Hardware Retailing February 2018 by NHPA

Serving Hardware, Home Center & Building Material Retailers

Clean Sweep Housewares Niche Helps Businesses Shine 52

Outside Sales Leaders Bring In Professional Customers 42 VOLUME 214 • ISSUE 2 • FEBRUARY 2018 • HARDWARERETAILING.COM

Make Retailer Friends and Influence the Industry 74

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Meet Your Association

Clean Sweep

Savor Some Refreshments

YOU’RE INVITED!

Housewares Niche Helps Businesses Shine 52

Enjoy Casual Conversation

Make New Friends

An event, just for you. After a day walking the floor at the National Hardware Show® and learning from experts on the NRHA Village Stage, it’s a good idea to take some R&R before day two. The NRHA Independent Retailer Reception is an event where you can connect with other independents, meet association staff and enjoy hors d’oeuvres in a relaxed environment. Join us on Tuesday, May 8 in the NRHA Village.

LET US KNOW YOU’LL BE THERE AT NRHACONFERENCE.COM/RECEPTION

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2018 NRHA ALL-INDUSTRY CONFERENCE 1/18/18 11:38 AM

VOLUME 214 • ISSUE 2 • FEBRUARY 2018 • HARDWARERETAILING.C

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Serving Hardware, Home Center & Building Material Retailers

“These are the innovators, these are the people who are taking their businesses to the next level.”

James Cabirac | Kief Hardware | Cut Off, Louisiana | Two-Time Honoree

Nomination Deadline Is Feb. 28 The clock is ticking! The deadline to nominate an outstanding Young Retailer of the Year is almost here. Honorees benefit from increased industry exposure, new business connections and scholarship opportunities. For 22 years, this program has showcased more than 150 emerging retailers. Don’t miss the opportunity to highlight your operation’s rising star.

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Outside Sales Leaders Bring In Professional Customers 42 Make Retailer Friends and Influence the Industry 74

Who should attend?

What will they learn? How do you benefit?

• Next-generation leaders and owners who have experience in the business and leading teams. • Ideal for store managers, general managers, directors of retail operations, human resources managers and other key personnel.

• How to plan, implement and manage real-world business improvement projects. • Skills in such areas as finance and accounting, operations, customer service, sales, marketing, applied business strategy, leadership, technology and more.

• Instructor-guided business improvement projects can have an immediate bottom-line impact. • A network of peers, experts and retailers to share ideas and best practices. • More confident employees who have the skills to run the business.

Whether you have employees just starting their leadership journey or someone you’re ready to hand the business over to, NRHA has a program that’s right for your business goals.

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Clean Sweep Housewares Niche Helps Businesses Shine 52

Outside Sales Leaders Bring In Professional Customers 42

VOLUME 214 • ISSUE 2 • FEBRUARY 2018 • HARDWARERETAILING.COM

Make Retailer Friends and Influence the Industry 74

FEBRUARY SPONSOR

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Serving Hardware, Home Center & Building Material Retailers

Clean Sweep Housewares Niche Helps Businesses Shine 52

Outside Sales Leaders Bring In Professional Customers 42

VOLUME 214 • ISSUE 2 • FEBRUARY 2018 • HARDWARERETAILING.COM

Make Retailer Friends and Influence the Industry 74

FOUR TIPS FOR

2018

YEAR OF REMODELING

BUDGET TALK Nearly one-third of homeowners took on a remodeling project without ever setting a budget.

From the smartest design and technology trends to the latest in consumer shopping behavior, Delta has the insights that matter to your business. Our expertise extends far beyond the product and into best practices that drive sales and customer retention. Put our insights and experience to work for your success.

1-800-345-DELTA deltafaucet.com/independentretailers

SAVE WATER Encourage residents to choose water-effecient fixtures.

MILLENIALS

LATEST TECHNOLOGY

Millennials consider a renovation to be a more affordable option or a better return on investment.

Millenials lean towards smart-home upgrades, like faucets with Touch2O® Technology.

Welcome to the Ace Family! Gemmen’s Home & Hardware, Hudsonville, MI Wheeler Ace Hardware, Warrenton, GA

Frager’s Ace Hardware, Washington, D.C.

B & C Ace Home & Garden Center, Grass Valley, CA

Ace Hardware of Kent, Kent, CT

Weakley-Watson Hardware, Brownwood, TX

Hardin Ace Hardware, Longview, TX

Ace Hardware, Spring Valley, MN

Over 390 retailers have converted to Ace since 2012! Belgrade Ace Hardware, Belgrade, MT

Texas Blackland Hardware, Elgin, TX

Vickery Hardware Company, Smyrna, GA

Five Corners Hardware, Seattle, WA Andrews Ace Hardware & Seed Store, Wagner, SD

Lake Tulloch Ace Hardware, Copperopolis, CA

Berger Hardware, Hawthorne, NY Thruway Home Centers, Walden, NY

Franklin’s Ace Hardware, Woodland Hills, CA

Jasper Ace Hardware, Jasper, FL

Olympia Supply, Olympia, WA

Lewis Ace Hardware, East Stroudsburg, PA

Lockeford Ace Hardware, Lockeford, CA

Sawyer’s Hardware, The Dalles, OR Wagner Building Supply & Ace Hardware, Wagner, SD

Berger Hardware, Port Chester, NY Champion Ace Hardware, Warren, OH

Ace Hardware of Curry, Jasper, AL

Karp’s Ace Hardware, Stamford, CT

Chester Ace Hardware, Chester, CA

Call to learn more about joining the Ace family.

myace.com 630.990.6900 TXT

Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

3 Signs You’re a Young Retailer of the Year The deadline for the 2018 Young Retailer of the Year program is Feb. 28. But how can you tell if you’re a good candidate?

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org HEADQUARTERS STAFF

FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter

PRESIDENT AND CEO Bob Cutter

SENIOR DESIGNER Lynnea Chom

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

MULTIMEDIA DESIGNER Graeme Haase

MEMBER SERVICES

GRAPHIC DESIGNER Kelsey Truex

TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org

WEB DEVELOPER Kevin Trehan

MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

PRODUCTION SERVICES

EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

PRODUCTION MANAGER Nancy A. Vondersaar SALES AND PRODUCTION ASSISTANT Freda Creech

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RECRUITMENT Tom Marcum, 317-275-9430, tmarcum@nrha.org

NRHA CANADA NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; +1 416-489-3396, mike@hardlines.ca

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES

You’re Eligible If you’re 35 or younger, live in the U.S., its territories or Canada and work in an independent home improvement store, you could be a Young Retailer of the Year.

You Give Back Are you invested in your town’s well-being? Do you use your business to support important causes? Submit a nomination and share your story!

You’re a Retail Rockstar If you’ve completed a professional milestone, increased sales and engaged customers, you’re on track to be a Young Retailer of the Year!

PHONE 314-432-7511 FAX 314-432-7665

SALES/NRHA VENDOR PARTNER DIRECTOR OF SALES Lowell Huffman MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

Visit nrha.org/yroty for more information and to submit your nomination today! NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Megan Menzer, Newton’s True Value, Cherryvale, Kansas EXECUTIVE VICE CHAIRMAN T.J. Comstock, Northwest Hardware LLC, Billings, Montana DIRECTORS Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

David Dishke, Grand River Home Hardware, Caledonia, Ontario

Periodical postage paid at Indianapolis, Indiana, and additional mailing offices.

Steve Fusek, Fusek’s True Value, Indianapolis

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2018 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

HARDWARE RETAILING | February 2018

SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN James Cabirac, Kief Hardware, Cut Off, Louisiana

Contents FEBRUARY 2018 | VOLUME 214 | ISSUE 2

82 MERCHANDISING

End Up With Great Endcaps Your merchandising strategy is only as good as your regularly rotated, fully stocked and clearly marked endcaps. See what makes great endcaps and how to make them one of your most effective tools on the salesfloor.

CATEGORY SPOTLIGHT

Clean Up Your Housewares Act

If you’re trying to grow interest in the housewares category, consider your variety of cleaning products. Expanding your mix of cleaning supplies to include green cleaning options, specialty brands and unique tools can help drive sales and appeal to a wide variety of customers. Learn how Crown Point True Value rounds out its housewares category through cleaning supplies and how the products lead to repeat customers.

Go Outside the Box Capturing the business of professionals and tradespeople in your area can be challenging without the right outside sales leader. Learn what qualities you should look for to build your outside sales team and what these outside sales stars look for in an employer.

State of Independents Conference Retailers, vendors and manufacturers came together for the latest research on how independents are competing in the home improvement industry in store and online at the third annual North American Retail Hardware Association’s State of Independents Conference in Chicago. 4

HARDWARE RETAILING | February 2018

Use Your Imagination At the 2017 National Hardware Show®, Caribou Jack’s owner Robert Lau received $100,000 to fund a business improvement project. Read about the community space and restaurant he is adding to his operation and learn how you could walk away with the funds to build your dream this year.

Departments

42 OPERATIONS

64 INDUSTRY EVENTS

88 PROFILE

74 PROFILE

‘You’ve Got a Friend in Me’ No matter what career or life stage you’re in, connecting with someone who operates their business differently can give you a new perspective on success. Hardware Retailing spoke to two pairs of friends who unexpectedly found a business mentor in a fellow independent retailer.

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . New Products by Industry Edge 34 . . . . . . . . . . . . . . . . . . Checkouts 96 . . . . . . . . .Newsmakers/Calendar 100 . . . . . . . . . . . . . . . . . Last Word

On the Cover Jake Bunge and Al Bunge Jr. see the joy in housewares at Crown Point True Value in Crown Point, Indiana . NRHA photo by Graeme Haase

On the Web

CHECKLIST

Do Your Part to Prevent Workplace Harassment In order to ensure the safety of your staff and uphold your company’s reputation, it’s important to clearly communicate behavioral expectations. To help, download a checklist at TheRedT.com/behavior-checklist that outlines the definition of sexual harassment, what types of behaviors cross the line and conduct that could be deemed illegal.

EXPERT INSIGHT

Creating a Spotless Reputation Wondering what you can do to attract customers to your cleaning category? Visit TheRedT.com/clean-expert to read a Q&A with Melissa Maker, an entrepreneur, author and cleaning expert, that includes tips and tricks to help you and your business bring it home in this staple category.

RETAILER Q&A

Making Friends in the Industry Adam Busscher (left), owner of Picton Home Hardware in Ontario, attributes a portion of his success to the friendships he’s built with other industry retailers. In an article at TheRedT.com/industry-friends, Busscher shares thoughts on why he values these relationships and what industry friendships offer him personally and professionally. 6

HARDWARE RETAILING | February 2018

RETAILER PROFILE

New York Hardware Store, National TV Star When television scouts for Amazon Prime’s “Sneaky Pete” saw Wadeson Home Center, they knew it was the ideal place to film certain segments of the show. Visit TheRedT.com/wadeson to read the full story about how one retailer became part of a popular online television show.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

DRIVEN TO BE THE BEST.

PUTTING THE CUSTOMER FIRST. At Do it Best Corp., we are Driven to Be the Best at every customer touchpoint—from stocking the right mix of products, to targeted offers appealing directly to their needs and offering an engaging, shopper-friendly in-store experience every time. Truly effective marketing and merchandising requires an agility and precision that only a national co-op with strategic buying power can deliver. That, and the brightest minds from every retail discipline working together to support your business at every stage of growth. Uniting strategies across merchandising and marketing allow us to engage your customers with the right products, at the right price, in the right way, right when they need them most. Innovative merchandising offering top brands, backed by an integrated and flexible marketing program is a great place to break new ground. Let our Merchandising and Marketing teams show you how the right program can translate to immediate and sustainable sales growth for your business. When you succeed, we succeed. IT’S WHAT DRIVES US TO BE THE BEST.

"Our goal is to deliver effective marketing at the right time, with the right items at the right prices—all delivered in the right way. ” — Rich Lynch, Vice President of Marketing Steve Markley, Vice President of Merchandising

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

Independent Thinking

Sharpen Your Skills in 2018

“As we are beginning a new year, there is perhaps no better time to commit to making the financial changes that can lead your business to even greater prosperity.

”

s an independent retailer, it is clear that you have to be somewhat of a jack-of-all-trades to be successful. One minute you have to be a home improvement expert providing product insights to a customer, and the next, you have to play the role of coach motivating a new staff member. In between all of these duties, you also have to exhibit the foundational business skills that are essential to running your operation. That’s a pretty wide-ranging skillset for anyone to try and maintain. This is exactly why the training team here at the North American Retail Hardware Association (NRHA) works to provide you with the tools you need to keep your skills sharp. The most recent addition to the resources we have for you to use is our Basic Retail Accounting course. Though the name might imply that this course is for “beginners,” in the world of business accounting, it provides a great introduction or refresher for just about anyone wanting to brush up on their basic finance skills as they relate to running a retail business. The course is set up in an easy-to-digest format that visually walks participants through the basic steps of understanding retail finance. The course starts with an overview of why retail finance is important to running a successful operation and how retailers can use the information available through financial reports to make their operations stronger. Next, it turns to a more in-depth look at the income statement and balance sheet— the two documents that largely provide you with all the information you might need to get a solid overview of a business’s financial health. From there, the course moves on to an examination of the data you can find in each of these reports and what actions a retailer can take to improve these numbers. We end the course with an overview of basic financial ratios and the key performance indicators that can help a retailer determine the health of their operation. Throughout the course, we also reference NRHA’s Cost of Doing Business Study (CODB). For those of you not familiar with our CODB, it is an annual research project that takes the financial information from more than 1,000 independent hardware stores, home centers and lumber dealers and aggregates the results to provide benchmarking for retail financial performance. The CODB allows you to look at your own operation’s financial data and compare it to industry averages to see how your business stacks up. Any independent home improvement retailer can participate in the report at no cost and receive a customized financial overview in return. Combined, the Basic Retail Accounting course and the CODB provide an ideal platform for retailers wanting to gain a better understanding of their operation’s overall finances and develop a plan for strengthening their market position. As we are beginning a new year, there is perhaps no better time to commit to making the financial changes that can lead your business to even greater prosperity. For more information on the Basic Retail Accounting course or the CODB, please feel free to reach out to me directly at dgowan@nrha.org.

David Gowan, Vice President of Finance and Business Services

dgowan@nrha.org

HARDWARE RETAILING | February 2018

Taking Care of Business

Let Me Tell You ‘Bout My Best Friend(s)

“It’s unlikely that

many of these friendships would have ever been forged if these individuals didn’t push themselves beyond the boundaries of their own stores and their own markets.

