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Sept/Oct 2019 Vol. 11, No. 6
THE INDUSTRY’S DIGITAL LEADER
HONORING THE TOP
Retailers
Petersburg Do it Best Hardware
ALSO INSIDE: Profiles of Beacon Award Winners Report on The Hardware Conference
University Ace Hardware
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CONTENTS Sept/Oct 2019 n Vol. 11, No. 6
42
BEACON AWARDS COVERAGE
HARDWARE CONFERENCE REPORT
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware cartoon: Scott Jensen Amazing But True Hardware Stories From Tom’s Shop: Hardware Products Review The 2019 Hardware Conference Report Beacon Awards Coverage Beacon Award for Best New Store: University Ace Hardware Beacon Award for Best New Store: Petersburg Do it Best Hardware Retail Beacon Winner: Turner Ace Hardware Retail Beacon Winner: Brownsboro Hardware & Paint Retail Beacon Winner: Lee Hardware & Building Supply Category Report: Lawn & Garden In the News Upcoming Events Retail Ideas Behind the Numbers
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6 10 14 16 18 28 42 48 52 56 60 64 68 71 73 74 76
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THE HARDWARE Connection ■ Sept/Oct 2019 ■ 3
ADVERTISER’S INDEX Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 59 A.O. Smith-Reliance Water Heaters | www.hotwater.com . . . . . . . . . . . . . . . . . . 8 Apex Tool Group | www.apextoolgroup.com . . . . . . . . . . . . . . . . . . .11, 31, 40, 41 Do it Best Corp. | www.doitbestonline.com . . . . . . . . . . . . . . . . . . . . . . . . . 4, 21, 63 Epicor Software Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 27, 30 Ettore Products | www.ettore.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22, 32, 33 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . . . . . 20 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . . . . . . . 15 Jack Link’s | www.jacklinks.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 67 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Rust-Oleum Corp. | www.rustoleum.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46, 47 STIHL | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Sunnyside | www.sunnysidecorp.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Vayyar Imaging | www.walabot.com/diy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9, 23
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91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 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: Andy Curry, Doug Donaldson, Gary Pittsford
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2019 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
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THE HARDWARE Connection ■ Sept/Oct 2019 ■ 5
EDITOR’S NOTE
By Chris Jensen
It’s Time to Celebrate
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his issue is a celebration of all that is good and exceptional about the state of the independent hardware channel. The Hardware Connection profiles the 2019 winners of the Beacon Awards, representing the “Best of the Best” independent hardware and LBM stores across America. Our 2019 Beacon winners were honored during a special awards banquet during The Hardware Conference in Marco Island, Fla., which is the premier event for all independent retailers regardless of wholesaler affiliation. You can read a full report of this year’s Conference beginning on page 28. Turn to page 48 to read the in-depth profiles of our five outstanding Beacon honorees. You will see a couple of familiar themes in these reports. These highperformance retailers were willing to take risks and bet on themselves, they are deeply involved in their communities and they have turned their stores into a destination for numerous niches such as grilling, outdoor furniture, outdoor power equipment and green goods. One of our Beacon winners, Petersburg Do it Best Hardware in Petersburg, Ind., was so excited about winning this prestigious national award for Best New Store that they threw a
6 ■ THE HARDWARE Connection ■ Sept/Oct 2019
party so the whole community could share in the celebration. They invited their congressman, state senator and state representative, and they all came along with other local officials. Petersburg’s Beacon trophy was on display on a stool under plexiglass. The stool was made by a former employee, Al Brosman, using wood from their original store on Main Street. As Owner Sherry Bishop explains, “We couldn’t have won this award without the community support, so we wanted to show our appreciation for our customers who have made our new store so successful.” Another one of our Beacon winners, Turner Ace Hardware, with four stores in the Jacksonville area, dodged a bullet when Hurricane Dorian passed by without causing major damage. Here’s what the Turner family posted on the store’s Facebook page: “Now that the hurricane has passed us here in Jacksonville we feel relieved and grateful, but undeniably heart broken and burdened for the devastation that took place in the Bahamas. We will be donating generators, batteries, flashlights and other supplies to aid in the relief efforts and we will be a Drop Zone if you would like to donate as well to their restoration.” www.TheHardwareConnection.com
EDITOR’S NOTE Our industry is filled with retailers with similar compassion, who do so much for their own communities but still have the desire to do more for other areas in need. As The Hardware Connection continues its year-long celebration of its 10th anniversary, I would be remiss if I didn’t mention that Digby’s Hardware cartoon is also celebrating its 10th anniversary. My brother, Scott Jensen, has been creating the hilarious Digby’s cartoon strip since our very first issue came out in late 2009 and it has appeared in almost every issue since. Look for a feature article on Scott with more insights into the cartoon strip and its characters in our November issue.
Our final celebration is to toast The Hardware Connection for being named a finalist for the 2019 Eddie Award from FOLIO magazine for Best Full Issue, for our May-June 2018 issue highlighted by the cover story: “Can Amazon Be Stopped?” This represents our seventh award for editorial excellence in the past six years. Just like the retailers who are Beacon honorees, it’s nice to see our hard work recognized. n
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TREND WATCH
By Craig Cope
The Independent Channel Comes Together
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he 2019 edition of The Hardware Conference marked only the second time in its 31-year history that it took place outside the month of September. The first time was in 2017, when Hurricane Irma forced us to postpone during the week leading up to the Conference—more on that later. This year’s Conference was moved to August 16-18, 2019, to avoid a conflict with another industry event. In my April column, I wrote that the Conference would return to its traditional time immediately following the Labor Day weekend for future years. The Greek philosopher Heraclitus must have been thinking of the hardware channel when he said, “Change is the only constant in life.” As soon as we had published the April edition, I was informed of another industry event that was rescheduled for the next four years so it was now in conflict with our traditional September weekend. We were left with a choice of either moving The Hardware Conference dates through 2023 or proceeding with our traditional dates. It was a decision
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that Shanti, my wife and co-host of the Conference, struggled to decide. We had just signed a three-year contract extension with the JW Marriott Marco Island Beach Resort keeping us at the resort through 2023. Would the resort even be willing to renegotiate the contract or would the change result in higher room rates for attendees? The decision brought us back to one of the pillars of the Conference, which is the premier industry event welcoming all retailers regardless of wholesaler affiliation. We did not want any retailer, manufacturer or wholesaler unable to attend because of a scheduling conflict with another industry event. With that motto in mind, we renegotiated our hotel contract and moved The Hardware Conference to the third week in August for the next four years. Below are the new dates: • August 21-23, 2020 • August 20-22, 2021 • August 19-21, 2022 • August 18-20, 2023 The Hardware Conference has and will always remain a family-friendly affordable industry event and the www.TheHardwareConnection.com
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TREND WATCH change in date will have no impact on our room rate, which remains below $200 for the next four years. As I am writing this article, the TV in my office is tuned to The Weather Channel tracking Hurricane Dorian and showing early images of the unbelievable damage to the Bahamas. Only two years removed from when Hurricane Irma forced us to postpone the Conference, I will always remember that feeling of complete helplessness. We were already in Marco Island preparing for the Conference and watching a monster storm take direct aim at our house and office (both in the Florida Keys), then Marco Island itself. For us this was the “perfect storm.” The decision to postpone the Conference was a simple one, as we did not want anyone in harm’s way. The next decision was difficult: what “stuff” did we want from our house, not knowing if we would have anything left when we returned home. Luckily, we were spared the full wrath of Irma, as it made landfall further south of our house and did not cause significant damage to the JW Marriott Marco Island Beach Resort. Hurricanes and other natural disasters shine a light on the outstanding people associated with the independent hardware channel. When disaster strikes most businesses close up and 12 ■ THE HARDWARE Connection ■ Sept/Oct 2019
wait until everything is back up and running to return. This is not the case for the independent hardware channel. Wholesalers activate their disaster plans, moving merchandise and other resources into the area to aid in the preparation phase. Hardware retailers are on the first line of defense as customers rush stores looking for merchandise to help them prepare for the incoming disaster. Store owners often neglect their own personal preparation, instead focusing on their community and employees. Once the immediate danger has passed, hardware stores are often the first in the community to reopen. We always hear amazing stories of store owners overcoming significant obstacles to reopen their stores and service the local community. It’s not uncommon for stores to be running on generators, with no phones or internet, skeleton crews and long hours, all while forgoing their own homes and property. It is this selfless concern for others in their community that drew me into this great industry. I sincerely wish those impacted by Hurricane Dorian or the next natural disaster a speedy recovery and a tip of the hat to the outstanding men and women in the hardware channel who will facilitate the recovery. n www.TheHardwareConnection.com
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HARDWARE HUMOR
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HARDWARE HUMOR
L
ady walked up to the sales counter and asked “How much do you charge to neuter my cat?” Maybe a niche oppo rtunity here.
