Hardware Connection April 2017

That Work Competitive Strategies

chris@thehardwareconnection.com 317-514-8864

Cope craig@thehardwareconnection.com 804-690-0666

By Chris Jensen

Retail Format Trends Go in Cycles

When I was a hardware industry newbie in the late 1980s, warehouse home centers were a decade old and just beginning to cause disruption and concern in the marketplace. Lowe’s, which used to operate small pro-oriented lumberyards in the South, soon made the strategic decision to switch to a big-box consumer format.

While Home Depot and Lowe’s were beginning a massive rollout, the country was filled with lots of medium-sized regional chains. Grossman’s, Scotty’s, Hechinger, Pay ‘n Pak, Central Hardware and Ernst Home Centers were all big players in a hardware industry that was growing by leaps and bounds as the d-i-y movement took hold.

Successful retail formats are soon copied, and Home Depot found itself battling an ever-increasing list of warehouse competitors. Kmart launched Builders Square, while regional chains like Hechinger developed their own warehouse formats.

Slowly but surely, the marketplace demonstrated that there was room for quite a lot of warehouse home centers, complemented by a strong bunch of independent hardware stores and lumberyards. The market also determined that there was not enough room for

the medium-sized regional home center chains. One by one, Grossman’s, Scotty’s, Hechinger and others all went out of business.

Over the years, Depot and Lowe’s have tried various smaller formats. Depot tried a rural format called Crossroad, a large hardware store format called Villager’s Hardware and a mid-sized format called Home Depot Yardbirds—all were scrapped in short order.

The medium-sized regional home center chains were all run out of the marketplace in the 1990s, because they didn’t have characteristics that made them the stores of first choice. If consumers cared most about low prices and/or big assortments, they shopped at the big boxes. If they cared most about service and/or convenience, they shopped at the independent hardware and lumber stores.

Turn to page 57 in this issue to see my report on Orchard Supply Hardware’s new stores in Florida. Orchard Supply, a mid-size chain of hardware and garden stores with roots in California, was bought out of bankruptcy by Lowe’s in 2013. It’s an interesting test of a smaller format that could work in urban markets for the big-box retailer, but it seems like we’ve seen this playbook before. n

By Tom Chasteen

The Rewarding Experience of Being an Employer

Years ago I attended a very informative seminar at one of the wholesaler shows. The person giving the seminar obviously had retail hardware experience, but the focus of his presentation would have been just as appropriate for any small business retailer.

He started off by asking the audience if anyone knew the employer’s prayer. When no one volunteered, he recited it: “Oh, God, I hope this one works out!” Everyone in attendance started laughing, because every one of us at some point had said that same prayer after hiring someone.

He followed that up by asking “How many people in the audience have some really dumb employees?” Only a few people raised their hands. Not satisfied, the speaker asked “How many have some really, really dumb employees, who you even wonder how they find their way to work some days?” Now everyone is beginning to laugh and almost half the room raises their hands. He then asks “How many don’t even try to train some of your employees because you know it will be a waste of time?”

By now almost everyone in the audience (almost 100 people) is smiling and

laughing. Then the presenter asks what I call the “64 million dollar question.” He says, “Well, who hired them?”

All of a sudden, no one was smiling and we were all thinking “He’s right.”

In the real world finding good employees has always been a big challenge, not just in our industry but in every small business. Here is the sad fact: it will not get any easier. The U.S. Census clearly shows the U.S. population is aging at an alarming rate. Aging baby boomers will continue to be the norm for some time. There is no way technology is going to be able to make up the shortage of young people in the U.S. workforce.

Most of us have either read the studies or attended a presentation on retaining employees and they all make the point that money is not a long-term motivator. People, at a minimum, need to make enough to live on, but a nurturing and happy workplace is not totally driven by financial incentives. Things like responsibility, latitude to make decisions, appreciation, recognition, respect, flexibility, growth and trust all play a much larger role in a productive workplace and employee retention than just money.

When I started hiring people 40 years ago, my father taught me to

the way i see it

never stand in the way of an employee who has decided to leave our employment to better themselves. Instead be supportive when someone gives their notice, because if the job they have taken doesn’t work out you have a 50-50 chance they come back to our business and ask for their job back. He also impressed on me to never be afraid of training someone to take my job. He would say “only a fool tries to solidify their position by not sharing knowledge with those they work with.”

However, if you have been employing people for a while you already know this. You also know the disappointment when an employee doesn’t work out and the challenges of trying different things to bring them along or motivate them. You also know the feeling of having to let someone go, which is different from firing someone with cause. Both, in my opinion, are the worst part of owning your own business.

You also know the pleasure and confidence you feel when you have a longtime employee who you trust with the store keys, balancing the cash on a daily basis or even making the daily bank deposits. You also know that when an employee has been with you for 15, 20, even 30 years or more they are not an employee they are much more than that. Often they become a part of your family. You care deeply for them and are concerned for them. Most hardware store owners know what I’m talking about.

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the way i see it

The very first person I hired after I graduated from college and came into the family business was Elly Lauder, who retired as a type setter for a printing company. Elly and I worked together for over 30 years. He knew and worked with my parents. He was there when I went through my divorce, and I was there when his wife died. He was there when my father passed away and later when my mother passed away. He was there when I remarried and at 92 he was still working three days a week. I was never more honored than when Elly asked me if I would accompany him on a Veteran’s Honor Flight to Washington, D.C. as a WWII veteran. And of course I was there when Elly passed away.

When I think of Elly I rarely think of the products we sold over the years or the good sales days or bad sales days. I always remember the funny experiences we shared and the special moments that he gave me insight in life, not just in business. I will always remember the integrity and his dedication to do things right, with no short cuts.

But more importantly, I always think how fortunate I was that Elly not only chose to come to work in our family business but he stayed with us for over 30 years.

Most hardware store owners know exactly what I’m talking about. If you don’t then I’m sorry, because you’ve missed one of the most rewarding experiences of owning your own business. n

KRYLON® PROJECT OF THE WEEK:

Super-Looking Sales Numbers

Your customers want spray paint that provides great color and coverage.

NEW Krylon® ColorMaster™ Paint + Primer with durable Covermax® technology gives them exactly what they want.

Here’s how:

• The new formulation achieves better hide without the use of fillers or shading, so colors are clean, crisp and more brilliant than ever.

• Krylon’s proprietary EZ Touch® conical spray tip ensures control and even coverage without finger fatigue with no runs or drips.

• The expanded recoat window of 4 hours (instead of 1) allows for more time to work on a project instead of waiting until the next day.

Results: Krylon ColorMaster Paint + Primer makes everything, including your sales, look great.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

Change is the evolution of life. It’s all around us and there is very little we can do other than adapt and take advantage of the opportunities that change offers us. People will typically resist change and in the process will often miss an opportunity that change will bring. Sometimes change happens so quickly it is difficult to even keep up with where the change is taking us. I’ve never been very good at quickly adapting to change. I need to know why we are changing and how will it benefit my business. Often I feel like the proverbial gerbil on the treadmill running like crazy and the faster he runs the faster the treadmill goes. But like the gerbil we often get so caught up in the task of keeping pace on the treadmill it never occurs to us to simply get off.

Businesses can also get caught up on the treadmill of change just like the gerbil. However, I admire those people and businesses that have an ability to not only develop a vision but also have the opportunity to implement the vision successfully.