”

ther than my lovely wife, my three best friends in this world are Vince, Kelly and Heather. Vince was the first friend I made when my family moved from Illinois to California. We were both 11 years old, and after nearly four decades of growing up together, there is hardly a situation we haven’t faced by each other’s sides. Today, Vince lives in Ireland, so we don’t get to see each other anywhere near as much as we once did. Even with this distance, I have no doubt that if I needed to bury a body, Vince would be there for me—and bring the shovel. I met Kelly a few years after Vince. Oddly enough, Kelly is now my brother-in-law and we have shared not just the ups and downs of friendship, but also the joys and sorrows of family life. Without a doubt, Kelly is the guy who would be my phone a friend for a trivia competition. Lastly, there is Heather. She was late to the best friend party; we didn’t meet until college. Despite being the “new” one in the group, Heather has transcended friendship to become part of our family. Above all my friends, she keeps me grounded and isn’t at all shy about calling BS on anything that comes out of my mouth. Also, because of her unending compassion and love for my family, I know I could always count on Heather to be there should we ever need her. You never really know where you will pick up your best friends as you wind through your life—school, clubs, work. I know that I never would have imagined the collection of compatriots I have somehow been fortunate enough to assemble. In this month’s issue, we look at individuals who have forged some strong bonds with other retailers in the industry. These are individuals who, through some set of circumstances, have gotten to know each other and have become industry BFFs (best friends forever, in case you’re not as in the know as I am). I hope you enjoy reading their stories because they are both fun and insightful. And one important takeaway that you can find in all the folks we profile in this issue is that they find a deep value in the relationships they have made—both from a personal and business perspective. It’s unlikely that many of these friendships would have ever been forged if these individuals didn’t push themselves beyond the boundaries of their own stores and their own markets. These friendships developed because these retailers chose to broaden their view of doing business and participate in events and groups outside of their own limited social spheres. The ability to meet with other retailers and develop these kinds of friendships is one of the biggest benefits anyone can gain from actively participating in organizations like NRHA, or regularly attending events like the State of Independents Conference, National Hardware Show® or wholesaler markets. So, as we start the new year, I’d like to challenge each and every one of you to go outside your comfort zone just a bit and try to strengthen your industry relationships. You never know where these friendships might go. And with more friends in the hardware business, you’ll never have a problem finding a shovel (just in case).

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | February 2018

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“Our philosophy as a company is to always be an asset to our community. That means it’s up to us to make sure we’re working with suppliers that best serves our customer’s and client’s needs. Midwest Fastener continues to exceed expectations by providing an amazing product selection, competitive pricing and quality customer service that you can’t find anywhere else.” – Mike Kimball, CEO

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NRHA News

5 Unexpected Outcomes of Employee Training

veryone knows properly training a new hire is critical. What retailers may not realize is that it’s equally important to continue training for employees of all levels throughout their careers. In addition to staying up to date on product knowledge and customer service best practices, there are several benefits that come from ongoing education, such as staff retention, increased sales and interest from prospective employees.

1 2

Your company will attract millennials. The desire to continuously improve their skills and to obtain education based on their careers and interests are trends across the millennial generation. The ability to participate in industry-specific ongoing education will likely be a plus in their book.

Training builds teams and ups morale. Training doesn’t have to be traditional. Some retailers include team-building in their training. It can be as simple as asking employees to complete an online training module together or as detailed as creating a friendly game or competition around training.

Getting Started Retailers looking to start or improve their training program can look to their trade association, the North American Retail Hardware Association (NRHA), which offers the following training resources. Find the tools below and more at nrha.org/membership.

3 4 5

Employees stick around longer. When a staff member is well-versed in the home improvement industry and operations specific to your business, they feel more confident and connected to their job. When an employee feels comfortable and empowered, they’re likely to be satisfied.

You benefit from different perspectives. When a business owner exposes employees to various processes and procedures through training and education, fresh sets of eyes may be able to offer suggestions for improvement or point out holes that someone close to the business didn’t see.

Training boosts the bottom line. Employees educated on DIY projects and commonly needed products will be able to suggest add-on items at checkout or while helping a customer. Trained staff can deliver customer service that is sure to bring customers back again and again.

Trainer’s Toolbox. This series of quick training tools includes three- to five-minute lessons on topics like product knowledge, operations, merchandising and selling skills, presented in the form of videos, presentations, worksheets and more.

NRHA Training Membership. Being a training member gives retailers access to 240 training modules across eight in-depth online courses on topics including basic retail accounting, product knowledge, loss prevention, merchandising, selling skills and more. Training comes with testing and record-keeping on NRHA’s new, easy-to-use learning management system.

Train the Trainer. This guide gives trainers the knowledge they need to start or improve an employee training program, complete with step-by-step instructions, practical tips for success, real-life examples from retailers and an appendix of resources.

HARDWARE RETAILING | February 2018

IS YOUR CO-OP POURING MONEY DOWN THE DRAIN?

Does your co-op waste your money on national advertising that misses the folks in your local community? We’d rather put your money behind geo-targeted digital media that finds your existing customers and identifies new ones. You end up with more in-store shoppers. And avoid seeing your hard-earned money go down the drain.

ready for a transformation? give us a call at 1-888-291-7229 TrueValueCompany.com

NRHA News

Insights From a 2-Time NRHA Award Honoree

James Cabirac addresses the crowd as NRHA board chairman at the 2017 Young Retailer of the Year awards ceremony.

ormer honoree James Cabirac hopes the next class of NRHA’s Young Retailer of the Year program is ready to hit the ground running. Cabirac, owner of Kief Hardware in Cut Off, Louisiana, is the only independent home improvement retailer to be recognized as a Young Retailer of the Year twice, winning first in 2001 and again in 2007. Now in its 22nd year, NRHA’s Young Retailer of the Year program identifies and promotes the next generation of retailers and recognizes individual achievement in the industry by retailers 35 years old or younger. Selected from different retail categories, honorees are chosen based on criteria including career accomplishments, community involvement, ongoing industry education and extracurricular activities. The deadline to nominate an outstanding young retailer for this year’s program is Feb. 28, but you can do it today at TheRedT.com/yroty. To learn more about the program’s benefits, Cabirac shares how it has helped him and what it offers aspiring retailers. Hardware Retailing (HR): Can you take us back to the nights you were honored as a Young Retailer of the Year? James Cabirac (JC): When I was first selected in 2001, I was so honored to be chosen. I was so young that I don’t think I quite grasped how awesome the experience was. The second time,

HARDWARE RETAILING | February 2018

I knew what an honor it was to be selected, so I appreciated the experience and the celebration that much more. HR: How does this program benefit someone who prefers to stay out of the spotlight? JC: You gain so much from being part of a class of honorees, and it benefits everyone involved. I don’t like to draw attention to myself, but at the Young Retailer of the Year event, the industry is listening. Plus, there’s great potential for networking and building relationships through the program. HR: How did this honor influence your career? JC: Honorees immediately create a network with other retailers who are honored the same year. You’ll always have something in common, even if your stores are completely different sizes or in different geographic locations. Also, being named a Young Retailer of the Year gave me some clout in the industry, and with the honor under my belt, I felt more confident. HR: What advice do you have for the upcoming 2018 Young Retailer of the Year honorees? JC: Keep on keeping on! It’s an honor, but don’t let it be the pinnacle of your career. Continue innovating for your business. This is just the beginning for those who will be honored this year. I’m looking forward to hearing their stories.

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READY FOR A CHANGE? LET’S TALK. 1-888-291-7229 Schedule a meeting at the 2018 Spring Reunion Washington, D.C. February 9-12, 2018

NRHA News

Take Hardware Retailing and NRHA With You Anywhere

n the pages of Hardware Retailing, we strive to highlight success stories featuring your peers; the latest in industry-specific best practices and trends; and insights into the tools NRHA offers to help you manage your operation. In an effort to keep you in the loop, we also offer all of these comprehensive resources online in digital formats. You can stay connected to Hardware Retailing and NRHA whether you’re in the office, at a wholesaler market or on vacation because the news doesn’t stop. Here is an overview of all the places you can access the industry’s leading independent home improvement magazine and resources from your trade association. Don’t forget, you can also find Hardware Retailing and NRHA on social media. Follow us on Facebook, Twitter, LinkedIn and—new for 2018—on Instagram! Get the news and updates you know from the magazine, in all its variations, while engaging with your association and your peers on your favorite social media platform.

HARDWARE RETAILING | February 2018

Utilize These Online Tools • HardwareRetailing.com. Visit us online for news on everything from big-box happenings and independent retailer success stories to exclusive online content that supplements the print magazine.

• Hardware Retailing digital edition. If you leave your hard copy at work, access the online version and years of previous editions at TheRedT.com/hr-mag.

• Industry e-newsletter. Each week, get a roundup of the industry’s top headlines straight to your inbox. Sign up at TheRedT.com/subscribe.

• Association newsletter. While you’re signing up to receive industry news, check the box for NRHA News & Updates to get the monthly e-newsletter about training opportunities, awards and association activities.

How Leadership Training Impacted Jim Rivas

ith 15 years of professional experience in the home improvement industry, Jim Rivas was hired as a store manager by Friedman’s Home Improvement, a four-store independent retail company with locations in Sonoma and Medocino counties in California. Recognizing Rivas as someone with high performance results, a dedicated spirit and potential to grow in the company, CEO Barry Friedman presented NRHA’s Retail Management Certification Program (RMCP) to Rivas as an opportunity to advance his leadership skills and career. Rivas enrolled in the Spring 2015 session of the program.

During the six-month program, Rivas participated in three multiday workshops participating in case studies, lively discussions, role-play activities and group exercises, all on the topic of home improvement retail operations. Rivas also completed a culminating business improvement project that had a significant impact on his career and the company he works for. Rivas demonstrated his ability to take ownership and lead a companywide initiative, resulting in two promotions, first to director of store operations then vice president of store operations. Read more about his project below. For more information about RMCP, visit nrharmcp.com.

The Idea

Project Implementation

Rivas and his business sponsor wanted a centralized delivery dispatch system to streamline and unify the existing delivery processes across the company.

Rivas strategized the project, laying out processes and responsibilities in detail. He then led the organized implementation of the new delivery dispatch system.

The Plan

Return on Investment

Rivas realized that if resources were shared across stores and if they analyzed delivery locations, the process could be more efficient, uniform and cost-effective.

The centralized delivery dispatch system has nearly doubled the amount of materials delivered with fewer assets involved. Delivery product revenue has also nearly doubled.

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garden better Maxim tillers feature rugged all-steel construction, reliable chain drive transmission and an adjustable tilling width. Delivering durability, power and versatility.

February 2018 | HARDWARE RETAILING

Trends Planning for Shoppers’ Hungry Impulse Buys Your customers may shop impulsively when they are hungry, but you shouldn’t plan your impulse product offering on a whim. You likely already sell individually packaged snacks, which Nielsen, a consumer data analytics company, reports is a $33 billion industry in the U.S. People from nearly every household in the country buy single-serve snacks, and they are willing to pay extra for the convenience of grabbing their favorite granola bars and beef jerky at nongrocery stores, Nielsen’s 2017 research shows. In addition, the data suggests that healthier snack options offer opportunities for sales growth.

Applied to Retail Consider trends in snack foods when you set up impulse displays near the cash register, service counter, housewares or grilling products. Nielsen’s research shows that healthy snacks have steadily grown in popularity for the past five years, with sales increases of 18.2 percent on products that don’t contain genetically modified organisms (GMOs), 16.2 percent on items that are free from artificial colors and flavors and 11.3 percent on products with no or reduced sugar. Try selling healthy alternatives to the typical selection of potato chips. A test run of those products at your store may reveal that your customers are willing contributors to recent surges in healthy snack sales.

Feed Your Customers What They’re Craving

98 Percent

$33 Billion

Top 2

Nearly all American households buy single-serve snacks.

The value of the individually packaged snacks industry in the U.S.

Snack bars and jerky are top categories when it comes to sales growth form 2013-2016.

HARDWARE RETAILING | February 2018

Source: The Sweet Success of Snacking Across the Store Report, The Nielsen Co.

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

2 One of the biggest advantages of attending the National Hardware Show® is browsing new products. The following items were selected to feature in this joint section by Hardware Retailing magazine, the National Hardware Show and its weekly digital communication, Industry Edge. Check out these products, some still in the works and others that just hit the market. For more products and trends, sign up for Industry Edge at industryedge.nationalhardwareshow.com.

HARDWARE RETAILING | February 2018

1. Smart Tape Measure

2. Magnetized Flashlight

The eTape16 digital tape measure provides a digital display for easy reading of the measured length, with measurements displayed in either U.S. or metric units. The tape measure also has three memory functions, centerline calculations, a re-zero option and inside/outside measurements.

The Magnetic Light Mine™ uses a high-output, wide-angle LED light and 12 magnets to create a handsfree work light. The product is about the size of a golf ball, allowing it to be placed in tight spaces. It can also work as a pickup tool for dropped screws, nails and hardware.

eMeasure 844-382-7326 or etape16.com

Striker Concepts 704-658-9332 or striker1.com

Join the Industry Edge Mailing List Receive new product trends, retail insights and tips delivered to your inbox weekly. Sign up at industryedge.nationalhardwareshow.com

4 3. Magnetic Socket Bases

4. Convertible Hand Truck

The Magnetic Socket Bases From Grip On Tools are made of heavy-duty molded plastic and have magnetic bottoms that hold 14 sockets. They work for sockets based on SAE standards or metric measurements, as well as shallow and deep sockets. The bases come in three sizes: ¼-inch, 3/8 -inch and ½-inch.

The 3-1 convertible hand truck features the quick change-auto lock mechanism that converts a two-wheel hand truck into a four-wheel assist incline cart or platform cart. The user can change positions with one hand without the use of pins, clips or tools. A retractable, 18-inch nose extension can handle bulky loads, and the truck comes in several styles that can carry 300 to 1,000 pounds.

