Issuu

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Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666

Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864

Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609

Senior Editor: Doug Donaldson doug@thehardwareconnection.com 646-508-7904

Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624

Contributing Writers: Gary Pittsford, Craig Webb The Hardware Connection is published eight times a year by The

Connection, Inc. All editorial contents copyrighted 2023 by the publisher. No editorial may be reproduced without the prior permission of the publisher. The Hardware Connection, Inc. 91900 Overseas Highway Tavernier, FL 33070

By Chris Jensen

Writing the Next Chapter of My Career

For 35 years, I’ve had a satisfying response when people ask me what I do for a living. I reply that I travel around the country visiting hardware stores and then write about them. It has been a cool and rewarding gig.

All good things must come to an end. I’m officially announcing my retirement as editor of The Hardware Connection, effective at the end of this year. News about my successor will be announced soon, but I wanted to begin looking back on my hardware journalism career and what I’ve learned about this great industry. This is part one of a multi-part farewell message, as I have a lot more folks to thank in next month’s issue.

My hardware journalism journey began in the summer of 1988. I had just graduated from Ball State University in Indiana with a master’s degree in journalism and needed a job. I applied for a job with John Hammond, who was publisher for NRHA (now NHPA) and Do-It-Yourself Retailing magazine (now Hardware Retailing). Luckily, John never asked me a basic question that might’ve disqualified me from being hired: have you ever been inside a hardware store? Because at that point in my life—at age 25—I had never set foot inside a hardware store. I didn’t

know a thing about hardware or retailing or B2B publishing; all my journalism experience came from newspapers.

John hired me as an associate editor, but I was apprehensive about my new responsibilities. I had never been to a hardware store, knew nothing about hardware retailing and yet I was supposed to write articles that taught people who had been hardware retailers their whole lives how to do their jobs better. That was pressure.

I quickly got the hang of the job—it just involved prodding retailers to tell me their success stories. I’ve gone on to visit 2,000+ hardware and LBM stores in 48 states and seven countries, as a rough estimate. Whether the store featured unique niches, innovative retailing concepts, exceptional customer service or transformational leadership, it was my job to pinpoint those differential advantages and describe them in a concise, relatable way. When you’ve visited as many hardware stores as I have, it’s easy to spot the characteristics worth writing about.

One of the first stores I visited in 1988 was a small store in the Florida Keys: Tavernier Hardware, operated by Tom Chasteen. For those who know Tom, they won’t be surprised to learn he talked my ear off and I almost missed my flight

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EDITOR’S NOTE

home from Miami. Tom then convinced me to return to Florida a few months later to check out a hardware conference he was starting with a few retailing friends. It will be very unique, he promised. So, I attended the first Hardware Conference in Marco Island, not knowing what to expect.

Tom was right—The Hardware Conference was way different than any other industry event I had attended in my short career. The Conference gave retailers and vendors an opportunity to engage in meaningful dialogue to discuss key industry issues, all while having fun in a beautiful setting by the beach. That article I wrote about the first Hardware Conference was proudly shown around the industry by Tom to convince vendors the Conference was a credible event worth supporting.

You could say that my career has been bookmarked by The Hardware Conference. Last month, I attended the 35th edition of the Conference, which is still held in Marco Island and now directed by Craig and Shanti Cope. You can read my report on page 26 of this issue.

Tom and I went on to found The Hardware Connection in 2009, recognizing that a digital-only publication could better meet the needs of the evolving hardware industry. We launched our first issue in November 2009, five months before the first iPad came out. When Dan Akers joined

us as a third partner in 2011, he was able to take the magazine’s design to another level. We’ve gone on to win 16 awards for editorial excellence in the last nine years including the 2017 Eddie Digital Award from FOLIO magazine for Best Standalone Digital Magazine in the B2B category.

Before I go any further, I need to thank the most important people in my life for their ongoing support and understanding—my amazing wife Tiffany, 27-year-old daughter Abby, 25-year-old son Brandon, 20-year-old stepdaughter Ava and 18-year-old stepson Sam. I was a proud papa when Brandon’s photographs of Crowder Bros. Ace Hardware graced the cover of our May-June 2016 issue (he hadn’t graduated high school yet), and he also shot pictures and video of all five 2019 Beacon Award winners.

All four kids have been able to experience the excitement of wandering around hardware events with me and have put up with me interrupting family trips to make a quick stop to check out a neat hardware store.

I owe my wife and kids a lot, because putting out The Hardware Connection has been an all-consuming job for the past 15 years. A lot of late nights, weekends and holidays spent working to perfect another article, another issue. I saw very little of my kids the first two years it took to get the magazine up and running. It’s time I can’t get back. With

Service counts and knowledgeable dealers are part of the STIHL difference. With 100,000 online reviews and counting, STIHL Dealers have an average 4.8 star rating and customers overwhelmingly say they would recommend their dealer to others. Thank you for your dedication and the essential services you provide your community. Together, we are STIHL Strong.

“The staff was helpful in assuring I got the best product to meet my needs.”

— Barry

EDITOR’S NOTE

our youngest finally off to college this year, it’s time to start saying yes to all of Tiffany’s plans for travel and adventure. She deserves my full attention, undistracted by the next issue that’s due.

Until Doug Donaldson joined us this year as senior editor, I operated as a one-man editorial department, writing most of the content and being solely responsible for catching errors. That’s stressful on a long-term basis, although I always embraced the challenge. I look forward to reduced levels of stress. I’m not retiring completely from the hardware industry and definitely not retiring from writing, just from my role as editor of The Hardware Connection.

I’ve accomplished a lot more than I ever expected to in the hardware industry, but it’s time to pursue new writing challenges. I published a baseball book 11 years ago (Baseball State by State) and have been eager to tackle more baseball books. I recently completed my first novel and hope to have it published soon. It’s a humorous tale of a small-town hardware retailer, which is something I now know a lot about.

If you have enjoyed reading my articles these past 35 years, I’d love to hear from you at chris@thehardwareconnection.com or chris.jensen81@hotmail.com. n

Go from constantly wasting money on dead stock to freeing up $100,000 in tied-up, unsold inventory.

Just like lumber dealer Exotic Woods did with Spruce!

Moving away from their clunky software was a no brainier for Exotic Woods, but they had no idea how much it held them back. When they found Spruce, ECI’s end-to-end business management solution created specifically for lumber and home and building suppliers, they knew it was time to make a change.

Since being live on Spruce, Exotic Woods has gone from storing orders in a paper box to a full, streamlined document management system that has saved significant time and money.

10 hours per week shaved off payroll

$2,000 saved in paper costs annually

$100,000 savings in inventory

By Craig Cope

35th Hardware Conference Was a Memorable Event

The 35th anniversary of the Hardware Conference at the JW Marriott Marco Island Beach Resort in Marco Island, Fla., is one I will always remember. Three components of the Conference stood out to me: a fantastic mix of actively engaged attendees of various company sizes, the professional speaker and our charity fundraising activities.

The theme for this year’s Hardware Conference was “Business Transition Planning.” This was the first year we hired a professional speaker. On Saturday morning of the Conference, we hosted professional speaker and serial entrepreneur Tom Bronson. Tom is the founder and president of Mastery Partners, a company that equips business owners to maximize business value to achieve their dream exit. Before forming Mastery Partners, Tom served as president and CEO of Granbury Solutions, a VAR (value-added reseller) and ISV (independent software vendor) serving food service, retail, and winery technology markets, with the industry’s first recurring revenue model offering an end-to-end suite of technology to those markets.

CLICK HERE FOR A GALLERY OF PHOTOS FROM THE 2023 HARDWARE CONFERENCE IN MARCO ISLAND!

Tom’s presentation did an outstanding job of putting the business seller in the buyer’s shoes. As a business buyer, you are seeking an acceptable ROI (return on investment) of capital, and countless investment opportunities vie for your attention. Sometimes, this gets lost when managing your business on a daily basis and dealing with all the issues of running a retail operation. When was the last time you thought about strategies to increase the value of your business to a potential buyer?

The first step is understanding what your business is worth. Most companies sell at a multiple of revenue verified with tax returns for a few years. This can be complex for small businesses that still need to have defined financial processes in place. Tom recommends every business review their financials by the 15th of each month. Even with defined processes, the odds are still stacked against the business seller. Tom shared a staggering

TREND WATCH

statistic that only 13 percent of businesses will sell. The balance of businesses are closed and/or liquidated.

One of the biggest takeaways from Tom’s presentation was the importance of recurring revenue. According to a recent study by Statista, the average consumer in the United States has 12 paid subscriptions. This led to a highly productive dialogue about how hardware stores can compete in the subscription-based business model. Hardware stores sell many consumables, such as pet food, airconditioning filters, cleaning supplies, etc. If your store already performs deliveries, why not expand into subscription-based deliveries? Imagine at the beginning of the month, you already know you have a set amount in revenue before the front door is even opened. Now, ask yourself how attractive that would be to a prospective buyer.

The industry’s charitable side was also displayed at this year’s Conference. Each year, exhibitors donate their booths or services for auction, with all proceeds benefiting the Nicklaus Children’s Hospital in Miami. The Nicklaus Children’s Hospital Foundation is a not-forprofit 501(c)(3) established to support delivering, and access to, world-class healthcare at Nicklaus Children’s Hospital, South Florida’s

only freestanding children’s hospital. This year, we raised $18,400 for the foundation, and the total amount is approaching $1.3 million over the 35 years. Thank you to all the vendors and retail attendees who have contributed toward a very worthwhile cause throughout the Conference’s history.

Next year’s Hardware Conference is scheduled for August 16-18, 2024, at the JW Marriott Marco Island Beach Resort in Marco Island, Fla. Event and hotel registration will open in February 2024, and our hotel room rate is still only $198. The Conference will always remain a first-class informative, interactive, entertaining and family-friendly event for everyone who supports the independent twostep hardware channel.

Shanti and I would like to thank all the retailers, wholesalers and manufacturers who have supported The Hardware Conference throughout its 35-year history. I especially would like to thank all our 2023 sponsors: Do it Best, ECi, Epicor, Fluidmaster, Midwest Fastener, Orgill, Hyde Tools, The Hardware Connection, Sunnyside and WD-40. Without your support, there is no Hardware Conference. This is the industry’s event. We are merely stewards, ensuring everyone has the best possible experience. I sincerely look forward to the next 35 years of The Hardware Conference. n

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How to Get the Most from Your

How to Get the Most from Your Omnichannel Retail Solution

Omnichannel Retail Solution

Four key things to keep in mind when beginning your RMS journey

From browsing a website on their phone, to ordering items online and picking them up in-store, to strolling the aisles of a favorite local business, customers view shopping as an activity that’s woven into the convenience and opportunities of their everyday lives. The lines between working, playing, browsing, and buying have blurred, and the seamless shopping experience that results— omnichannel retail—is growing more important every day. Smart retailers are embracing the challenges and potential of omnichannel—which often means purchasing or upgrading a retail management solution (RMS) to help navigate this exciting landscape.

If you’re considering an RMS to help your business drive results with omnichannel, make sure you get the system you need to help you exceed expectations for your customers:

Can your RMS be deployed in the cloud?

Can your RMS be deployed in

the cloud?

Retailers are using cloud technology for reasons of versatility, convenience, security, and value. Storing your all-important data in the cloud means it’s monitored and maintained 24/7 by experts, protected at extremely high-security facilities, and freeing up your employees to do what they do best—serve your customers. Even if you aren’t ready to fully commit to the cloud with your new RMS right away, it’s a good idea to choose a solution that has the potential for cloud adaptability down the road.

Are there tools for inventory management?

Inventory drives outcomes in omnichannel. Especially for those businesses with multiple locations, choosing an RMS with robust inventory capabilities is the key to getting the product mix, customer interest, and sales numbers you want. Customers want to find out immediately what’s in stock, or how quickly they can order it. To strengthen your omnichannel program, select an RMS that gives you big-picture inventory views, as well as the ability to streamline pricing, labeling, and stocking tasks for your employees.

Are there tools for inventory management?

Can your RMS strengthen and enhance your rewards program?