Shop-Vac Corporation was founded in 1969 and is one of those companies that can embrace a vision and change to meet market conditions and opportunities. It is rare when a company’s vision to develop a product meets the needs and demand of the marketplace in such a strong manner that the name of the product becomes

By Tom Chasteen

synonymous with the product category. At that time, there were not any other dominant vacuums dedicated to clean-up jobs.

Then along comes Shop-Vac, a visionary company that develops a complete line of vacuums designed to be used in the garage, on job sites, cabinet shops and automotive jobs. Then they added the ability to not just vacuum up dry debris but also suck up water. Talk about vision and adapting to change. Today, Shop-Vac is the dominant brand for serious d-i-yers, tradesmen and industrial commercial users.

However, like most good ideas it is just a matter of time before other companies come out with similar products. For nearly 50 years the Shop Vac Corporation has continued to improve its products and add new products, bigger motors, more vacuums and a complete line of accessories. And just when you might think what else can Shop Vac do, they come out with a complete line of stainless steel and galvanized drum fans.

True to Shop-Vac heritage the company did its research and developed an outstanding lineup of products. We asked our testers to try out three styles of the ShopVac drum fans and I can tell you every one of our testers, without exception, was very impressed.

n Adjuster knob has hex key recess for extra tightening — even after pliers are locked down

n Deep rib knurl on adjuster knob for easier gripping and turning

n Angled tooth design for maximum torque

n Cushioned release lever for added comfort

From Tom’s Shop HARDWARE PRODUCTS REVIEW

Pro.

PRODUCT #1: 48” STAINLESS STEEL DRUM FAN SHOP-VAC CORP.

We tried out the 48” Stainless Steel Drum Fan and all of our testers remarked that it looked too good to be used in a commercial work environment. The stainless drum housing is polished to a beautiful shine and it did not tarnish after being taken out of the box. It has two speeds and is capable of moving massive amounts of air.

If you are in the party rental business, then this would be an ideal fan to use for outdoor weddings or parties. It is aesthetically appealing, quiet and extremely easy to move around. The two-speed motor can create a gentle air movement at the lower speed setting or, if needed, it can be switched to the high setting to generate big air movement. It would also be perfect for office settings to air out cleaning odors or paint fumes. The Stainless Steel Drum Fans come in 24”, 30”, 36”, 42” and 48” diameter sizes.

PRODUCT #2: 36" GALVANIZED DRUM FAN SHOP-VAC CORP.

In addition, we tried the 36” Galvanized Drum Fan, which is also very well built with the same size motors as the stainless steel drum fans and also has two speeds. These fans would be perfect for job sites or industrial commercial applications. The wire grates’ openings are small enough to prevent something being sucked up in the fan blades, but also large enough to not

Con.

From

impede the air flow. The galvanized drum fans comes in 24”, 30”, 36”, 42” and 48” diameter sizes.

PRODUCT #3: 24” GALVANIZED SLIM LINE DRUM FAN SHOP-VAC CORP

Finally, we tested the 24” Galvanized Slim Line Drum Fan, which was equally impressive both in quality, ease of moving around and air movement. The slim line drum fans also come with aluminum fan blades and are equally as quiet. The 24” slim line drum fan comes with a slightly different frame, allowing the fan to be tilted using the easyto-turn thumb screws on each side.

From Tom’s Shop

All of the fans we tested came with 10 heavy-duty three-prong cords and all of the fans are UL tested. Another feature that all of the testers mentioned and hardware retailers will really like is the fans come pre-assembled out of the box and all that needs to be done is to attach the wheels using the axle and the hitch pens included. Total assembly was less than three minutes and didn’t require any tools.

The last feature all of our testers mentioned was how well thought out the fans were starting with the location of the handle, the balance of the fan and how easy it was to move it around.

We think Shop-Vac has once again developed a winner and could very well dominate the drum fan category

in the independent hardware channel. Congratulations to Jonathan Miller and the whole team at Shop-Vac.

7now Documents Business Owners Need

Every year we are fortunate to meet a lot of new business owners who need help in preparing blueprints to protect their net worth, their closely held businesses and their families. Many of these owners do not have the right legal documents to protect their businesses.

This article is a brief review of seven documents that most owners need. I will just touch upon each one briefly here, so if you want more detail about any of these items please contact me.

1. up-to-Date will — If you have young children and/or any assets, you most likely need a well-written will. If you have small children the will is the one document where you designate a guardian for your children if something were to happen to you. If you don’t specify a guardian in your will, then a judge will make that decision for you. Your will is also the place where you can leave certain special personal assets to family members or friends. Most people also designate in the will that their important

investment assets pour over into a revocable living trust.

2. reVocable liVing trust — If you have a large amount of assets to protect and manage, and if you have a closely held family business where you have voting control, then having a revocable living trust is probably a good idea for you.

In that document you would normally be the initial trustee and then when you are gone you nominate one or more people as successor trustees. This type of trust is meant to receive assets that are not specified in your will and can save on estate taxes for the family when the second spouse dies, as well as provide some level of privacy.

Also, there are several other types of trusts that can be very helpful to high net worth individuals and closely held business owners. These revocable trusts provide more privacy and are harder to dispute.

3. general Durable financial power of attorney — As the

succession planning

owner of a closely held business and/or a large amount of assets, it is important to think about who will vote that stock or control those assets if you have a sudden illness. You may have a family business that is just breaking even every year, but you own 100 percent of the stock and the question is who will vote those shares if you are not able to?

If you normally make a lot of financial decisions every week and you are suddenly laid up in a hospital bed, who will make those decisions for you? These types of emergencies are exactly why we all need a durable financial power of attorney. In that document list one or two individuals who can make decisions if you are incapacitated.

Make sure the general durable power document authorizes the person that you have chosen to continue to make gifts of stock in the company or other assets based upon a plan that you have already established. For example, if you developed an eight-year gifting plan for one of your children to take over the company and you have an accident in year four, you want to make sure that this person has the authority to finish the plan for you over the next four years.

The person you specify should also be able to transfer your assets into your revocable living trust for the trustees to manage if that seems like a good business decision.

4. Durable power

of attorney for HealtH care—When you sign this durable power you are giving the person you prefer specific authority to handle your health care decisions, especially if you are unconscious from a heart attack or car accident. Most attorneys ask you to pick a first choice (i.e. your spouse or a child) and a second choice (i.e. a brother, friend or cousin). Those names are put into the document, which normally follows the power of attorney laws for the state in which you live.

For both of the durable powers mentioned in items 3 and 4, it is a good idea to talk with your attorney about updating those documents every four to five years.

Many attorneys suggest that a copy of the durable power of attorney for health care be given to the family physician and possibly the local hospital emergency room. Sometimes they like to have copies of those documents on file so they can get to them quickly if necessary.

5. buy- sell agreement—

If your corporation, limited liability company or limited partnership has two or more owners, then an agreement among all of the owners should be prepared that outlines what will happen to their stock in case of death, divorce, disability, personal bankruptcy, termination and retirement. The agreement also needs

to contain a formula outlining how the business will be valued and over what length of time the stock will be purchased.

6. business letter—If the business owner has a car accident or a sudden illness, a business letter written by the owner becomes very valuable.

In a business letter you should indicate who has the authority with your bank to sign payroll checks, transfer cash and continue to deal with your suppliers and vendors. Also attached to that letter you need to provide all the necessary passwords so that your chosen person can transfer cash into the checking account if necessary, and list all other passwords that are necessary for monitoring the company’s daily business activities, financial transactions, connecting with software programs that are needed to run the company and all other special instructions.