Grip On Tools 616-877-0000 or gripontools.net

Harper Trucks 800-835-4099 or harpertrucks.com

February 2018 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

5. Automobile Snow Brush The SnoBrum is a winter tool with an oversized brush head designed to leave no color marks or abrasions on a surface. The push design allows the user to handle heavy snow on vehicles, trailers, awnings, spa covers and other delicate surfaces. The aluminum telescoping handle has cold-resistant nylon threads and extends from 28 to 47 feet. Angel-GUARD Products 800-325-4832 or angelguardproducts.com

6. Gardening Gloves The Garden Bamboo gloves from Hestra Job are knitted eco-friendly gloves made from bamboo spandex for improved dexterity, grip and comfort. The gloves feature a Velcro closure. The gloves are designed to assist in potting, planting, tool use and everyday projects. Hestra JOB 888-939-9969 or hestrajobusa.com

HARDWARE RETAILING | February 2018

Join the Industry Edge Mailing List Sign up at industryedge.nationalhardwareshow.com

7. Organic Potting Soil

8. Grill-Top Pizza Oven

Magic Dirt™ is a 100 percent sustainable potting soil that helps conserve water and promote plant health. It is made from sustainable dairy fiber, which is treated for 20 days in an airtight, oxygen-free vessel that produces an odor-free fiber for the soil. Long fibers provide a moisture-holding capacity of three times its dry weight.

The Pizza Oven Box allows three-burner and larger gas grills to cook pizza, breads, cookies and roasted items by increasing the temperature range available on a grill. The box reaches temperatures found in a woodburning pizza oven using combined convective, conductive and radiant heat. Pizzeria-style pizzas can be cooked in two to four minutes.

Magic Dirt 501-225-3352 or magic-dirt.com

BakerStone 855-657-6836 or bakerstonebox.com

We Make Doing Business Easier • Clips To Can Rim • Holds Brush • Opens Can Lid

CCL

The North American Retail Hardware Association has relationships with service providers to save you money on services, including credit card processing, hiring, health insurance and more. FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES

CCL15 Bucket

allwaytools.com February 2018 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

10 9. Camping Hatchet The Yankee Hatchet is made of polished and hardened carbon steel, making it light to carry and use in camping environments. The wooden handle is water-varnished and is available in ash or hickory stains. A leather lace for hanging is included. The hatchet has a 15-inch handle and weighs 1.35 pounds. Prandi Andrea & C. Snc info@a-prandi.it or a-prandi.it

10. Smartphone Cleaning Kit The GermBloc® Smartphone Cleaning Kit contains a 10 milliliter pen spray bottle of electronic cleaner and a microfiber cloth to clean, disinfect and protect electronic screens. The cleaning solution is alcohol-free and nonflammable. One bottle has over 100 applications. GermBloc 208-960-4255 or germbloc.com

HARDWARE RETAILING | February 2018

Join the Industry Edge Mailing List Sign up at industryedge.nationalhardwareshow.com

11. Multi-Use Cooler

12. Planting Pot

The Orion 85 is an 85-quart capacity multi-use cooler. As the largest cooler from Orion Coolers, it is designed to store quartered game, large fish, a week’s worth of food and more. The cooler can hold 100 pounds of ice, 110 12-ounce beverage cans, two processed deer or 36 bottles of wine. It is available in over 20 colors, including several designed to match popular sports teams.

The Smart Pot is a soft-sided fabric aeration container designed to promote plant growth. The porous, long-lasting fabric provides drainage, releases excess heat and air-prunes roots. Smart Pots are BPA- and lead-free and reusable. The Variety Pack includes 5-, 10- and 15-gallon pots. High Caliper Growing Systems 800-521-8089 or smartpots.com

Orion Coolers 931-739-2665 or orioncoolers.com

Access Payment Processing Options ‰

Your trade association partners with Clearent Intelligent Processing to provide independent retailers in the U.S. with affordable credit card processing and payment service opportunities. FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES

‰

USED BLADE COMPARTMENT

‰

FEEDS 1 BLADE AT A TIME

SEB100AD

allwaytools.com February 2018 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

14 13 13. Electrical Cord Protector

14. Ice Melting Salt

The Cord Dome completely encloses power cord connections and can house entire power cord strips and Y-connectors. It can be used for holiday light displays and any outdoor projects requiring multiple extension cord connections. The dome is made from UV-resistant material and includes a ground spike for secure installation.

MELTZ ALL is a multi-mineral ice melter made from blended calcium chloride. It is effective down to minus 28 degrees Celsius (minus 18.4 Fahrenheit). The crystal’s natural pinkish color makes it visible during the application process. MELTZ ALL is available in “easy-pour” 5-kilogram jugs, 10-kilogram pails and 10- and 18-kilogram bags.

Midwest Innovative Products 888-945-4545 or twistandseal.com

NSC Minerals 888-668-7258 or nscminerals.com

Heavy-duty Attachments for Commercial Mowers

DO MORE WITH YOUR MOWER! ONE MOUNT BAR

GIVES YOU ACCESS TO 7 ATTACHMENTS

AERATOR

BLOWER BUGGY

DETHATCHER

LEAF PLOW

SPOT SPRAYER

(866) 537-6216 | JRCOINC.COM/HRM 30

HARDWARE RETAILING | February 2018

SPREADER

TRANSPORTER

Join the Industry Edge Mailing List Sign up at industryedge.nationalhardwareshow.com

15. Linking Pool Toys

16. Light-Activated Adhesive

Smart Noodles® Link’Ems™ connect laterally, allowing for more play options in the water. They can be used as traditional pool noodles or to build rafts and other fun objects. Their soft construction also allows for safe play indoors. Link’Ems come in a standard size of 55 inches with custom sizes available.

UV Glue is a fast-curing adhesive that is suitable for bonding metal, glass, ceramics, wood, rubber, PVC and other materials. The glue is cured when exposed to ultraviolet radiation. The lamp can cure items with safe and convenient operation.

PlaSmart 877-829-0730 or plasmarttoys.com

Worktech 877-926-8799 or worktechglue.com

Solve Your Biggest Headache

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Safer Cutting At The Touch Of A Button

‰

Designed specifically for independent retailers, the NRHA Health Insurance Plan provides an alternative solution for business owners to save money while still offering solid benefits.

SPRINGS OPEN AT THE TOUCH OF A BUTTON

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SWK

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FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES

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PATENTED

allwaytools.com February 2018 | HARDWARE RETAILING

Brought to you by

A Joint Section Brought to You By Industry Edge and Hardware Retailing

18 17

MIGHTY

POWERFUL | PORTABLE | EFFICIENT

THE BRAND YOUR CUSTOMERS WILL ASK FOR BY NAME

17. Propane Tank Holder Tank Tire® is a protective propane tank holder that prevents rust rings and surface damage on decks, patios and RVs. It is made of high-grade, non-electrostatic polymer rubber. Tank Tire fits most sizes, including 10-, 11-, 15-, 20-, 30- and 40-pound propane tanks. The cushion also protects hands and feet during transport. Vanco Products 616-662-0276 or tanktire.com

18. Paint Touch-Up Tool

www.mitm.com 800-553-9053

Made in

USA

with Globally Sourced Components

Cold Water Pressure Washer

Mi-T-M manufactures: Cold & Hot Water Pressure Washers • Air Compressors • Portable Generators Air Compressor/Generator Combinations • Air Compressor/Generator/Welder Combinations Wet/Dry Vacuums • Jobsite Boxes • Portable Heaters • Water Pumps • Water Treatment Systems

HARDWARE RETAILING | February 2018

Spot On Touch Up Tool™ safeguards paint for future touch-ups. The five-layer tube stores paint in an airfree environment for years. About 50 milliliters of water-based paint can be stored and used in future jobs with the provided washable applicator. The tool can only be used with interior latex paint. Aspen Alley Products 406-580-4643 or spotontouchuptool.com

Join the Industry Edge Mailing List Sign up at industryedge.nationalhardwareshow.com

19. Mobile Fixturing Station

20. Emergency Food Supply

The Rhino Cart® Mobile Fixturing Station is designed for fabrication, welding, modification and repair jobs. The package includes the welding table, a 66-piece clamp and component fixturing kit and a machined tabletop with a 2-inch grid of holes for accurate clamping or fixturing. The reversible tabletop features a nitride black oxide finish for wear, rust and weld splatter resistance.

The 72 Hour Emergency Food and Drink Supply kit provides the recommended food supply for one adult in an emergency situation. The box includes 12 entrees, eight breakfasts and 14 servings of whey milk alternative. Meals are ready to eat in 15 minutes or less. The kit weighs 3 pounds and has a 25-year shelf life.

Strong Hand Tools 800-989-5244 or rhino-cart.com

Wise Co. 800-820-1329 or wisefoodstorage.com

Find Your Next Top Performer “SHARPER THAN A GRIZZLY’S CLAW”

Advertise your open positions and attract the best talent using ZipRecruiter through NRHA. Get a 35 percent discount on job postings and receive prime placement with the NRHA program. FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES

WRP

• •

allwaytools.com February 2018 | HARDWARE RETAILING

Checkouts MERCHANDISING

Ready on the (Hardware) Set

endall and Alexandra Crosby, owners of Kendall’s Ace Hardware in St. Paul, Minnesota, view their hardware store a little like a movie set. They want to engage their customers, but they also want to entertain them. “We’ve gotten a lot of inspiration from Disney World,” says Kendall. “At that park, there are props everywhere, and people respond. They love walking around and looking at everything. We see the same thing happening in our store. Disney might have a lot of money to create the props around their park, but we can create a lot just using stuff we already sell.” They’ve used supplies from around the store to create unique, homemade, hardware-themed props for nearly

every department. In the pest control department, Kendall used lumber and copper pipe to create a giant rat trap. Other creations use duct tape and cardboard, such as a giant wrench in the tools department. The key-cutting area has a lampshade made of used keys, and the lighting department has a tin man and woman made of ductwork. While Kendall usually directs his creative skills toward the hardware props, Alexandra takes the lead in other merchandising such as endcaps and window displays. “She comes from a visual design background with 27 years of experience as a professional designer, creating window displays for Nordstrom and Macy’s,” says Kendall. “Then she married me and now does visuals in a hardware store!”

An oversized rat trap created from plywood and copper pipe and a tin man and woman by the lighting department are just two of the many props scattered around Kendall’s Ace Hardware. To see more photos from Kendall’s, visit TheRedT.com/kendalls.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Liz Lichtenberger at llichtenberger@nrha.org to have your story considered for publication.

HARDWARE RETAILING | February 2018

RADIA IS A LOCAL BUSINESS SUPPORTING

YOUR LOCAL BUSINESS At RADIA, the person answering the phone and the person building your shaker share the same walls. We recently changed our name from Red Devil Equipment Co. to RADIA and the same team is manufacturing mixers, shakers and mixing equipment in the same facility in Minnesota, USA. RADIA is a local company with strong values in family, responsiveness and accountability. Our team takes care of you and builds equipment that

helps you mix more.

5 gallon

800-221-1083 | radiaproducts.com/hardware

Multi-size 1 gallon

Checkouts

PROMOTIONS

Light Up Your Valentine’s Day

he local lumberyard may not be the place most people do their Valentine’s Day shopping. But Woods Lumber in Independence, Kansas, has found ways to offer opportunities to customers they can’t get anywhere else. During one promotion, a lucky romantic could get a personalized Valentine’s Day message posted on the store’s digital road sign. Contestants could submit their name, phone number and message of eight or fewer words to a drawing held at the store. The winner would get their message displayed on the sign for 24 hours on Valentine’s Day. “We are a traditional building material store and don’t have a gift section or anything similar that might pull in Valentine’s Day shoppers,” says Woods. “The year we ran the sign contest, our sign was fairly new. It’s also on a major highway, so a lot of people saw the winner’s message.” Last year, Woods put a different twist on the Valentine’s Day contest. By liking the store on Facebook and then sharing the post, contestants could enter a drawing for a gift basket containing two tumblers from the store’s popular insulated drinkware vendor.

Over the past few years, customers at Woods Lumber found some unique options for Valentine’s Day gifts.

COMMUNITY RELATIONS

Hygiene for the Holidays

Bavarian Home Hardware employee Veronica Harris (left) and owner Kim McLean stand with bags of hygiene products ready for donation.

HARDWARE RETAILING | February 2018

ometimes holiday needs are basic, which means that they can get overlooked. Bavarian Home Hardware in Kimberley, British Columbia, wants to change that. Each year, the business puts out a call for hygiene product donations in an effort to assist the area food bank during the holidays. Toward the end of November, a large donation box is set up across from the checkout area so customers can donate toothpaste, deodorant, sanitary supplies, aspirin and other essentials to those in need. Veronica Harris, an employee for eight years at Bavarian Home Hardware, says the idea came from a group discussion about unfulfilled needs during the holidays. Many people volunteer at soup kitchens and donate meals to food banks, but many other items simply were not being donated. “We wanted something unique. We approached the food bank with the idea, and they said those were the things they struggled to get large numbers of each year,” Harris says. “Everybody was on board and thought it was a great idea.” The store advertises the donation box in the local newspaper and on social media, spreading the word throughout Kimberley. The business was able to donate four large bags of products this past Christmas, one of its best hauls in the donation program’s history.

Comfort, Room by Room www.marsdelivers.com

Checkouts

COMMUNITY RELATIONS

Spread the Puppy Love

isty Gonzales was sitting in the veterinarian’s office with her dog, Rascal, when she overheard a troubling conversation. Someone else in the waiting room was talking on the phone trying desperately to borrow enough money to pay for emergency medical pet care. The conversation stuck with Gonzales, who is manager of Willits Power & Hardware in Willits, California. A few months later, she, along with Melanie Grossman, the store’s bookkeeper, founded Rascal’s Rescue. Rascal’s Rescue is a charity dedicated to helping those who need help paying their emergency pet care costs. “We work with vets who recommend people in need,” Grossman says. “Last year we helped about a dozen animals.” Grossman and Gonzales raise money in a variety of ways around the store, including donating the sales of Grossman’s homemade, all-natural puppy treats, and special events. They also use some of the money raised by the charity to support local animal shelters. “Emergency pet care can be expensive, and many times it puts a financial strain on people,” Grossman says. “We’re helping give pets a second chance.”

HARDWARE RETAILING | February 2018

Proceeds from the sale of homemade puppy treats, made by employee Melanie Grossman, go to fund Rascal’s Rescue.

EVENTS

The Day the Robots Took Over

t’s not an apocalypse scenario, but robots are in charge each weekend in Hartville, Ohio. Designing, cutting and shaping wood projects, these machines are displaying the next generation of computer numerical control (CNC) technology for an eager audience. Hartville Hardware recently began stocking Next Wave Automation products, including those sized for hobby and DIY use. To help educate the public about these products, Hartville Hardware began running weekly demos to show the kinds of projects these machines could take on.