A strong customer loyalty program not only shows your shoppers that you appreciate their business, it’s a great vehicle for leveraging customer data to move certain products, suggest new items they might enjoy, and to make complementary product recommendations at checkout. A robust omnichannel RMS will allow you to immediately retrieve loyalty program data, trigger reminder emails or other forms of communication about potential purchases, and generate product information at any point-of-sale (POS). This is especially true for retailers using mobile POS, which many businesses view as an essential component of future success.¹

Can your RMS strengthen and enhance your rewards program?

Retailers using Mobile POS had 452% higher profit expectations for 2022 than retailers not using Mobile POS.

Source: IHL Group

Will you receive end-to-end product support for your new solution?

From your initial meeting to go-live and well after, your RMS partner should be there for every step of your implementation journey. Whether you’re a long-time user or training your entire staff for the first time, you should have access to quick answers, online or in-person training, and opportunities for employees to enhance their knowledge at their own pace. With so many channels and moving parts, a successful omnichannel retail program requires a solid RMS and an equally solid support structure to make sure each element of the new solution is efficient and effective.

¹IHL041 Epicor - Unified Commerce Report.

HARDWARE PRODUCTS REVIEW ShopTalk

PRODUCT #1:

VACMASTER PROFESSIONAL® BEAST

SERIES 12-GAL WET/DRY VAC

CLEVA NORTH AMERICA

Cleva North America offers a portfolio of innovative brands, including Vacmaster®, Vacmaster Professional®, Duravac™, Kenmore®, Kenmore Elite®, Armor All™ and LawnMaster®. We received a shipment of their newest Vacmaster Professional® Beast Series addition—a 12-gallon 6 horsepower model. The 12-gallon addition fits nicely within their current Beast Series, including the 16-, 14- and 5-gallon models.

The 12-Gallon 6 hp model utilizes a polypropylene tank with a built-in hose, power cord and accessory storage in a compact footprint. The compact footprint is a benefit of the vacuum flat-head motor design, making storage even simpler. The vacuum also boasts a total cleaning reach of 29’, reducing the need to move the unit constantly. It also offers the ability to switch to a blower, enhancing its versatility. Click here to view a short product video.

Every home should own at least one wet/dry vacuum for the inevitable leaks, spills and debris too large for a

By Craig Cope

CLICK HERE TO VIEW A SHORT PRODUCT VIDEO

standard house vacuum. Using this logic, we supplied our samples to a mix of testers—professional contractors, active DIYer and the occasional user. All testers commented on the impressive suction power of the 6 hp motor and extensive accessories.

Two comments stood out from our active DIYer and occasional user. Our DIYer noted the exceptional cleaning reach led them to clean up more frequently, since it was simpler to use it quickly. The occasional user experienced a clogged drain and needed to empty the sink of water before fixing it. The vacuum’s oversized drainage allowed them to drain the unit without lifting it.

HARDWARE PRODUCTS REVIEW

If your store sells wet/dry vacuums, consider adding the Vacmaster Professional® Beast Series, including the new 12-gallon model. The vacuum can handle the everyday abuse on the construction site and make quick work of home clean-up.

PRODUCT #2: BULK-STRAP TURF INC.

In previous product reviews, I have reflected on my childhood experiences growing up in an active DIY family that didn’t own a pickup truck. I can’t count how many times we returned from the hardware store with our trusty Oldsmobile loaded with lumber and various materials, all secured using only twine provided by the store.

Fortunately, we never lost a load, but BULK-STRAP could have significantly simplified our lives.

BULK-STRAP, owned by Turf Inc. since 1992, manufactures and distributes a broad line of webbing, webbing assemblies and fasteners. The straps can be cut easily with scissors or a hot knife and are offered in standard rolls of 300 feet or custom lengths. The company offers a polypropylene strap for lightweight applications, medium-weight applications are made from nylon and heavyduty is made from polyester. Hardware items such as buckles, slip-loks and cam buckles are available in both plastic and metal. Click here to watch a video providing an overview of their products.

Since Bulk-Strap is sold by length, the list of applications is virtually endless. So, we contacted a mix of testers for their opinion and challenged them to find a unique application. One use involved a garage/shed organization project to store tools neatly and securely. One tester who owns an underwater boat-bottom cleaning business used his samples to create a clever way of taking his cleaning tools underwater. Each tool

CLICK TO LEARN MORE ABOUT BULK-STRAP

was secured to him and easily detached with a buckle push.

The versatility and flexibility of BulkStrap make it a must-have for all hardware stores. The company takes pride in its retail displays and provides a variety of options to retailers.

PRODUCT #3: MOLDING TAPE RAPIDFIX® /LHB INDUSTRIES

If the name RapidFix® sounds familiar, it’s because we have tested several of their products created by LHB

Industries, a 501(c)(3) organization that provides support services for the visually impaired. Their newest product is the introduction of Super Strength Molding Tape, primarily used in the automotive market. This tape is an acrylic, dual-sided tape system that adheres to most surfaces, greatly expanding its applications.

The molding tape creates a permanent attachment for automotive molding, body siding, rocker panels, emblems and more. It can be easily cut with scissors, and the dual-sided liner is simple to remove. Additionally, the tape can withstand extreme weather fluctuations and weathering, which weaken most adhesives.

We provided samples to a car refurbishing enthusiast for simple cosmetic repairs that can be completed by anyone. The product performed without any failures in adhering to various materials and was able to withstand the scorching sun of South Florida. Our tests included multiple trips through a carwash, again without any issues.

If your store has an automotive department, consider adding RapidFix® molding tape to address a variety of customer needs. n

• Discover the limitations of your current POS system and the risks it poses to your business.

• Explore the benefits of upgrading to Retail Automation POS, including enhanced functionality and scalability.

• Seamlessly transfer your existing Point of Sale data from Quickbooks POS and Prosperity with expert assistance and support.

• Future-proof your business and stay ahead of the competition.

Hardware Conference Celebrates 35 Years of Building Relationships

TBy Chris Jensen

he 35th edition of The Hardware Conference, held August 18-20 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla., demonstrated the strength of the independent channel.

The Hardware Conference was started in 1988 as a way to build relationships to keep the two-step channel of distribution healthy for vendors, wholesalers and retailers. Conference directors Craig and Shanti Cope strive to put on a family-friendly event that combines business with fun. Many great ideas were shared during casual conversations in the hospitality suite.

One of the highlights of this year’s Conference was the Friday evening banquet, where four of the industry’s best retailers were honored during the 11th annual Beacon Awards program. See additional story on page 40.

Leading vendors participated with tabletop booths displaying their latest product innovations, which retailers could view during Saturday and Sunday morning exhibit hours as well as during the cocktail reception Saturday evening. Since the Conference is not a buying show, dealers can learn more about the suppliers and their product innovations without feeling pressured to buy.

The wholesale community lends important support to the Conference each year, with Orgill and Do it Best holding luncheon meetings for their dealers.

“This is the only event where all levels of the hardware industry can talk, mingle and share ideas,” said Chris

The hospitality suite’s outdoor terrace was the perfect spot to catch a gorgeous sunset.

Conference Director Craig Cope.

Above: Conference attendees got to enjoy Marco Island’s beautiful beach.

Breakfast on the patio was a chance to catch up with old friends and meet new ones.

Bunch, corporate account manager for Orgill. “The Hardware Conference is a relaxed atmosphere where we can share thoughts about trends in the industry and really get to know folks.”

Steven Rottenberg, director of sales-Eastern U.S. for RESCUE, said, “This is our first year here at The Hardware Conference and during the last couple of days I’ve been able to meet hardware store owners and other manufacturer representatives. The Conference isn’t about filling out a sales form, it’s about long-term relationships, which is huge in this immersive setting. At other shows, we don’t get the time to have genuine conversations.”

One tradition that continues is the support the industry attendees show for the children’s hospital. On the last night of the Conference all the vendors auction off their booths, and the money raised is donated to the Nicklaus Children’s Hospital Foundation. This year’s auction raised $18,400, bringing the total fundraising amount over 35 years to more than $1.2 million.

Debra and Miller Tobierre.

Fred Fischer of J3 POS and Stokeley Pound of Pine Mountain Builders Supply.

The evening cocktail receptions were a way for all segments of the industry, regardless of affiliation, to build relationships.

The O’Shea family from All American Hardware in Hauppauge, N.Y., with a few extra friends.

Paul Dupont and Boyden Moore of Orgill.

The roundtable discussion featured Beacon winners (l to r): Jason Plummer, Bart Raser and Michael Townsend.

Tom Bronson of Mastery Partners gave the featured presentation on business transition planning.

Tom Chasteen and his wife, Dale, were brought up on stage Friday night so Tom could share stories of the formative years of the Conference, which they ran together for the first 26 years until passing on stewardship to Craig and Shanti. Tom started the first Hardware Conference with fellow Ace retailers Bob Goggin, Dan Hitchcock and Chris Vanassche, along with Paul Weintraub, a dear friend and manufacturer’s rep. “It’s a good thing there was no social media back in those

early years, but we definitely had a lot of fun,” Tom said.

An all-day Technology Forum was held on Thursday, the day before the Conference officially opened. Epicor held an in-depth training session with its retail customers, helping them discover ways to operate more efficiently.

BUSINESS TRANSITION PLANNING

Business transition planning was the theme of the Conference and that was

The penthouse hospitality suite and terrace were a favorite gathering spot.

Randy Rusk, Bob Harville, Nick Talarico and Mike Melchi of Do it Best.

Duracell AA/AAA Coppertop batteries with POWER BOOST™ Ingredients deliver dependable power

also the subject of Saturday’s featured presentation by Tom Bronson, president of Mastery Partners.

Bronson pointed out that 72 percent of business owners have no exit strategy, 48 percent of owners who want to sell their companies have no exit strategy and 83 percent of all attempted transactions never make it to the finish line. “Business owners don’t take the time to prepare their businesses for a proper exit,” he said.

Bronson shared 10 of the 65 specific actions to dramatically increase the value of your business found in his recent book “Maximize Business Value Playbook.”

1. Know what the business is worth—There is really no reason not to know the value of your business.

2. Require monthly financial statements by the 15th—A financial statement is nothing more than

Billy Cornelius, Dan Akers, Tom and Karen Bronson.

Wendy and Sam Kirkland of Epicor and Steve Rottenberg of RESCUE.

*Compared to other gas tankless models without X3 Technology.

a history book. But, it’s a history book that can give you clues for the changes that need to happen to hit your financial targets.

3. Measure ROI on everything Not every investment returns cash. Some investments reduce time to produce results, which lowers cost, which ultimately returns cash and value.

4. Budget before year end—A budget, appropriately used, is a roadmap for the future. Creating a budget forces the business owner and the team to think strategically about the business for the upcoming year. It provides an opportunity to consider investments and develop a growth strategy.

5. Use a business operating system—Every business has an operating system, whether you know it or not. Operating systems are a key driver of performance. The basic premise of a business operating system is to provide a framework for setting goals, monitoring progress and achieving results.

6. Document your processes—This recommendation is the single biggest thing that can improve the value of any business. It minimizes

knowledge gaps and mitigates risk. A business with clearly documented repeatable processes is always more valuable than a business that has none.

7. Identify and track key performance indicators (KPIs)—KPIs, also known as metrics, are critical. Don’t just make a list and measure everything. Once the right KPIs are identified they have to be measured consistently on a daily, week, monthly or quarterly basis.

8. Examine growth initiatives

Growth is a lot of work, but a growing business is always more valuable than a flat or declining business.

9. Find ways to build recurring revenue—The past performance of a business is very important in determining the value of a business. However, buyers are ultimately purchasing future cash flow, not past cash flow. The best way to show predictable future revenue is to convert as much business as possible to recurring revenue.

10. Eliminate owner dependency

Owner dependency is one of the biggest obstacles to business transition success. Become expendable.

Andy Wales of Procell with his family. Randy and Julie Rusk. Priscilla Rivera and Barbra Baro Baselice.

“Are you an operator or an investor? Think about things that only you can do,” Bronson said. “Ask yourself what would happen to my business if something happened to me? Build a moat so you build your own barriers to entry.”

WHERE RELATIONSHIPS ARE FORMED

First-time and long-time attendees all spoke of the many benefits of attending The Hardware Conference. Steve Fusek of Fusek’s True Value in Indianapolis,

who was attending for the first time with his wife Sue, said they had long been curious about the event and wanted to check it out. “It’s been enjoyable talking to the other retailers here and sharing ideas,” he said.