In the old days a checkbook in your hip pocket was all you needed, but today passwords control access and company software programs are always needed to make better business decisions. In this letter that you write make sure that all the right people have access to the information needed to run the company while you are away.

7. p ersonal l etter— Too many times I have seen children argue

about managing the company if the owner is suddenly out of the picture because of a long disability or death. Mom and dad never got around to talking to the children about how they wanted their net worth divided to benefit the children and which children should run the business and have voting control and which children should not.

Without understanding dad’s thoughts about the business the children argue about even minor items and that leads to more problems. Therefore, it is very helpful for a business owner to prepare a letter or a video that explains the owner’s wishes on who should run the business, who should manage other family assets and how the children should get along in context of the business. This information is very valuable at a time when the children and all of the employees need answers. n

Gary Pittsford, CFP®, is president and CEO of Castle Wealth Advisors. Castle specializes in helping families and closelyheld business

owners with valuations, succession planning, estate and income tax analysis and retirement income projections. Gary is the author of “Your Family Business, Your Family Net Worth.” For more information visit www.castle3.com, call 1-888849-9559 or email Gary@Castle3.com.

National Hardware Show®

Upper: More than 2,000 exhibitors will be showcasing their newest product introductions at the 2017 National Hardware Show in Las Vegas.

Lower: Be sure to visit the special Made in USA product display.

Las Vegas will be hosting the 72nd annual National Hardware Show®, which takes place May 9-11 at the Las Vegas Convention Center. The Hardware Show is the place to see innovative new products from top brands, network with other retail attendees and exhibitors, attend

EVENT: National Hardware Show®

SHOW HOURS: Tuesday, May 9: 9 a.m. – 5 p.m. Wednesday, May 10: 9 a.m. – 5 p.m. Thursday, May 11: 9 a.m. – 1 p.m.

LOCATION:

Las Vegas Convention Center

SHOW INFO: www.NationalHardwareShow.com

NHS Preview

seminars and discover products you cannot find at your wholesaler markets.

If you are a home improvement retailer with your eye on a few particular products at the Hardware Show, then be sure to take advantage of the Show’s exhibitor recommendation program.

More than 2,000 vendors will be exhibiting at the Show. That means thousands of new products to explore. The National Hardware Show knows many attendees are looking for particular products within targeted product categories, and it has made it easier for retailers to uncover those products, thanks to its recommendation program.

The Tailgate, Backyard & BBQ area in front of the Convention Center is a popular spot for attendees to visit.

“We started providing exhibitor recommendations last year as a way to help attendees narrow down the exhibitor field so they could focus on their main product categories of focus as well as give exhibitors the opportunity to attract retailers looking for their specific products and services,” says Rich Russo, vice president of the National Hardware Show. “The program was so successful that we’re not only implementing it again this year, we’re making it even better.”

When attendees register for the Show, they are asked to provide information about the product categories they are most interested in shopping at the show. Then they will receive a personalized list of suggested exhibitors they should be sure to check out.

New for 2017—Independent retailers will be matched with exhibitors who have marked in their profile that they are ready to sell to independents at the show, offering another way for

The annual Hardware Show is a place for industry vendors, wholesalers and retailers to meet to discuss trends and shine the spotlight on innovation.

independent retailers to make the most out of their trip to Las Vegas.

Exhibitors are also asked to provide more information when they update their online and printed directory listing to help guide interested attendees to their booths.

All attendees can take advantage of the Match Me exhibitor recommendation program during the show as well. Match Me booths will be set up in both the North and Central Halls, providing a convenient way for attendees to get personalized exhibitor recommendations regardless of where they are on the show floor.

Attendees can also use the NHS Mobile app (www.nhsmobile.com), which is free and available for download for all Apple and Android devices, or the My Show online planning tool, to find exhibitors and plan their time at the Show.

Registration for the show is complimentary until May 8. After that date, there will be a $125 onsite registration fee. To register in advance, visit www.nationalhardwareshow.com.

reimagiNe retail

The National Hardware Show will award one lucky independent retailer $100,000 to help fund an improvement to their business.

Reimagine Retail is sponsored by the National Hardware Show and focuses on projects in store design, technology, employees and products. Finalists will be provided transportation and hotel accommodations to this year’s Show, and the winner will be announced and awarded the grand prize of $100,000 during the Show on Wednesday, May 10.

SPecial eveNtS

Retailer Happy Hour, Tuesday, May 9, 3:00 - 5:00 p.m.—Kick back and relax at the Retailer Happy Hour in the Tailgate, Backyard & BBQ area. Free drinks for all retailers who attend.

Tailgate, Backyard & BBQ Party, Wednesday, May 10, 4:30 – 6:30 p.m.—Join us in the Tailgate, Backyard & BBQ area for live entertainment, food and drinks at this annual celebration, which is open to all exhibitors and attendees. n

NHS Preview

Featured Product areaS

The 2017 Hardware Show will feature 10 main product category areas: Building Products; Farm & Ranch; Hardware & Tools; Homewares; International Sourcing; Lawn, Garden & Outdoor Living; Paint & Accessories; Pet Products; Plumbing & Electrical; and Storage & Organization. It will also include nine Featured Areas:

• New Product World—Meeting Room, Level 2, Room N245

• New Product Launch—Central Lobby

• Made in USA—Central Lobby

• Emergency Preparedness & Disaster Recovery—Meeting Room, Level 2, Room N245

• Energy Efficient and Eco Friendly—Meeting Room, Level 2, N245

• Inventors Spotlight—Meeting Room, Level 1, Room N109

• Homewares Awards Product Display—Meeting Room, Level 2, N245

• Lawn, Garden & Outdoor Living Awards Product Display—Meeting Room, Level, 2, N245

• Tailgate, Backyard & BBQ Area—Silver lot, in front of Convention Center

Spotlight NHS Product

If you want to attract new customers, you have to keep bringing in new products to keep your store fresh. The National Hardware Show® offers the industry’s best opportunity to see the latest product innovations from top manufacturers. The products featured on the following pages can be found at the upcoming National Hardware Show (May 9-11 in Las Vegas) or at upcoming wholesaler shows.

ELECTRIC STAPLE GUN AND NAILER

• Arrow’s breakthrough T50AC™ Professional Electric Staple Gun and Nailer delivers consistent prograde performance regardless of job-site current fluctuations, even on a 100’ extension cord.

• A patent-pending motor drive replaces the traditional solenoid design and frees the tool from dependence on a narrow range of power specifications. The result is maximum pro power with every shot.

• T50AC also features a convenient bottom-load magazine with quick

release feature, a soft overmolded grip, contact safety and an oversize trigger.

• Additional features include an integrated LED work light, indicator light to show when staples are low and storage case.

A.M. BREAKFAST SAUSAGE JERKY

• Turn breakfast into a wake-up call for your taste buds with this spicy, savory and juicy sausage.

• Made with 100 percent real pork. Fully cooked and ready to eat.

• Good source of protein and no added MSG.

• Hot and spicy, the dried breakfast sausage is made with applesauce. Jack Link’s Beef Jerky www.jacklinks.com 612-618-1974 Booth# 7333

NHS PRODUCT SPOTLIGHT

TRUE GRIP® GENERAL PURPOSE WORK GLOVES

• Contractors love the snug fit and extra hand protection this touchscreen-compatible, high-performance glove provides.

• Made with durable synthetic leather, it has padded knuckle protection and Spandex stretch panels between fingers for extra comfort and ventilation.

• Ergonomic natural pull tab makes it easy to put on and pull off.