“We decided to carry these machines, so we sent two sales reps to the manufacturer for several days of training in August of last year. They came back well equipped to handle and explain the machines, but we had a long time until our annual tool sale in November, so we wanted to keep those skills fresh while introducing customers to the machines,” says Bruce Ralyon, department manager at Hartville Hardware. An operator will find a project on the internet for the demo. With so many open-source projects available, it displays the diverse designs a CNC machine can produce, Ralyon says.

Photos courtesy of CantonRep.com, Julie Vennittii Hartville Hardware employee George Corley watches the computer numerical control Piranha X 3-D carving machine carry out commands. The machine is used during regular demonstrations in the store.

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F O R E W E PO

We Keep You the Local Superhero PRO Hardware knows independent businesses are vital to your local economy and to the American way of life. Our retail program supports you as an independent retailer by providing the tools to build your business while maintaining your store’s individuality and independence. Being a PRO gives you access to a $5 billion national network of hardware, farm, and lawn & garden distributors along with a dedicated merchandising and marketing team to help you and your store. PRO works to create new and innovative advertising materials to assist you in promoting your story and shows you the steps to utilize each of them to suit the personal needs of your store.

PRO Hardware Distributors:

Vendor Partners:

The Bostwick-Braun Co. Toledo, OH • 419.259.3600 Horizon Distribution, Inc. Yakima, WA • 509.453.3181 Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650 Learn more about the PRO Hardware program by contacting Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com Find us online at www.prohardware.com.

By Chad Husted, chusted@nrha.org

Taking Your Business Outside How to Land Your Star in Outside Sales 42

HARDWARE RETAILING | February 2018

raining and maintaining a strong staff is one of the keys to running a successful retail operation. Your staff is the face of the business for many of your customers. It could be the customer service associate who builds a rapport with regular customers or the delivery driver who makes regular stops at the same locations. These employees come to symbolize your business to your customers in a personal way. To collect insight on how best to hire, train and manage outside sales employees, Hardware Retailing spoke to two retailers who have grown teams to help build their businesses.

Koopman Lumber and Hardware maintains seven locations in Massachusetts as well as a central lumber distribution center that focuses on building materials. The company employs 27 outside salespeople, with the staff broken up into smaller teams that focus on specific markets. Florence Hardware in Florence, Kentucky, employs two outside sales employees with an emphasis on maintaining a strong presence in a growing county and community. These retailers show that no matter the size of your operation, outside sales can play a factor in your success.

February 2018 | HARDWARE RETAILING

Florence Hardware in Florence, Kentucky, has built its business and brand recognition by emphasizing an outside sales force. The company’s training program has helped develop talent that can bring sales into the business.

What Can Outside Sales Do for You? The goal of any sales team is obvious: growing sales and building business. What sets outside sales apart is the proactive nature of the position. The outside salesperson can seek out businesses and clients to offer services and products offered by a retailer. These clients may not have been aware of the option to use a hardware business for their needs or even that such a service was offered. For Rob Arnold, general manager of Florence Hardware, outside sales fills a needed category in his business’s chain of responsibility. The outside sales team is part of a business plan that is designed to both capture new business while also promoting the culture of Florence Hardware in the surrounding areas. “All really good companies have behaviors to increase the likeliness of success, and we decided outside sales had to happen to accomplish our goals,” Arnold says. “Every department has responsibilities. If you’re in purchasing, it’s making sure you’re in the habit of taking

HARDWARE RETAILING | February 2018

advantage of deals and margins. For sales, it’s increasing sales and margins while selling a full assortment of products. We decided we wanted to invest in ourselves, and that’s where outside sales comes in.” Arnold points to his business’s focus on heavy commercial and industrial industries, such as manufacturing, local school systems and business maintenance departments as a key factor in maintaining an outside sales team. The salespeople in the community can help sell the kinds of products and services that a client might not think a store with “hardware” in its name can provide. “You look at today’s age of hardware stores and what we can offer, and it’s light-years different from what it was in the past. We are the choice for Northern Kentucky in our customer base,” Arnold says. “We realized we were finding success locally here in the community. We asked, ‘What could we do if we had people out raising awareness of our services and products?’”

Larger operations are prime targets for outside sales teams. This can include residential builders or commercial businesses that oversee large-scale operations, says Tony Brookhouse, chief operating officer and co-owner of Koopman Lumber. Having people keeping in touch with clients on a consistent basis and looking after their needs allows those clients freedom to manage their own priorities and streamline their business. These businesses expect to make purchases through a contact, not in a storefront, Brookhouse says. Having salespeople on the road and approaching customers at their offices or work sites keeps a retailer at the forefront of their minds.

“Any larger residential builder is not going to order all their stuff by going to locations. They’re too busy,” Brookhouse says. “Anything commercial— from large, superstructure-building companies to a business building multi-unit apartments and banks— they’re not going to come to you.” Products that can be of use for these clients don’t have to be limited to the construction or industrial markets either. Florence Hardware’s work with governmental and school organizations highlights how other products, like detergents, mops, toilet paper or other bulk and often-ordered items, can be supplied through a local retail store. Outside sales can seek out this business and open up new avenues for sales growth.

Bringing in the Outside

“We want a hunter’s

mentality. Experience is a plus, and knowledge is helpful, but tenacity is more important. —Rob Arnold, Florence Hardware

”

Florence Hardware president Steven Swann (right) works with Jim Schutte of Cincinnati Ventilating Co.

HARDWARE RETAILING | February 2018

Outside sales personnel can be a great asset, but they also require different training and management styles than staff members more common in retail hardware stores. Several key attitudes and traits are common in successful outside sales candidates. Many of these characteristics lend themselves to a strong candidate that is trusted with a fairly autonomous position that can reflect strongly, either positively or negatively, on the employer. “Being organized, disciplined and a self-starter are really important for candidates, because of the freedom of the position. You also have to go out and find business to be successful,” Brookhouse says. “You want someone out there who can represent you and your company with integrity. That’s what we foster and support.” Candidates can come from a variety of backgrounds. They may be an experienced outside sales staffer who worked at other businesses or a current employee who has a different role but shows aptitude and interest in the position. Some of the key signs of a strong candidate are strong communication and relational skills, Brookhouse says, as well as a willingness to put the time into training and learning new skills. That emphasis on training is why Arnold doesn’t look for product knowledge as an essential quality in a strong outside sales candidate, at least in the initial phases. He prefers strong signs of trainability and people skills as the top starting criteria, with much of the sales skills and industry know-how coming during the training process. “We want a hunter’s mentality. Experience is a plus, and knowledge is helpful, but tenacity is more important. We want people who want the big account, the big fish that’s out there. People who can connect the needs of the client with the services we offer,” Arnold says.

The Inside Scoop on Outside Sales

Need a few more pointers on outside sales? Here are some frequent hurdles that retailers have encountered.

What are some of the biggest differences between inside salespeople and an outside sales team? Some of these are more obvious than others, such as an inside sales team being concerned with the immediate sale and assisting customers coming through the front door. However, both Koopman Lumber and Florence Hardware look to their inside sales team as a crucial piece of infrastructure for the entire sales process. The outside sales team is concerned with developing clients and drawing in new business. Inside sales can provide support by keeping tabs on long-term accounts or clients that have fallen off on orders. Outside salespeople can assist inside sales on special orders and large-volume orders from customers.

How do you best structure incentives, bonuses and other compensation? Each business must decide how to structure outside sales pay, but both retailers we spoke to used a combination of salary and commissions to pay outside sales staff. Recent hires are paid more heavily on salary as they learn sales tactics and build a strong client list that will hopefully allow for greater success and sales numbers as time goes on.

“In some areas of the country it makes more sense to pay a base salary with a smaller amount devoted to commissions. That’s more of a safety net structure,” Brookhouse says. One area Brookhouse emphasized was using a sliding scale for commissions based on gross profits. This structure allows salespeople to be rewarded for stronger efforts, bringing in new clients and maintaining long-term accounts and not emphasizing any one way to develop business.

How do you best handle an outside salesperson’s client list? Lists can be dependent on the work habits of an individual salesperson. How many clients a sales staffer has in their portfolio doesn’t directly reflect how hard they work or how much they are bringing in on sales. Forty smaller accounts can bring in as much as 12 larger ones, just like one major account can need the kind of time and attention that simply can’t be translated to managing smaller clients. Keep in mind that larger clients, while great for sales numbers, also hold great importance in the health of your business and your outside salesperson. If a salesperson has only a few big-number clients, one loss could mean big changes. Larger producers might be able to live and die by fewer clients, but a diverse client base is more recessionproof and is less likely to leave gaps in sales figures.

February 2018 | HARDWARE RETAILING

The proper attitude for a candidate is also a tough fit because, as both Arnold and Brookhouse say, the position requires confidence and resiliency in equal measure. A top candidate cannot get easily discouraged by rejection, but also must pursue leads doggedly and expect success. Often, Arnold will gauge a candidate’s attitude and possible future choices by intentionally slipping “mistakes” into the interview process. Such methods, like intentionally using the incorrect name for a candidate in an email and seeing how they react, can offer insight into future client relationships. Being able to continue building a relationship without allowing small errors to derail the interview process is a plus. “You need to be knowledgeable and able to run scenarios with them to see how they will react,” Brookhouse says. “Otherwise you could be hiring someone who represents you in a way you don’t want.”

Managing the Team Once an outside sales team is assembled, it falls to management to create the kind of environment that fosters success. This is true for any employee in a retail business, but developing an outside sales team can have unique factors involved that aren’t found in other areas. Training and support play major roles in determining the success of a retailer’s salesforce. Training not only encompasses the details of a retailer’s business and what a trainee will be selling, but the essential sales tactics that each employer wants its people to use. The importance of training is at the center of Florence Hardware’s introduction program, which Arnold has developed and improved over the years. Through his experience in the industry and in sales, he’s built a training program that he feels best takes a new outside sales candidate from just entering the industry to closing deals.

Koopman Lumber and Hardware maintains a significant outside sales presence. The business has built a strong infrastructure around its outside sales team that offers support and helps its salespeople maintain client relationships and bring in sales.

HARDWARE RETAILING | February 2018

The training takes new hires through each step of a sale, from presentations and sales calls to finding new clients and how to manage their travel times and routes to different customers throughout a day. “We teach each step of the sales cycle, from the moment you walk in the door to when you close the sale. We teach them how to interact with clients, from the owner to the guy in the backroom stocking inventory. We’re willing to invest in these employees and build them into what we want and need them to be,” Arnold says. Training also consists of role-playing and mentorship programs, allowing trainees to grow comfortable with potential business interactions and experiencing the workday with a more experienced colleague. “These first interactions can be intimidating. Your employees want to make an impression, but they don’t know where to start,” Arnold says. “If you want to get value from your people on the road, there has to be a plan.” While Florence Hardware’s training methods were developed in-house, Arnold suggests any retailer take advantage of distributor or association relationships to build training programs for salespeople. Trainers can tweak these programs with specific methods or inspirations to mold a sales team for their particular markets.

“If you have people who are

genuine, who understand that they’re there not to sell the newest, most expensive item but to help their client be successful, you’re on the right track. —Tony Brookhouse, Koopman Lumber

”

All In on Infrastructure Another aspect of managing an outside sales team is support throughout the company. Koopman Lumber has built an infrastructure that backs up its team, with one inside salesperson for every two that works outside to offer support. Another example of a way Koopman Lumber’s outside sales team is supported is through the in-house engineering department, which specs and rates products for specific tasks, like building in a hurricane zone. These backup structures keep an outside sales force informed while freeing them to care for their clients, Brookhouse says. “Our sales guys just need to pick up a phone and get an adviser to get that information for a client. It really helps streamline information for both salespeople and clients,” Brookhouse says. Equipment is another area of support where Koopman Lumber has invested. The company has three mobile showrooms that can accompany a salesperson to a job site for a client to peruse. It also has a mobile point-of-sale system that allows salespeople access to the full inventory when on the road.

Most POS providers now have mobile options among their packages, Brookhouse says, but it’s not the equipment that is necessarily difficult to put together. Building a secure and fast network that can allow access from remote devices and outside portals is the key. Even with all the tools and training that can be used to expand an outside sales role, both Brookhouse and Arnold put attitude and culture as the true linchpins of a successful team. Empathy and the ability to buy in on serving a customer’s needs are the true calling cards of success. “If you have people who are genuine, who understand that they’re there not to sell the newest, most expensive item but to help their client be successful, you’re on the right track,” Brookhouse says. “If you get people that grasp that concept, the results speak for themselves.” February 2018 | HARDWARE RETAILING

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By Renee Changnon, rchangnon@nrha.org

Cleaning Up in Housewares A Closer Look at Retailers Focused on Household Staples

hether it’s a New Year’s resolution or a spring overhaul, consumers are constantly looking for ways to keep their homes spotless. Do you have the products, advice and tools needed to help them stick to their cleaning goals? From basic hardware to an expansive garden department, you should always aim to cover the categories that matter in your market in order to become a one-stop shop. One niche within the housewares category that could offer opportunities for growth and allow you to establish a unique offering within your market is cleaning supplies. While some hardware retailers may shy away from cleaning supplies because there is so much competition, other retailers have embraced the opportunity head-on and have found ways to turn it into a lucrative niche. Cleaning goods make for easy add-on sales, and can attract a wide audience of customers, from the DIYer to the industrial pro. Hardware Retailing interviewed two retailers who have carved out space in their businesses to showcase cleaning products, test out new items and get their customers the supplies they need. Keep reading to discover how these retailers have made their cleaning departments stand out and the products they stock to keep customers happy.

For more insight, we spoke to Melissa Maker, an entrepreneur, author and cleaning expert who films how-to videos on her YouTube channel, Clean My Space. She shares ways independent retailers can become leaders in the cleaning category.