Rick Heuser, retired owner of Handyman Hardware in St. Cloud, Fla., has been attending The Hardware Conference for 34 years. Continuing a tradition he started a few years ago, he donated hand-crafted pens and

John and Patti Solenberger with Jennifer, Bradley and Jack Carson.

Eric Mills of Mayhew Tools with Terry Baro of Baro Hardware.

Craig and Shanti Cope are directors of The Hardware Conference.

Denise and Bob Clemence of Hyde Tools.

Tom and Dale Chasteen guided the Conference through its first 26 years.

Tom Chasteen, Craig Cope and John Hammond.

Jamie and Keith Gallagher of Fluidmaster with Gino Angelici of WD-40.

bowls that could be auctioned off to raise money for the Nicklaus Children’s Hospital Foundation. Frank Strano attended with his wife Christine for the third straight year after their business, Ambridge Do it Best Home Center, was honored with a Beacon Award in 2021. “It’s a great group of people and it’s a very nice atmosphere. Shanti and Craig do a wonderful job,” he said. Don Hoff of Harleysville Ace Hardware was another returning Beacon Award winner, this time attending with his brother. Alan Baro of Baro Hardware in Miami

noted that he has been coming to the Conference since the beginning and has never missed one.

Saturday afternoon was left free so attendees could enjoy fun outdoor activities. Midwest Fastener sponsored “A Day at the Beach” with free beach activities for Conference attendees, while other organized activities included a golf outing and Everglades airboat excursion.

The Eddinger family brings the whole extended family.

Bart Raser, Dr. Lisa Loving, Marc Asbury, Jennifer Boyd.

Steve Hildebrandt of Ettore with Doug Donaldson of The Hardware Connection.

ROUNDTABLE DISCUSSION

The open dialogue session on Sunday was highlighted by a panel discussion among Beacon Award honorees. Participating were Jason Plummer of R.P. Lumber, Michael Townsend of Townsend Building Supply and Bart Raser of Carr Hardware.

The first question concerned inventory shortages and price changes during the pandemic. “One of the things we learned during COVID is everyone wants to point the finger at the buyer. We focused more on pressing our sales department to be honest on what they need,” said Townsend, who added that they have experienced margin compression on lumber and commodities.

“Everyone has learned the value of having an additional supplier, but we’re back to concentrating our purchases. The value

SIKACRYL POWERSET INSTANT CONCRETE FAST

Midwest Fastener sponsored Day at the Beach activities.

Rick Heuser again donated pens and bowls he handcrafted to raise money for the Nicklaus Children’s Health Foundation.

Chad Murray and Paul Dupont of Orgill, Glen Gevaart of Midwest Fastener and Harley Schreiber of Hy-Ko Products.

of inventory access becomes so valuable. Online purchases have soared so we’re doing more cycle counting,” said Raser.

He added, “You get what you can, where you can, how you can. It’s been challenging to maintain margins the last six months. Grill sales have softened, so we offer more services to close sales.”

“Times have changed with the internet and competition. If prices are decreasing you have to honor the market,” said Plummer.

Vendors wanted to know the most important factors when determining whether to add a new product or line. “Make it easy to get in the store and low risk. Don’t send blind products,” Townsend said.

Simpli ed. Supported. Success.

Craig and Shanti Cope led a moment of silence for Whitney Vaughan-Christopher, 18-year-old daughter of Royce and Kim Christopher of Epicor, who died in a car accident shortly before the Conference.

Quentin O’Bryan from the Office for Bombing Prevention gave an overview of how hardware retailers can play a role in reporting suspicious activity.

You’re never too young to learn about pest control solutions.

“Low minimums and low order points,” said Raser. “We’re always looking for innovation and we’re willing to take risks. We started testing home automation a few years ago and expanded in some markets.”

Plummer said, “I care more about the story behind the product than the product in the box. Is it made in the USA? Is it a differentiator? Guaranteed sales are great. We test four to five new products a year.”

The panelists were asked how they approach technology investments. “We focus on technology but are not as sophisticated as we should be. You have to make sure team members are comfortable using it to be effective. I now sit in on an IT meeting every two weeks,” Plummer pointed out.

“I never thought IT would be a line item in our budget. Mobile POS with Epicor is a great tool for rental. We hear from customers that they are checking our website before they come into the store,” Raser said.

“We plan for technology in reverse— what we want to implement to make us better and to differentiate our stores. We deliver a lot of products, so we use tracking software to ensure there’s a lot of back-and-forth communication with the customer,” Townsend said.

Panelists said their marketing efforts have shifted toward digital. Raser said Carr Hardware takes advantage of Do it Best’s Rewards program, scanning at least 60 percent of purchases with rewards members. “We use geofencing and retargeting,” he said.

“I learned from the political side about email metrics. We’re up to 21 percent open rate on our emails,” Plummer pointed out. “We rarely blast to the whole list but are very cautious with messaging going out to sub-lists.”

Asked the biggest threat impacting their business, Raser said high rates might create some barriers to acquisitions.

“The Federal government could help by getting out of the way,” Plummer said. “I have a fundamental trust in individuals and the free market. When government becomes involved costs go up. Mortgage rates have become a barrier for a lot of homeowners, because twothirds have a sub-four rate and don’t want to give it up.”

“The biggest threat for us is public policy that puts pressure on small businesses. Get government off our back so we can pay our people fairly. Between 2003 and 2009 it was easier to run a hardware store in a small town. Since then, it’s been a grind,” Townsend said.

The Hardware Conference gives all segments of the industry a chance to gather and share ideas.

Bill Cassidy, Tom Chasteen and Steve Rottenberg.

Bob Clemence donated a plaque of life in memory of his father Dick Clemence, chairman of Hyde Group, who passed away in June.

This year’s Conference raised $18,400 for the

Also on Sunday, Quentin O’Bryan, program analyst in the Office for Bombing Prevention (part of the U.S. Department of Homeland Security), gave an overview of how hardware retailers and employees can play a role in reporting suspicious activity to prevent the misuse of common household items such as precursor chemicals and IED components.

The national program goals are to provide early detection of the sale of

homemade explosive precursor chemicals and bomb-making materials and build a network of vigilant and informed partners who serve as the nation’s eyes and ears as the first line of defense in preventing potential terrorist attacks and criminal activity.

They have lots of free resources for retailers including counter cards detailing threat awareness steps to take and a video series that walks through the steps bad actors take when buying materials for the wrong reasons. For more information, go to www.cisa.gov/bmap or to report suspicious activity call 1-855-TELL-FBI.

THANKS TO SPONSORS

Special thanks go to the marquee sponsors: The Hardware Connection magazine, Hyde Tools, Midwest Fastener and Hy-Ko Products. Additional sponsorship support came from Duracell, ECI Software Solutions, Epicor, Fluidmaster, Sunnyside Corporation and WD-40 Company, as well as participating wholesalers Do it Best and Orgill. n

Friday night’s banquet honored the 2023 Beacon Award winners.

Attendees enjoyed Tom Bronson’s presentation on business transition planning.

Nicklaus Children’s Hospital Foundation.

Vendors get a chance to have meaningful dialogue with retailers without sales pressure.

AWARDS

Beacon Awards Honor Industry’s TOP

The 2023 Beacon Award honorees and sponsors.

RETAILERS

John Hammond served as co-emcee for the Beacon Awards.

Four hardware retailers were honored as 2023 Beacon Award winners during a special awards banquet held on August 18 at the JW Marriott in Marco Island, Fla.

The Beacon Awards, now in their 11th year, are a premier national industry awards program developed by The Hardware Connection magazine and

The Hardware Conference to recognize the “best of the best” independent hardware/home improvement retailers.

The Beacon Awards are sponsored by Epicor, Ettore and Fluidmaster with wholesaler sponsorship support from Do it Best and Orgill.

The Beacon Awards banquet honored the Retail Beacon Award

winners for each of the two participating wholesalers, plus two winners for Best New Store.

“It has been my privilege to be a part of this industry for over 50 years. The most satisfying part of my career was having the opportunity to get to know so many retailers, visit their stores and learn their unique approaches and best practices. It was then my pleasure to share them with so many other retailers through publications, talks and seminars,” stated John Hammond, senior business advisor of The Hardware Connection, who served as master of ceremonies along with Chris Jensen, editor and founding principal of The Hardware Connection. “That is exactly what we are doing tonight, honoring and celebrating our Beacon Award winners’ stories of retail excellence and sharing them with the entire industry.”

The 2023 Beacon Award honorees include:

• Retail Beacon Award — Carr Hardware, Pittsfield, Mass., owned by Bart Raser.

• Retail Beacon Award — R.P. Lumber Company, Edwardsville, Ill., owned by the Plummer family.

• Beacon Award for Best New Store — Townsend Building Supply, Panama City, Fla., owned by Michael and Turner Townsend.

• Beacon Award for Best New Store — Tum-A-Lum Lumber, Pendleton, Ore., owned by the Cornelius family.

Michael Townsend of Townsend Building Supply, along with Boyden Moore of Orgill and Lindsay Townsend.

Bart Raser of Carr Hardware.

BEACON AWARDS

All Beacon winners received a trophy and free travel and registration for two to attend The Hardware Conference. The 2023 Beacon Award honorees are all profiled with feature articles in this issue, beginning on page 48.

WINNERS GIVE THANKS

The Beacon winners each took the opportunity to thank sponsors and their wholesaler for nominating them, as well as share how special it is to receive industry recognition.

Bart Raser, president of Carr Hardware, stated: “I feel honored and humbled to be among such an impressive group of folks. It’s about the great people and that is what has afforded Carr Hardware this opportunity and this honor. The 125 people who work at Carr Hardware every day really do live and breathe the culture of customer service. They’ve been with us for years and years and we’re so appreciative— this is their award.”

Raser added, “Thank you to my dad (Marshall). He still comes into the store and somehow 30-plus years ago he talked me into coming back to help and I never left and it’s the best decision I’ve ever made. So thanks dad, I learned more from you than I ever learned from my MBA about business, about hardware, about community, and I’m forever grateful.”

Billy Cornelius of Tum-A-Lum Lumber, along with Nick Talarico of Do it Best and Katherine Cornelius.

Billy Cornelius, director of property, facilities and asset management for TAL Building Centers (parent company of Tum-A-Lum Lumber), noted: “I’ve been in the design and construction industry for 30 years and I’ve won awards like this before across the United States, but I’ve never won before with the family. And that’s really important to me, because it means a lot to our family business. To take family money and take family risk and do phase two environmental cleanups and negotiate conditional use permits with the city of Pendleton, it was all worth it,” he said.

Cornelius added, “It was a tremendous amount of effort and a lot of

Jason Plummer of R.P. Lumber Co.

people really helped us. I’m thankful for all the internal family members we have working, our employees, direct reports, supervisors, the family that we’ve had in Pendleton for 99 years now. Our family believes that great design should be for every man and every woman and everywhere. So, we really try to push design standards in our communities. We have some 20,000 people to thank as our customers in the city of Pendleton and our 650 employees that work for us in four states. They’re going to be tremendously excited that we’re receiving this award on their behalf.”

Michael Townsend, co-owner of Townsend Building Supply, said:

“This is an excellent opportunity to recognize all of our employees, who do all the real work on the front lines to make our business a success. This year marks 20 years for me in the business—I came back right after college. In that short time, I’ve certainly learned that success is not possible on your own. The business started 80 years ago with my grandfather, who took a risk and invested money in a small hardware store in Chipley,

Florida. Then it was my grandmother who ran the store for a few years. They both worked hard to have something to pass on to my dad, who worked hard to pass on something to me. Everything my brother and I have has been a gift from the generations past.”

Townsend added, “Orgill has been a valuable partner for us for two generations, and our business wouldn’t be what it is today without partners like them. Most of the credit goes to our employees back in Panama City. They endured a lot. First, it was a once-ina-lifetime hurricane that destroyed so many homes and lives. They worked hard when we put that store on that sand lot. They worked for a couple of years in less-than-ideal conditions. Then, when we started construction, we had a once-in-a- lifetime pandemic that certainly upended life for everyone and severely delayed construction. I can’t thank them enough.”