• Features absorbent terry cloth, comes in 5 sizes and is machine washable.

DUAL CAMJAM® 1” WEBBING TENSIONER

With two cam locking mechanisms, this innovative and easyto-use buckle can be attached to almost any 1” flat or tubular webbing to create a custom tie down system for confidently securing loads.

• Unlike traditional straps that have to be formed in a loop, the Dual CamJam Webbing Tensioner can be used in a straight line, which increases the amount of usable webbing length.

• 3-to-1 mechanical advantage enables user to apply 50 pounds of force to achieve a 150 pound result, a big advantage over using more complicated ratcheting cam straps.

• The tough and durable zinc alloy buckle has a working load rating of 600 lbs. and a break strength of 1,800 lbs.

Nite Ize

GORILLA SUPER GLUE BRUSH & NOZZLE

• Offers 2 easy ways to dispense for control and accuracy.

• Brush & Nozzle features a precision tip nozzle and fine bristle brush that allow the user to control their glue application, making it perfect for any project.

• Developed for long-lasting repairs in an instant, Gorilla Super Glue dries in 10–30 seconds and is reinforced with rubber for increased impact resistance.

• In addition to high-performance formula, features an anti-clog cap with a metal pin inside to ensure an airtight seal for maximum reusability.

Gorilla Glue Company www.gorillatough.com 513-271-3300 | Booth# 4715

NHS PRODUCT SPOTLIGHT

HARDWARE ESSENTIALS™ BUILDER’S HARDWARE

• Give your builders hardware aisle the facelift it needs. Hillman has created a winning combination of style, packaging and merchandising, transporting the consumer into a new dimension of shopability with high-impact signs, aisle violators and shelf system.

• Modular planogram system provides clean and simple category separation with color-coded, tri-lingual packaging.

• Full line covers all the bases from hinges and shelf brackets to door pulls and garage door parts. Over 2,000 quality products offered in the sizes, finishes and package types your customers demand.

• Designed to satisfy a wide array of customers covering farm, ranch, mass merchant, builder and retail hardware.

• Contains a proprietary adhesive compound ingrained within a premium, high-tensile-strength paper with the same properties as gypsum drywall face paper.

• WET n STICK® is formulated to bond permanently to the drywall, eliminating the process of embedding tape into a first coat of drywall compound. Consequently the process is faster, easier and more effective than applying other types of tape.

• Tracing the joint span with your finger and spreading the tape into the drywall face ensures full contact. The tape then sets in minutes and dries within an hour, completing the joint seal a full day faster than with standard methods. It dries as a paper-thin joint seal. The result is a transition area requiring less compound, quick drying and expedited finishing.

• With full contact to the joint surface, WET n STICK® eliminates errors due to wrinkling, bubbling or delamination common with standard methods and pressuresensitive adhesive tapes.

86 RESCUE TOOL

• The 86 Rescue Tool is designed for easy, intuitive, one-hand operation in high-stress situations.

• Jaw design accommodates many shapes and provides maximum grip.

• Shuts off gas safety valves and pries open windows and doors.

• Laser heat-treated cutting edges last longer and easily cut hard and soft wire.

• Spanner wrench loosens and tightens up to 5” couplings, while XLT™ technology requires considerably less force to cut than traditional highleverage designs. hard

NHS PRODUCT SPOTLIGHT

CLOTHES MOTH ALERT

• Often difficult to detect, clothes moth larvae are a destructive household pest that feeds on natural fibers, including cashmere, wool, fur and other animal hair textiles.

• The TERRO® Clothes Moth Alert is a pesticide-free and odorless trap that lures and captures adult clothes moths, terminating their reproductive cycle.

• Clothes Moth Alert uses a powerful pheromone lure to draw moths from their dark hideaways and into a sticky glue trap.

IGRILL BLUETOOTH® THERMOMETER

• Whether you are a self-proclaimed grill master or just digging in, the Weber® iGrill Bluetooth® thermometers make grilling easier, more convenient and a whole lot smarter.

• Download the iGrill App, connect and open up a new world of endless barbecue opportunities.

• From preset temperature guides to state-of-the-art smart features, the iGrill is sure to impress every time.

• Insert the temperature probe into your meat and track how cooked your food is from your smart phone on the Weber iGrill app, without having to lift the lid.

• It is safe and easy to use and there is no moth ball smell. Simply drop the pheromone lure on the sticky trap surface and place at eye level in closets and rooms to be protected. Use one or two traps per room and replace after 12 weeks.

NHS PRODUCT SPOTLIGHT

FS1500 6’ FIBERGLASS LADDER

• FS1500 6’ aluminum ladder features a new heavy-duty Raptor Top, new heavy-duty Raptor Boot and has double-riveted step construction, wide back brace and shox-superior impact absorption.

• Molded top with handyman tool slot and 300-pound load capacity.

• Each step secured with 6 large-head semi-tubular steel rivets for maximum strength.

• Non-conductive full-channel rails are covered with a polyester veil for years of durable service.

NHS PRODUCT SPOTLIGHT

PLUG-IN VINTAGE BULB STRING LIGHTS

• Micro LEDs imitate the filaments in retro-bulbs for a vintage inspired backyard. They are cool to the touch and never need to be replaced.

• Wall outlet adaptor included—connect up to 3 LED sets (30 bulbs) end to end.

• Durable plastic globes are ideal for indoor or outdoor use.

• 10 lights per string. Total lighted length equals 9 feet.

• SmartBoost helps deliver almost double the amount of hot water as standard tank so an entire family can enjoy longer hot showers.

• Using smaller tank plus Smartboost saves big on energy costs when compared to larger tanks. Vacation mode also helps lower energy costs while homeowners are away.

• Easy, one-time installation helps save money over large tank installation costs. Users will also save big on operating costs when using vacation mode.

• No need to find space for a huge tank to deliver a family’s hot water needs. SmartBoost snaps onto existing tank, taking up a minimal amount of space.

national hardware show

QSP® QUIET DELUXE® VAC

• For smaller workshops, the 12-Gallon QSP® Quiet Deluxe® vac is perfect. It’s small but powerful and includes everything the big-gallon QSP Quiet Deluxe vacs offer, like a 2.5” diameter hose that allows larger debris to be picked up without the hose clogging.

• It also comes with a disposable filter bag that collects debris and makes it easier to empty the tank.

• The 12 gallon QSP Quiet Deluxe vac comes with a 14” floor nozzle that can be used with or without the brush (dry pickup) or squeegee (wet pickup) shoes.

• It also comes with a crevice tool to get those hard-to-reach spots on the woodworking machines.

Palm Beach Gardens Ace has been meeting the needs of customers since 1989.

Joe Lingelbach is the managing partner for Palm Beach Gardens Ace Hardware in Palm Beach Gardens, Fla.

A display of hats attracts attention near the front door.

Joe Lingelbach

Palm Beach

Gardens Ace

Palm Beach

Gardens, Fla.

That CompetitiveWork Strategies

Don Lockwood bought a hardware store in Newbury Park, Calif., in the late 1960s. Joe Lingelbach started working for him in 1978. In the mid to late 1980s, Don was looking to expand. Commercial property was expensive in California, but he liked the warm weather. He had heard that the Treasure Coast in Florida had great potential, so he asked if Lingelbach wanted to run his own store.

Palm Beach Gardens Ace Hardware opened in October 1989. “I was still in the store in California. I moved here in 1990,” explains Lingelbach, who now is the managing partner. “We quickly learned that it’s not the same running a store in Florida compared to running a store in California. The products are different. We eventually closed the California store in 2007.”

