevity, especially interior wood. When building a successful interior wood care category, stocking the best products is half the battle—educating employees on how the products interact with wood and how customers should use them is just as important.

Dudo strives to ensure his employees are knowledgeable of every product in the store, taking special care to go over the intricacies and nuances of interior wood care products.

“To stand out, we’ve focused our business on more niche products, such as interior wood care, that require more education to understand and then explain to customers,” Dudo says. “For more intense projects or higher quality products, big-box stores often refer their customers and contractors to us because of our selection and know-how.”

To help educate his employees, Dudo says he has new employees read about the products to get the basic information, then partner with a mentor employee who knows how the products work from personal experience and customer stories to gain additional knowledge.

When new products are released, every employee is educated on how they work and fit into the operation’s current product mix.

“It is a mix of both education and on-the-job training when it comes to new employees learning about our interior wood care products,” Dudo says.

OUT OF THE

BLUE

COOL STAIN TRENDS

Unique Customers

Because Dudo and his team are incredibly knowledgeable when it comes to interior wood care products, they have attracted a wide variety of customers since opening.

“A majority of our customers are contractors who are coming in to redo kitchen cabinets for their clients,” Dudo says. “However, we have seen a huge increase in cabinet manufacturers purchasing manufacturer-specific stains, something not available to the average homeowner or even contractors.”

The eclectic mix of customers led to the category offering a diverse product selection. Dudo says the department is organized into three different categories. First are products designed mostly for homeowners to tackle quick and easy projects like restaining cabinets or upgrading furniture.

“This is the smallest section of our inventory as we are mostly a contractor and manufacturer-based company,” Dudo says. “But big-box retailers do send over homeowners who are looking for a specific product or style that we carry.”

Second, the largest section of interior wood care products are top-tier products designed for contractors to help make their projects shine.

“These are more of the fast-drying products made with high-quality material to create the perfect finish without taking up too much time,” Dudo says.

Finally, Painter’s Supply offers a line of manufacturer-exclusive products that aren’t available at regular hardware and paint stores.

“Local manufacturers started showing an interest in some of the more niche products we could get,” Dudo says. “They now regularly purchase from us stains and finishes designed for untreated wood that can only be sold to manufacturers.”

By offering a wide interior wood care product selection and servicing a large and varied customer base, Painter’s Supply has set itself apart from competition and established itself as the go-to place for interior wood care.

“Sometimes our customers are searching for unique products not widely sold in stores. Other times, customers are looking to tap into our employees’ knowledge base for a project, so we ask questions and determine what product will secure the best results,” Dudo says. “Wood care is an art form, so it’s important to have the best products available to help customers achieve the best

results.”

Cabot’s Newburyport Blue, a deep, bold midnight hue is rooted in heritage and luxury. The timeless shade delivers a touch of elegance to bring a relaxed, comforting aesthetic, helping you and your guests feel at home, indoors and out.

Newburyport Blue

Bay Blue from Minwax is a captivating wood stain hue, nestled between blue and green, that creates memorable spaces in a home by enriching and distinguishing wood’s natural beauty.

Bay Blue

OPERATIONS

Buying Habits Unveiled

Dive further into consumer spending motivations with seven more statistics at PDRmag.com/consumer-spending

State of the CUSTOMER

8 STATS ABOUT CURRENT CUSTOMER SHOPPING HABITS

AS YOU SHAPE YOUR merchandising, product procurement and operations strategies, knowing customers’ purchasing tendencies will set you up for success. Dig into eight stats from the How to Sell Direct in the Age of the Conflicted Shopper Report from logistics company Ascendia that reveal the buying habits and consumer motivations driving current retail sales.

Spend Is Down

69% of respondents said they are cutting back on their spending.

TO BETTER MANAGE DISCRETIONARY SPENDING:

34% cut back on the total volume purchased.

33% shop with online retailers who offer free delivery.

31% spend more time searching for deals.

Factors That Matter

THE MAIN FACTORS CONSUMERS CONSIDER WHEN SHOPPING IN 2023:

55% PRICE

54% VALUE FOR MONEY

50% QUALITY

43% COST OF DELIVERY

B

B U SI N E S S F O R S AL E

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3 21 million

and warehouse space on 4 acres. The main bldg was constructed in 1994 with additions constructed in 2002 & 2004. Single story with 22’ clear height level doors and two dock height doors

B

Central Vermont Paint , Flooring , and Decorating

Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1 1 million

Full-service decorating store providing

kitchen/bathroom remodeling, cabinetry product o erings, design assistance, specialized service, and professional installation

B U S I N E S S F O R S AL E

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 Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products

Hoosick True Value

Location: Hoosick Falls, New York

Gross Revenue: $1.26 million Price: $1.875 milli

This opportunity o ers a turnkey sale of a general hardware operation located in northeastern Rensselaer Co., New York The business serves five towns, southwestern Bennington Co , Vermont, and 25 miles east of Troy, New York

B U S I N E S S F O R S AL E

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

B U S I N E S S F O R S AL E

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEE KI N G B U S IN E S S E S Gold Beach Lumber Yard

We are looking for:

•

•

•

• We prefer to keep all employees as part of the acquisition

• Single-store and multi-store

hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

Reining in Fees

U.S. HOUSE AND SENATE TO VOTE ON CREDIT CARD COMPETITION ACT

AIMED AT ENHANCING COMPETITION and choice in the credit card network market, the Credit Card Competition Act (CCCA) was introduced in July 2023 into the U.S. House and Senate.

The CCCA strives to reduce credit card interchange fees, also known as swipe fees, and create a more competitive environment for merchants accepting credit cards as payment. Currently, American Express, MasterCard and Visa dominate the market with four banks—Chase, Citi, Wells Fargo and Bank of America—issuing nearly half of all credit cards.

The legislation would require all banks with at least $100 billion in assets to allow cards to be processed over

at least two unaffiliated networks—Visa or MasterCard—plus well-established, high-security competitors like NYCE, Star or Shazam. If passed, it is expected to save merchants and their customers $15 billion a year, according to the Merchants Payments Coalition.

Several independent retail organizations, including the North American Hardware and Paint Association, signed a letter in support of the CCCA. Small Business Rising, a coalition of small business membership associations representing more than 200,000 independent businesses, authored the letter, which was sent to co-sponsors of the bill to show support for the legislation and thank the sponsors for helping small businesses.

How to Get Involved

In 2022, merchants paid $160.7 BILLION in credit and debit card swipe fees, up from $138 BILLION in 2021.

Credit OPERATIONS

up

a