Left: Steve Hildebrandt of Ettore (left) with Chris Jensen.

Middle: Sam Kirkland of Epicor (left) with Chris Jensen.

Right: Keith Gallagher of Fluidmaster (left) with Chris Jensen.

Jason Plummer vice president of R.P. Lumber Co., said: “I have a lot to be thankful for and a lot of people to thank. It’s an industry that cares about community. We’ve been very fortunate and very blessed by God. It’s not some magic wand. We have a lot of really great employees and a lot of great partners. And those partners are customers, vendors, industry advocates, banks and a lot of different people. We know we couldn’t be successful without them. Receiving this award is definitely a reflection of those relationships and the decades of hard work those people put in. We’re very honored to receive this award. We’ve got a lot of people that go to work in difficult circumstances. We’ve got people working around the clock to make the company go and when the company goes, that means we’re serving communities. We hope to use R.P. Lumber as a platform to help communities and families and America.” n

Above: (Left to right): Nick Talarico, Do it Best; Dr. Lisa Loving and Bart Raser of Carr Hardware; Billy and Katherine Cornelius of TumA-Lum Lumber; Mike Melchi and Bob Harville, Do it Best.

Jason Plummer, R.P. Lumber Company; Michael and Lindsay Townsend, Townsend Building Supply; Boyden Moore, Orgill.

Welcome to The Hardware Connection Century Club!

The Hardware Connection Century Club, sponsored by Intermatic Inc., recognizes “The Innovators and Survivors Who Helped Build America.” Our Century Club currently includes 763 hardware and LBM retailers, 18 wholesalers and 191 manufacturers that were founded in the United States of America and remain in business after 100 or more years.

You can find the complete list of Century Club members including old store photos and links to company history by clicking here. We congratulate the following 41 retailers who have been added to The Hardware Connection Century Club this year:

Adams Building Supplies, Hartwell, GA—1917

Allers Lumber Company, Lindenhurst, NY—1923

Anawalt Lumber & Hardware, Los Angeles, CA—1923

Andrews Ace Hardware, Citronelle, AL—1923

Arlington Coal and Lumber, Arlington, MA—1923

Bivens Hardware, Pickens, SC—1923

Canaan Hardware and Supply, Canaan, NH—1923

Caribou Jack’s Trading Company, Soda Springs, ID—1903

Carthage Hardware, Carthage, MO—1878

Christensen Lumber Company (now part of Kodiak Building Partners), Fremont, NE—1923

Davis-Hawn Lumber, Dallas, TX—1923

Duvall Ace Hardware & Garden, Duvall, WA—1912

Family Hardware, Bluffton, OH—1912

Farr’s Hardware, Coquille, OR—1916

Fort Worth Lumber Company (formerly H.H Hardin

Lumber Co.), Fort Worth, TX—1893

Gasser Hardware & Farm Supply, Boscobel, WI—1923

Gerretsen Building Supply (div. of TAL Building Centers), Roseburg, OR—1923

Heuser Hardware, Jeffersonville, IN—1923

Jim’s Point Marion Hardware, Point Marion, PA—1903

Kredo Hardware, Broadview Heights, OH—1898

LeVahn Brothers Plumbing and Hardware Hank, Maple Grove, MN—1923

Liberty Lumber Yard, New Orleans, LA—1923

Lozon Hardware, River Rouge, MI—1923

Lyon & Billard Lumber, Meriden, CT—1847

Markel Lumber Company, New Orleans, LA—1923

Maxwell’s Hardware, Downingtown, PA—1897

McDougald’s, Clarkton, NC—1917

Miller Hardware Company, Valdosta, GA—1908

Morrison Terrebonne Lumber, Houma, LA—1923

Mt. Pleasant Hardware, Providence, RI—1923

Nitterhouse Masonry & Hardware Supply, Chambersburg, PA—1923

Olson’s Ace Hardware (formerly Dressel’s Hardware), Oak Park, IL—1923

P.C. Smith & Son Hardware, Saugerties, NY—1914

Pilot Lumber Company, Bellevue, KY—1919

Prince Lumber, Newark, NJ—1923

Rockingham Cooperative, Dayton, VA—1921

San Antonio Lumber, San Antonio, FL—1923

Schneider Hardware, West Orange, NJ--1923

Shattuck Heights Hardware (formerly Wanamaker Hardware), Arlington, MA—1923

Shelly’s Building Supply (now part of US LBM), Telford, PA—1923

Smith Lumber Company, Valley City, ND—1923

Proud Sponsor of the 2023 Beacon Awards!

By Doug Donaldson

Beacon Award for Best New Store

Tum-A-Lum Lumber

Pendleton, Ore.

When TAL Building Centers (recently rebranded from TAL Holdings) converted a former car dealership into a reimagined version of Tum-A-Lum Lumber, the company boldly stepped into the future of retail hardware store design. As an opposite to any cookie-cutter store look, the Tum-A-Lum design has won high praise within the hardware industry and has proved to be a tremendous success among customers in Pendleton, Ore. A fifth-generation, family-owned business, Vancouver, Wash.-based TAL Building Centers has focused on customer experience at their 32 locations in the Pacific Northwest, each tailored to the communities they serve. Such community spirit was especially important for Tum-A-Lum Lumber, the company’s new flagship store in Pendleton. “The family has been in this area for a long

Click to watch TumA-Lum Lumber’s Beacon Award presentation video

Tum-A-Lum Lumber’s Pendleton, Ore., store will start a second century next year with a beautiful new building that has injected excitement in the community.

time, and it was important to bring that sense of community with us into the new store,” says TAL Marketing Director Katherine Cornelius.

NEW LOOK, DIRECTION

Serving the community since 1924, the original 2,000-square-foot Tum-ALum store in Pendleton was beginning to show its age.

“Aisles were small and items were crowded, so it wasn’t an ideal shopping experience and it didn’t fit our customers’ needs,” Katherine says. “We saw an opportunity to expand our reach in this community and relocating was the best way to do that.”

TAL sought a customer-centric design it calls placemaking—a peopleinspired approach to creating a space where customers want to come in, stay and work with the Tum-A-Lum team.

“We didn’t hire someone who just designs lumberyards, because we wanted to push the boundaries,” says Billy Cornelius, TAL’s director of property, facilities and asset management, who oversaw the Pendleton construction. “We wanted a non-traditional way of presenting hardware. We want our hardware stores to be an experience.”

The new Tum-A-Lum building process involved about 36 months of negotiations with contractors, securing permits from the city and converting the car dealership and 4.5 acres and existing building into a hardware store and lumberyard. In February 2022, Tum-ALum Lumber opened the doors to its 10,000-square-foot home center.

SIGNS OF THE TIMES

Located next to the town line, TumA-Lum placed a welcome to Pendleton

Right: Inside, the most striking feature of the store is a 1,000-square-foot design center. With a sleek, contemporary look, the center showcases cabinets, countertops, doors and windows.

Upper Left: Tum-A-Lum added a fullservice paint center with four aisles featuring Rodda and Miller paints, both popular Northwest brands.

Lower Left: The store layout is emphasized by bright LED lighting, easy-to-read wayfinding and end caps with side paneling that minimize visual clutter.

sign on the property. Once opened, the store welcomed customers with a whole new retail hardware experience, too.

The Tum-A-Lum building exterior boldly displays word clouds of the store’s expanded assortment. The new store also offers plenty of parking and easy access to the covered lumberyard. Inside, the most striking feature of the store is a 1,000-square-foot design center. With a sleek, contemporary look, the center showcases cabinets, countertops, doors and windows.

“We want to make the design center a destination,” says Billy.

With more room in the new store, Tum-A-Lum added a full-service paint center with four aisles featuring Rodda

and Miller paints, both popular Northwest brands. The store layout is emphasized by bright LED lighting, easy-to-read wayfinding and end caps with side paneling that minimize visual clutter. The framed end caps provide a consistent, architectural look, and the side panels include names and icons of products down each aisle.

Large windows at the front of the store allow in plenty of light and create a welcoming visual as customers enter the store. This area features elegant wood slats that offer views of millwork displays in other areas of the store.

CUSTOMERS, HISTORY UNITED

Tum-A-Lum Pendleton’s customer base is about 70 percent contractor, so the store was designed with a dedicated pro sales center that includes multiple desk spaces where contractors can spread out plans.

Katherine says the shift in store design has been praised by long-time, regular contractor customers. “Now that we’re in this much bigger store, the pros know we can partner with them on larger jobs and they take us more seriously,” she says. “Plus, lots of builders are bringing in customers,

Left: Connecting to the company’s long service to its community, the store displays many large historic photos, like the TumA-Lum delivery truck depicted behind this contractor sales desk.

Middle: The service counter was moved to the front of the store, so each customer can be greeted with a smile. The base of the front counter recreates the previous location’s exterior signage.

Right: The family is thrilled that their investment in the new store has paid off with award-winning design. From left to right: Billy Cornelius, Katherine Cornelius, Bill Cornelius, Susan Cornelius, Adam and Teresa Halverson with kids Rainier and Zooey.

talking about plans and shopping more. The new store has changed the perception of us in the community in a big way.”

Another striking change with the new design: The service counter was moved to the front of the store, so each customer can be greeted with a smile. The base of the front counter recreates the previous location’s exterior signage.

While the fresh look provides a new energy to the space, TAL Building Centers wanted to preserve the nearcentury old company history, so they included some signage from the previous location, such as an old logo

Sales have increased 45 percent year over year since the reopening.

made in cedar that is now above the new Pendleton store’s paint center. Throughout the new store hang enlarged historical photos of the previous location. For example, in the contractor area, a large historic photo of a Tum-A-Lum delivery truck is on the wall.

NEW DESIGN BENEFITS

Tum-A-Lum Pendleton celebrated their grand opening on April 1, 2022 with a VIP night and ribbon cutting that attracted a thousand people. The new store has had a big impact on the community and on the company’s bottom line. Sales have increased 45 percent year over year since the reopening.

TAL coordinated the new assortment planning with their distributor Do it Best, which helped provide assortment advice for the biggest addition, the lawn and garden department with an exterior garden center and nursery. It’s paid off: The category has seen a 146 percent increase in sales and a 265 percent increase in transactions since its debut. Cabinetry category is another area that’s experienced tremendous growth since its inclusion within the new Tum-A-Lum design center.

These customer-friendly designs are also a way that TAL competes against online retailers. “For hardware stores, ecommerce is both good and terrible for our industry,” Billy says. “The challenge is convincing people to get off the couch and come to the hardware store. That means thinking about how we engage the community. We solve problems for customers with not just materials but services.”

For TAL Building Centers, the solution includes connecting with customers through multi-functional spaces. For example, not only can customers shop for lawn and garden products but also drop by the design center or millwork displays to experience the services Tum-A-Lum provides.

“We’re trying to encourage customers to come for more than one reason,” Billy says. “We want to give our customers a place to call home. When someone looks at Amazon or Walmart, they might be able to find a similar tool or fastener. But we’re so much more than products on a shelf.”

“Our goal is to have a positive impact on our community, and to have industry peers acknowledge reshaping and changing the lumber-building materials shopping experience is flattering and an honor,” Billy says. “We have received many awards through the years, but this is the first one for the family, for the family business. This really means a lot.” n

Tum-A-Lum Lumber

Beacon Award for Best New Store

(Left to right): Nick Talarico, Do it Best; Dr. Lisa Loving and Bart Raser of Carr Hardware; Billy and Katherine Cornelius of Tum-A-Lum Lumber; Mike Melchi and Bob Harville, Do it Best.

Katherine and Billy Cornelius of Tum-A-Lum Lumber

Bart Raser of Carr Hardware

By Chris Jensen

Beacon Award for Best New Store

Townsend Building Supply Panama City, Fla.

Townsend Building Supply began as Hughes Law Lumber in Chipley, Fla., in 1921, making it a member of the Century Club. In 1949, Austin Townsend purchased the company and it has been solely owned by the Townsend family ever since. In 2012, the family’s third generation—Michael and Turner Townsend— took over the operation from their father Dale. They currently operate seven locations in Alabama and Florida.

Following Hurricane Michael’s devastating impact in Panama City, Fla., in 2018, Townsend Building Supply set up a makeshift lumberyard—essentially just a pole barn on sand with an old shed—to help the local community rebuild.