Read on as Lingelbach shares the competitive strategies that have worked for their business despite an ever-changing list of competitors.

Year Founded: 1989

Wholesaler: Ace Hardware

Square footage: A little under 7,500 square feet

Top categories: Fasteners and paint. Fasteners is my favorite area. Sales of fasteners kept growing even during the recession. We designed a little built-in table so customers can spread out the fasteners they find.

Best niches: One of our biggest niches is AC filters. We have over 100 SKUs. We get them from the Ace warehouse and from a local company, PureAir. About 60 percent are not found in the Ace warehouse. People know they can find the right AC filter from us.

We sell tankless water heaters and sell a lot of Big Green Egg grills. Big Green Egg is the best niche I’ve ever brought into the store, by far. They came up with a service plan that has taken off. We reset that section every six months. The BGE accessories keep customers coming back and BGE has the best warranty I’ve ever dealt with.

We also have a lot of commercial accounts and do what it takes to find what they need.

What is the biggest challenge facing your business? Employee retention. We have a lot of retirees work here and a lot of students. With the cost of living so high around here, we’re not going to be able to pay a living wage for someone who lives in this area. Our jobs are supplemental income for people. Our younger employees step up with technologyrelated things like auto transponders,

Upper: Big Green Egg grills and accessories have developed into a lucrative niche for the store.

Middle: The store uses a bulletin board to keep customers informed about new items that have been added.

Bottom: Paint is one of the top-selling categories.

while the older employees are great for explaining how to fix something or complete a project.

How has business been? Business has been very good since 2009, even during the recession. A lot of our business used to be with snowbirds, and we

would slow down some in the summer. We don’t see the dramatic shift in sales now. Our core customer is still 45 to 60 years of age, but they don’t spend as much as they used to. They may be buying some online or buying from the big boxes—there’s no way of knowing.

What is your competitive strategy against the big boxes?

Around 2000 we started to focus on the fix it and repair business. We back up our advice with a guarantee. By staying fix it and repair, we stay away some from Amazon. They are extremely powerful, but customers come to our store to get service and helpful advice.

Lowe’s and Home Depot are both within two miles. Depot came in before us and Lowe’s after us. A nearby Kmart has recently closed. The only thing I can do is provide service and knowledge. They don’t walk concrete bags to your car for you at the boxes.

We’ve always been in the same location in Palm

Beach Gardens, so we’ve been here for 28 years. People know they can come to us and receive great service and find what they need for their fix it project. We’re trusted because we’re familiar to them.

The light bulb department has been undergoing a reset for the third time in four years.

We’re competitively priced. Being part of Ace has helped a lot, with national advertising working to bring in traffic.

What is your advertising strategy? The Ace Rewards program is the best advertising for us. We don’t have to reinvent the wheel to promote our store. We got into Facebook last year and are up to 600 “Likes.” We will promote new items and specials like giving away potting soil for Earth Day.

What initiatives have paid off for you? We went from five-foot to sevenfoot gondolas to increase our sales productivity. We recently redid the light bulb department for the third time in four years.

Focusing on the fix it and repair business means they are willing to fix just about anything.

What is unique about your store?

We have a lot of fun, happy characters who come to our store, and we embrace that. Every day is something different and I love that about the hardware business. ■

Orchard Supply InvadesHardwareFlorida dealer ProFile

By Chris Jensen

Left: Well-merchandised end caps promote projects.

Middle: Free grill assembly is offered.

Right: Orchard Supply Hardware is still figuring

out the right mix of flowers and plants to stock in its Florida stores.

Upper Left: The second floor of the two-story Ft. Lauderdale store devotes considerable space to patio furniture.

Orchard Supply

Hardware (OSH) started as a farmer’s co-op in California in 1931 and the mid-size home center chain has gone through the wringer of corporate parent

The apparel selection looks like the wrong fit for the Florida market. Orchard Supply stores have always been known for distinctive merchandising.

Customers can get their plants potted for free.

The fasteners area has a nice representation, but sheet metal screws, for example, are only available in packaged sets.

oversight, starting with W.R. Grace & Company in 1979. It was later owned by Wickes (1986-89) and Sears (1996-2012) in between a stint as a public company.

The company found itself with high debt largely due to hefty recapitalization dividends paid to Sears. Orchard Supply filed for chapter 11 bankruptcy in 2013, with most of its assets sold to Lowe’s Cos., who agreed to take on at least 60 of the 91 stores and operate the company as a subsidiary. The first OSH store outside California was opened in Portland, Ore., in April 2013.

Home Depot and Lowe’s have both failed with previous efforts to develop small-format stores, but Orchard Supply gives Lowe’s a stronger foothold in California while giving the big-box retailer a medium-size format that can

The Workbench area is the service hub for cutting keys, chain, cable, robe tubing and glass, plus screen repair and knife sharpening. You can get products fixed for free.

be rolled out to urban markets. The OSH stores average 36,000 square feet of space.

In 2014, Orchard Supply opened its first store in San Francisco and began testing the use of robot employees in a store in San Jose, Calif.

The latest experiment came about with the opening of the first Orchard Supply store in Florida last October in Fort Lauderdale. A second store soon followed in nearby Deerfield Beach and Orchard now operates six stores in Florida with several more in the works.

Known as a neighborhood hardware and garden store in California with knowledgeable employees, Orchard is trying to see if these mid-sized stores can complement its big-box format in urban markets.

Kitchen gadgets are one of many categories designed to attract female customers.

The Back Yard area of Deerfield Beach store features patio furniture, grills and other outdoor living products.

A small selection of Craftsman products can be found in the power tool aisle.

This is a creative way to merchandise small items like grounded tap outlets and tri-outlets.

Colorful garden shovels decorate the overhang in the two-story entryway.

Lowe’s is reportedly guaranteeing leases for 20 years, but the consumer jury is still out on the Florida locations. A recent visit to stores in Deerfield Beach and Fort Lauderdale found well-merchandised stores that offer high appeal to female customers, but there were more employees than customers in the middle of the day. If those stores were to get busy, then the number of parking spaces is insufficient.

Orchard Supply Hardware has an 86-year track record in California to fall back on, but in Florida the company finds itself battling a crowded retail market for share of mind and wallet. Time will tell if Lowe’s has a new format that can be successful throughout the United States or if this is just another cruel twist of corporate fate for the OSH brand. ■

do a good job keeping displays neat and tidy with few stockouts spotted.

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Old-Fashioned Never

DEALER

SERVICE

Goes Out of Style Personal

By Chris Jensen

Jeff Tilem owns a most unusual hardware store. Actually, it’s more of a general store and it operates in one of the most exclusive and famous zip codes in America: 90210. Pioneer & Lucerne Hardware, which was founded in 1926, is located in Beverly Hills, a block away from Rodeo Drive. Tilem doesn’t like to name drop any current customers who are stars, although don’t be surprised

if you bump into Gene Hackman wandering down an aisle.

Everyone gets old-fashioned personal service at the iconic store, whether they are a star or not. “They don’t get advice at the boxes,” explains Tilem, who is a grandson of the founder. “We know our customers by name.”

The Do it Best store crams a lot of products into 4,100 square feet of space, with lots of unique niche categories and even more

DEALER PROFILE

unique services. Niches include cookware, bakeware, greeting cards, candles, computer parts, glassware, paper goods, housewares, janitorial and cleaning supplies, gift items and party supplies. You can buy a pack of 1989 baseball cards or a vintage Beatles lunch box.