Amazing but TRUE
HARDWARE
STORIES
Allen Biedrzycki Huffman True Value Huffman, Texas
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O
ne of the things about running a hardware store is that you never know what kind of projects you will help customers build. We’ve sold hardware to install stripper poles, for instance. Another time, I recall selling kids a sheet of plywood and 10 pounds of sixpenny nails. After I asked their plans, they said they were making a bed of nails. Go figure.
Eli Bliffert Bliffert Lumber & Hardware Milwaukee, Wis.
W
e had a young lady fill out an application one time. She put the name of her boyfriend in the box as to who to contact in an emergency. For relationship, she first put “No,” then she changed it to “Yes.” Joe Proctor Proctor’s Ace Hardware Jacksonville, Fla.
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ught a n a hot day I ca stealyoung teenager om the ing ice cream fr OS. Cashier P e th r a e n r ze e fre a few down said he dropped pants. I took the front of his room and him to the back ing him. started question had it down Since I knew he red I’d take his pants, I figu nature run my time and let rted moving a st e H . e rs u co its after about so , g n ti e g d fi d an the trash can id sl I s te u in m 10 said “Dump d n a im h to r e v o ured a frostg fi I .” re e th in it s punishment a w h tc o cr n te it b ched into his enough. He rea ped the soggy p ro d d n a ts n a p ash can and mess into the tr his eyes. left with tears in Dick Beal Retired retailer la. Merritt Island, F ally posted on • This was origin Hardlines Digest
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From
p o h S s ’ m o T HAR
UCTS D O R P E R DWA
REVIEW
By Tom Chasteen
PRODUCT #1: BATTERY CHARGER + MAINTAINER DURACELL Duracell has developed a very unique battery charger that will work for 12-volt and 6-volt batteries. What makes the Duracell battery charger unique is it combines the features of a trickle charger, a multi-stage charger and a battery maintenance charger into one compact small 4-amp charger that is compatible with all battery types (lead acid, AGM, gel and lithium-ion vehicle batteries). In addition, it also comes with both ring crimp terminals that can be permanently attached to the battery and an in-line connector, eliminating the need to hook and unhook the charger each time the user wants to use the battery. The Duracell battery charger comes with the traditional insulated spring alligator clamps as well. The Duracell battery charger has a few technical features that other battery chargers don’t have like the ability to automatically repair a damaged cell in a battery and the ability to automatically detect the proper charging voltage for each particular battery. The Duracell battery charger is weatherproof so it works equally well indoors
or outdoors. Our testers rated the Duracell Battery Charger as “excellent.” In addition to the strong Duracell brand recognition the packaging is perfect for retail hardware sales. If your customers are looking for an easy-touse, small and compact battery charger, the Duracell battery charger will definitely fit the bill with a credible recognized brand and great packaging. Check out the video here.
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PRODUCT #2: GARBAGE DISPOSALS MOEN Moen has very strong brand recognition and is known for building stylish yet functional bath and kitchen faucets. Now they have come out with a complete line of garbage disposals that make it possible for even a plumbing novice to install or replace their garbage disposal. There are several aspects of the Moen disposals that stand out almost immediately. They are very quiet and they come already wired with a 110-volt three-prong electrical cord. However, the biggest asset of the Moen line of disposals is how
easy they are to install. Each unit comes with a universal “express mount” that easily attaches to most existing assemblies, even the InsinkErator™ assembly. The GX50c model is powered with a ½ hp vortex motor that runs at 2,600 RPM and has a magnet permanently mounted on the motor that reduces jamming.
as decreasing the noise when the homeowner runs the Moen garbage disposal. Now if they can just figure out how the homeowner can lie comfortably on their back under the sink in an awkward position, then it would make this job almost pleasurable.
SPONSOR
But the best part for the hardware retailer is the Moen garbage disposals literally come with everything the homeowner will need to do the installation in the box. The only tools the homeowner will need to complete the job are a pipe wrench, a screwdriver and some plumber’s putty. If they want to shorten the electrical cord, they will need a pair of wire strippers. However, most users find it easier to simply wind up the installed electrical cord and secure it with a wire tie. This will make it easier to remove the disposal if the user ever wanted to change out the kitchen sink or the crumb basket. In our view, Moen has taken a huge amount of the hassle out of installing a garbage disposal, as well
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RapidFix® adhesive system is a product with almost endless applications and also benefits a great cause. The adhesive category is crowded with numerous products all with their own specialties and application methods. RapidFix adheres to rubber, wood, plastic, ceramic, glass, metal, fiberglass and the list keeps going. While the list of materials is impressive what sets it apart from other products in the category is the “welding powder.” This fine powder acts like a filling agent when adhering cracks, gaps and holes where a portion of the original material is
SPONSOR
PRODUCT #3: RAPIDFIX DUAL ADHESIVE SYSTEM RAPIDFIX
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missing. In addition, the product cures in a few seconds and can be drilled, sanded and painted immediately. Once open the remaining adhesive will not dry out in the bottle for 12 months. Our testers raved about the versatility of the product and ability to continue working without having to wait for a product to cure. One tester used the product to fix a discontinued window crank on their RV. After applying a few levels of adhesive liquid and welding powder they were able to sand it back into the original shape. While RapidFix comes in two bottles— adhesive and welding powder—the adhesive can be used as a standalone
product with great adhesive properties. Adding the welding powder into the mix makes the product virtually indestructible. To watch a few demonstrations of the product use and substantial bonding power click here and here. Not only is RapidFix a great product to include in your department, but the company is owned by Lighthouse for the Blind-Saint Louis (LHB Industries), a 501(c)3 non-profit. LHB Industries employs 48 legally blind individuals to assemble and package products at its two plants. All of the sales revenue supports the company’s 16 community outreach programs in Missouri and western Illinois.
The Hardware Conference Celebrates Vitality of Independent Channel
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A panel discussion featured this year’s Beacon Award winners (from l to r): Eric Smith, Kyle Turner, Walter Toole, Jim Lehrer and Denise Lee.
Do it Best President Dan Starr and his wife Abbe are joined by Robin and Eric Smith and Sherry and Dennis Bishop of Petersburg Do it Best Hardware along with Shanti Cope.
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Friday evening’s Beacon Awards banquet was one of the highlights of the Conference.
he 31st edition of The Hardware Conference was a coming out party for the health and vitality of the independent channel, with outstanding retailers honored during the Beacon Awards banquet and other retail attendees claiming business is strong. 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, so that’s a sign the Conference still has a valuable role to play facilitating open dialogue between trading partners. For the first time the Conference was held in August instead of
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Tom Chasteen, Rick Heuser, Walter and Patty Toole.
Pat and Kelli O’Reilly of Apex Tool with Greg and Valerie Galen of Fluidmaster.
its usual time the first weekend after Labor Day Weekend. A conflict with another industry event led Conference Directors Craig and Shanti Cope to move the 2019 dates to August 16-18 at the newly remodeled JW Marriott Marco Island Beach Resort in Marco Island, Fla. To avoid conflicts with a different industry event starting next year, Craig announced that The Hardware Conference will now move to the third weekend of August through 2023. “Since the Conference is open to all independent hardware retailers regardless of wholesaler affiliation, we want to make every accommodation to ensure everyone has the opportunity to attend,” he said. The wholesale community lends important support to the Conference www.TheHardwareConnection.com
Dale and Tom Chasteen with Debbie, Casey, Rebecca and Drew Mathews.
Bob and Denise Clemence of Hyde Tools.
each year, with representatives from Ace Hardware, Orgill and Do it Best Corp. in attendance including Do it Best Corp. President Dan Starr. 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 about $25,000, bringing the total fundraising amount over 31 years to more than $1.2 million. Yesenia Rodriquez of the Nicklaus Children’s Hospital Foundation recognized Craig and Shanti for continuing this tradition of giving back that was started by Tom and Dale Chasteen with the first Hardware Conference. THE HARDWARE Connection ■ Sept/Oct 2019 ■ 29
INDUSTRY GATHERING An all-day Technology Forum was again 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. One of the highlights of this year’s Conference was the Friday evening banquet, where five of the industry’s best retailers were honored during the seventh annual Beacon Awards program. See additional story on page 42. John Hammond, senior business advisor for The Hardware Connection and former managing director of NRHA, was a presenter for the Beacon Awards. He noted the Beacon Awards
Craig Cope kicked off Friday evening’s banquet by explaining how the money raised for the Nicklaus Children’s Hospital Foundation has been put to good use.
The Beacon Award honorees and sponsors sat at a special head table.
Tom Chasteen made several plaque of life donations.
Bill Pastermack of Ace Handiman Titusville and Walter Toole of Toole’s Ace.
program was started seven years ago with the idea of celebrating the vitality of the independent hardware and home improvement retailer. “What bugs me is these pundits and naysayers that keep saying there’s something wrong with you,” Hammond told the retailers in attendance. “In the 1970s it was Kmart that was going to put you out of business. The Blue Light ain’t flashing so well
Napoleon Grill and Propane Cowboys gave a cooking demonstration during the cocktail reception.
anymore. Now Home Depot, Lowe’s and Menards didn’t get it done, but Amazon for sure is going to do it. I wouldn’t bet it that way. This year’s Beacon honorees demonstrate the future is bright for independent hardware retailers,” he added. Leading vendors participate with tabletop booths displaying their latest product innovations, which retailers could view during Saturday
Breakfast was sponsored by The Hillman Group on the terrace. Leading vendors have tabletop booths to display their latest innovations.