“Our Chipley (Fla.) store was affected the most—it was on the western edge of the storm path,” says Michael. “The community was without power for a week or two and rebuilding went on for

months. The Panama City area needed a lot of help, so we were able to start shipping materials down shortly after the storm hit.”

In 2020, the brothers decided they wanted to make the store permanent. Breaking ground in 2021, they built the lumberyard portion first and moved the operation there before building the main warehouse and showroom. The pandemic delayed the store’s construction by 10 months, so it opened in late August 2022.

“We wanted to help the Panama City area however we could. We never went down there with the mindset it was going to be temporary,” says Michael. “We decided to stay because we felt we could fill a need in the community for many years to come.”

Michael (left) and Turner Townsend (right) took over Townsend Building Supply from their father, Dale (center), in 2012.

The company had some outside help on the yard design and layout, but they relied on Orgill’s help to design the 6,000-square-foot retail space. “We know what we needed from a lumberyard standpoint, but Orgill helped us come up with the right product mix for the market. They’ve helped us with other store sets and remodels and been a great partner,” says Michael, who adds that their dad began buying from Orgill in the late 1970s.

DESIGNING A ONE-STOP SHOP

The new store was designed to be a one-stop shop for construction projects, targeting their core customer segments of contractors, builders and heavy d-iyers. As Turner explains, “We wanted a store that was easy for our pro customers to get in and out but that also serviced our delivery operation out the back door.”

The store interior is clean, organized and decorated in a modern and beachy style. That design concept is carried through outside, where they

Upper Left: Breaking ground in 2021, the Townsend family built the lumberyard portion first and moved the operation there before building the main warehouse and showroom. The completed store opened in August 2022.

Lower Left: They wanted a store that was easy for pro customers to get in and out but that also serviced their delivery operation out the back door.

Right: The company had some outside help on the yard design and layout, but they relied on Orgill’s help to design the 6,000-squarefoot retail space.

planted more than 100 palm trees on the property.

The store features a completely paved lumberyard and a drive-thru warehouse with an automated AutoStak rack storage system for easy loading and an area for customers to park their trailers to load with products. Merchandising displays include a highend deck display facing the highway in front of the store. A showroom highlights the window and door product selection and features a conference room for builders and their customers. Townsend Building Supply is constantly seeking innovative ways to better serve their customers. They employ a premium millwork specialist to

provide next-level service to customers. Installation services are offered for both homeowners and contractors.

The company offers a secure online customer portal that integrates with QuickBooks, allowing customers to view invoices, credit notes, orders and quotes. The portal enables customers to generate their own statements or reports showing products purchased for their project.

Michael and Turner say the new store has far exceeded their expectations, with strong sales growth right from the start. More importantly, they were able to increase gross margin by 6 percent in the first four months. “We’ve been very pleased and humbled by the reception from the community,” Turner says.

Despite facing competition from Lowe’s and Home Depot five miles away, the Panama City store is seeing more walk-in trade business with the new store. “Customers are very complimentary and say they love the convenient location and how easy the store is to shop,” Michael says.

Every decision was driven by what they perceived the market needed, Turner points out. “We’re not open 90 hours a week, so being able to get pros in and out quickly is critical,” he says.

Left: The new store was designed to be a one-stop shop for construction projects.

Right: The store features a completely paved lumberyard and a drive-thru warehouse with an automated Auto-Stak rack storage system for easy loading.

IMPROVING EFFICIENCY AND SERVICE

Townsend Building Supply switched over to Epicor for their point-of-sale system in 2011 and embracing the latest retail technology tools has helped the company better serve its diversified customer base.

“Epicor has been a great tool for us,” Michael says. “It helps us keep our finger on the pulse of business with analytics and to operate more efficiently. We’re focused on using Epicor’s BisTrack as an ERP platform to improve the customer experience by tracking performance with our delivery and accuracy.”

Three years ago, the brothers hired Steve Riggs to serve as president and created an EOS operating system to run the company while they stepped into more defined roles—Turner on the sales side and Michael in finance and administration. As Turner explains, “We wanted to be more intentional in how we operated with more accountability for everyone.”

Employee development is another key focus at Townsend Building Supply, which has 28 employees in Panama City and 135 total in the company. They hired a former teacher as a full-time training coordinator to create a comprehensive training program for new and current employees, utilizing a spacious training facility on the second floor for continuous education on products and processes. Employee recognition programs reward team members for outstanding performance. Kudos cards are given to employees who exemplify the operation’s core values and can be redeemed for prizes during the store’s Christmas party. Employees can submit a writeup about a fellow staff member who exemplifies the store’s core values, with winners receiving the Employee of the Quarter designation. Employees who go above and beyond or are acknowledged by customers for their outstanding service receive a Superior Service award.

COMMUNITY INVOLVEMENT

Townsend Building Supply holds regular contractor appreciation events and is an engaged member of the Bay Building Industries Association, sponsoring monthly meetings, fishing events, golf tournaments and other gatherings.

Left: A high-end deck display faces the highway in front of the store.

Right: Michael and Turner Townsend say the new store has far exceeded their expectations, with strong sales growth right from the start.

They are an active member of the Bay County Chamber of Commerce and hosted the group for an after-hours event at the store with hors d’oeuvres and beverages. The company is a strong supporter of United Way. Employees are given the option to donate a portion of their salary to the cause.

With strong community support behind the new Panama City store, Michael and Turner were eager to adopt similar concepts in some of their other locations. A grand reopening was held in June for their Troy, Ala., location, which was remodeled to reflect the successful design aspects of the Panama City build.

Winning the Beacon Award for Best New Store is really humbling, according to Turner, who says, “It makes you reflect on the fact there’s just no way we could’ve done this without our excellent team.” Adds Michael, “I’m most excited for our employees, who stuck it out so long in less than desirable conditions. They had the hard part.” n

(Left to right): Jason Plummer, R.P. Lumber Company; Michael and Lindsay Townsend, Townsend Building Supply; Boyden Moore, Orgill Inc.

Michael Townsend of Townsend Building Supply

Jason Plummer of R.P. Lumber Company

By Doug Donaldson

Like a symphony conductor, Carr Hardware President Bart Raser has an innate sense of timing, rhythms and harmonies within the communities his stores serve.

For more than 95 years, Carr Hardware has been a mainstay of Pittsfield, Mass. Bart’s father, Marshall Raser, purchased Carr Hardware in 1962. At 95 years old, Marshall still shares retailing advice with Bart.

Like many multi-generation hardware store owners, Bart worked at the store as a teen, cleaning bathrooms, sweeping floors and learning business the hard way. While earning his MBA in St. Louis, he also worked in hardware stores. After college, Bart returned to work at Carr Hardware in 1990 and became company president in 2015. Since then, the company has steadily grown from a single location to six stores

Retail Beacon Award

Carr Hardware Pittsfield, Mass.

Click to watch Carr Hardware’s Beacon Award presentation video

Bart Raser has continually found ways to improve and grow Carr Hardware since coming back to the family business in 1990.

throughout western Massachusetts and northwestern Connecticut.

Very active in the day-to-day management of the company, Bart continually looks for ways to expand the business through acquisitions, new product lines and finding untapped customer bases. For 25 straight years, Carr Hardware was named “Best in the Berkshires” by the Berkshire Eagle newspaper.

Carr Hardware stores vary from a 7,500-square-foot location in Avon, Conn., to the 25,000-square-foot Pittsfield flagship store. Overall, the company’s customer base is evenly split between pro and do-it-yourselfers, but each location is dialed in to its specific customer base.

COMMUNITY HUB

Nearing membership in the Century Club, Bart firmly believes the company’s longevity comes from giving back to the community. Each year, the company hosts more than 10 community events for local charities such as the Berkshire Humane Society.

Bart devotes a lot of time to the community and has served on many boards including Downtown Pittsfield Inc., Boys & Girls Club, Berkshire Chamber of Commerce, Berkshire Health Systems and Berkshire Bank.

“I grew up with dad believing in volunteerism and community involvement,” Bart says. “It’s in our DNA to give back. We give employees time off for volunteerism, and what’s good for the community is good for business.”

In 2017, Carr Hardware received recognition as the National Independent Business of the Year. Bart donated the money from the award so that Pittsfield could build a splash park for kids.

“Ultimately, the hardware store is the nuts and bolts of a local community,” Bart says. “With so much sprawl, what defines a community is the local hardware store.”

Left: Bart’s 95-yearold father, Marshall Raser, still drops in to share his insights.

Right: Carr’s Hardware focus on customer service has led to the business being named “Best in the Berkshires” for 25 straight years.

NEW NICHE SAVVY

Bart keenly listens to feedback from customers. About two years ago, when customers commented about scarcity of paint and the desire for higher-quality options, he seized the opportunity. Carr Hardware introduced its own line of paint, Shades of Shire, a high-quality 100-percent acrylic, architectural-grade paint. Sales of this store-brand paint have continually grown. Other Carrbranded products include polyurethane, five-gallon buckets and sprayers.

Housewares is another niche poised to take off. With an entrepreneurial eye to the future, Bart looks to expand that department in the coming months. When a local chef supply store recently closed, Bart purchased the stock and will soon add higher-end brands such as Le Creuset to the housewares assortment.

Rentals are another niche where Bart has found success. The Pittsfield location rents everything from heavy equipment such as backhoes to power tools and party supplies. Two other Carr Hardware stores also feature rental departments.

Carr Hardware has developed a strong commercial-industrial niche

with two outside and two inside sales representatives, along with two drivers devoted to commercial-industrial deliveries. Bart estimates that the commercial-industrial niche accounts for about 25 percent of the company’s total revenue.

CLEVER MARKETING

In addition to customer-centric assortment planning and deeply committed community involvement, the company connects to its customers through innovative marketing campaigns. Along with lively social media feeds, Carr Hardware produces commercials featuring the Dewitts, the world’s worst do-it-yourselfers. Highlighting products and solutions available from Carr, these humorous videos have racked up thousands of YouTube views.

Customers are excited to see the next do-it-yourself adventures of the Dewitts and often ask when the next video will be released. In addition to television ads, the couple have taken their home improvement misadventures into radio spots and digital ads.

“We have a multi-layered approach to hit the most amount of people,” says Amy Goddard, director of marketing for Carr Hardware.

KNOWLEDGEABLE EMPLOYEES

Carr Hardware employs 125 people throughout its six locations, and many employees have worked with the company for decades.

Top: Carr Hardware’s flagship store has been serving the Pittsfield, Mass., community since 1928.

Bottom: Many of Carr Hardware’s employees have worked with the company for decades.

“Ultimately, our business is our people. We’re blessed with wonderful people who live and breathe the culture and are deeply involved in our community and the relationships we build every day,” Bart says. When hiring, Carr Hardware will first look at aptitude and friendliness, instead of hiring solely for product knowledge. The company conducts frequent training to reinforce customer service and provide product knowledge. Another customercentric detail Bart points out: There are no numbers on the aisle signage. Instead, employees walk customers to products.

SUCCESSFUL PARTNERSHIP

As Bart pays specific attention to each store, he constantly examines the overall business. With six locations, Bart says he

can take a cumulative approach to buying at Do it Best markets, saving money and increasing margins.

A Do it Best member for four years, Bart values the distributor’s candid feedback about his store operations along with providing eye-catching merchandising and planograms.

Four years ago, Carr Hardware opened its Lenox location, relying heavily on Do it Best for most of the store design, including layout, endcaps, assortment planning and merchandising. The ground-up 10,000-square-foot store was Bart’s first store project with Do it Best. With the distributor’s help, that location was up and running within six months, just in time for Black Friday sales.

FUTURE GROWTH

Bart says he is honored and humbled to receive the Beacon Award. “This award makes me appreciate our staff more than I already do,” Bart says. “This honor only happens because of the great team in each store. It’s wonderful to be recognized.”

He is not content to rest on his laurels and says the company isn’t done growing. In the near future, he’s planning a

Left: Through Bart’s philosophy of giving back, Carr Hardware’s community involvement runs deep. Each year, his stores host many events for charities such as the Berkshire Humane Society.

Middle: When customers commented about scarcity of paint and the desire for higherquality options, Bart seized the opportunity and introduced his own line of paint, Shades of Shire.