Key cutting, knife sharpening, locksmith service—those are pretty standard services. Pioneer Hardware also offers handyman services, personal shopping, notary public and shipping. You can even rent a post office box.

How many hardware stores do you know that can repair any PC or Apple computer? That are able to do custom programming, recover lost data, remove viruses, set up a home network, upgrade an operating system or devise a backup data solution? Pioneer Hardware does that, and more.

Tilem is no computer expert, but he has a friend who is. Now the friend can piggyback on Pioneer Hardware’s reputation for trustworthiness.

Pioneer Hardware will come to your home or office for notary service, to troubleshoot a computer or to repair something. They are the trusted onestop shop for the community.

A FOUNDATION OF TRUST

Their handyman service covers anything and everything, They will clean gutters, install light fixtures, repair cement, patch drywall, install pet doors, paint, wash windows, install grab bars,

The light bulb assortment caters to the specific needs of long-time customers.

A wide selection of elegant and casual party goods is on display.

assemble furniture, hang pictures, repair toilets, install deadbolts, hang Christmas lights, even prepare your house for an earthquake.

Entering the handyman service market was a direct result of the area suffering through the devastating Northridge earthquake in 1994 that caused 57 deaths and as much as $40 billion in property damage.

Tilem was also in real estate at the time and realized that people didn’t know how to take care of their homes.

“They needed someone they could trust who could take care of home repair and maintenance projects for them,” he explains. As he got more involved in the family hardware business he wanted to

offer a valuable service for homeowners and businesses.

The handyman service stays busy enough year-round to support four fulltime employees. “When a local store or business needs something fixed, they call us. We’ll paint an office or fix a table for a restaurant. We’re a community asset,” Tilem says.

Handyman service is all based on trust, he explains. “Our customers don’t have to worry about someone coming into their home that they don’t trust. If they have a problem they know they can come down and talk to me. We put in ramps and grab bars, so some of our older customers can stay in their homes longer,” he adds.

They have been offering post office boxes for four years. That opportunity came about because when the old post office was remodeled they ended up with a building that didn’t have any P.O. boxes for people. Pioneer Hardware filled that service gap.

Personal shopping is not just a service they offer, it’s more of a store motto. “If someone calls up and needs something we’ll track it down and find it and then

The housewares section includes everything from elegant glassware, placemats, cookware and bakeware to candles, bread baskets and kitchen gadgets.

they can come to the store and get it or we’ll deliver to them,” Tilem says.

He adds, “We have a gentleman who comes in every six weeks and buys two bags of dog food. He usually doesn’t buy anything else and that’s alright. We’re just happy he comes to our store.”

Hardware products account for 80 percent of sales. The other 20 percent of sales come from the wide range of services, which helps diversify the revenue stream so that the store stays profitable. “We’re in our fifth consecutive year of growth,” says Tilem. “You have to be creative to survive in this business today. You can’t be a dinosaur. You have to change and adapt to the market and to what customers want.”

The store has one part-time and five full-time employees, who are all knowledgeable, friendly and approachable. Everyone pitches in, with a smile on their face. After all, they are helping friends, not customers.

Tilem’s Aunt Alexandra has been working in the store much longer than his 24 years. “She is in her 80s and she still comes into the store twice a week. She worked in the original store in New York City that was opened by my grandfather, so she’s an authentic bridge to the past,” he says. n

DEALER PROFILE

By Chris Jensen

DIFFERENTIATE Westlake Ace Looks to

Westlake Ace Hardware, a wholly owned subsidiary of Ace Hardware Corp., has grown to encompass 98 stores in eight states. “We’re trying to grow at a good clip,” says CEO Tom Knox. “We’ve opened 13 stores in the last two years and project the same pace for the next two years or more.”

Acquiring two stores in North Carolina last July has given Westlake Ace a foothold in a new region, as the rest of the company’s stores are located in the Midwest and Southwest. “Our expansion to North Carolina is going well. It’s not without challenges, but they are really good stores,” Knox says. “It is more difficult from the standpoint that the stores are so removed from our base in the Midwest. The expectation is that we could grow out from there, starting with those two stores in the Southeast.”

He said that they do not have a timeframe for going national, but that people now know they are willing to go beyond the footprint of the Midwest. “We’re not only looking at Ace stores,” Knox points out. “We’ve bought Ace, Ace individually

Above: Joanna Gaines, star of the hit HGTV show “Fixer Upper,” has introduced Magnolia Home by Joanna Gaines™ paint, with the full line now available in Westlake Ace stores.

Right: Tom Knox is the CEO of Westlake Ace Hardware.

branded and even True Value stores.”

Expanding the number of stores is just one element in Westlake’s growth. The company continues to seek ways to distinguish itself from competitors and big-box stores, while providing a compelling shopping experience. “One way we do that is by offering highly localized, unique and stylish products that help our customers in new and exciting ways,” he adds.

To further that mission, Westlake recently announced it is the first

Be Part of the Hardware Industry’s Exclusive and Professional Women in Hardware Program!

Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.

Who’s Eligible to Join?

• Independent Hardware Store Owners and Managers

• Vendors Involved in the Two Step Hardware Industry

• Service Providers Involved in the Two Step Hardware Industry

• Wholesalers/Distributors

• Industry Professionals

Activities

• Membership benefits include up to six networking events per year held in conjunction with other industry events.

• Each event will have a business focus offering direct and immediate benefits.

• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.

• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.

DEALER PROFILE

Magnolia Home by

Joanna Gaines™

premium interior paint is a line of 150 interior paint colors designed by KILZ.

hardware retailer to offer the full line of Magnolia Home by Joanna Gaines™ premium interior paint in its stores. Personally crafted by Joanna Gaines, interior designer and nationally recognized home renovation expert, the line of 150 interior paint colors were designed by the KILZ® brand to help do-it-yourselfers recreate her hallmark “modern farmhouse” style.

Joanna Gaines stars with her husband Chip in the hit HGTV show “Fixer Upper,” which films in Waco, Texas, a state where Westlake operates 11 stores.

As Knox explains, it was an opportunity that came about when Laura ByrneHarris, Westlake’s senior director of merchandising, saw the Magnolia Home paint line was selling online. “She approached KILZ and encouraged them to put a deal together. It came together rapidly,” he points out.

The Magnolia Home line is now in 95 of Westlake’s 98 stores. “It’s a great way to differentiate your stores. The culture that Chip and Joanna Gaines have established is something that we wanted to be a part of,” Knox says.

Carrying the Magnolia paint line will help Westlake Ace attract more female customers, he adds. “Many Ace retailers didn’t have a clue how popular Chip and Joanna are from their show. They have a good male following, too. The colors she has and even the sheens she has are very different from anything else out there,” he says.

Westlake will be promoting this new line on every medium possible including social media and standard circulars. “We’re already getting lots of great comments from customers,” Knox says.

The product assortment is very similar across Westlake’s store count, although sales floor size ranges from 9,000 square feet up to 30,000 square feet, according to Knox. “We try to look at what each individual market needs and fit the assortment to that market, but the core stays the same,” he says.

In addition to offering differentiated product lines like Magnolia Home by Joanna Gaines Paint and STIHL power equipment, Knox notes that instilling a service-oriented environment is one of the key things they are focusing on this year.