Craig and Shanti Cope are the directors of The Hardware Conference.
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The Hardware Conference lives up to its motto: Where Relationships Are Formed.
and Sunday morning exhibit hours. Since the Conference is not a buying show, dealers can learn more about the suppliers and their product innovations without feeling pressured to buy. Saturday afternoon was left free so attendees could enjoy fun outdoor activities. Wooster Brush again sponsored “A Day at the Beach” with free beach activities for Conference attendees, while other organized activities included a golf outing, Everglades airboat excursion and shelling excursion. “We greatly enjoyed attending the Conference and are looking forward to returning next year,” said Jim Lehrer of Brownsboro Hardware & Paint, a 2019 Beacon Award honoree. Bill Pastermack of Ace Handiman North and Don Hoff Jr. of Harleysville Ace Hardware were other past Beacon winners who returned to the Conference. “I find it very beneficial to attend each year and always look forward to it,” said Bob Luedders of Sunnyside Corp. www.TheHardwareConnection.com
Retailers have a chance to have one-on-one dialogue with vendors during the exhibit hours.
Saturday’s Day at the Beach was again sponsored by Wooster Brush, with cooking demonstrations by Napoleon Grills and Propane Cowboys.
ROUNDTABLE DISCUSSION The open dialogue session on Saturday was highlighted by a panel discussion among Beacon Award honorees moderated by Craig Cope. Participating were Eric Smith of Petersburg Do it Best Hardware, Kyle Turner of Turner Ace, Walter Toole of University Ace, Jim Lehrer of Brownsboro Hardware & Paint and Denise Lee of Lee Hardware & Building Supply. An additional open dialogue session was held Sunday morning. Tariffs were again a hot topic of discussion. Lee said they have not had much consumer feedback about price increases, while Lehrer said he’s not sure all the vendor price increases are caused by high tariffs. Toole said, “We check the competition pretty regularly www.TheHardwareConnection.com
THE HARDWARE Connection ■ Sept/Oct 2019 ■ 35
Sponsors:
Co-Sponsors:
Thank You to the Beacon Awards Sponsors The Beacon Awards program is an annual event honoring 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.
This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Ettore, Rust-Oleum, The Hardware Conference and The Hardware Connection magazine. They were also co-sponsored by Ace Hardware Corp., Do it Best Corp. and Orgill Inc.
Jim Lehrer of Brownsboro Hardware & Paint (right) makes a point during the roundtable discussion as Walter Toole of University Ace Hardware listens.
It is hard to beat a Marco Island sunset.
and have a complex pricing system. We’ve been able to increase our margins this year.” Turner said they have kept up with price changes and passed on the increases to consumers. “We’ve seen some resistance on big-ticket outdoor furniture purchases, so we’re buying more from Indonesia now. We’re not trying to be the lowprice leader,” he said.
Smith said some items have seen prices rise not due to tariffs, although consumers think that’s the cause. “If tariffs are rolled back the market will dictate whether we roll back our prices,” he said. The Beacon winners said Made in USA is somewhat of a factor for consumers. “Weber’s Genesis line went to China and then came back, and we point that out to
Friday evening’s banquet had lots of touching moments as some attendees shared the personal stories behind their plaque of life donations.
Jim and Kim Potocki of WD-40.
customers,” Lehrer said. Added Smith, “There’s pride in Americanmade products, but our customers are looking for the best buy.” Lee said their customers are not specifically looking for American-made items but have a preference for high quality. Bill Cassidy of Reliance Water Heaters pointed out that they use all domestic steel. “We saw the same impact on domestic raw materials and it’s still up there,” he said. Bob Clemence of Hyde Tools said the industry is now dealing with round 4. “Round one was steel and aluminum, then the U.S. raised prices. Round 2 was a 10 percent tariff. Round 3 was up 25 percent, now round 4 is multiple tiers on almost 50 percent of everything coming in from China.” Clemence said, “We’ve paid over half a million dollars in tariffs through July. We’re passing on the tariff costs only and maintaining a spreadsheet so we’ll take those extra costs away once the tariffs end.”
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Bill and Darla Cassidy of Reliance Water Heaters were the lucky winners of the $1,000 gift card toward the cruise of their choice, given out by Craig and Shanti Cope.
Jim and Marilyn Lehrer of Brownsboro Hardware & Paint with Robin and Eric Smith of Petersburg Do it Best Hardware.
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Randy Rusk of Do it Best Corp. made a plaque of life donation in honor of Don Wolf.
He added, “Every other country charges VAT (Valued Added Tax) that they add in. The rest of the world charges 15 percent up to 60 percent. We’re just becoming like the rest of the world.” Cope asked whether consumers are going down when choosing among good-better-best options. Turner said they’ve not seen that but some consumers are holding off on big-ticket purchases, which Lehrer agreed was happening in his market.
Tony and Jennifer Patrilla and Fred Fischer of J3.
Maria and Juan Pacheco of Orgill, with Heather Bruner of Lee Hardware with her husband Jamie, who is with Orgill.
THANKS TO SPONSORS Special thanks go to the marquee sponsors: The Hardware Connection magazine, The Hillman Group, Nicklaus Children’s Hospital Foundation, Hyde Tools and The Wooster Brush Company. Start making plans to attend next year’s Hardware Conference, scheduled for August 21-21, 2020 at the JW Marriott Marco Island Resort. For more information, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com. n
Yesenia Rodriquez of Nicklaus Children’s Hospital Foundation (right) recognized Craig and Shanti Cope for the Conference’s fundraising support.
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THE HARDWARE Connection ■ Sept/Oct 2019 ■ 39
COMPANY PROFILE
APEX TOOL GROUP IS A PROUD SPONSOR OF THE 2019 BEACON AWARDS
A
pex Tool Group (ATG) is one of the largest manufacturers of professional hand and power tools in the world, serving the industrial, vehicle service and assembly, aerospace, electronics, construction, and serious DIY markets. Our portfolio of iconic brands includes Crescent® and Weller®, as well as the category-leading Crescent supporting brands of Crescent Lufkin®, Crescent Wiss®, Crescent H.K. Porter®, Crescent Nicholson®, and Crescent JOBOX®. ATG also manufactures select, premier privatelabel mechanics tools. Across the board, our tools embody quality, innovation and value. Known for solving seemingly impossible problems, they are intuitive and simple to use, yet indispensable. ATG works collaboratively with independent hardware/home improvement retailers in the two-step channel to make sure end users have the tools they need to solve real-world problems. Current examples of ATG new product innovation include its new Crescent Tool Bags, Crescent Lufkin Shockforce™ and Shockforce Nite Eye™ Tape Measures, and Crescent Wiss Next Generation Aviation Snips.
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For something that has a significant job, tool bags have earned a reputation as being disposable, needing to be replaced relatively frequently due to wear and tear on jobsites and around industrial facilities. Crescent has introduced a new line of tool storage bags that are designed to withstand heavy usage in unforgiving environments, alleviating the cost and hassle of replacing less-durable bags. The new bags come in four styles: Backpack, Open (two sizes), Closed (two
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sizes), and a 20-inch Contractor Bulk Bag. They all have a hard polypropylene base for durability and zippers on zippered bags are warranted for three years. Other features include PALS-style webbing for fast and easy access to frequently used tools and bright interior fabric for better visibility. a higher level with its Next Generation Aviation Snips. The precision-cast molybdenum blades are CNC-ground, allowing for more uniform serrations that provide cleaner cuts. Tool life is also extended due to a free-floating pivot bolt design.
New Crescent Lufkin Shockforce measuring tapes have a smaller, more ergonomic case, offer an industry-leading 14 feet of standout, and have been designed to survive a 100-foot drop. Shockforce features a diamond coated 360-degree end hook and a two-sided blade with vertical markings on the back. The Shockforce Nite Eye model has all the capabilities of the Shockforce with a high visibility green-on-matte black blade made for superior legibility in any light condition. Both Shockforce and Shockforce Nite Eye tapes are available in 16-foot, 25-foot and 35-foot models. In keeping with its philosophy of continuous improvement, Crescent Wiss has now taken its legendary aviation snips to
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The new snips successfully cut over eight miles of steel without fail and can handle over 500,000 cut cycles. (That’s enough to complete more than 700 new home HVAC system installations.) They last 60% longer and require 20% less force to cut on average compared to Wiss snips from just five years ago. The spring-action allows for fast, effortless feed and a new latch design provides single-handed operation for left or right handed users. New extended non-slip handle grips give users better control while cutting. Crescent Wiss Next Generation aviation snips are available in left/straight cut, right/straight cut and straight cut and are manufactured in Lexington, South Carolina. n THE HARDWARE Connection ■ Sept/Oct 2019 ■ 41
BEACON AWARDS The 2019 Beacon Award honorees and sponsors.