Sweeping the Competition The Bunge family’s hardware store operation opened in Indiana in the 1940s, and has since grown to three locations and involves three generations. In 2016, the third and most recent location opened in a vacant pharmacy in Crown Point, Indiana. Led by Jake Bunge, son of Al Bunge Jr., who oversees all three stores, Crown Point True Value has used its new location as a way to expand on the cleaning category and attract repeat customers, Jake Bunge says. “When we moved into this new location, we had a much bigger floorplan than our other two stores,” he says. “Before we opened up for business, we went through our co-op’s store layout program, and we decided we wanted to feature the cleaning category in this new location.” While all three of the Bunge’s retail operations include cleaning goods, the new store is home to the widest selection and has the most shelf space. Continued on Page 56

February 2018 | HARDWARE RETAILING

5 Ways to Wow Customers in Cleaning The cleaning category can be a great source of add-on sales. And with big-box chains and grocery stores grabbing a large share of the cleaning market, it’s important to carve out your own place. To gain a better understanding of the trends influencing the category, Hardware Retailing reached out to Melissa Maker, an entrepreneur, author and cleaning expert who films how-to videos on her YouTube channel, Clean My Space. Maker’s original distaste for cleaning has since transformed into a passion that has transcended most areas of her career. For more from Maker, read this Q&A at TheRedT.com/clean-expert. Here she shares five tips you can use to attract customers to your cleaning aisle, educate them on cleaning techniques and offer expert advice, while also empowering them in the ability to take on this lifelong household duty in the process. 1. Become the expert. When Maker graduated from business school, she decided to start a company that filled a need in Toronto. Although she pictured a different path, the necessity of cleaning turned into a great idea— a cleaning service. “I learned everything I could about cleaning even though it didn’t make me happy,” she says. “But then my opinion started to change. The knowledge I’ve picked up along the way helps me show people the quickest, easiest way to clean in order to have more time to do the things they love.”

Photo courtesy of Shayne Grey

2. Decode the aisle. Maker says a challenge many consumers face when heading to the cleaning aisle is knowing which products to buy for different areas of the home. That’s where the retailer can step in and help, she says. “When consumers go to the cleaning aisle in a store, they often look like deer in headlights,” Maker says. “Cleaning is a life skill, and if you’re able to share the products, tools and techniques they’ll need, they’ll return again in the future.”

4. Show them how to clean. Consumers don’t always take the time to read instructions. Showing them how to use products can make a big difference. “People need coaching on how products work and from that, they’ll be more likely to try new products,” she says. “In-store demos are a great option. However, to become a resource for a wider audience, retailers can share videos with their followers on social media from experts like myself. Or they can create their own videos to share online and direct customers back to their store.”

3. Stock their mop bucket. To draw attention to the category and help get customers started, an endcap featuring must-have cleaning products is a great idea. The must-have products Maker recommends include microfiber cloths, a scrub brush, a vacuum, a spray bottle, a squeegee and a mop and bucket. For an extra level of DIY, she recommends carrying baking soda, dish soap and extra-strength vinegar so customers can try their hand at making their own cleaning solutions. For more on building strong endcaps, check out Page 82.

5. Create a curated shopping experience. Maker suggests retailers and their employees test out products at home so they can give firsthand accounts to customers of how a product works. To make the cleaning aisle a place for customers to explore and discover new products, she suggests placing callout signs by products that are new, unique or an employee favorite. “By listing something that gives basic information about a product and why it works, the consumer will give it a chance rather than just choosing the items they know from TV,” she says.

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“We have about 40 feet of cleaning supplies on an aisle and have both sides filled,” Jake Bunge says. “Our selection ranges from a variety of cleaning solutions to hand-held tools like brooms and dusters. Our co-op recommended we have this department at the front of the store. This is a change from what we had done before, but it makes sense because these are everyday items that can be an easy impulse add-on. Plus, cleaning products are well-packaged, colorful and have many unique qualities to grab the customer’s attention.” In Thayne, Wyoming, and the surrounding communities that include about 6,000 people, consumers tackle most of their home improvement shopping at Thayne Hardware. Store owners Larry and Sandra Rodeck took over the longstanding operation in 2002. Since they were already business owners in the agriculture category and in the real estate business, the previous owner asked if the Rodecks would be interested in purchasing the store. Being in a location without big-box competition, Thayne Hardware’s customers are mainly homeowners, so Larry Rodeck strives to make his store a one-stop destination.

The Rodecks have established their reputation by carving out a strong cleaning department in the store. “Our cleaning selection takes up two aisles of goods near the front of the store,” Rodeck says. “Having it there ensures customers who are busy running errands see the goods they may need before heading to the checkout.” Both Rodeck and the Bunges agree the cleaning category provides an opportunity to grab add-on sales, which make a big difference in growing the average transaction size. Although grocery stores appear to have a larger share of the market, Al Bunge says their stores would be at a disadvantage, missing sales from DIYers and professionals who need cleaning products to finish a project if they didn’t carry a line of well known and unique items. To ensure the selection of items make a good impression on customers, it’s vital the aisle is tidy, fronted and clean. Rodeck has even built this step into the weekly operations checklist. “We have made our cleaning category stand out in a few ways,” Rodeck says. “Pricing the items appropriately and keeping the area clean is important. I have an employee who cleans my shelving and items each week and whenever there is extra time. It wouldn’t look good if the cleaning products had a line of dust on them.”

One way Crown Point True Value employees organize the cleaning selection is by keeping similar types of products together. They have callout signs that distinguish where different types can be found. Then the customer can choose from a wide array of brands.

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Although Bunge says the cleaning category may be smaller than his other core departments, he says there are advantages to stocking cleaning items. “I can understand why a retailer might not want to go deep into cleaning because they think it’s too small of a category, but I think it’s very important,” Bunge says. “A good hardware store has to have a good cleaning department. It draws in more customers and it establishes repeat shoppers for these disposable goods.”

“For our rotating endcaps, we’ve featured everything from septic products to a spring cleaning-themed endcap with items customers may need to get their homes organized and clean.

”

—Larry Rodeck, Thayne Hardware

HARDWARE RETAILING | February 2018

To make customers aware of the category, Thayne Hardware has hosted events that showcase cleaning goods and the products they sell. “We try to have events a couple times a year, like a ladies’ night,” Rodeck says. “We have a woman in town who makes soap, and she is a big hit at our events. We’re supporting her small business, and our customers are looking at her soaps and potentially other products we sell. It’s a win-win.”

What Customers Want While housing the cleaning department near the front of the store to make it accessible and keeping it spick-and-span is important, the products offered should be cleaning staples along with new, unique finds. To introduce the category to all customers, Rodeck reserves endcaps for the quality products he knows customers will return for. “We have one of our endcaps devoted to a line of floor cleaning products that does very well for us,” Rodeck says. “For our rotating endcaps, we’ve featured everything from septic products to a spring cleaning-themed endcap with items customers may need to get their homes organized and clean.”

Knowing what specific kinds of items your customers need in your area is a key to potential sales. For example, in Thayne, residents don’t have a traditional community sewage system. The Thayne Hardware team knows customers will need the products required to maintain a septic tank, so they always have those products available. To ensure their customers are aware of their stock, the Rodecks create a unique endcap with all of the items a customer will need in one place so they are readily available. Since these products are a frequent need, they can become a practical impulse purchase for any customer. And although green products may be popular in some areas of the country, Thayne Hardware has formed its offerings based on what its customers ask for, Rodeck says. “About 10 years ago, when there was a big push for green products, we tried out a number of items that didn’t do as well as we were expecting,” Rodeck says. “In this category, as in any category, we adjust based on what our customers are buying. We still have green products because there are some people who ask for them, but a majority of our customers want to use something because it’s the right price and they know it will get the job done.”

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To make the shopping experience easier for customers, both retailers set up the aisles by product, not brand, which makes it easy for a customer to navigate. Crown Point True Value stays ahead of the curve with new products and items that customers want. “In my opinion, it’s important to have variety in this category, but it’s also important to have what the customer wants,” Bunge says. “If they ask us for a specific product or brand and we don’t have it, we’ll do whatever we can to get it for them.” While Crown Point True Value carries a wide selection of cleaning products to draw in the DIY customer, the team also tested the waters in commercial cleaning products. “The majority of our cleaning customers are homeowners, but about 10 percent come to us

for commercial applications,” Bunge says. “Our store is located near a hospital, so we receive their business in cleaning supplies, along with churches and the city.” Vacuums and the parts to repair them, like disposable bags and new belts, round out the cleaning category at Thayne Hardware. The store has a variety of options on hand so customers can return for items they’ll need after the initial vacuum purchase. To make the shopping experience easier for customers, both retailers set up the aisles by product, not brand, which makes it easy for a customer to navigate. No matter what products customers look for in the cleaning department, Rodeck says cleaning is a project that homeowners and professionals will always need for standard upkeep. “This category has been trending toward more DIYers,” Rodeck says. “While consumers may feel more comfortable hiring outside help for plumbing or electrical projects, the trend in the cleaning category has been the return of that customer group. Rather than hiring cleaning companies to manage the mess, consumers are taking these household chores into their own hands.”

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Hardware Retailing (HR): When it comes to rust prevention products, what sets Rust Patrol® apart from its competition? Mike McGinnis (MM): First, the major difference is the level of technology. Most other products in this category were designed 60 or 70 years ago. Rust Patrol® doesn’t work like anything else on the market. Using nanotechnology, Rust Patrol® actively seeks out metal and bonds at the molecular level, like a magnet. Consumers can address multiple issues at the same time using Rust Patrol® due to this unique chemical makeup.

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HR: How can retailers bring Rust Patrol® into their stores? MM: We’re already set up with many well-known distributors throughout the country. Whomever you happen to buy through, we can probably do a simple drop-ship. We’re also happy to sell direct for as little as one case. We’re 100 percent made in the U.S. and ship out of Charlotte, North Carolina. For customers in California, we have a no-VOCs version available.

HR: What makes Rust Patrol® a game-changing product? MM: Because of the state-of-the-art technology involved, Rust Patrol® is a better option than its competitors, even in some of their specialty markets. It works in four job categories: rust prevention, moisture displacement, lubrication and penetration. Rust Patrol® is a thin coating that works through the grit, grime and cracks to get to the metal, which allows it to break rusted components free with ease. This makes it particularly useful as a penetrant. Rust Patrol® doesn’t hold moisture, thus ensuring it doesn’t aid corrosion. Its ability to bond with metal also helps as a lubricant and preventer, allowing Rust Patrol® to stay on the metal surface longer. Outside of the DIY and homeowner market, Rust Patrol® also offers great appeal for more industrial jobs. Heavy machinery, such as expensive equipment used in agriculture, mining and manufacturing, is exposed to constant wear and tear. February 2018 | HARDWARE RETAILING

By Melanie Moul, mmoul@nrha.org

Redefining Service

2017 State of Independents Conference Explores Opportunities for Retailers

f your business doesn’t have an online presence, you’re not prepared for the future. That sentiment was a strong takeaway from the North American Retail Hardware Association’s (NRHA) third annual State of Independents Conference, held Dec. 7 in Chicago. The daylong event provided independent retailers, manufacturers and other channel supporters the opportunity to learn from brand new research showing the state of the home improvement industry and where independents fit in. At this year’s event, which was sponsored by the National Hardware Show®, NRHA addressed an ever-present challenge for independent retailers: online competition.

HARDWARE RETAILING | February 2018

Each year, NRHA surveys retailers prior to the conference, asking them what their top challenges are to growth in the short and long term. In this year’s data, for the first time, most retailers selected online competition as one of their biggest challenges to growth. More than 30 percent of survey respondents say online retailers are their biggest competitors, ranking them ahead of brick-and-mortar big-box stores such as Home Depot and Lowe’s. Finding the right employees was the second-most common issue, which was the most common response in the two previous years this research was fielded. In line with the challenge of hiring, more than 36 percent of respondents selected personnel development as the most important area to invest for business growth. Despite these obstacles, independent retailers are optimistic about the future. In fact, 81 percent of survey respondents predict sales growth in 2018, up from 72 percent who predicted sales growth in 2017.

Greg Schlecht (left), owner of Greg’s True Value in Wisconsin and Jamie Gentner, chief operating officer of Center Hardware & Supply in San Francisco, participated in a panel about managing challenges to growth.

Retailers Take the Lead on Panels In response to past attendee feedback, NRHA added even more retailer-led panels to the 2017 event. Each research presentation was bolstered by direct input from independent retailers who provided insight into real-life challenges and solutions. They also shared ideas on how channel partners can continue to support the industry and how retailers can support each other. A theme about employee training emerged in each panel’s conversation. Retailers agree that having knowledgeable employees is a competitive advantage against online retailers, and vendor support is a big part of providing that advantage. During his panel, Dan Harris, owner of Palos Ace Hardware in Palos Heights, Illinois, said vendors are important to the training process, especially when adding new products and categories. “We’ve added niches to not only add the products, but to add the expertise,” he says. “We ask vendors to step up as we bring those products in and do a lot of training support. Training employees and teaching them about the products is critical because there is no doubt that customers are showrooming. Customers are in the store checking our prices against Amazon.”

“Training employees

and teaching them about the products is critical because there is no doubt that customers are showrooming. Customers are in the store checking our prices against Amazon.

”

—Dan Harris, Palos Ace Hardware

February 2018 | HARDWARE RETAILING

The Product Areas Retailers Plan on Adding in the Next Year Respondents could select more than one answer. 56% 44%

26%

10% 7%

Plumbing

36%

Paint & Sundries

Electrical

Building Materials

18%

Housewares Builders Hardware

Inventory Control

Adding Niche Programs

Adding a New Location

Developing Training Programs

Store Reset

Power Tools

Hand Tools

*Top Other categories include outdoor power; farm and ranch; small engine; and cabinets and doors. Source: NRHA/Hardware Retailing

Center Hardware & Supply Co. chief operating officer Jamie Gentner of San Francisco agrees that vendors round out the training process and help employees pass along their knowledge to customers. “Product knowledge is huge, and some of the training always has to be hands-on,” she told the audience. “It’s critical to have someone in the territory to represent that brand.” Working with vendors builds employees’ confidence with products, which leads to stronger sales, says panelist Megan Menzer, owner of Newton’s True Value in southeast Kansas. “Training is key for us. We’re always looking for vendors to work with us on training, because the more comfortable employees are with a product, the easier it is to sell,” she says. In addition to vendor training, NRHA’s training programs are also a valuable resource for creating knowledgeable employees, says panelist Greg Schlect, owner of Greg’s True Value in St. Francis, Wisconsin. Schlect’s employees follow an outline of NRHA online training programs to get them up to speed on product knowledge. Once employees are trained, retaining the strong employees is also a challenge for independent retailers. Jake Smith, owner of Jared’s Ace Hardware in Bishopville, South Carolina, told attendees that he keeps a checklist of employee tasks and offers incentives for performance, which has helped improve employee productivity at his business.