Right: The Lenox, Mass., store serves a more upscale market with a ground-up 10,000-squarefoot store built in 2019.

big initiative to expand into janitorial supplies. After expanding into more ecommerce during the pandemic, the company will continue to expand its digital footprint, looking to reach different generations.

This year, Bart is doing his second major remodel in Great Barrington with Do it Best’s new store design format. The exterior is being renovated and new layouts and adjacencies are being incorporated, and Bart is looking forward to seeing that store’s sales boosted from the remodel.

“It’s great when I wake up and look forward to going to work because I love what I do,” Bart says. “I love interacting with customers and building culture and teams.” n

By Chris Jensen

Retail Beacon Award

R.P. Lumber Company

Edwardsville, Ill.

R.P.

Lumber Company was founded in 1977 by Robert and Donna Plummer in Staunton, Ill. A familyowned business, it has grown to now include over 80 full-service hardware and building material stores and two truss manufacturing facilities in five states.

ALL IN THE FAMILY

R.P. Lumber remains dedicated to its mission and values as a family-owned and operated company, led by Robert and Donna, along with their three children: Jason, Jennifer and Julie, who are all involved in the business.

Robert serves as president and CEO and Jason wears many hats in his role as vice president, while Donna and Jennifer have always worked in the HR department. Julie managed one of their other companies, a real estate brokerage, for

Robert and Donna Plummer operate R.P. Lumber as a family business with their kids Jason, Julie and Jennifer.

many years until it was acquired and then she came back to R.P. Lumber a few years ago to work on the buying side. When asked what retail and business philosophies he has learned from his father, Jason replies, “Work hard, treat people right and provide the best service. Two of his favorite sayings are: ‘It never hurts to be nice,’ and ‘You can’t sell from an empty cart.’ It goes back to keeping things simple.”

A PLAN FOR GROWTH

In recent years, the company has been managing an aggressive growth strategy. Just last month, R.P. Lumber announced the acquisition of Wright Building Center in Sparta, Ill., expanding its footprint in Illinois to 56 locations.

Click to watch R.P. Lumber’s Beacon Award Presentation Video

Adds Robert, “When an opportunity to open a new location or acquire an existing business comes our way, we typically look for small-to-medium sized communities similar to our current markets. We prioritize saving or creating employment opportunities for local residents and look for markets that are relatively underserved in the hardware and building materials space.”

Future initiatives include a store relocation about to kick off in one of their core markets and a new greenfield location they are getting ready to open. “I anticipate a small acquisition or two happening yet in 2023 and then we have plans to expand in 2024. A core focus of our growth is not just increasing store count but making sure we are maximizing our operations in existing markets,” Jason says.

INVEST IN PEOPLE

As the company’s geographic footprint expands and store count increases,

Upper Left: Each retail location is a fullservice home center and building materials supplier that serves both DIYers and contractors and offers kitchen cabinets, paint, windows, doors, hardware, drywall, roofing supplies, tools and more.

Lower Left: Jason Plummer has served in the Illinois state senate since 2018, relying on principles that have served him well in business.

Right: They look to deliver on the company’s “Best Service. Best Value” promise by focusing on service, product quality and pricing.

it is important to the Plummers that the company’s culture grows as well. “We keep our organization chart pretty flat and view our employees as extended family members. We celebrate each other’s milestones and achievements. We incentivize extraordinary performance and empower our staff to strike a healthy work-life balance,” says Jason.

“We have been fortunate to have been able to put together a great team at R.P. Lumber, people who are dedicated and work hard. One thing about our team is that we just go to work every day. Whether it is eight stores or 80 stores, we show up to compete every day and try to find ways to constantly improve,” adds Jason.

R.P. Lumber’s team members deliver on the company’s “Best Service. Best Value.” promise with every customer they serve. The operation prides itself on service, product quality and pricing while driving value for its customers through a combination of those three components.

“We have to invest in the knowledge, inventory and equipment to make our largest, most sophisticated customers pleased with R.P. Lumber, while also making sure that the DIYer coming in for a roll of duct tape has a phenomenal experience,” says Jason, who serves on the board as president of the Illinois Lumber and Material Dealers Association.

DRIVING IMPROVEMENTS WITH TECHNOLOGY

R.P. Lumber has invested in technology to improve operational efficiencies and drive traffic online. The company offers a robust ecommerce platform and is constantly investing in and upgrading its IT operations to obtain more data and leverage that data to better serve customers. In 2022, the company upgraded its Epicor POS system across all locations and implemented a fully integrated ecommerce platform with ship-to-store capabilities.

Left: The company has remodeled six locations this year, focusing on a better retail consumer experience.

Right: In all communities where R.P. Lumber has stores, it invests in local organizations such as law enforcement and first responders.

One recent technology development has been a new software program to train employees and provide them with additional knowledge. This training will lead to quicker and more seamless communication between employees, no matter where they are located. The company has invested in reporting and data analytics software to provide additional tools to employees and offer a higher level of service to customers.

“We have been fortunate to have had great customers, vendors and partners over the years, and Orgill is right there at the top in every way I can think of,” says Jason. “They are flexible, creative and bring solutions to us that we may not have even thought about yet. I truly feel like they are committed to our business and everyone on their team is approachable and engaged.”

The company has remodeled six locations this year, focusing on a better retail consumer experience, and has added

Upper: The company was a major contributor to the R.P. Lumber Center, a recreational complex located in Edwardsville, Ill., that offers the community access to an ice rink, fitness center and track.

Lower: As a second-generation leader, Vice President Jason Plummer seeks growth through acquisitions and internal improvements.

more than 250,000 square feet of warehouse space across all stores in the last 12 months. R.P. Lumber is rolling out new kitchen and deck design programs at dozens of store locations in 2023 and 2024.

ENGAGED IN THE COMMUNITY

In all communities where R.P. Lumber has stores, it shows its support by investing in local organizations such as law enforcement and first responders, youth sports, scouts, churches, healthcare, education and many other causes. “We have been blessed and we always want to give back,” explains Jason.

The family business was a recent major contributor to the R.P. Lumber Center, a recreational complex located in Edwardsville, Ill., that offers its residents and the surrounding communities a year-round destination for fitness and congregating with its ice rink, fitness center and track. The facility, which serves thousands of families in the St. Louis area, includes a teen center and private rooms for meetings and celebrations.

The company helped fund the allages Plummer Family Sports Park, an 83-acre tournament-quality facility featuring lighted, full-synthetic turf baseball and softball fields, pickleball courts and nine full-size multisport fields. for soccer, football, rugby, lacrosse and more.

“We feel like little things like hardsurfacing our facilities, keeping them painted and well-kept, replacing older buildings with newer buildings, providing quality jobs and other day- to-day business decisions we make also contributes to our communities in ways that may not always happen elsewhere,” says Jason.

Jason says the whole family is proud to accept recognition as Beacon Award winners on behalf of their hard-working team of employees: “The recognition is truly an honor and it is humbling. We have hundreds of hardworking, caring team members and we have thousands of great partners and customers. This is an award that reflects that hard work and those relationships.” n

A

Special Thank You to the Beacon Awards Sponsors

The Beacon Awards program is an annual event honoring the best of the best retailers in the industry. They are made possible by the generous support of sponsors who recognize the importance of honoring those retailers who represent

the future of the two-step channel.

The 2023 Beacon Awards were sponsored by Epicor, Ettore, Fluidmaster, The Hardware Conference and The Hardware Connection magazine. Do it Best and Orgill were wholesaler sponsors.

2023

Beacon Award Winners and Sponsors

DO IT BEST ADJUSTS GAME PLAN TO REACH GOALS

In his president’s address to shareholders—during Do it Best’s Fall Market in Indianapolis—Do it Best President and CEO Dan Starr talked about three universal truths: leveraging the partnership with the co-op, being fresh and relevant, and embracing risk. What follows are excerpts from his presentation.

“After coming off a year of unprecedented events in 2020 and 2021… resulting in what can only be described as exploding sales, we endured a very different year last year. We saw non-related product costs skyrocket. I made the promise to return to a stronger, more profitable year in 2023. In fact, we beat that projected net profit goal by 2 percent, ending the year with $176.3 million in net profit.

We closed the year with nearly $4.8 billion in topline sales, that was actually down 14 percent from the prior year. Warehouse sales increased by 2.4 percent, our directs were off by 2.4 percent and lumber was down nearly 42 percent after experiencing volatile pricing last summer and through the fall. We expected

Do it Best President and CEO Dan Starr outlined strategic growth initiatives during his president’s address to shareholders.

much of that and planned for it. We exceeded our projections and we’ll deliver the second-highest rebate in our history—$152 million, up 18 percent over last year, with $106 million in cash. That’s the first time we’ve crossed $100 million in cash.

One thing we did not expect was the Federal Reserve’s quick and aggressive action raising interest rates. Since March of last year, the Fed raised rates 11 times—a grand total of 525 basis points. That action produced exactly what the Fed wanted. It quickly slowed the economy, especially impacting housing and new construction. We also saw big shifts in consumer spending, moving away from retail and especially larger-ticket items.

Our results for the year weren’t going to hit our goals due to a

WHOLESALING

number of those economic factors. So, we had to make some quick changes. Here’s what we knew:

• Sales were trending flat or down headed into spring;

• wage and non-wage inflation was running about 4.25 percent; and

• we knew we could not compromise on strategic investments critical in the next year and beyond—those included investment in expanded warehouse capacity, new member growth, a new ecommerce platform and a massive IT infrastructure change. Our game plan needed to change going into the second half of the year. We needed to focus on these things:

• Execute aggressively on our strategic initiatives and growth investments;

• Productivity gains—we needed to find ways to be more efficient, particularly in our distribution centers;

• Operating expense—reduce, delay or eliminate costs where we can.

It took a lot of hard work and difficult decisions, but I’m proud to share with you that though our sales overall were down, our net profit was up.

I believe the road ahead, at least for the next year, will look a bit like this for our economy and our industry. There is actually a lot of silver lining here (with) my own three important truths:

First, the economic slowdown won’t be that bad. In fact, it will be mild and very temporary. We’re just coming off several high-growth years—the highest we’ve ever seen—and the best information we have suggests a slowdown in that growth through this year and into 2024. Housing will recover by mid-24 and should lead us into several growth years in 2025 and beyond.

My other two truths come in response to these questions: What should you do now to manage during the slowdown? What should you do now to be ready when growth returns?

On the first question, what should you do now to manage the slow down? This is where having someone with you to help navigate the road ahead is so important. There are things you can do immediately to capture efficiencies and improve your own productivity. The cost for talent is not going down. So, the low-hanging fruit here is to leverage your co-op. Don’t duplicate costs and don’t do it all yourself. We are always looking for ways to lighten your expense load and make it easier for you to do business.

And on the second question, what should you do now to be ready when growth returns? Here are a few specific things you can do right now to capture efficiencies and prepare you for growth in the years ahead:

Let’s start with investment in your business to improve, expand or

acquire a new location. Right now is an ideal time to plant these seeds so you are ready for that future growth. I’d encourage you to take that rebate and put it right back into improving the customer experience. Borrowing costs have gone up for everyone, including your competitors. But you can draw on your preference shares to get access to low-cost capital. Whether it’s a department reset, a store expansion or an acquisition, you can use this slowdown as a critical time to invest and prepare for the next growth cycle.

Another step you can take that helps you improve your productivity: consolidate your purchasing through your coop. It helps you, it helps all members and your co-op. As the economy contracts, we all need to drive down costs. To do this, we’re going to be consolidating our vendors and you should too.

Move to the new doitbest.com platform. It’s designed to drive customers into your store while promoting your individual store brand and everything you sell through a powerful digital shopping experience. It allows you to save time and resources that can be redirected to other areas of your business.

We’ve eliminated all barriers to entry. Do it Best will be taking on the heavy lift of marketing, driving site visits and ultimately footsteps into your stores. This is where the value lies. It’s expensive and complex to go at it on your

own. But together, we can drive down that cost and turn our ecommerce platform into a sales machine. There is no monthly cost or service fee. The sooner you sign up, the sooner you start driving new customers to your store and earning additional sales.