“Our customer promise to be the best, most helpful hardware stores on the planet wouldn’t be possible without our knowledgeable and service-oriented associates. As such, we are always creating ways to engage and develop them to their fullest potential, and create an atmosphere that’s attractive to future associates,” he says. ■

ICo-Sponsors:

f you have recently opened a new store, then don’t miss the chance to be recognized. The Beacon Awards, which are co-sponsored by The Hardware Connection and The Hardware Conference, honor the Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet, plus the Retail Beacon Award winners for each of the participating wholesalers.

Premier Beacon Award sponsors include Apex Tool Group, Epicor Software Corp., Sunnyside Corporation, RustOleum Corp. and Sashco Inc. Additional wholesaler sponsorship support comes from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

Get your nominations in now for the Best New Store award by the May 15 deadline. Any dealer can nominate his store and nominations are also accepted from wholesalers.

Judging will be based on any or all of the following criteria: financial performance (sales, profits, margins, etc.); community involvement; store design; merchandising displays; promotion activities; specialized product areas/niches; employee training/recognition programs; and innovative retailing concepts.

Looking to Honor the Best New Stores

QUALIFICATIONS:

• Store must have been open at least one year, to a maximum of 4 years.

• New ground-up store or it can be a substantially expanded existing store.

• Can also be a store built to replace store destroyed by natural disaster.

• Store must feature all the core departments: electrical, plumbing, lawn and garden, tools, hardware and paint.

• Can also be new to business owner, if substantial changes are made.

• Can be a branch store.

The Beacon Awards Banquet will be held during The Hardware Conference on Friday night, September 8, at the JW Marriott in Marco Island, Fla. Honorees will receive: all-expenses paid trip for two to the 2017 Hardware Conference in Marco Island including conference registration, airfare, hotel and meals; Beacon Award plaque and feature article in The Hardware Connection.

Please include detailed information for each of the judging criteria, attach any relevant pictures, list the date of new store opening and also provide retailer contact information. Email nominations by the May 15 deadline to Chris Jensen at chris@thehardwareconnection.com. ■

Sponsors:

Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry.

Co-Sponsors:

The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and is Co-sponsored by The Hardware Conference and The Hardware Connection magazine. The Hardware Conference will be held Sept. 8-10, 2017 For more information about attending this event along with all other educational seminars, open floor discussions and social activites at the 2017 Hardware Conference, visit www.TheHardwareConference.com

IN THE NEWS

NEW STORES:

• Owner Rick Karp celebrated the grand opening of two new Cole Hardware locations in San Francisco.

• Rickie and Cindy Chancy have opened Wewa Ace in Wewahitchka, Fla.

• Ron Spencer has opened Spencer’s Hardware in Clendenin, W. Va.

• Luke and Rita Reisinger opened Harrison Valley Corner Hardware & Mercantile in Harrison Valley, Pa.

• Haynes Ace Hardware opened its third store in Oxford, Conn.

• Don and Linda Stallman have sold Stallman True Value Hardware in Chester, Ill., to employee Greg Rowold.

• Russ Lowen is opening Goddard Ace Hardware in Goddard, Kan.

KUDOS TO:

• Arden Dean of Superior Building Supply in Neversink, N.Y., was named Lumber Person of the Year by Mid-Hudson Lumber Dealers Association.

• Belair Road Supply in Baltimore, Md., is celebrating its 100th anniversary this year.

• Ace Hardware Corp. honored Apex Tool Group, Gardner Bender, For Life Products, Gorilla Glue, Traeger Grills, 3M, Vanco, Freud Tools,

Westinghouse and Milwaukee Tools as Vendors of the Year.

• R.P. Lumber Company, founded by Robert and Donna Plummer, is celebrating its 40th anniversary this year. The Do it Best member operates 65 stores in Illinois and Missouri.

• Jim and Bill Turnbull, owners of Carr Trumbull Do it Center in Scottsbluff, Neb., were honored with the 2016 Trailblazer Award by the Scottsbluff/Gering United Chamber of Commerce.

• Moffitt Hardware in Hedley, Texas, is marking its 100th anniversary.

PEOPLE ON THE MOVE:

• Ace Hardware Corp. promoted Kerilyn Johnson to vice president, general counsel and secretary.

• House-Hasson Hardware has promoted Steve Henry to executive vice president-treasurer.

• Ace Hardware Corp. has named Mark Spanswick president and general manager of Ace Wholesale Holdings LLC. Spanswick spent the last 27 years at W.W. Grainger.

• True Value Co. has hired David Elliott as senior vice presidentmarketing. Davis most recently spent seven years at Mitre 10.

IN THE NEWS

• 84 Lumber Co. has promoted Mike McCrobie to chief procurement officer.

• Spahn & Rose Lumber Co. has hired David Davis as president. Davis most recently was vice president-supply chain for Bostwick-Braun.

OTHER NEWS:

• Central Network Retail Group has agreed to acquire McLendon Hardware, a seven-store chain in Renton, Wash., operated by the fourth generation of the McLendon family. The stores will retain their name and continue to be managed by cousins Gail and Michael McLendon.

• STIHL celebrated the grand opening of its new Northeast STIHL location in Oxford, Conn.

• Independent We Stand is promoting the importance of supporting local businesses with America’s Main Streets contest. Go to www.MainStreetContest.com to vote for semifinalists for the $25,000 grand prize. STIHL is the presenting sponsor and other sponsors include Do it Best Corp. and PPG Pittsburgh Paints.

• Village Supply, based in Ceres, Calif., has joined PRO Group.

• STIHL Inc. is proud to supply STIHL power equipment and funding to support the mission of Team Rubicon, which unites the skills and experiences of military veterans with first responders

to rapidly deploy emergency response teams. To support Team Rubicon’s mission, go to http:// TeamRubiconUSA.org.

FULL STORY:

• Lowe’s introduces in-store navigation using augmented reality. Click here.

• 103-year-old WW II veteran still works 5 days a week at hardware store. Click here.

• Mutual Ace Hardware in Highland Park, Ill, marks 100th anniversary. Click here.

ACE HARDWARE REACHES 5,000 STORE COUNT

During its spring convention in Atlanta last month, Ace Hardware Corp. announced its global store count has exceeded 5,000 locations. “At a time when a majority of brick and mortar retailers are facing declining store counts, decreased customer transactions, stalling sales and massive layoffs, I’m delighted to share that Ace’s global store count has surpassed 5,000 locations,” said John Venhuizen, president and CEO.

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The Hardware Ambassador ProgramTM was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.

• View Vendor Product Listings by Wholesaler

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Ace opened 207 new stores in 2016 and projects to open more than 150 new stores this year.

The Hardware Connection interviewed Dan Miller, Ace’s vice president-retail operations and new business, about the co-op’s growth strategy.

Ace reported that 20 percent of new stores are coming from new investors, 40 percent from existing owners and 40 percent are conversions from other wholesalers, figures that have been fairly consistent over the past few years, according to Miller. “Until 2008 the numbers were opposite—we had tons of new investors. We had to change gears after the recession hit and had to ramp up conversions. When you make number seven on Entrepreneur’s Franchise 500 list you attract new investors,” he said.

A lot of the new investors are former corporate executives who have the passion to be entrepreneurs, Miller pointed out. “Those that become successful eventually see the benefits of leveraging their success to open a second or a third store,” he added.

Ace now has 634 international dealers, with 50 new international stores signing in 2016. The long-range plan is to add 375 stores by 2025, Miller said, with growth coming from Canada, Indonesia, South Korea and the Philippines.

The grocery channel is still a promising avenue for adding new stores, according to Miller. “Ace now has 151 grocery units, with 41 freestanding Ace and 110 a combination of a hardware store within a grocery store. In 2016 we added 24 grocery units, so it continues

to grow,” he said.