Beacon Awards Honor
Industry’s Best Retailers
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John Hammond served as a presenter for the Beacon Awards.
ive hardware retailers were honored as Beacon Award winners during a special awards banquet held during The Hardware Conference on August 16 at the JW Marriott in Marco Island, Fla.
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Kristin Schiro of Rust-Oleum (left) with Chris Jensen.
Top: (From l to r): Dave Atkins, Ace Hardware Corp.; Patty and Walter Toole, University Ace Hardware; Mike, Dottie, Mitchell, Jason and Kyle Turner, Turner Ace Hardware. Middle: (Front row l to r): Robin Smith, Sherry Bishop, Petersburg Do it Best Hardware; Marilyn Lehrer, Brownsboro Hardware & Paint; Abbe Starr. (Back row l to r): Eric Smith, Dennis Bishop, Petersburg Do it Best Hardware; Jim Lehrer, Brownsboro Hardware & Paint; Dan Starr, Do it Best Corp. Bottom: (L to r): Paul Dupont, Orgill Inc.; Richard Lee, Denise Lee, Heather Bruner, Lee Hardware & Building Supply; Jamie Bruner, Orgill Inc. www.TheHardwareConnection.com
The Beacon Awards, now in their seventh 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 2019 Beacon Awards are sponsored by Apex Tool Group, Epicor, Ettore and Rust-Oleum, with wholesaler sponsorship support from Ace Hardware Corp., Do it Best Corp. and Orgill. The Beacon Awards honored the Retail Beacon Award winners for each of the three participating wholesalers, plus the Best New Stores in two
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BEACON AWARDS
categories: under 20,000 square feet and over 20,000 square feet. “This year’s Beacon Award winners are an impressive group of high-performance retailers. They all demonstrate the ability to stand out from the competition with well-merchandised stores and strong community involvement,” stated Chris Jensen, editor and founding principal of The Hardware Connection, the hardware industry’s leading digital publication. The 2019 Beacon Award honorees include: • Best New Store, Under 20,000 Steve Hildebrandt of Ettore (left) with sq. ft.—University Ace Hardware, Chris Jensen. Oviedo, Fla., owned by Walter Toole and Bill Asma. • Best New Store, Over 20,000 sq. ft. —Petersburg Do it Best Hardware, Petersburg, Ind., owned by Dennis and Sherry Bishop. • Retail Beacon Award—Turner Ace Hardware, Jacksonville Beach, Fla., owned by Mike Turner. • Retail Beacon Award—Brownsboro Hardware & Paint, Louisville, Ky., owned by Jim Lehrer. • Retail Beacon Award—Lee Hardware & Building Supply, Waycross, Ga., owned by Denise and Richard Lee and Royce Christopher of Epicor (left) with Heather Bruner. Chris Jensen.
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Pat O’Reilly of Apex Tool Group (left) with Chris Jensen.
Jim Lehrer of Brownsboro Hardware & Paint.
Sherry Bishop of Petersburg Do it Best Hardware.
Denise Lee of Lee Hardware & Building Supply.
Walter Toole of University Ace Hardware.
Kyle Turner of Turner Ace Hardware.
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John Hammond of The Hardware Connection, who joined Jensen onstage as a presenter, said the Beacon Award winners demonstrate that independent retailers are alive and thriving despite years of doom and gloom predictions. “The Beacon Awards were founded seven years ago with the idea we were going to celebrate the vitality of our independent hardware, home center and LBM retailers. We wanted to celebrate the entrepreneurial men and women who make these wonderful stores happen across our country,” Hammond said. All Beacon winners received a trophy and free travel and registration for two to attend The Hardware Conference. The 2019 Beacon Award honorees are all profiled with feature articles in this issue, beginning on page 48. n
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Best New Storesq.
Under 20,000 ft.
University Ace Hardware
Oviedo, Fla.
University Ace Hardware is led by (left to right): General Manager Neil Asma, Manager Dan Tanner and Owner Walter Toole.
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alter Toole has been in the hardware business for more than 35 years and is a life-long hardware guy. He is a past president of the National Retail Hardware Association and his store in Winter Garden, Fla., was Ace’s first “Store of the Future” in the state. He got into the business when he and his wife Patty bought Bray Hardware in Winter Garden in 1983. This store dates back to 1906, which makes it a member of The Hardware Connection Century Club.
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Click to Watch University Ace Hardware’s Beacon Award Presentation Video University Ace Hardware in Oviedo, Fla., was previously a Walgreens until Walter and his team took over and began transforming the building into the perfect hardware store. “We’re fixit, repair stores and I saw a building with the perfect layout for a hardware store,” Walter says. The team started the transition with an LED conversion, repainted inside www.TheHardwareConnection.com
Upper Left: The paint department features Ace’s traditional lines and Benjamin Moore as a premium offering. Lower Left: As soon as customers walk in the store they can see it is a destination for grills. Upper Right: Walter Toole has always strived to run the best hardware stores in Florida.
and out, polished concrete floors, turned the pharmacy into the back room and converted the photo center into the Stihl department. When University Ace Hardware opened in June 2017 it represented the 10th store for Walter and Toole’s Ace Hardware. Walter’s success has been fueled by an incessant drive to run the best hardware stores in Florida. His partner, Bill Asma, has been with him for nine of the stores. Bill is a lawyer who takes a more passive role in the business, however, his son Neil is extremely active as the general manager. Neil is Walter’s second in command and is poised to take over the business when Walter retires. Walter and Patty’s son, Thomas, takes an active role in the merchandising side www.TheHardwareConnection.com
of the business, ensuring high standards are maintained. Store manager Dan Tanner plays an important role at Oviedo to keep customer service and inventory levels up to expectation.
NICHES DRIVE TRAFFIC The 12,000-square-foot store features a customer-friendly layout and some of the best decor, finishes and merchandising in the industry. Understanding the ever-evolving retail landscape, Walter and his team knew how important it was to have the right merchandise. “Ace has always been good with core departments and they have good core layouts,” Walter says. “We used their new decor package, which we’ve incorporated into all our stores in the last two years.” THE HARDWARE Connection ■ Sept/Oct 2019 ■ 49
Not only are the shelves bulging with core hardware, the sales floor is filled with niches to excite customers. The large grilling area features Big Green Egg, Traeger and Weber grills and accessories, next to a dominant assortment of Stihl outdoor power equipment. They also carry an expanded assortment of bird, fishing tackle, fishing rods and live bait, along with the premium Benjamin Moore paint brand. “All those premium brands are important to us, and we are elite dealers in all those. We continually meet with those vendors to see how we can partner and do a better job selling,” Walter says. Customers encounter a store filled with inventory and exceptional customer service that comes from a commitment to training. Walter takes full advantage of the Ace training programs, and he brings in up to 20 people from all of his stores to their Winter Garden location for one-on-one training with vendors. “We’re known for our service. A customer can always get a product somewhere else, but we will always be in stock and we’re going to service DIY and B2B customers better than anyone,” says Walter, who adds that each store has to count its in-stock position twice a week and report all out of stocks to management. Top: University Ace Hardware is Walter Toole’s 10th store in the Orlando area. Upper Middle: What used to be the photo department at Walgreens has been transformed into sales and service for Stihl outdoor power equipment. Lower Middle: The 12,000-square-foot sales floor features all of Ace’s core assortments. Bottom: The store’s Helpful Hub includes a spot to pick up online orders. 50 ■ THE HARDWARE Connection ■ Sept/Oct 2019
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The Oviedo store reached Ace’s Platinum level during the first year—even though they only had five months to do it. The following year, they achieved Pinnacle level performance—Ace’s highest level. During their first year, they significantly outperformed Ace’s expectations and proforma plan.
CONVENIENCE REDEFINED
University Ace uses the new Ace queuing system to not only sell more impulse merchandise, but to expedite checkout.
Walter and his team embrace customer demands around delivery, understanding it is one of the ways the store delivers on a convenience promise to customers. They participate in Ace’s in-store pickup program and tout the availability of online delivery. “While the logistics can be challenging, we know the value of staying relevant within the community,” Walter says. They are also a pilot program for Stihl power equipment delivery. The customer does not have to come in the store to buy it. They order it online; University Ace delivers an assembled piece and starts it on site. The amount and diversity of inventory plays a role in University Ace’s dedication to commercial sales and servicing the community. Part of the appeal to bring in Benjamin Moore was to have access to Ultra Spec. This brand allows them the opportunity to compete head to head with surrounding businesses to capture commercial paint sales. They have a commercial paint salesman on the road promoting this initiative. They also fulfill the plumbing
parts and other hardware needs of the University of Central Florida. Toole’s Ace has minivans and two trucks to make deliveries, with four outside salesmen to cover an extensive trade area. “We have to continue to get better at B2B by selling more to small and mid-size customers,” Walter explains. “We have 10 stores, so we can deliver the same day. If one store doesn’t have it, another of our stores probably does.” All 10 Toole’s Ace stores support the communities they serve. University Ace works with several organizations such as Boy Scouts, Girl Scouts, Haggerty High School and the Kiwanis Club, and they donate products to the University of Central Florida’s engineering department and Concrete Canoe team. Programs and monetary donations are used to support the Children’s Miracle Network. “Any time you get an award like this you feel pretty special,” says Walter. “It means that they like what you did. It’s a testament not only to me and Patty, but to my staff, to Neal, my son Thomas and to Ace Hardware.” n
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Best New Store Over 20,000 sq. ft.