Respondents could select more than one answer.

Other*

37%

19%

16%

Lawn, Garden & ODL

The Most Common Retail Management Certification Program Business Improvement Projects

HARDWARE RETAILING | February 2018

Upgrading Infrastructure

Developing Process and Procedures

To learn more about these business improvement projects and how to create your own, visit nrharmcp.com.

“We’re monitoring certain tasks employees are expected to complete, and we’re monitoring how well they finish them,” Smith says. “At the end of the quarter, those above expectations receive gift cards, but those who don’t meet expectations aren’t eligible for sales bonuses.” Panelist Jeremy Melnick, who owns and operates eight Gordon’s Ace Hardware stores in the Chicago area, says he understands that employees may not make their careers at his business, but he wants them to see Gordon’s as a strong steppingstone to build their employment history. “When we recruit people, we say, ‘Use us as a resume builder. You work hard here and look for your next job. You’re either going to move up or move out.’ Hopefully that strategy gets us people who are energetic,” he says. “That culture is slowly making an impact for us.”

More Than Convenience While customer service has been the rallying cry among independent retailers as their key to competing against online retailers, it’s quickly becoming apparent that the way brick-and-mortar retailers define service is evolving. “The old concept of customer service has changed,” Dan Tratensek, executive vice president of NRHA and publisher of Hardware Retailing, told the audience. “With Amazon offering one-hour delivery in some areas and its ease of returns, convenience as service can’t be what independent retailers rest their brands on anymore.”

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The State of Independents Conference allows retailers, vendors and manufacturers to reflect on their relationships.

Jim Robisch, senior partner at Indianapolis-based research firm The Farnsworth Group, which conducted consumer research as part of a joint project with NRHA that was presented at the conference, agrees. He says when a retailer doesn’t have a product available in store, customers are rarely going to wait for the next shipment. “When you miss out on a sale opportunity in your stores, customers don’t often say, ‘Oh, I’ll come back for it later,’” he told attendees. The retailers who participated in the panels all shared ways that they differentiate their businesses and are rethinking what service means to consumers who are now conditioned to receiving online orders quickly. In his panel, David Dishke, owner of Grand River Home Hardware and Grimsby Home Hardware in Ontario, said the policy at his business is to address out-of-stock merchandise in the moment and to discount it so customers are less inclined to go online. “If we don’t have something in the store, we offer 10 percent off because it’s not in stock, and we’ll order it to arrive in the next shipment,” he says. Melnick says his operation has focused on fast delivery, which is competitive in Chicago. “We can get product in our stores and delivered within 24 hours,” he says. “We promote the fact that if we don’t have it, we can get it for you.”

HARDWARE RETAILING | February 2018

Meeting Customer Expectations Online According to research conducted by NRHA and The Farnsworth Group, 95 percent of independent retailers have a website, and retailers are fairly tuned in to what their customers ask of their online presence. Consumers surveyed say they are most often researching prices, looking for product reviews and seeking out promotional offers when they visit a home improvement retailer’s website. Retailer survey respondents recognized the value of this information, but they rated “the ability to get basic information about my business” as the most important feature of their website, which wasn’t something consumers rated as a high priority. This disconnect is likely because consumers expect basic information—store location, hours and contact information—to be readily available, and it’s not the primary reason they are visiting home improvement retailers’ websites. A panel of retailers who are developing their businesses’ online strategies talked about how vital it is for independents to figure out a way to develop an online presence. “Amazon is changing the experience for the customer, and if we don’t change how we interact with our people, we will lose,” Steve Fusek, owner of Fusek’s True Value Hardware in downtown Indianapolis, said during his panel. “We need to figure out how to compete against Amazon and the expectations they’re creating.”

What would you identify as your biggest opportunities to grow your business in the short term?

What would you say are your biggest challenges to growth? Respondents could select more than one answer.

Respondents could select more than one answer. Short Term (1-3 years)

Long Term (5-7 years)

26%

Online Retail Competition

26%

24%

Finding the Right Employees

16%

14%

13%

10%

23%

17%

Big-Box Competition

14%

13%

Ad d Ca ing te N go ew rie s

I M mp ar rov ke e tin d g St Dev ro e ng lop er in Te g a am

O Ef per fic at ie ion nc a ie l s

A he dd s/ ing Pr N od e uc w ts

Regulations and Taxes

Finding Additional Space Having a Succession Plan

13%

Source: NRHA/Hardware Retailing

“E-commerce is so

technically challenging that it’s easy to lose sight of the customer. We have that focus in our stores, so we need to figure out how to do it online, because others are. —Jake Wilson, Wilco

”

At his brick-and-mortar location, Fusek is experimenting with geolocation, through which he is targeting ads and specials to customers when they are within a certain radius of his store. He also uses the technology to offer a pickup service so customers don’t need to get out of their cars to collect online orders. When their phone approaches the business, employees inside get an alert and are able to meet the customer with their purchases.

“Technology is the future. There’s not enough urgency in our industry,” Fusek told attendees. At Buchheit, which has eight locations in Missouri, the solutions to addressing customer and employee needs required them to build their own platform, including training tools. “We identified painful processes in our stores and weeded them out using technology,” panelist Jared Hotop, vice president of IT at Buchheit, says. “We changed a 55-step special-order process into a three- or four-step module.” Jake Wilson at Wilco, which has 18 locations in Washington state and Oregon, says e-commerce companies are equally as capable of forming relationships with consumers as are brick-and-mortar retailers, so it’s not as easy for independents to assume they have the edge in that area. “We’re trying to focus on solving customer problems with buy online, pickup in store services,” he told the audience. “E-commerce is so technically challenging that it’s easy to lose sight of the customer. We have that focus in our stores, so we need to figure out how to do it online, because others are.” Although building an online presence and using technology to better understand consumers is challenging and expensive, Robisch says there aren’t any alternatives for retailers who want to compete. “Find the time, find the talent and find the money. Figure it out. Are you going to be left out?” he told attendees.

February 2018 | HARDWARE RETAILING

Celebrating Partnerships The State of Independents Conference offers retailers, vendors and manufacturers a place to come together to share feedback and celebrate the successful relationships that exist in the market. One way those relationships are honored is through the Channel Partnership Awards. Retailers shared the companies that continue to show their support for independents, and the three companies shared most often received the award at the conference. The three manufacturers honored at this year’s event are repeat winners, which shows their strong commitment to the channel. Benjamin Moore & Co., Weber Grills and STIHL Inc. all received Channel Partnership Awards for their dedication to the success of independent retailers. “The relationship between independents and manufacturers is really vital to this channel,” says Jennifer Stone, sales training supervisor for STIHL. “The feedback I’ve heard at this event has been helpful, and I’m going to take notes back to headquarters on how we can help you in the future.”

The Social Connection Tratensek says retailers who are finding success with technology have already developed their brands for social media, and it’s easy to connect the social media experience with the in-store experience because independent retailers already know their audience. “Social media dovetails so well with the in-store experience and the individualized brand building within a market,” he says. “Independent retailers can have a leg up because they know their communities and what resonates with their immediate markets.” The event culminated with a look at the future of retailing and a panel of the next generation of independent retailers. The panelists expressed similar concerns about the industry, including employee training and retention and competing as small businesses in today’s retail climate. As young retailers, however, they are optimistic about future opportunities in the industry. The panelists agree that while the definition of customer service is changing, it’s important to remember your roots as a small business. “As much as we preach that customer service is the most important thing out there, for small businesses, it’s different, because a bad experience can change a customer’s opinion for a long time,” says panelist Adam Barden, owner of two Vassar True Value Hardware locations in Michigan. “There’s something about that customer experience, that if

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“Small business right

now is really cool, and millennials want to take ownership of the local businesses in their towns. —Scott Jerousek, Family, Farm & Home

”

you disappoint them, it takes a more emotional toll on them than if they have the same experience at a big-box store.” Panelist Scott Jerousek, CEO of Family, Farm & Home in Ohio, says that the next generation of consumers—millennials and Gen Zers—are helping to reenergize the appeal of independent businesses, which is something independent home improvement retailers should capitalize on. “Small business right now is really cool, and millennials want to take ownership of the local businesses in their towns,” he says. “We need to get our customers to take ownership of our locations and gain their trust. It’s a good time to be a small business.”

Scott Jerousek, CEO of Family, Farm & Home in Ohio, says retailers should take advantage of small businesses being trendy.

CUSTOMER SUCCESS STORY

RAILROAD AVENUE SUPPLY CO. RALPH BEISLER, PRESIDENT OF RAILROAD AVENUE SUPPLY CO.

RockSolid MAX™ Hardware Store POS System Brings New Benefits on Multiple Levels

s President of Railroad Avenue Supply Co. in Stamford, New York, Ralph Beisler doesn’t have a whole lot of time to mess with software. Running the Ace Hardware Store® his family has owned and operated since 1963 keeps him and his team—two full-time employees besides himself and four part-timers—plenty busy. Competition is fiercer than ever; local market conditions are challenging. The good news, though, for Ralph, a hardware industry veteran who has headed up the company since 1975, is that since switching to the RockSolid MAX™ hardware store POS software in February 2016, he has seen an increase in productivity and has saved on hardware and software costs. Plus, he and his team are now able to respond to customer service requests a lot faster, and more easily, than they used to.

ROCKSOLID MAX MAKES BILLING EASIER, FASTER AND LESS EXPENSIVE

On the productivity front, for example, putting together monthly statements and mailing them out used to take a full morning’s worth of printing, assembling, stuffing envelopes and mailing. With RockSolid MAX, reports Ralph, those monthly statements now get done in little more than two hours—less than half the time they used to need! With RockSolid MAX, invoices are saved in the system as PDFs, so if any customers want copies

with their statements, tracking them down now involves just a few key strokes, while before it involved spending precious time hunting through filing cabinets for paper copies. “With RockSolid MAX, we spend a lot less time trying to track down paper and a lot less money on photocopies and postage,” he reports happily. With more customers asking for statements via email, paper, printing and postage costs promise to go even lower with RockSolid MAX.

SIMPLIFIED INVENTORY AND MAINTENANCE, THANKS TO CLOUDBASED COMPUTING

Taking physical inventory is also a whole lot easier with RockSolid MAX, Ralph reports. “Before the switch, we would do cycle counts on paper and then manually change quantities for each item in our database,” he explains. “Now, if we’re doing a full inventory, all we have to do is go out on the floor, scan the items and enter quantities into the system. And we don’t need to close the store to do it. We can keep the store open and the program will track the items we sell and make the necessary adjustments while the inventory is in progress.” With a cloud-based system like RockSolid MAX, daily backups are a thing of the past. Even better, Ralph can be sure he’s running the most current version of the system without even having to think about it.

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“With RockSolid, you’re dealing with a company that clearly cares about its customers,” says Ralph. “The move to RockSolid MAX went far more smoothly than any of the previous software conversions we have done. Any time I’ve called technical support after the conversion, they’ve always been very responsive. I feel like I know them and they know us. For a small business like ours, that’s really important!” Also important for any small business are overall technology costs and in that area too, the move to RockSolid MAX has brought more good news. “Since it’s a cloud-based system, you don’t have a lot of initial set-up costs,” Ralph points out. “And my monthly maintenance charges are at least $100 less than what I was paying before we switched.”

EASY-TO-USE POS SOFTWARE MEANS HAPPY EMPLOYEES AND HAPPY CUSTOMERS

positively,” he says. “Our customers didn’t notice when we made the switch and a document-based system like RockSolid has made it possible for us to take care of them faster and more efficiently.” Before they made the move to RockSolid MAX, any time a customer called in looking for a copy of an old PO or invoice, it would require hunting through the files to track it down and then someone would have to print and fax it or scan and email it. Now, Ralph explains, a couple of key strokes bring up a PDF of the document and a couple more keystrokes take care of emailing it over to the customer. That kind of functionality makes Ralph Beisler and his team big fans of their new system. “The program is very reasonably priced, it works as promised and the RockSolid team is always very responsive,” he says. “RockSolid MAX has been a good fit for us and I would certainly recommend it for other hardware stores like ours.”

“It wasn’t hard to get our people trained on RockSolid MAX and they’ve responded to it very

Friends for the Ages

Retailers Find Value in Relationships That Defy Expectations

aking friends as an adult can be challenging, and it’s often intimidating to be the first to break the ice at industry events. Creating lasting friendships with people who are vastly older or younger than you and live hundreds of miles away is even more unlikely. But the value that comes from connecting with other retailers in the independent home improvement industry is worth the initial hurdle. About 35,000 independent home improvement businesses are operating in the U.S. and Canada. The industry is full of people whose daily work looks a lot like yours, but there are a few differences. In some areas, retailers may compete against each other, but it’s important to note that the industry as a whole is stronger when independent business owners support each other and speak up together.

HARDWARE RETAILING | February 2018

Throughout the industry, retailers like you have dozens of opportunities each year to meet their peers, whether at wholesaler buying markets, conferences and trade shows or working together in organizations like the North American Retail Hardware Association (NRHA). At these events, retailers can meet people they may never encounter otherwise. To learn more about the types of friendships that arise out of independents working together and learning from each other, Hardware Retailing spoke to four retailers whose friendships started in hardware and expanded into ongoing support systems. These friendships are examples of the value that exists in developing relationships with other retailers who may have different outlooks based on their industry experience or their geography. For more about the value of developing industry relationships, visit TheRedT.com/industry-friends.

Celebrate Your Differences

Russ Ward

Cody Goeppner

Vice President of Retail Operations Bleyhl Co-Op

Manager Muller True Value Hardware

ody Goeppner and Russ Ward didn’t realize how much they had in common when they met as classmates in the Spring 2017 session of NRHA’s Retail Management Certification Program, an advanced retail management and leadership development program. Cody’s family had owned and operated Muller True Value Hardware in Ferdinand, Indiana, for 175 years, but he was fairly new to his managerial position in the company. Russ, vice president of retail operations for Bleyhl Co-Op in Grandview, Washington, enrolled in the NRHA program to get a better understanding of the hardware industry and its unique culture, business styles and products. Even though he had 25 years of management experience, he was new to hardware. Cody says Russ’s eagerness to learn was refreshing. “My first impression was that he was the old guy in the class and I was the baby,” Cody says. “You wouldn’t think we would click from an

age standpoint, but he was very fun and open to learning, and I was interested in what he had to share.” Russ noticed the age difference between himself and the other students, but he says because everyone was there for the same reasons, his experience proved valuable. “Every person in that class taught me something,” Russ says. “Cody and I hit it off from day one. He and all of the other students accepted me right away.” Russ says Cody is a bit more outgoing than he is, but they have a lot in common, which helped build a strong friendship. “We both love to laugh and have a sense of humor in our jobs and lives,” Russ says. “We both take that humor to work with us, having fun in life and work. I’m not as creative as he is, but we both love learning. With our shared passion for business and finding success, we became fast friends.”