Ace now has four hardware formats for the grocery channel: Express, Convenience, Neighborhood and Super. The minimum space requirement is 4,000 square feet for Express and the average is 8,000 square feet, Miller said.

The Emery-Jensen Distribution (EJD) division has met and in some cases exceeded expectations, according to Miller. “Those two companies were very good at what they do. They have taught us some things,” he said. “There will always be a lot of customers who need world-class distribution at a low landed cost. If we come to a retailer who wants the Ace brand and all the components and there’s an open market, then it becomes an Ace mothership conversion. For example, we have grocers who don’t want to take on all the Ace initiatives and so that customer becomes an EJD customer,” he added.

Miller said Ace wants to make sure its retail members understand they need to differentiate or die due to Amazon. “We’ve identified three areas where we can stand out: service, quality and convenience. We must be the most helpful and differentiate with the best brands like Weber, STIHL and Craftsman. Our stores are the most convenient to the most population and we need to leverage that to our advantage,” he said.

Ace is at 5,000 stores and growing, Miller noted. “We want to continue to find ways with ship-to-store, curbside pickup or whatever else is necessary to keep our stores top of mind and convenient for customers to shop.”■

UPCOMING EVENTS

APRIL

Ace Canada Spring Buying Show

April 22-24, RBC Convention Centre, Winnipeg, Manitoba

MAY

Do it Best Corp. Spring Market

May 19-22, Indiana Convention Center, Indianapolis

National Hardware Show

May 9-11, Las Vegas Convention Center, Las Vegas, Nev.

JUNE

House-Hasson Summer Dealer Market

June 15-17, Sevierville Events Center, Sevierville, Tenn.

JULY

United Hardware Fall and Winter Buying Market

July 28-30, Minneapolis Convention Center, Minneapolis

AUGUST

Ace Hardware Fall Convention

August 17-19, McCormick Place South, Chicago

Florida Hardware Company Fall Dealer Market

August 10-12, Double Tree Hotel and Convention Center, Orlando, Fla.

Independent Garden Center Show

August 15-17, Navy Pier, Chicago

Orgill Fall Dealer Market

August 24-26, Boston Convention Center, Boston

SEPTEMBER

Blish-Mize Fall Dealer Market

September 15-16, Overland Park Convention Center, Overland Park, Kan.

Bostwick-Braun Fall Dealer Market

September 21-23, Seagate Convention Center, Toledo, Ohio

HDW Fall Dealer Market

September 8-10, Shreveport Convention Center, Shreveport, La.

Home Hardware Fall Market

September 23-26, Henry Sittler Building, St. Jacobs, Ontario

Monroe Hardware Fall Market

September 15-17, Myrtle Beach Convention Center, Myrtle Beach, S.C.

The Hardware Conference

September 8-10, JW Marriott, Marco Island, Fla.

www.thehardwareconference.com

True Value Fall Reunion

September 25-27, McCormick Place West, Chicago

CREATING A NICHE IN BEEKEEPING SUPPLIES

Successful independent hardware stores are more than just retail locations. They are also resources, providing expertise and support on the things important to those in their communities.

This is certainly the case with Rand’s Hardware, a Do it Best member in Plymouth, N.H., which has developed into a trusted resource for the region’s growing and active beekeeping community.

In addition to maintaining an extensive and growing section of beekeeping products, Rand’s has hosted meetings of the regional beekeeping association. Rand’s also makes sure its team members are educated about the beekeeping products they sell—and about the hobby in general—ensuring they are an expert resource for enthusiasts.

With bee populations facing a precarious future around the world, beekeeping has taken on increased importance in recent years, and Rand’s has likewise taken on increased importance as a resource for its community.

Rand’s started with a beekeeping program in 2016, co-owner Glenn Dion shared on Hardlines Digest, going with an opening four-foot planogram from Do it Best. “The opening order was about

Rand’s Do it Best Hardware held seminars to introduce a new niche in beekeeping supplies.

$800. My average inventory is around $750. We had gross sales of $2,300 the first year,” Dion said. “Margins are not great, as we averaged around 25 percent, but it is a dedicated niche buyer.”

The store partnered with the local beekeeping club, Pemi Baker Beekeepers Association. “They came in to do a two-hour seminar. The first one filled up so fast we talked them into doing one in the morning and one in the afternoon,” said Dion. “We averaged 20 people at each session, plus other customers that ended up just hanging around to listen on the perimeter.”

Rand’s gave out 10 percent off coupons to all that attended and extended that discount to all club members. “That’s part of the margin reduction, but it’s about growing the market and the relationship with the club,” Dion explained.

Pemi Baker sold bees to some of the attendees and signed up new members. “We gave them a $100 donation for putting on the seminar. We are in the process of putting the seminar together right now for this year and it looks like we will have to do two again,” Dion shared. “We have had customers asking if we were going to have the class again and the bee club is really excited to do

the course again. The club is currently doing an in-depth six-week program for beekeepers, and they are telling all attendees to get the supplies from us. So far it has been a win-win,” he added.

PARTNERING WITH VENDORS TO BENEFIT THE COMMUNITY

Each February, Havasu Do it Best Hardware in Lake Havasu, Ariz., proudly participates in Winterfest, an annual outdoor celebration that draws more than 10,000 people to the town. This year, Owner Wayne Legrand invited several of the store’s key vendors to showcase and demonstrate products in their parking lot for festivalgoers.

One vendor, Traeger Grills, set up eight smoker grills on site to prepare and share food over the two-day event. When the event wrapped, instead of deconstructing the grills and shipping them back out, Traeger partnered with Havasu Hardware to donate the grills, along with wood pellets, to the Lake Havasu Fire Department—one for each of the department’s eight fire stations.

It’s a distinct way for Havasu Hardware to support area first responders, allowing them to start a fire for once, instead of extinguishing it.

MOVIE STARS COME TO FLORENCE TRUE VALUE

It is not every day that major movie stars come to your store to film a new movie. Carol and Jim Fontana, owners of Florence True Value in Florence, Colo., closed their store for a day last October so Robert Redford and Jane Fonda could film a new movie, “Our Souls at Night.”

Florence is a small town of about 4,000 people, and the downtown business district where the store is located makes a perfect location for a movie. Redford and Fonda’s characters will be portrayed shopping in the store during one scene, and the store’s name will be visible.

Based on the book by Kent Haruf, the movie will be released on Netflix later this year. Redford and Fonda last appeared in a movie together in “The Electric Horseman” in 1979. ■

Havasu Do it Best Hardware partnered with a grill vendor to donate eight grills to the local fire department in Lake Havasu, Ariz.

Carol and Jim Fontana were thrilled to have Robert Redford (and Jane Fonda) filming a new movie in their store, Florence True Value.

Behind the Numbers

$4.9 billion

2017 sales for home automation products, up from $3.75 billion in 2016, according to Statista. Annual growth rate of 17.0% is predicted through 2021.

14.9%

U.S. household penetration for home automation products in 2017, which is projected to hit 31.1% in 2021, according to Statista.

75%

Percentage of grill owners who have a barbecue on Memorial Day, according to Weber GrillWatch survey.

5.9%

Percentage of Home Depot sales that came from online in 2016, up 19% from the previous year.

1,595

Number of stores operated by Tractor Supply Company at the end of 2016 after opening 113 during the year.

80%

Percentage of Amazon U.S. customers that purchase from the company at least once a month, according to DMR research, with 20% purchasing at least once a week.