Petersburg Do it Best Hardware
Click to Watch Petersburg Do it Best Hardware’s Beacon Award Presentation Video
Petersburg, Ind.
Dennis and Sherry Bishop, along with their daughter Robin Smith and her husband Eric, have hit a home run with the new, larger version of Petersburg Do it Best Hardware.
Dennis and Sherry Bishop had maximized the sales they could get out of Petersburg Do it Best Hardware, a 6,000-squarefoot store spread across two floors in tiny Petersburg, Ind. With their daughter 52 ■ THE HARDWARE Connection ■ Sept/Oct 2019
Robin Smith and her husband Eric wanting to be part of the long-term plan for the business, Dennis and Sherry explored opportunities for a larger location. Dennis and Sherry had purchased the business in 1995, but revenues had stalled by 2014.
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Petersburg Do it Best Hardware went from 6,000 square feet to 28,000 square feet.
While Robin and Eric were thrilled at the prospect of joining the family business to make an impact, they all recognized it would need to grow to support four family members. Over the next two years, the four collaborated and brainstormed, which led to securing a new location with an unusual twist—they would move into a much larger building recently closed by ShopKo. With major help from Do it Best Corp., they completely remodeled the store. When they held their grand opening on April 2, 2016, more than 2,000 people lined up outside to check out the selection of products now available in their 28,000-square-foot home center.
Paint sales are up 10 percent since adding The Color Bar in 2017.
Adding niches in outdoor power equipment and riding mowers has significantly raised their average transaction.
it creates add-on sales opportunities with a custom mix of Melissa & Doug interactive toys now available. “The hardware store 25 years ago was a man’s store. The ladies didn’t shop there as much. We added a line of women’s clothing and colorful pots and it started happening, but I didn’t have the family,” explains Sherry. “This new FOCUSING ON THE SHOPPING EXPERIENCE store gave me the family. We now have With more than four times the space the kids with their little shopping carts and parents are comfortable bringing to work with, Petersburg Hardware their kids here.” could focus on becoming an excepStepping further into the store, tional shopping destination. Upon entering, customers find a well-stocked shoppers notice the deeper selection in plumbing, electrical, heating, paint supply of shopping carts including and tools. Those beefed up core catkid-sized carts. This ensures that their customers’ children feel welcome, and egories are now surrounded by new www.TheHardwareConnection.com
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After originally planning to lease half the space in the store to an outside tenant, they decided to fill the space with new items like convenience lumber and building materials, which has proven successful.
“We’re the Walmart of our community. Our niche is having everything here,” says Eric. Paint has become a much bigger business in their new location, especially since they installed The Color Bar, The new store’s bright lighting and clean, wide aisles make it more inviting for shoppers. a store-within-a-store concept recently niches like heavy-duty riding mowers, introduced by Do it Best. Sherry and Robin regularly hold court in their paint outdoor power equipment, convedepartment as they answer questions nience lumber, animal feed and workand offer decorating solutions. wear. They sold 30 mowers the first “We added The Color Bar in April year and increased the category by 138 2017, and we’ve already seen 10 perpercent the following year, sales that cent growth in our paint department were not possible at the old store. the first full year. That was a great The LBM category was also comaddition to our store,” Robin says. pletely new for them, and they now Delivering personalized service is have dedicated 8,000 square feet to key with such a large store, and the convenience lumber and building Bishops and Smiths are a regular materials—perfect for DIYers and presence on the sales floor engaging small home remodelers. Sales in the category have grown 10 percent since with customers. “Each one of us goes above and beyond for whoever comes its introduction. in the door,” says Eric. They regularly introduce new niche To solidify a connection with a more products. They have found success engaged customer base, they aggresin their home decor area with spesively registered nearly 800 new Best cialty signs, old-fashioned sodas, Mrs. Rewards loyalty shoppers in their first Meyer’s cleaning products, exclusive 90 days. Petersburg Do it Best Hardware Channellock-branded products, major appliances and a complete bargain aisle. currently has more than 3,300 Best 54 ■ THE HARDWARE Connection ■ Sept/Oct 2019
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Rewards members, which is pretty impressive in a town of 2,400 people.
GETTING THE WORD OUT With a new store filled with lots of new products, the Bishops and Smiths knew they had to up their marketing game if they were going to be successful. That meant reaching a wider audience and drawing from an expanded market area. The solution came in their quick mastery of social media. “Social media is a big focus for us,” says Eric. “We have over 3,000 followers. Our commercials are very comical and quite the rave. We also take a lot of photos of anyone who purchases a mower and post it on our Facebook page.” With creative input from everyone in the family, Petersburg Hardware has routinely gone viral with their over-the-top videos posted to Facebook. Edited by Eric and often starring Sherry, they regularly release video content promoting upcoming events and sales that receive as many as 50,000 views. They also recognize the support they have received from their co-op to get the new store up and running and make it successful. “The Do it Best team has from day one been right there for us. Very rarely do we have to wait very long for information from them,” Dennis says. In their first year in the new store, overall sales more than doubled, www.TheHardwareConnection.com
The store’s grand opening in April 2016 attracted more than 2,000 people in a town of 2,400.
Sherry Bishop believes in providing hands-on personalized service.
up 132 percent. The average ticket rose 30 percent and average transactions jumped 82 percent. Margin held strong on $1.9 million in sales. The following year, sales jumped to $2.5 million and for 2019 Petersburg Hardware is on track to reach $3 million. “It is an honor to be recognized with this award. We are humbled and appreciate the acknowledgement for all of our hard work,” says Dennis. “Dennis and I wouldn’t be here if it weren’t for the incredible support of Robin and Eric, the commitment of our devoted staff and our loyal customers, with whom we share a special bond,” says Sherry. “We have believed in ourselves for so many years, and now we’ve got more people believing in us.” n THE HARDWARE Connection ■ Sept/Oct 2019 ■ 55
Retail Beacon Turner Ace
Award Hardware
Jacksonville, Fla.
Click to Watch Turner Ace’s Beacon Award Presentation Video
T
Kyle Turner is a fourthgeneration family member involved in Turner Ace Hardware in the Jacksonville area.
he Turner family has been part of the Jacksonville community for 65 years. Mike Turner and his wife Dottie operate as co-CEOs and do a lot of the buying, while their three sons represent the fourth generation to enter the family business. Kyle oversees store operations, Mitchell runs the corporate office and oversees IT and HR, while Jason is in charge of Turner Home. Turner Ace Hardware now includes four stores with the newest one opening in May 2019 in St. Augustine. This 15,000-square-foot store features a covered area outside for live goods and a
large area for pottery and bagged goods. Business at the new store is off to a great start so far, according to Kyle. Turner Ace’s flagship store is in Jacksonville Beach. This 54,000-squarefoot store has a unique product mix. It caters to customers with premium brandname grills, outdoor furniture, full-service gift center and an upscale cleaning specialty department. With its own branded entrance, Turner Home operates as a “store within a store” with a wide range of outdoor furniture. This store also offers customized kitchens as well as 20,000 square feet devoted to fertilizers, soils,
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plants and fountains. The Jacksonville Beach store earned the top Platinum level of performance from Ace. Their entry into the furniture category was a calculated move to counter competition. “When Home Depot opened a store literally across the street in 2015, we couldn’t justify having so much space for hardware. Now 35,000 square feet is Turner Home,” Kyle explains. The store on Atlantic Boulevard in Jacksonville is almost 50,000 square feet including 16,000 square feet of hardware and a 7,000-square-foot garden center. Turner Home occupies the rest of the space. This store was completed renovated in 2018 to create a better and easier shopping experience for customers, and in 2019 it achieved the Platinum level designation from Ace for the third consecutive year. The Turners’ store in the historic district of St. Augustine has blown away all sales projections since opening in December 2015. It has enjoyed www.TheHardwareConnection.com
Upper left: The flagship store in Jacksonville Beach is 50,000 square feet and includes a Turner Home “store within a store” for outdoor furniture and home decor gifts. Upper right: Large garden centers in their two largest stores help drive traffic. Lower left: Turner Ace Hardware is a family business run by Mike and Dottie Turner and their sons (right to left): Kyle, Jason and Mitchell. Lower right: Turner Home’s selection of outdoor furniture establishes them as a destination for outdoor living.