There are a few initiatives we’re working on to increase our flexibility and improve our operational efficiency, ultimately driving down the cost of goods for you. Our distributed order management system will launch next calendar year delivering increased flexibility and visibility to on-hand inventory, making the ordering process even easier. Our warehouse management system is scheduled to launch in our last warehouse in the coming days. I’m proud to say, seven out of our eight implementations to date have gone without a hiccup. And finally, Core Financials, which is scheduled to go live next calendar year. Ultimately, it will have the greatest impact on our business, streamlining our processes and efficiencies to better serve you.

The growth we have seen is absolutely intentional and the result of years of planning. In addition to our investments in infrastructure, we continue to invest in the growth of our members. But overall, I would ask you to engage with us. We’d love to work with you to discover the best ways to invest in your growth.” n

Recent Features From TheHardwareConnection

July-August 2023: Preserving the Store’s Legacy With Employee Ownership—As third-generation owners of Clark-Devon Hardware in Chicago, Ed and Ken Wlachak found that employee ownership allowed them to retire while preserving the store’s legacy.

May-June 2023: How a Store Pet Became a Marketing Star--Meet Daniel, the feline attraction at Shoppers True Value Hardware in Maine who has turned into a viral sensation with 67k followers on TikTok.

April 2023: Striving for 5-Star Experiences at Hagan Ace—As Hagan Ace Hardware opens its 11th location in north Florida, the company builds on four generations of retail hardware experience by embracing new technology and remaining true to business principles that have sustained the company for six decades.

March 2023: How to Revitalize and Reinvent Business with C/I Sales — With new, bolstered ecommerce capabilities, the current generation of Hacienda Home Center leadership saved a New Mexico family business by cultivating commercial, industrial and government customers.

Jan/Feb 2023: Solenberger’s True Value Hardware: Surviving and Adapting for 135 Years—Learn more about Solenberger’s True Value Hardware in Winchester, Va., which has been adapting and thriving for 135 years under five different generations of Solenberger family leadership.

December 2022: Has Costello’s Ace Found the Key to Long-Term Growth?—Learn more about Costello’s Ace Hardware’s ambitious goal to operate 75 stores doing $250 million in sales by 2025 and the strategies to reach that level.

Orgill Invests in GROWTH PLANS

Boyden Moore, Orgill’s president and CEO, gave a presentation in Dallas as part of the company’s fall online buying event. What follows are some of the highlights of his presentation.

Orgill hit $1 billion in sales in 2006, $2 billion in sales in 2016 and $3 billion in sales in 2020, according to Moore, so the company’s growth rate has been accelerating. “We opened our second distribution center ever in 1995, so it’s a history of 160 years with one distribution center as a regional distributor and just the last 27 years growing into what we are today. Now we have over 13,000 stores in all 50 states, all provinces and territories of Canada and more than 50 additional countries. We’ll have just under $4 billion in sales this year,” he said.

IMPROVING THE SUPPLY CHAIN

The company has been growing aggressively over the last 20 years,

Upper: The Orgill team of more than 400 field sales professionals is working to expand by as much as 10 percent during the remainder of 2023.

Lower: An architect rendering of Orgill’s new 800,000-square-foot, state-of-theart distribution facility in Tifton, Ga. Replacing the oldest DC in the network, construction on the new facility is expected to be completed in early 2024.

even more so during the pandemic.

“And during these last three years we had the lowest service levels we’ve ever had, dropping to a low of 77.9 percent in 2021,” Moore pointed out. Service levels were up to 86.9 percent in June 2023.

“We’ve made some good progress getting it over 80 percent but have experienced some resistance. We do expect to achieve 90 percent by September and 95 percent by the

WHOLESALING

end of the year. Restoring the dependability of our supply chain has been the number one focus for us the last three years,” he added.

Moore continued: “We think our industry-leading growth is directly driven by intense focus on our mission to help our customers be successful. If our customers are successful, we believe we can be successful. We are constantly challenging ourselves to constantly think of new ways to help our customers be successful.”

He added, “We believe Orgill can be an important part of any independent dealer’s success, even if we’re not your primary distributor. Roughly 32,000 independent dealers make up about half of industry sales. We ship to 35 percent of the industry. We serve over 1,300 Ace stores, over 800 True Value stores and over 400 Do it Best dealers in addition to dealers who have us as their primary distributor.”

Orgill has invested in the newest and most modern distribution network in the industry, Moore pointed out. “We opened our newest DC in Rome, N.Y., in 2021, accelerating plans to open to meet rising demand during the pandemic. We also expanded our Hurricane (Utah) DC and are now replacing our oldest DC in Tifton, Ga., which will be complete in first quarter 2024. These three projects represent over $220 million of investment in our distribution network in just three

Planned robotics and automation, as shown here, will make the picking process more efficient in Orgill’s new Tifton distribution center.

years. We have invested to ensure we can drive your costs lower to have the most modern distribution network in the industry,” he said.

ADDING MORE FIELD SALESPEOPLE

Orgill’s mission statement is to help its customers be more successful, and one of the key ways they support their customer base is through their industry-leading field sales force.

More than 400 sales professionals serve as business consultants to the retailers they work with, keeping them up to date on the latest industry trends, products and services that can help them grow their operations, according to David Mobley, Orgill executive vice president of sales.

“We really put an emphasis on consultative selling,” Mobley says. “We want our team of sales professionals to serve as an extension of our customers’ businesses—an extra set of eyes and ears to help them find ways to grow and improve their operations.”

Orgill has experienced unprecedented growth over the past three

years. To accommodate this growth, Orgill has announced that the company will be making an investment to expand its field sales team by as much as 10 percent.

“As our business has grown and the needs of our customers have grown, we definitely recognize the need to grow our sales team, and that’s exactly what we are working to do in the coming months,” Mobley says.

DISTRIBUTION CENTER EFFICIENCIES

Moore touted the introduction of PopPick Next-Gen Picking solutions with robots to improve their distribution efficiency in the new Tifton distribution center, allowing the company to save 50 percent of operating costs. Some of the features of this technology include:

• Improves warehouse storage density by 400 percent and can store 12 totes in a row. Can fit 10 rows of totes in 3.7m high rack.

• Optimal and comfortable picking height; automatically moves totes to picking station; improve productivity with two-point picking; can simultaneously move 60 totes with a mobile rack.

• Intelligent mapping allows robots to operate simultaneously, doubling throughput capacity.

• Order forecast algorithm facilitates automatic tally for four times the transportation efficiency.

This is a rendering of Orgill’s new 500,000-square foot Concept Center, to be located on its campus in Collierville, Tenn.

• Artificial Intelligence organizes goods during idle time based on order forecast.

DEVELOPING CUSTOMIZED RETAIL SOLUTIONS

Orgill has to be a lot of things to a lot of people, Moore said, pointing out that 32 percent of their customers are pro dealers, 30 percent are hardware, 22 percent are home centers and 16 percent are farm stores. Farm is the fastest-growing segment, increasing from 4 percent of business a few years to 16 percent today.

Orgill’s largest customer is Central Network Retail Group (CNRG), which buys more than $200 million a year from Orgill, Moore said. CNRG currently has 18 retail brands in 16 states with 144 stores doing $580 million in sales.

“We specifically wanted to work with CNRG to close the performance gap we saw between the big boxes and the independent channel. Then deliver all those retail tools to our customers—that’s integrated into our mission,” he added.

To learn more about Orgill’s growth plans, click here and here.

PRODUCT SPOTLIGHT

BGA 60 BLOWER

• The most powerful, handheld battery-powered blower in the STIHL AK System, the STIHL BGA 60 blower provides 45% more blowing force than the BGA 57 while delivering a range of features for comfort and convenience.

• This premium homeowner blower is ideally suited for low-noise environments and easily stores with a convenient built-in hanging slot.

• A variable-speed trigger and boost mode help users clear grass clippings, leaves and other yard debris from hard surfaces

2 IN 1 WALL & CEILING SPRAY TEXTURE

• Patented adjustable nozzle with customized angle to repair vertical, overheard and hard-to-reach areas with one can.

• Paint ready time of just 30 minutes, with no priming required with water base formulations. 5-minute paint-ready time for oil-based formulations.

• Excellent texture match that delivers a fast and durable repair with pro results.

• Consistent pressure and even texture coverage that provides wide, even, reliable spray application.

such as balconies, driveways and sidewalks.

• A one-touch adjustable blower tube allows users to easily change the blower tube length to adjust to different user heights and to permit access to hard-to-reach areas.

OPEN SPLICE JUNCTION BOX

• An open splice is a wire splice not contained inside a junction box. Open splices are illegal and dangerous. Now anyone can repair open wiring splices quick and easy.

• Make open splices safe and up to code.

• No need to disconnect wiring.

• UL compliant, DIY friendly and patent pending.

RESCUE! POP! FLY TRAP

• Comes with one packet of watersoluble attractant packaged inside a foil pouch. Just empty the contents of the foil pouch into the trap and add water. Lured by the scent, flies enter through the yellow top cap and drown in the water.

• Refill attractants are sold in single-use pouches, allowing the trap to be reused over and over.

• No killing agents—insects die naturally.

• Simple and economical to reuse and recycle.

Retail Technology Trends Shaping the Future

By Doug Donaldson

Exploring technology that powers retail hardware manufacturing, distributing and point-of-sale systems is sort of like peeling away layers of an onion. Day-to-day operations in a hardware store such as scanning bin tags or ringing up customers on a POS system linked to inventory heavily relies on the deeper layers of that technology onion. Advances in essential core functions will continue to make retail hardware more efficient and profitable.

“I would estimate about 40 percent of the efforts that go behind retail technology aren’t visible to people, yet it’s incredibly impactful,” John Maiuri, division president LBMH at ECI, recently told The Hardware Connection during an exclusive interview. “For most of us, we’ve moved to digital engagement with just about every aspect of life.”

ECI recently launched the Spruce eCommerce system, which emphasizes reliability while expanding capabilities and ease of use. Designed specifically for lumber and building materials and hardlines operations, Spruce allows retailers to easily integrate state-of-the art inventory management and ecommerce systems.

POWERFUL RETAIL INNOVATION

For ECI, which offers cloud-based business management software and services, providing powerful technology for retail and distributor solutions means that users don’t have to be as tech savvy. The technology behind Spruce eCommerce allows independent hardware and LBM businesses that have no on-staff IT expertise to offer a robust online shopping experience to compete with other digital sellers.

“Not only does it improve the customer experience, but Spruce eCommerce also streamlines the business management aspects for dealers,” Maiuri says.

Spruce eCommerce software lets customers browse products, create accounts and add selections to an online shopping cart. When customers order products, the system provides options such as delivery or in-store pickup and allows for split carts between either. This advanced software efficiently links retailers to their pro customer base, too. Spruce eCommerce has the option for pro customers to build self-service quotes and pay invoices.

As a whole-store solution, Spruce connects to a store’s inventory availability by branch, transactions and invoices. Spruce eCommerce analytics will help avoid over-stock and enables customers to manage margins and fulfillment more effectively.

TECH SOLVES INVENTORY HEADACHES

In the wake of the pandemic and the most dramatic supply chain interrup tions the hardware industry has seen in decades, inventory management has been a challenge for independent hard ware retailers.

“Accurate inventory management has increasingly become an issue. If you don’t have it, you can’t sell it,” Maiuri says. “Now, if you don’t know you have it right then and there, you can’t sell it, either.”

The Spruce eCommerce system includes a proprietary Product and integration of B2B digital functions. had extensive experience with the product. So we recruited d-i-yers to solicit their feedback.

week. If you currently do not stock

With customers able to Google spe cific products and know that they can immediately pick up an item from a store, inventory has to be as accurate and up to date as possible. Without such capabilities, retailers can be miss ing sales and losing customers.

Each used FrogTape on multiple surfaces windows, baseboards and corners, and everyone was amazed by the clean lines usually only possible with pros. No one had any instance of paint bleed or difficulty removing the tape even after it stayed in place for over a week. If you currently do not stock FrogTape, then bring in a few SKUs of their Pro Grade Painter’s Tape and Pro Grade Orange Painter’s Tape, which offers higher adhesion. ■

“During the day, hardware retailers are busy connecting with customers, mixing paint, cutting keys,” Maiuri says. “New software helps them work from their living room at night and get caught up.”