Cody Goeppner and Russ Ward met and became friends while participating in the Spring 2017 Retail Management Certification Program. Above, program graduates, including Goeppner and Ward, celebrate completing the program.

HARDWARE RETAILING | February 2018

“As an independent

retailer, it’s easy to feel like you’re alone, but when you connect with someone, you have so much to relate to. —Cody Goeppner, Muller True Value Hardware

”

In addition to their similar personalities, Cody says their similar approaches to business helped form a strong basis for their friendship. “Russ and I have a similar mindset of trying to do excellent work to succeed,” Cody says. “Plus, it’s always a bonus being able to talk to someone in the industry who understands the day-to-day job. As I got to know him, we both realized our job titles and responsibilities might be different, but we had a lot in common.” Muller True Value Hardware is a single-store operation that serves mostly DIY customers. On the other hand, Bleyhl Co-Op is a regional operation in Washington that is owned by and serves farm and ranch growers. In addition to its headquarters, the company has 10 locations. While their businesses differ, their commitments to customers and family are the same. “As the seventh generation to work at my family business, it’s personal for me,” Cody says. “I see that same passion and family focus from Russ at Bleyhl Co-Op; even though they aren’t related by blood, they’re all family.” The two continue to stay in touch, whether talking about business or just catching up. They recently connected at the True Value Fall Reunion in Chicago, and Cody says he’s planning a trip to the West Coast to see Russ’s business, visit wineries and spend time with Russ and his family. “My friendship with Russ has showed me that no matter what level of your career you’re in, you can still enjoy what you’re doing,” Cody says. “I love what I’m doing. Growing up, I never would have thought I’d say that. My goal is to say that in 30 years my career is maturing like Russ’s. When you do something you love, you can avoid burnout. He proves it’s possible to do what you love and have fun.” Russ says he has learned just as much from Cody along the way. “Cody has a different perspective and a different audience in a different part of the country,” he says.

Russ Ward (left) and Cody Goeppner continued their friendship by reuniting at the True Value Fall Reunion in Chicago.

“Even though Cody is half my age, I count him as a mentor for me because he is full of fresh ideas.” Networking and becoming friends with other retailers in the industry is something all retailers should do, Cody says. “As an independent retailer, it’s easy to feel like you’re alone, but when you connect with someone, you have so much to relate to,” he says. “Being willing to listen to others, ask questions and learn how others do business makes a big difference. Our industry is so unique because we can be independent but have the same purpose for why we do what we do, beyond wholesaler lines. Everybody has a unique perspective to share.” Russ says all retailers should build relationships with their peers. “Going to NRHA gatherings and regional meetings is so important,” Russ says. “There are so many fabulous independent business owners out there. Don’t be afraid to talk to and meet new people. To last and ultimately succeed in the future, we all need to come together. As a collective group, we’re much larger than any big-box store.” February 2018 | HARDWARE RETAILING

Get Another Perspective

TJ Comstock

Tim Buchheit

Owner Northwest Hardware

President Buchheit Enterprises

hen Tim Buchheit speaks up at meetings, TJ Comstock listens. And when Tim decides to go on a 3 a.m. drive to get fresh doughnuts, TJ goes along for the ride. Tim operates Buchheit Enterprises in Missouri, and TJ owns Northwest Hardware in Montana. The two retailers, who oversee very different home improvement businesses, don’t share distributors or geography. Yet, they have swapped retailing stories and advice and have become close friends while traveling across the world together. The pair met about five years ago while serving on the NRHA board of directors. TJ is now the incoming board chairman, and Tim has

HARDWARE RETAILING | February 2018

left association leadership, but remains heavily involved with NRHA. In the beginning, they networked and talked business, starting off where many association members and leaders do. Meeting other retailers in the industry from various distributors and market types is helpful, TJ says. “I think the attraction is that we’re all on the same mission, but we don’t always interact across distributors,” he says. “We can talk about things that are affecting everyone.” Friendship is a bonus. Tim and TJ discovered they share mutual enthusiasm for live blues music, motorcycles and adventure. When the two of them met up in Missouri for an industry

CEO roundtable event, Tim took TJ up in his helicopter and buzzed the Mississippi River. “He’s hysterical,” TJ says. “There’s an age difference that doesn’t seem to matter at all. Tim’s pretty young at heart. He’s a lot of fun to be with.” Tim is also gifted at finding and making new friends everywhere he goes, which opens the door to many unique and memorable adventures, TJ says. “He has very few inhibitions, and it is amazing how many people he meets,” TJ says. “He talks to everyone.” Most recently, Tim suggested a trip to Sweden for a custom motorbike show. The two friends went in June, and Tim’s networking talents got the pair exclusive access into a Swedish motorcycle club and bikes to borrow for a day. “It was pretty wild,” TJ says. “As far as I know, we were the only two Americans.” They looked at hundreds of custom motorcycles at the show and admired the motorcycle club’s clubhouse, where members were building or working on bikes. Business, though, is still an important part of the retailers’ friendship. For Tim, the trip to Sweden gave him a glimpse into TJ’s strengths as a retail leader.

When TJ and Tim met up in Missouri for an industry CEO roundtable event, Tim took him up in his helicopter and they buzzed the Mississippi.

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“TJ has the ability to see the big picture and then go down into the weeds to see the details, which is something an entrepreneur has to have,” Tim says. The pair also had the opportunity to learn from each other on the trip because while they are independent retailers, their businesses do differ. “I have a larger operation than TJ, so I give him that perspective,” Tim says. “But there’s a lot we can learn from each other. TJ thinks outside the box, and he’s in a very rural market, which I think forces him to be really creative.” TJ enjoys listening to Tim speak, whether at an industry event or on their bikes at a stoplight. “Tim doesn’t always say much, but when he does, he’s really interesting,” TJ says. “I think Tim is very

TJ Comstock (left) and Tim Buchheit (right) recently traveled to Sweden to visit European hardware operations and to travel the open road on motorcycles.

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HARDWARE RETAILING | February 2018

forward-thinking in how he looks at profitability. His work is very data driven.” Retailers who live and work in different parts of the country and stock their businesses through different distributors have a great deal to offer each other, TJ says. The camaraderie and friendship that develops out of communicating with other retailers provide insight on business topics, such as hiring and retaining employees, which many independent business owners struggle with no matter the location. “The most important thing is to have someone outside your circle who you can bounce ideas off of,” TJ says. Tim recommends retailers reach out to one another to forge new relationships and to strengthen their business operations. He also recommends attending NRHA events for new opportunities to meet up across the country. He says the association sets itself apart by uniting business owners from all wholesale affiliations, giving retailers a level playing field to share best practices and learn from one another. “You have so much in common,” Tim says about independent home improvement store owners. “There are so many reasons we have to network with one another.”

Hardware Retailing staffers Renee Changnon, Kate Klein, Melanie Moul and Todd Taber contributed to this article.

February 2018 | HARDWARE RETAILING

Merchandising: Endcaps

By Jesse Carleton, jcarleton@nrha.org

Showtime for Endcaps 8 Ways You Can Build World-Class Merchandising

magine for a moment that each of the various types of merchandising around your store have their own personalities. The regular runs of gondolas are the quiet, dependable hard workers who pull in a steady income, day after day. Those impulse displays by the registers are the visionaries, daring your customers to try something new. Endcaps are the divas. They thrive in the spotlight. They’re flashy, fun-loving and want to live in the moment. Personality aside, endcaps function best when you give them a lot of attention. If you’re simply using them as the catchall place for the stuff you don’t have room for somewhere else or if you don’t have any strategy for how you’re using them, you may be wasting one of your most valuable pieces of in-store real estate. Endcaps need to be unique. They need to grab the eyes of every customer who walks into the store. Much like real-life divas, they need to be perfectly dressed and captivate their audience with a flawless performance. Hardware Retailing editors scoured their photo files to find real-life examples of well-constructed endcaps. Use these ideas both to inspire your creativity and refine your skills to create some real showstoppers. Finally, as you’re setting up your endcaps, consider this. While endcaps often sell themselves, employees who know how to work the crowd can sell more. Because the items on endcaps may generate a lot of interest, make sure all employees are properly trained to sell them. To start, you might want to take time during an employee meeting to review all of the endcaps items you’ll be featuring that month. Review product knowledge on featured items and all appropriate add-on sales. To learn more about how profitable endcaps and other types of displays can be for your business, review NRHA’s Merchandising for Profit Study, available at TheRedT.com/merch-for-profit.

HARDWARE RETAILING | February 2018

Meet Your Association

Savor Some Refreshments

YOU’RE INVITED! Enjoy Casual Conversation

Make New Friends

LET US KNOW YOU’LL BE THERE AT NRHACONFERENCE.COM/RECEPTION

2018 NRHA ALL-INDUSTRY CONFERENCE

Show and tell.

Try a bit of elegance.

Go with the season.

Project-based endcaps can remind customers of common seasonal projects and take some of the mystery out of how to do ordinary household repairs, such as fixing a toilet. A good project endcap will have the items needed to start the project as well as some of the add-on items that go with it. “It’s a form of suggestive selling. Instead of a checklist, we’re using a collection of items to help a customer remember what they need for a project,” says Steven Ai, president of the City Mill stores in Hawaii. Ai also finds it helpful to include how-to guides alongside products on endcaps. “The more questions we can answer with the displays, the more we can free up our team members’ time to address the in-depth questions customers might have,” he says.

Michelle Schefter, owner of Langdon Hardware in Langdon, North Dakota, uses a stylish wooden cabinet to merchandise a specialty line of food items. The cabinets accentuate the niche so shoppers will stop and look. They also dress up the area leading into the paint department showroom, designed to attract fashionconscious customers. Whether she’s merchandising an endcap made from a wooden cabinet or traditional metal shelving, Schefter says it’s important to be strategic about the items she places there. “Make sure everything on that endcap makes sense together,” she says. “And don’t let the shelves get empty. If the product count gets low enough, switch it back to its regular place in the aisle.”

Ryan Flaherty, store manager at Balsam Lake Hardware in Balsam Lake, Wisconsin, often themes endcaps seasonally. To make them stand out from the standard hook and pegboard racks, he’s used a wire rack in a few places in the store. The racks are good places to showcase some of the more unusual items the store offers, but they are always arranged around a theme. Careful planning ensures endcaps are always changing and staying fresh. “I recommend brainstorming to make a list for the next few months of endcaps,” he says. “If the same item sits on your endcap for too long, it is no longer effective. People will just walk right by the display and pay no attention to it.”

HARDWARE RETAILING | February 2018

Rotate monthly.

Be crystal clear.

Make it personal.

Having a rotation schedule is one of the basic tenets of endcap maintenance. At Norfolk Hardware of Boston, store manager Kevin Peebles has a schedule that includes rotating each of the 30 promotional endcaps about once a month. But regardless of the schedule, it’s important to change an endcap as soon as product gets low. “One mistake I see some retailers make is letting endcaps go too long with missing products,” he says. “If the shelves are halfway empty and your stock on that promotional item is low, it’s time to switch it out.” Endcaps should follow the three basic rules of merchandising: Keep them full, fronted and faced. An endcap that looks empty or messy sets the tone for the rest of the store. If the endcap is half empty, will the rest of the store look that way, too?

Whatever message you’re trying to send with your endcaps, say it clearly. At Randy’s Do it Best Hardware in Timberville, Virginia, CEO Christian Herrick says making the pricing simple and limiting the SKUs on each display is key. “Our ideal endcap has one SKU and one price,” he says. “Sometimes it makes more sense to have more, but our ideal is one.” It’s also important to avoid confusion by setting the entire endcap all at once. Don’t add the promotional signage and price a few days after putting the product on the shelf. Instead, have a clear message, which will have a better chance of capturing the impulse sale. “I think of endcaps primarily as a way to get customers to buy something they didn’t intend to buy when they came to my store,” Herrick says.

Personalizing your endcaps to your unique business will help set you apart from competitors who go for a more cookie-cutter approach. The endcap headers at Scheels Home & Hardware in Fargo, North Dakota, are custom-made to take shoppers on a trip back in time through the company’s history. Vintage advertisements or historical facts about the company remind customers that Scheels is a locally owned business with a deep connection to the community. But the creative header alone won’t make these endcaps effective. The rest of the display has to follow best merchandising practices. “We try to keep our endcaps focused on seasonal, promotional or newer items, and we limit the number of different items on any one endcap,” says manager Mark Hulbert. February 2018 | HARDWARE RETAILING

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HARDWARE RETAILING | February 2018

Get employees involved. Since they are some of the most visible merchandisers, endcaps also offer the best place for you to show a little creativity. At the Buchheit chain of stores in Missouri and Illinois, employees use endcap toppers to make their stores more interesting and to highlight some of their popular farm and home products. If you want help coming up with ideas, try asking your staff for help. You may be surprised at their creative talent, but be sure they understand the rules of endcap creation. “It’s best to have a set of rules for your endcaps,” Matt Seabaugh, store manager at the Jacksonville, Illinois, location says. “Having rules keeps the store consistent throughout and makes it easier for employees to build and maintain quality endcaps.” For example, establish guidelines for the maximum number of items for each endcap, what should be the price limits and how to incorporate add-on items.

Incorporate add-on sales. Seabaugh says he and his team have found a formula for the ideal endcap. One product that dominates the display, and another product lines the shelf two-thirds of the way up (also known as the bellyband and shown here on the second shelf). At each side, sidewinders are used for cross-merchandising related items. To understand products that work well together, store managers use their POS system. “We have a computer program that will do a basket analysis,” Seabaugh says.“This system helps us determine that when a customer buys a certain item, they are likely to purchase other items. Knowing that information helps us determine the bellyband shelf items and front of the sidewinder items.” He also tracks the endcap performance, which is critical for determining future endcaps. “Tracking sales, turns and gross profit makes tweaking the program from year to year easy,” he says.