double-digit growth through its first four years and also achieved Ace’s top Platinum level designation. “Ace has been a great supplier for us, coming up with procedures to make our business run smoothly,” Kyle says. “We do great with their advertising and marketing programs.” Part of what makes Turner Ace stores unique is the diversity of their product mix, combined with the premium brand names they stock like Tommy Bahama THE HARDWARE Connection ■ Sept/Oct 2019 ■ 57
outdoor furniture, Stihl outdoor power equipment, Craftsman tools, and Weber and Big Green Egg grills. “Our product mix makes us a regional pull,” explains Kyle. “We also made a commitment to surfing and beach wear like flip-flops.” Turner Ace has the unique ability to serve both the customer looking for a $200 grill, as well as the customer looking for a $50,000 outdoor kitchen. By marketing through their local Ace advertising group as well as in high-end lifestyle magazines, the company is able to stand out as a one-stop shop regardless of a customer’s budget. Furniture and grills are their top niches and they pull in customers, who end up buying other hardware items. “Ace is great at building traffic, but if you don’t have a localized niche such as a garden center you won’t perform to your potential,” Kyle points out. They operate a separate website, www.turnerhomefl.com and Facebook page for the home and garden center to cater to customers interested in creating an outdoor living space. “The Ace Rewards program has been huge for us,
Upper left: Paint sales are strong as female customers are also attracted by the gift area, garden center and casual furniture.
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Upper right: The Helpful Hub reinforces Turner Ace’s emphasis on customer service.
and it’s been great to see the ROI with that,” Kyle says. “We’ve been slow to get on board with social media, but now it’s starting to expose us to customers in new ways.” Turner Ace participates in local community events and supports many local organizations such as Boy Scouts by allowing them to grill on the weekends and raise money for their troop. Their biggest event of the year is their partnership with the Jacksonville Beach Police Department in an annual Christmas Party, which attracts hundreds of kids each year. Their annual EggFest has raised about $20,000 for the Children’s Miracle Network each of the last two years. “It’s really exciting to win the Beacon Award,” says Kyle. “We all work really hard and it’s nice to be recognized, which means we must be doing something right.” n
Ace Hardware Corp. Congratulates its Two Beacon Award Winners
University Ace Hardware—Best New Store Under 20,000 sq. ft. Owners: Walter Toole and Bill Asma (Left to right): General Manager Neil Asma, Manager Dan Tanner, Owner Walter Toole.
Turner Ace Hardware—Retail Beacon Award Owners: Mike, Dottie, Jason, Mitchell and Kyle Turner (Left to right): Dave Atkins, Ace Hardware Corp.; Patty and Walter Toole, University Ace Hardware; Mike, Dottie, Mitchell, Jason and Kyle Turner, Turner Ace Hardware.
BEACON AWARDS: The Industry’s Awards Program Honoring the Best Retailers
Retail Beacon Award Brownsboro Hardware & Paint Louisville, Ky.
J
Click to Watch Brownsboro Hardware & Paint’s Beacon Award Presentation Video
Jim Lehrer has grown Brownsboro Hardware & Paint into a successful two-store operation in the Louisville area.
im Lehrer, the owner of Brownsboro Hardware & Paint in Louisville, Ky., received the 2019 Retail Beacon Award for his years of dedicated service to the industry. However, his career as a hardware retailer came early and late. Born and raised in Wisconsin, Jim was hired as a teenager to mow the grass at a nearby lumberyard, Home Supply & Building Materials. He soon earned a role on the sales floor as he worked through high school and continued to work summers while in college.
After working to establish himself as an award-winning field sales representative for several hardware wholesalers, Jim rose to become general manager of Our Own Hardware, where he oversaw all sales, merchandising and operational functions for the regional co-op. When Our Own merged with Hardware Wholesalers Inc. (now Do it Best Corp.) in 1997, Jim took it as an opportunity to re-evaluate his future path. As he traveled around the Midwest helping Our Own members transition to the new co-op, he
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The store’s annual EGGFest, which began in 2008, has generated $110,000 to support two food-based charities in the greater Louisville area.
All employees have to sign a commitment to customer service on the wall in the meeting room.
visited Brownsboro Blue Grass Hardware in Louisville, which was for sale. After a career spent consulting with hardware owners to improve and grow their businesses, Jim saw an opportunity to put his knowledge into practice and invest in himself. In 1998, Jim and his wife Marilyn bought what was then a floundering hardware store five miles east of Louisville. It was, as he says, an all-in moment—they took everything they had, including their retirement savings, to buy the business. They renamed it Brownsboro Hardware & Paint and set about recasting the store as a vital neighborhood resource. “The store was very underperforming and short on inventory. From day one we expanded the hours, added inventory and did a lot of marketing,” Jim recalls. “By adding products, staff and expertise, we were able to grow the business.” Jim discovered he liked being a hardware retailer and he was good at it, setting an example for staff and knowing when to lean on Do it Best for help and programs. He adds, “I put together a business plan and tried to anticipate what would happen, but the most important thing is people. Customer service is the key to our success,” he says.
There is a wall in the store meeting room where all Brownsboro Hardware employees have to sign a commitment to customer service. “It’s important to build your business on customer service, which is what separates us from the big boxes and the internet,” Jim points out. Brownsboro Hardware & Paint quickly became a destination for grills and barbecue accessories, which is now their largest category. They will assemble and deliver grills for free, and even haul away the customer’s old grill as a way to go beyond their competitors. The business progressed nicely, but Jim always saw Brownsboro Hardware & Paint as more than a single store. The opportunity to act on that vision came in 2009. That opportunity came when a landlord visited Jim with a proposition. The hardware
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Brownsboro Hardware & Paint routinely ranks number one in regional magazine, newspaper and TV lists as the area’s best hardware store.
Jim Lehrer built his business by focusing on customer service.
The top-selling category is grills and barbecue accessories.
Sales took off at Brownsboro Hardware & Paint after Jim Lehrer bought the store in 1998 and invested heavily in inventory.
store on his property in Prospect, Ky., was struggling and would soon be out of business. He wondered if Jim would be interested in taking over the space, which was about five miles from his store. “I was excited, but I’d only do it if Marilyn was in,” he added, recalling their first all-in moment more than 10 years before. “I must have caught her at a weak moment, because she said, ‘Yes.’” As Jim assessed the store in its current condition, he determined there was little to salvage. Soon, new lighting and flooring were installed and a fresh coat of paint covered the walls. With Do it Best’s help, the store was fully merchandised. The Prospect location quickly began earning customers’ loyalty and establishing the store as a valued community resource.
“Do it Best has been a great partner in building my business the past 21 years. When we opened the second store in Prospect, they were instrumental in getting that store turned around in just four weeks,” Jim says. In that first year as a hardware store owner in 1998, Jim’s hardware sales were about $350,000. Twenty years later, his all-in approach has more than paid off. Brownsboro Hardware & Paint now has two locations with 39 employees and generates $4.9 million in annual sales. Jim has always given back to the community and he found another way to give back to the industry. He began serving on the Do it Best board of directors in 2010, serving two terms as board chair and helping the co-op navigate through the recession and transition its executive leadership from Bob Taylor to Dan Starr. “I very much appreciate this honor and I’m humbled by this recognition,” Jim says. “It would not have been possible without the incredible support of our customers, community and, of course, our staff, who are like family. Brownsboro Hardware & Paint is successful today because of what we’ve all built as a team,” he adds. n
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Do it Best Corp. Congratulates its Two Beacon Award Winners
Petersburg Do it Best Hardware— Best New Store Over 20,000 sq. ft. Owners: Dennis and Sherry Bishop
Brownsboro Hardware & Paint— Retail Beacon Award Owner: Jim Lehrer
(Front row left to right): Robin Smith, Sherry Bishop, Petersburg Do it Best Hardware; Marilyn Lehrer, Brownsboro Hardware & Paint; Abbe Starr. (Back row left to right): Eric Smith, Dennis Bishop, Petersburg Do it Best Hardware; Jim Lehrer, Brownsboro Hardware & Paint; Dan Starr, Do it Best Corp.
BEACON AWARDS: The Industry’s Awards Program Honoring the Best Retailers
Hardware & Retail Beacon Lee Building Supply
Award
Waycross, Ga.
Click to Watch Lee Hardware & Building Supply’s Beacon Award Presentation Video
I
n 1962, Richard Lee grew up working in the store that was started by his parents in 1957, and now he and his wife Denise and their daughter, Heather Bruner, are proud to see the fruits of their labor pay off. For 31 years, Lee Hardware & Building Supply operated with a small 4,800-square-foot store with only three employees to serve the Waycross community. The business expanded in a big way with a new location in 2015 that covers 18,000 square feet across multiple buildings and requires 27 employees to keep things running. Going from 14 to 40 parking spaces means they can accommodate more customers.
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Richard Lee, Denise Lee and Jamie Bruner are proud of the new, larger Lee Hardware & Building Supply in Waycross, Ga.