With analytic tools and custom financial forecasting templates that can be tailored to their business, they can do as much as possible with fewer hands. Solutions such as Spruce offer businesses visual analytics that coalesce data into easy-to-understand formats. Retailers can quickly examine margin percentages and segment customers for deeper dives into local product buying trends.

Designed as an all-in-one ecommerce solution and backed by ECI’s website design and digital marketing team, Spruce eCommerce features built-in marketing tools such as abandoned carts, content pages, blog tool, drag and drop layouts, rewards and loyalty programs, badges, banners, customer segmentation, reports and Google Analytics.

“By modernizing old static offers with dynamic promotions, loyalty programs, item merchandising and

in-house marketing and design services, LBM and hardlines businesses can generate additional growth channels by turning lost time managing data in multiple systems into a singular, streamlined online order process,” Maiuri says.

To provide support, ECI has in-house experts who manage the website implementation and maintenance, so dealers can easily create a professional website that is entirely their own with a customer portal that makes it easy for shoppers to buy online.

RETURN ON TECH INVESTMENT

Software, like other types of business equipment, needs to be updated, according to Maiuri. “Most of our customers pay us less than what it costs to pay a single, full-time person,” he notes. “Ultimately, the ability to protect your business and operate efficiently means that you reinvest in equipment. Like delivery trucks and forklifts, software may not be completely reliable if it’s getting old.”

New technology also solves potential problems for retailers. For example, cloud computing means that hardware store owners don’t have to worry about their database being locked up in a server if it crashes. Cloud-based options are a good guard against hackers and ransomware attacks.

“Retailers can’t rely on the technology of yesterday to bring in the business of tomorrow,” Maiuri says. n

John Maiuri

CATEGORY REPORT

LAWN & GARDEN TRENDS

Sales of Sprinklers (Independent Hardware Channel)

12 Months % Change vs. Year Ago

Sprinklers: Units

Sprinklers:

Source: Epicor’s Industry Data Analytics

Unit Sales Breakdown for Sprinklers

Epicor’s Industry Data Analytics tracking information is based on sales from a representative sample of hardlines retailers located throughout the U.S. For more information, call 512-278-5800 or email

Source: Epicor’s Industry Data Analytics epicorindustryanalytics@epicor.com

LAWN & GARDEN MERCHANDISING:

Upper Left: Hastings Ace, Hastings, Mich.

Middle Left: Lambertville Hardware, Lambertville, Mich.

Lower Left: Phillips Hardware, Albany, N.Y.

Upper Right: Strand Ace Hardware, Ripon, Calif.

Middle Right: Small Town Supply, Gouvernor, N.Y.

Lower Right: Steve’s Ace Home & Garden, Peosta, Iowa

RIBBON-CUTTING CEREMONIES

The Hardware Connection provides a pictorial look at ribbon-cutting ceremonies. Send store pictures to chris@ thehardwareconnection.com.

Hometown

Lumber,

Newland True Value Hardware, Los Angeles

Biloxi, Miss.

Metzger’s Do it Best Hardware, White Rock, N.M.

Niehaus Lumber, Vincennes, Ind.

Revell Ace Hardware, Madison, Miss.

Curtis Lumber, East Greenbush, N.Y.

Sunshine Ace Hardware, Naples, Fla.

Wood Shed Lumber & Hardware, Richmond, Mo.

Hammer Time True Value, Detroit

Gillman Home Center, Muncie, Ind.

IN THE NEWS

NEW STORES:

• Kacy and Jake Barlow have opened Hulett Hardware in Hulett, Wyo.

• Jared and Cora Sawyer are the new owners of Columbia Ace Hardware in Stevenson, Wash.

• The Building Center has acquired Mountain Lumber Co. in Boone, N.C.

• Great Lakes Ace Hardware opened a new location in Indianapolis, Ind.

• Viking Lumber acquired Rankin’s Hardware & Supply in Camden, Maine.

• Furys Ferry Hardware is opening in Martinez, Ga.

• John Hooper opened True Value Hardware in Zebulon, N.C.

• The Broadway Hardware Group opened its 7th store, Sequim Ace Hardware in Sequim, Wash.

• Adam Salk is opening his fifth Salk’s Ace Hardware in Pawtucket, R.I.

• Stine Home & Yard is acquiring Fruge Lumber in Eunice, La.

• Nation’s Best Holdings has acquired Cain Hardware & Lumber in Carthage, Texas, and Adams Building Supplies, with 2 locations in Georgia.

• Food City is opening Curt’s Ace Hardware in Marion, Va.

KUDOS TO:

• Annie Strother and Baxter Shaw are marking the 75th anniversary of Central Hardware in Brunswick, Ga.

Emigh Ace Hardware

• The Lozon family is celebrating the 100th anniversary of Lozon True Value Hardware in River Rouge, Mich.

• Crystal Lumber & Hardware in Crystal Falls, Mich., is marking its 70th anniversary.

• Gina Schaefer has retired from her role as CEO and co-founder of A Few Cool Hardware Stores, which operates 13 stores in the D.C. area and has converted to an ESOP.

• Valley Lumber in Basalt, Colo., is marking its 45th anniversary.

• Benjamin Moore Company is celebrating its 140th anniversary.

• A section of Eastern Parkway in New Jersey has been renamed in honor of Rev. Dr. Leroy Hodges Sr., who opened the first Black-owned True Value Hardware store in Newark and later became a minister, founded a church and served as a chaplain for municipal employees. Hodges, who died in 2021, co-founded the Newark Coalition of Small Business Association and the Clinton Avenue Merchants Association of Newark.

• Emigh Ace Hardware in Sacramento, Calif., won first place

in Ace’s Children’s Miracle Network bucket sale display contest.

• Do it Best awarded a $1,000 scholarship to Level Up Summer Internship program participant Grace Lee of Taylor University.

Tom Schanken of Morris Hardware receives Estwing Golden Hammer from Orgill’s Jake Thompson. Photo credit: Kelsey Wells.

• Tom Schanken, sixth-generation owner of Century Club retailer Morris Hardware in McConnelsville, Ohio, was presented the Estwing Golden Hammer award for 50+ years of service to the hardware industry.

PEOPLE ON THE MOVE:

• Do it Best hired Katie Chrisman, Cody Croussore and Mack Sengthongsavang as associate merchandise managers, Susan Soine as LBM division manager; and promoted Celeste Stevens to director of human resources.

• Nation’s Best Holdings has named

Jace Mattinson as chief operating officer.

• Cory Venable has been named president of Davis Lumber and Hardware in Texarkana, Ark.

• Stephen West has been named president of Zarsky Lumber, with 7 locations in Texas that are part of Kodiak Building Partners.

• Red River Lumber in Texarkana, Texas, named John Butler as president.

• Nate Baxter has been named chief operating officer of Scotts Miracle-Gro.

• Christa Livolsi was promoted to assistant vice president of accounts receivable and credit management activities at HouseHasson Hardware.

• Randy Carman named president of Ambassador Supply.

IN OTHER NEWS:

• Setys Ace Hardware in Chewelah, Wash., was destroyed by fire on August 18.

• Northwestern Lumber Association has merged with the Mid-America Lumbermens Association.

• Boise Cascade is acquiring the Brockway-Smith Company along with two distribution centers.

Jace Mattinson

Christa Livolsi

IN MEMORY:

George Juergens

• George Juergens, second-generation owner of Juergens Hardware in Huntington, Ind., passed away August 14 at 87. His father founded the business in 1946 and George became owner in 1971.

Whitney VaughanChristopher

• Whitney Vaughan-Christopher, daughter of Royce Christopher, sales manager for Epicor Software Solutions, and his wife, Kim Christopher, an account manager for Epicor, died August 8 as the result of a car accident. She was 18. Click here for more.

• Sammie Leonard, former owner of True Value Hardware in Calabash, N.C., died August 2 at age 84.

• Joe Garrison, owner of Garrison Lumber in Hennessey, Okla., passed away June 21 at age 73.

• Fred “Bud” Millspaugh Jr., who started Bethlehem Hardware & Lumber in Bethlehem, Pa., in 1981 and ran it until his retirement in 2015, passed away August 10 at age 78.

• Sharon Sax passed away June 22 at age 85. She and her late husband Loren owned Coast to Coast Hardware in Sidney, Mont.

• Ronald “Mike” Musser, founder of Musser Lumber Co., in Rural Retreat, Va., died July 10 at age 80.

• John Dillon, former owner of Basalt True Value Hardware in Basalt, Colo., passed away July 5 at age 78.

• Effie “Irene” Cook passed away August 1 at the age of 100 years and seven months. She spent many years working alongside her late husband Frank at Winlock True Value Hardware in Winlock, Wash., which has been operated by the family since 1948.

• David Criss, former owner of Baldwin & Criss Lumber Co. in Cato, N.Y., passed away June 24 at 84.

• Harold Christel, former owner of Home Lumber Co. in Norwalk, Ohio, passed away June 16 at 95.

FOR THE FULL STORY:

• Do it Best shares proven solutions to drive growth. Click here.

• Do it Best reports $4.8 billion in 2023 sales. Click here.

• Employee retention credit funds still available for retailers. Click here.

• Ace Hardware reports 2Q results. Click here.

• Gerretsen Building Supply celebrates 100th anniversary. Click here.

• R.P. Lumber Co. acquiring Wright Building Center. Click here.

• Aubuchon Company acquiring J.B. Hostetter & Sons. Click here.

• Lowe’s expands store-within-store test with Petco and same-day delivery service. Click here and here. n

UPCOMING EVENTS

SEPTEMBER

Ace Hardware Fall 2023 Convention

September 19-21, Orange County Convention Center, Orlando, Fla.

Blish-Mize Fall Dealer Market 2023

September 14-16, Overland Park Convention Center, Overland Park, Kan.

Bostwick-Braun North Fall Dealer Market 2023

September 20-22, Glass City Center, Toledo, Ohio

China International Hardware Show 2023

September 19-21, Shanghai

International Expo Centre Shanghai, Pudong, China

Lumbermen’s Association of Texas 137th Convention & Expo

September 18-20, Live! By Loews, Arlington, Texas

Monroe Hardware Fall In Store Virtual Dealer Market

September 11-29

True Value Fall Reunion

September 14-16, George R. Brown Convention Center, Houston

United Hardware Fall 2023 Buying Market

September 27-29, Mayo Civic Center, Rochester, Minn.

United Hardware Fall 2023 Buying Market (Virtual)

September 26-October 6

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Wallace Hardware Fall Dealer Market

September 26-28. Sevierville Events Center, Sevierville, Tenn.

OCTOBER

House-Hasson Hardware Fall Dealer Market

October 6-7, Sevierville Events Center, Sevierville, Tenn.

Orgill Online Winter Buying Event

October 30-November 12

JANUARY

2024

House-Hasson Hardware Dealer Market

January 26-27, Gaylord Opryland Resort, Nashville, Tenn.

FEBRUARY

2024

Orgill Spring Dealer Market

February 22-24, Orange County Convention Center, Orlando, Fla.

Orgill Spring Online Buying Event

February 19-March 3

True Value Spring Reunion

February 2-4, Ernest N. Morial Convention Center, New Orleans, La.

March 2024

Do it Best Spring Market

March 23-25, George R. Brown Convention Center, Houston

For a complete listing of calendar dates, click here.

BEHIND THE NUMBERS

14.5%

Ecommerce as a percentage of total U.S. retail sales in 2022, down from 14.7% in 2021, according to a report by the Boston Consulting Group and Shopify.

87%

Percentage of home improvement purchases that are happening instore, according to the J.D. Power 2023 U.S. Home Improvement Retailer Satisfaction StudySM.

3,000

Long-term store count target for Tractor Supply Company, which currently operates 2,181 Tractor Supply stores and 192 Petsense by Tractor Supply stores.

Number of new stores Tractor Supply Company is planning to open in 2024, followed by 90 new stores in 2025.

53%

Percentage of millennials who report worries over purchasing their first home, with home maintenance (74%) and home improvement projects (68%) the most stressful aspects of home ownership, according to study by The Home Depot and Morning Consult.

70%

Percentage of potential home buyers (born between 1981 and 2005) who turn to YouTube or other online videos to learn how to tackle DIY projects, according to study by The Home Depot and Morning Consult. n