When a big-box store came to town a decade ago, Denise said they knew they would have to take a closer look at their business and find ways to compete. Bringing in additional inventory with a larger store was one of their solutions. Lee Hardware & Building Supply serves a combination of different types of customers—DIYers, contractors, commercial accounts, manufacturers—so they make sure to have something for everyone. The Orgill retailer now sells industrial, janitorial and safety supplies in addition to the hardware and LBM materials it has always carried. There is also room to display new categories like grills, pool supplies and outdoor products. The www.TheHardwareConnection.com
The new, larger sales floor enables them to stock more in core categories while expanding into new categories like grills and pool supplies
Lee Hardware’s knowledgeable employees help the business stand out from the competition.
Jamie Bruner, Denise Lee and Richard Lee stand in the paint department, which saw sales triple after expanding to 2,000 square feet.
and are still thriving is another achievement of which we’re quite proud.” She says they work hard to keep their inventory selection fresh and to keep up with local trends. “We listen to our customers when they request a particular item,” Denise says. “We see what the paint department went from 600 square community needs. We can adjust our product selection based on that feedback.” feet to more than 2,000 square feet, Having a wide variety of products leading paint sales to triple. is key, but Lee Hardware & Building The business has a strong industrial Supply is known for its customer serand safety category, which was an area they branched out into as a way to differ- vice. “Our customers tell us time and entiate their business when the first big- time again that the service they receive box store came to town. “That niche has with us is what keeps them coming grown a lot over the years,” Denise says. back,” Denise says. “Our knowledgeable employees are what set us apart.” Richard points out that they offer 120 “They look at customer service from types of safety glasses and have even partnered with other stores to teach them the start of the hiring process, evaluating whether someone can handle workhow to do commercial/industrial sales. ing with customers,” adds Heather’s Sales have grown every year since the previous store opened 31 years ago, husband, Jamie Bruner, who is their Orgill sales rep. and business has increased 50 percent Employees at Lee Hardware are like with margins up 3.5 percent over the family, according to Denise. “We treat past five years. “We even saw growth them not just as employees, but as part of during the recession in 2007, 2008 and our family. We’re there to support them, 2009,” Denise says. “The fact that we both professionally and personally. I think have competed against the big boxes www.TheHardwareConnection.com
THE HARDWARE Connection ■ Sept/Oct 2019 ■ 65
that personal treatment is one of the reasons so many of our employees have chosen to stay with our company for so many years,” she points out. Denise adds that they offer paid leave and health insurance, but more importantly they are flexible and don’t count emergencies against them. “One of our employees has been with us for over 20 years,” she notes. Lee Hardware & Building Supply has been recognized by the local Chamber of Commerce as Business of the Year and with its Helping Hands award and has also received the Valspar Platinum Award and Orgill Pinnacle Award. The company serves on Orgill’s advisory council. Richard says that Orgill offers the programs they need and they feel like their concerns are addressed. “Their warehouse is one hour away, and Orgill has good pricing and stocking programs. With two shows, we’re able to keep abreast of what’s new in the market,” he says. Lee Hardware & Building Supply is well-known throughout the community, sponsoring school activities, sports programs and projects with the local recreation department. They support the local cancer society and are members of the Chamber of Commerce. 66 ■ THE HARDWARE Connection ■ Sept/Oct 2019
Left: The store is the only platinum Case Knives dealer in the area. Middle: Industrial sales—a key part of the business—are handled in a separate space. Right: Lee Hardware makes sure customers get what they want, when they want it.
The Lees have had many family members and employees serve in the military and had an employee who was killed in Iraq while deployed, so the business is a strong supporter of the military. Every two years they host a trade show that attracts as many as 2,000 people. “We display and demo products, give away $15,000 of door prizes and even have contractor games. We start planning a year in advance,” Denise says. Future initiatives include working on an online customer account system with Epicor, doing more direct mail advertising and introducing a private-label Lee Hardware credit card. “We know there’s more business out there if we work hard for it,” she adds. “We are very honored and privileged to win the Beacon Award. It takes all of us working together as a team and a lot of community support to make this possible,” Denise says. n www.TheHardwareConnection.com
Orgill Inc. Congratulates its Beacon Award Winner
Lee Hardware & Building Supply— Retail Beacon Award Owners: Richard and Denise Lee, Heather Bruner
(Left to right): Paul Dupont, Orgill Inc.; Richard Lee, Denise Lee, Heather Bruner, Lee Hardware & Building Supply; Jamie Bruner, Orgill Inc.
BEACON AWARDS: The Industry’s Awards Program Honoring the Best Retailers
CATEGORY REPORT
LAWN & GARDEN TRENDS Sales of Insecticides (Independent Hardware Channel) 12 Months % Change vs. Year Ago Insecticides: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -4 .5% Insecticides: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-3 .9% Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Insecticides Total of 1,938 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 .7% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 .2% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 .1% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 .4% Source: Vista Information Services, div. of Epicor Software Corp.
Seasonality of Sales of Insecticides (Index=100) 220 176
202220 164 176
132 88 44 0
133
121 84
132
41
88 July 44 Aug. Sept. Oct. 2018 2018 2018 2018
25
24
27
147
174
58
Nov. Dec. Jan. Feb. March Apr. May June 2018 2018 2019 2019 2019 2019 2019 2019
Source: Vista Information Services, div. of Epicor Software Corp. 0
Insecticides Share of Sales by Type (Latest 12 Months) Aerosol Spray/Spray Concentrate
Source: Vista Information Services, div. of Epicor Software Corp.
44%
Stations/Traps 0Bait/Bait 10 20
30
5024%
40
Granules/Powder/Dust
15 .9%
Fogger
6 .8%
Foam Spray
0 .5%
Hose End
0 .4%
All Other
8 .4%
0
10
20
68 ■ THE HARDWARE Connection ■ Sept/Oct 2019
30
40
50
Manufacturers and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to www.vistainfoservices.com.
www.TheHardwareConnection.com
LAWN & GARDEN MERCHANDISING
Parkrose Hardware in Vancouver, Wash., makes a statement with colorful flowers displayed outside the store.
Parkrose Hardware in Portland, Ore., is a destination for Stihl outdoor power equipment.
Sullivan Do it Best Hardware & Garden in Indianapolis has a green goods offering that rivals the selection of any nursery.
Above left: Every time a customer buys a SCAG riding mower at Petersburg Do it Best Hardware they post a picture on the store’s Facebook page. Troup True Value in Sinton, Texas, makes sure the basic items stay in stock.
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Above right: Nyberg’s Ace Hardware in South Dakota attracts female customers with hanging baskets.
THE HARDWARE Connection ■ Sept/Oct 2019 ■ 69
LAWN & GARDEN
BATTERY-POWERED LAWN MOWER HORTICULTURAL VINEGAR FOLDING HANDLE SPRAYER • The Chapin Horticultural Vinegar Sprayer is designed for organic weed control . • Features vinegar-resistant seals tested specifically for use with horticultural vinegar . • It offers features found on professional sprayers including a durable poly tank, shut-off with filter and in-tank SureSpray® Anti-Clog filter to prevent clogging in the tank and at the nozzle, folding carry handle and pressure relief valve . • Available in 2-gallon or 4-gallon models . Comes with limited 2-year warranty . Chapin International www.chapinmfg.com 800-444-3140 70 ■ THE HARDWARE Connection ■ Sept/Oct 2019
• The STIHL RMA 460 is the first lawn mower in the AK Series, giving AK battery users a full line of products to complete tasks around their lawn . • This lawn mower is compatible with the AK 20 or AK 30 battery, providing homeowners with performance options based on yard size . • With a deck width of 19”, the RMA 460 is highly maneuverable for quick and efficient grass cutting with each pass . Its 15 .85 gallon grass catcher allows for more grass cutting and less stopping, while the handle bar is easily adjustable for user comfort . • The RMA 460 is great for small to medium-sized yards under a halfacre and can also be used as a mulching mower . STIHL www.stihlusa.com 800-467-8445 www.TheHardwareConnection.com
IN THE NEWS NEW STORES:
KUDOS TO:
• Hatchet Hardware has opened a new store in Waterford, N.Y., that previously operated as Phillips Hardware. • Kuiken Brothers opened a new store in Newark, N.J. • Interstate + Lakeland Lumber is opening its fifth location in Westport, Conn. • Matt and Tammy Capano have opened Gloversville True Value Hardware in Gloversville, N.Y. • Clint Lunceford has opened Rexroad Do it Best Supply in Alderson, W.Va. • Tyler Heilman has purchased Barnes Hardware & Lumber in Falmouth, Ky., from Becky Thomas and Marc Gilbert and renamed it Heilman Hardware, Lumber and Farm Supply. • East Bay True Value has moved to a new, larger location in Charleston, S.C. • Century Club member Pinckney True Value in Pinckney, Mich., has been renamed Byrum Ace Hardware after being purchased by the Byrum family. • Curtis Lumber has acquired new stores in Sidney and Richmondville, N.Y. • Liz Haun has opened Nyssa Mercantile True Value Hardware in Nyssa, Ore. • Mike and Suzie McClure have acquired Gibbs True Value in Old Fort, N.C., from Butch Gibbs.
• The Yeager family is celebrating the 60th anniversary of Yeagers Ace Hardware and Lumber, with 4 stores in Arkansas. • Johnsons Home & Garden in Maple Valley, Wash., is celebrating its 50th anniversary. • Bona, which was founded in Malmo, Sweden, is celebrating its 100th anniversary. • PRO Group awarded its 2019 Paul L. Cosgrave Memorial Award to Middleburgh PRO Hardware in Middleburgh, N.Y. Kentucky Mine Supply PRO Hardware in Harlan, Ky., received recognition as a finalist. Both companies, along with Grandview Lumber & PRO Hardware in Grandview, Wash., were named 2018 PRO Hardware Retailers of the Year.
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PEOPLE ON THE MOVE: • Do it Best Corp. promoted Brad Schieber to building materials merchandise manager and hired Ignacio Poncio as international associate merchandise manager. • Keim Lumber named Jim Smucker as president. • Jon Michael Adinolfi has been named U.S. divisional president for The Hillman Group. THE HARDWARE Connection ■ Sept/Oct 2019 ■ 71
WHOLESALERS IN THE NEWS: • Ace Hardware Corp. reported record 2Q revenues of $1.69 billion, up 6.3% from last year. Net income declined $1 million to $53.8 million. “Significant growth from new stores, including 44 in the second quarter, solid same-store-sales growth and a 58 percent surge in revenue from acehardware.com fueled our 6.3 percent revenue increase,” said John Venhuizen, president and CEO. During the Ace fall convention in Atlanta, the co-op unveiled its “Higher Ground”growth initiative to replace Ace’s 2020 Vision plan. The five-year plan will entail a $2 billion investment to grow retail revenue from $16 billion to $20 billion while adding 800 new stores. A 50 percent increase in national and local advertising will be aided by requiring an extra 1% marketing charge to all vendors. Ace also announced that it has acquired Handyman Matters,
a franchisor of home repair, maintenance and improvement services based in Denver. Handyman Matters will become Ace Handyman Services and operate as a standalone subsidiary of Ace. The franchisor currently has 57 franchisees who collectively employ 250 handymen in 121 territories across 23 states. Integration and rebranding initiatives are underway with a target completion of 1Q 2020.
OTHER NEWS: • As Hurricane Dorian closed in on the East Coast, retailers such as Miller’s Hardware in Winter Park, Fla., Taylor’s Do it Center in Virginia Beach, Va., Craft American Hardware in Wilmington, N.C., Islands Ace Hardware in Savannah, Ga., and Moody’s Ace Hardware in North Charleston, S.C., used social media to keep customers updated about hurricane supplies. n
Islands Ace Hardware in Savannah, Ga., let customers know they had generators. 72 ■ THE HARDWARE Connection ■ Sept/Oct 2019
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UPCOMING EVENTS SEPTEMBER Blish-Mize Fall Dealer Market September 19-21, Overland Park Convention Center, Overland Park, Kan. Bostwick-Braun Company Fall Dealer Market September 19-21, Seagate Center, Toledo, Ohio Emery Jensen Distribution Show 2019 September 16-21, Anaheim Convention Center, Anaheim, Calif. Home Hardware Fall Market September 22-24, Home Hardware Distribution Centre, St. Jacobs, Ont. Monroe Hardware Fall Market September 13-15, TD Convention Center, Greenville, S.C.
OCTOBER Lowe’s, Rona and Ace Canada Buying Show October 17-18, Montreal Convention Centre, Montreal, QC Do it Best Corp. Fall Market October 18-21, Indiana Convention Center, Indianapolis House-Hasson Hardware Fall Dealer Market October 24-26, Sevierville Events Center, Sevierville, Tenn.
NAWLA Traders Market October 16-18, H.B. Gonzalez Convention Center, San Antonio Taiwan Hardware Show October 17-19, Taichung International Exhibition Center, Taiwan True Value Fall Reunion October 3-6, McCormick Place, Chicago Wallace Hardware Company Fall Dealer Market October 9-11, LeConte Center, Pigeon Forge, Tenn. Wyatt-Quarles Seed Company 2019 Dealer Expo October 2-3, Myrtle Beach Convention Center, Myrtle Beach, S.C.
NOVEMBER Distribution America/PRO Group 2020 Executive Planning Conference November 20-22, Renaissance Vinoy, St. Petersburg, Fla. STAFDA November 10-12, Music City Convention Center, Nashville, Tenn. Western Building Material Association Annual Convention November 13-14, Embassy Suites, Sacramento, Calif.
For a complete listing of calendar dates, click here. www.TheHardwareConnection.com
THE HARDWARE Connection ■ Sept/Oct 2019 ■ 73
RETAIL IDEAS
LOCAL SOURCING TASTES GOOD TO TAYLOR’S
cooking. Everyone loves it and it’s exciting to see reorders at the store level,” says Meg Taylor, communications manager. “We had a lot of fun designing the label the way the brand looked back in 1927.” With early results promising, Taylor’s is considering additional flavors and rubs under their exclusive brand. n
Taylor’s Do it Center, based in Virginia Beach, Va., has discovered a unique way to make its 18 stores stand out. It has begun selling its own privatelabel Fuel & Feed barbecue sauce that is locally sourced. WEDNESDAYS ARE FOR WISDOM Taylor’s CEO Joe Taylor was able to turn AT TRIPLE “A” BUILDING CENTER to an old fraternity buddy, Tim Ashman, whose company, Ashman Distributing To stay productive and sharp during Company, started selling them some of the sauces and rubs that were popular all over the slower winter months, the team at the three Triple “A” Building Centers in the mid-Atlantic region. upstate New York spend Wednesdays participating in vendor-led training. What Owner Robert Ashley calls Wisdom Wednesday isn’t some drowsy breakroom event. Morning and afternoon sessions are held in a classroom setting in their Massena store, where vendors bring samples, detail product features, take employees through sales role playing and answer Taylor’s Do it Center has had success with the private-label Fuel & Feed sauce.
It’s even better when you’re selling something that cannot be bought anywhere else, so they decided to launch a private-label sauce. Joe’s grandfather, Robert, was one of the original founders of the company when it started out as Fuel, Feed & Building Supplies in 1927, so the Fuel & Feed sauce line embraces their retail roots. Today, Fuel & Feed comes free with the purchase of a grill and is also available for purchase. “It really accents our outdoor 74 ■ THE HARDWARE Connection ■ Sept/Oct 2019
Triple “A” Building Center holds vendor-led training classes on Wednesdays during the slow winter period. Shown here is a paint demo class led by Sherwin-Williams. www.TheHardwareConnection.com
questions. Ashley then seeks employee input on which vendors interest them for the next year’s sessions. “We started this 10 or 11 years ago. We try to do one in November, one or two in December and then every Wednesday from January through April,” Ashley says. “After the first few years, vendors started contacting us to sign up.” Triple “A” has 52 employees in the three Do it Best stores, and Ashley says employees really enjoy attending the training classes. Wisdom Wednesdays equip Ashley and his staff with the expertise needed to set themselves apart from bigbox competitors. Customers appreciate the staff’s deep understanding of product details and their guidance during the purchasing process. The Wednesday sessions have also created a sense of camaraderie across the company, as employees from the different stores reach out to each other for advice and expertise. n
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AUBUCHON UNVEILS SOLAR POWER PROGRAM Aubuchon Hardware and Relay Power have entered into a partnership agreement to get the word out to Aubuchon customers and employees about the opportunity to sign up for Relay Power Community Solar. Those who participate will receive guaranteed savings on their monthly electric bills, while supporting and facilitating clean energy production in Massachusetts. Participants will also receive a gift card to use at any Aubuchon Hardware location. The solar farms are all located in Massachusetts. Mike Mattson, vp-marketing at Aubuchon Hardware, said, “This is a great partnership. We now have the ability to provide our customers with a great electricity option that provides both value to their wallets and the environment.” n
THE HARDWARE Connection ■ Sept/Oct 2019 ■ 75
BEHIND THE
NUMBERS
12%
Percentage of family-owned businesses that survive to a third generation, according to the Family Business Institute.
3%
Percentage of family-owned businesses that operate into the fourth generation or beyond, according to the Family Business Institute. Fitch Lumber and Hardware
78%
Percentage of new job creation in the U.S. generated by family-owned small businesses, according to the Conway Center for Family Business.
76 ■ THE HARDWARE Connection ■ Sept/Oct 2019
Aubuchon Hardware
534
Number of U.S. hardware stores and LBM stores over 100 years old, according to research by The Hardware Connection for its Century Club.
245
Number of years The Ames Companies has been in business since it was founded in 1774, making it the fourth-oldest U.S. company.
16%
Percentage of family-owned businesses that have a discussed and documented business succession plan in place, according to PricewaterhouseCoopers.
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