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From Dream to Reality Idaho Retailer Uses $100K Prize to Reimagine His Business

HARDWARE RETAILING | February 2018

or one Idaho retailer, betting big in Las Vegas paid off. In May 2017, Robert Lau was on stage at the National Hardware Show®, alongside nine other independent home improvement retailers. Rich Russo, vice president of the National Hardware Show, announced Caribou Jack’s Trading Co. of Soda Springs, Idaho, as the first Reimagine Retail winner and recipient of $100,000 to jump-start an ambitious business plan. A few months earlier, Lau submitted an essay to the National Hardware Show’s Reimagine Retail program, detailing how he’d spend the program’s $100,000 to improve his business. Lau proposed building a farm-to-table restaurant in his home improvement and sporting goods store, wagering that combining the grilling and farming communities in his rural market would be a smart bet that could raise revenue and transform his company’s brand.

Playing to His Strengths Lau says consumables weren’t always a big part of Caribou Jack’s product offering, but after buying the store in 2010 and adding inexpensive and fast-moving impulse items near the cash register, he saw the category’s potential. Soon, Lau started stocking sauces, marinades and rubs, displaying them next to new grills. By 2014, he was beginning to wonder how he could introduce a full restaurant into his operation.

Top: Caribou Jack’s Robert Lau is announced as the first winner of the National Hardware Show®’s Reimagine Retail program. Bottom: Caribou Jack’s in Soda Springs, Idaho, offers a full inventory of grills and consumables, which Lau says are popular with customers.

“I sell as much in barbecue products as I do in lawn and garden supplies,” Lau says. “It’s probably my third- or fourth-largest category and my No. 1 selling product brand features wood-fired grills and smokers.” Without reducing the importance of his core home improvement categories, Lau’s winning submission reimagined Caribou Jack’s as a community gathering point, a place where DIYers could collect everything they needed for a weekend project, contractors could make large-scale inventory orders and a farm-to-table restaurant would serve everyone delicious, locally sourced fare.

February 2018 | HARDWARE RETAILING

Lau’s timing couldn’t be better. The American Culinary Federation recently surveyed 700 of its members to learn what those chefs saw as the top food trends of 2018. Hyper-local food topped the list, thanks to the fact that many customers see locally sourced produce and meats as a delicious guarantee of quality.

Lau says The Barn was the first step toward his goal of building a farm-to-table restaurant. This early photo shows the beginning of The Barn’s foundation.

Building a Dream After winning, Lau and the Caribou Jack’s team began working to make their dream a reality. The first step was constructing a storage shed Lau calls The Barn that could withstand brutal Idaho winters, while keeping inventory safe and dry. Building The Barn would clear space within Caribou Jack’s for the restaurant. To make it all work, Lau and his team needed to totally reset the store, moving nearly every department in the process. “Resetting a store is no fun. It’s hard work for everyone, and we’re a small store, but it was totally necessary. Now the store flows better, but it took a lot of manpower to get it done,” Lau says. When he purchased Caribou Jack’s in 2010, Lau became the sixth owner since the business began as Gagon Lumber in 1870. His roots in the community run deep; his great-great-grandfather helped settle the town nearly a century ago. Even with a sudden influx of cash, Lau wanted to stick close to the business’s history as he redesigned the store.

A Gracious Winner The Winning Moment So, what’s it like to have your business win a $100,000 investment on a Las Vegas stage? “Time kind of slows down for a second,” Lau says. “I remember Rich Russo warning us not to stand too close to a confetti cannon, but I must have backed up, and all of a sudden, confetti hit me right in the back.” Lau’s wife Elizabeth was recording the program on her phone, and when their business was announced as the Reimagine Retail winner, she dropped the phone in excitement. As the shock wore off, Lau had a clear focus: congratulating the nine other finalists. “They put in some awesome submissions of their own,” Lau says. “I wanted to make sure they knew how much I appreciated their ideas. The more we as retailers share with each other, the better we’re all going to be.”

What’s Your Idea? Reimagine Retail is looking for the next big idea in hardware retailing. For more information on 2018 program rules and to apply online, visit nationalhardwareshow.com/reimagine-retail.

HARDWARE RETAILING | February 2018

Idaho retailer Robert Lau (second from right) brought his whole family to the 2017 Reimagine Retail program, which took place during the 2017 National Hardware Show® in Las Vegas.

“When I started my designs, I wanted to highlight the types of architecture my ancestors would have built,” Lau says. “At the same time, I wanted to create a modern feel. It has some modern features, but it’s still very true to its roots in Soda Springs. We worked with PPG Paints to choose historically accurate colors for the interior, too.” Construction hit a small snag in late August 2017. Lau’s concrete supplier sent a mix intended for outdoor use to serve as the foundation of The Barn. Within hours of being poured, small holes rippled throughout the foundation, but Lau says the concrete company was quick to correct the problem. He believes the issue taught him and his team the importance of clear communication every step of the way. According to Lau, the biggest challenge in the journey to make his business dream a reality is ensuring he sticks to his budget. “It sounds ludicrous, but $100,000 doesn’t go as far as you think when you’re building a restaurant,” Lau says. “My biggest obstacle is figuring out how to effectively manage those dollars.” To save money, Lau, his sons, their friends and the Caribou Jack’s team are completing as much of the construction work as they safely can. By December, Lau and his crew were jackhammering concrete after the last customers of the day had left, clearing space for plumbers to install the components to run a restaurant within the building. He’s working in tandem with the Caribou County health department to make sure his new venture is up to code. “After that, we have some walls to build to divide the kitchen from the actual store,” Lau says. “The flow will be similar to a Subway restaurant. You’ll come in and make your order in one section, then move along and add toppings along the way,” Lau says. Lau says the still-unnamed cafe will smoke beef, pork, turkey and chicken each day. He’ll serve as head chef, shredding the meat and offering it as sandwiches, with salads or on baked potatoes with a selection of sides like macaroni and cheese. He’ll use locally sourced ingredients and hopes to grow his own produce on-site within the next three years. The National Hardware Show and Traeger Grills have provided guidance throughout the process, Lau says. Traeger introduced him to chefs who suggested recipes to refine the restaurant’s menu. Beyond the cash, Lau says the National Hardware Show has believed in his store and its cafe concept at each point in the process. In the first weeks of 2018, the store was ready for electricians and plumbers to start their work. Lau hopes the restaurant will have its grand opening in early April to coincide with warm weather and the start of the grilling season. He plans to invite all the vendors and workers who helped make his Reimagine Retail dream possible.

Top: Caribou Jack’s underwent a total store reset and major construction to be able to support an in-store eatery. Bottom: Lau says Traeger Grills are his top-selling product brand, which gave him the confidence to build a restaurant within his hardware store.

February 2018 | HARDWARE RETAILING

5 Features to Gear Up for at the National Hardware Show® At the 2018 National Hardware Show® in Las Vegas, visitors will have access to the tools they need to help their operations excel. From new buying opportunities and unique merchandising solutions to industry insights and networking opportunities, it’s one of the industry’s leading events, offering something for all independent retailers.

Plan to attend the National Hardware Show this year May 8-10 in Las Vegas. Visit nationalhardwareshow.com for registration information, events and speakers. Here are five of the top things to look forward at this year’s event. Stay tuned to Hardware Retailing for more sneak peeks leading up to the show.

15 Product Categories

The National Hardware Show includes 15 separate product categories to help retailers find the latest products their customers will love. Whether you’re looking to bolster your building products selection, pamper pet owners or energize eco-friendly shoppers with new products, you’ll find exactly what you need on the show floor.

Thousands of Exhibitors In 2017, the National Hardware Show welcomed more than 2,600 exhibitors. Ranging from well-known manufacturers to emerging innovators, these exhibitors bring new products that can engage your customers and set your business apart. Attend this year’s National Hardware Show to see upcoming trends before anyone else.

Reimagine Retail 2018

In 2017, Robert Lau walked away with a cool $100,000 to fund his business improvement project, but who will follow in his footsteps? For more information on the program and to submit your business improvement project for the 2018 program, visit nationalhardwareshow.com/reimagine-retail.

Sunny Las Vegas When you’re finished exploring the National Hardware Show, you can kick back with the sights and sounds of Las Vegas. From world-class cuisine to stellar shopping, constant warm weather and thrilling nightlife, Las Vegas offers show attendees a full spectrum of entertainment options.

NRHA All-Industry Conference

5 92

Held in conjunction with the National Hardware Show, the North American Retail Hardware Association’s All-Industry Conference arms independent retailers with dynamic data and informative resources. From industry insight delivered by retail experts to can’t-miss keynotes, NRHA’s All-Industry Conference puts independent retailers’ needs first.

HARDWARE RETAILING | February 2018

Getting Out of the Rut Even with a few construction challenges, Lau hasn’t lost focus of his goal of establishing Caribou Jack’s as a one-of-a-kind retail destination. “Trends are now suggesting that maybe buying things online isn’t going to be the only path forward, especially with studies showing millennials want brick-and-mortar experiences,” Lau says. “As retailers, we have to get out of our ruts and try new things: new merchandising, new types of events to get people to visit our stores. That’s where I’m putting my money.”

“Hopefully whoever wins in 2018 is in the same boat I was. I hope it’s someone who has a vision and a goal, but just hasn’t found a way to get there.

”

—Robert Lau, Caribou Jack’s

Lau says he’s drawing business inspiration from a surprising source: young adult clothing store Urban Outfitters. “They bought an upscale pizza chain,” Lau explains. “When people asked why they bought it, they said it’s the same demographic they already serve. By trying something new, they think they can create a deeper relationship with their customers, and I think that’s absolutely true.” Lau’s original Reimagine Retail submission also included the creation of a Caribou Jack’s smartphone app that would allow customers to book the restaurant for parties and community meetings. Lau says the construction phase has temporarily diverted his attention from the app, but he plans to return to it after the cafe opens. Lau says he hopes the winner of this year’s Reimagine Retail will be ready to hit the ground running. “Hopefully whoever wins in 2018 is in the same boat I was,” Lau says. “I hope it’s someone who has a vision and a goal, but just hasn’t found a way to get there.”

Lau says The Barn, a structure he built with a portion of his Reimagine Retail funds, will house inventory and free up space within Caribou Jack’s for the forthcoming eatery. Lau will soon add signage and complete the front porch roof.

February 2018 | HARDWARE RETAILING

NRHA Foundations of Leadership Program This online program is a 16-week introductory leadership course designed to teach employees who are new to management about key concepts of leadership and personal development.

Who should attend?

What will they learn?

How do you benefit?

• Employees who are new to management or are looking to improve basic leadership skills. • Ideal for new store managers, assistant managers and supervisors who want to build better, more engaged teams.

• Leadership styles through several assessment tests and how to develop leadership skills based on those styles. • Best practices in communication and problem-solving and how to build and develop teams.

• Stronger teams, which improve employee retention and reduce turnover. • Managers participate online while still maintaining day-to-day duties. • Employees who are better able to lead and manage others.

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NRHA Retail Management Certification Program This six-month college-level program is designed to teach key employees, future owners and new owners industry-focused business practices across all areas of running and operating a retail hardware, lumber or home improvement business.

Who should attend?

What will they learn? How do you benefit?

Whether you have employees just starting their leadership journey or someone you’re ready to hand the business over to, NRHA has a program that’s right for your business goals.

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Retail Leadership Institute

Newsmakers

It’s Time to Address Workplace Harassment

Upcoming Events February 1-3 House-Hasson Spring Market Nashville, Tennessee

9-11 Monroe Hardware Spring Market Myrtle Beach, South Carolina

10-12 True Value Spring Reunion Washington, D.C.

17-18 Florida Hardware Spring Market Orlando, Florida

22-24 Orgill Inc. Spring Dealer Market Orlando, Florida

March

any breaking news headlines over the past year have highlighted a problem that can happen in any business or industry: workplace harassment. While the Hollywood elite and CEOs of major corporations have been in the spotlight, employees across many industries are reclaiming their power at work as well, shedding light on mistreatment through social media and blogs. With the frequency of these reports in mind, every business must take harassment seriously. To ensure that you, your business and your employees are all on the same page, it’s important that you not only consider legal compliance but also focus on educating your team members and fostering a safe work environment. For a better understanding of how retailers can be proactive, Hardware Retailing spoke to Patti Perez, vice president of workplace strategy at Emtrain, a company that strives to create healthier workplace cultures. However, this article is not meant to provide legal advice. If you have concerns about policies and procedures, you should always check with a legal professional. Hardware Retailing (HR): Can you tell us about your background in this topic? Patti Perez (PP): Prior to working for Emtrain, I was a licensed California attorney conducting workplace investigations for my clients, who were employers. I am a professionally certified human resources executive, and I’m a specialist in the prevention and resolution of workplace drama, an expert witness in state and federal court and a state regulator. I want to create a shift in the way people communicate and make decisions at work. HR: Can you define workplace harassment? PP: I get this question a lot, and I describe harassment in two ways. One is with a capital ‘H’ and the other is with a lowercase ‘h.’ Both make for a toxic work environment, but only the capital H has legal ramifications. However, it’s necessary to prevent and address any type of harassment, even if it’s not illegal.

HARDWARE RETAILING | February 2018

4-7 International Hardware Fair Cologne, Germany

8-10 Hearth, Patio & Barbecue Expo 2018 Nashville, Tennessee

10-13 International Home + Housewares Show Chicago

15-17 Ace Hardware Spring 2018 Convention & Exhibits Dallas

23-24 Blish-Mize Spring Buying Market Overland Park, Kansas Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

In order to avoid illegal harassment, you need to constantly be training on and tackling the forms of harassment that aren’t technically illegal head-on. There are two forms of illegal harassment. One is called quid pro quo, which is a ‘this-for-that’ situation that deals with sex or sexual favors that features a distinct power dynamic from leader to employee. The other more common form of illegal harassment is a hostile work environment. This doesn’t have to be about sex, but harassment targets one or more protected characteristics, including race, religion, gender, age and disability, among others. At the baseline, any behavior that someone finds offensive should be addressed. In order to avoid illegal harassment, you need to constantly be training on and tackling the forms of harassment that aren’t technically illegal head-on. HR: What should an owner or manager understand about harassment? PP: They need to be aware of what the law says and what it doesn’t say. While a company should be vigilant about appropriate, respectful behavior from every level of the organization, from both a business perspective and legal perspective, more is expected of supervisors. As leaders, they need to be well-behaved and serve as role models and resources for their employees. All parties should train on and discuss this topic, but leaders in the business have more expectations and legal ramifications. This varies from state to state, so they should consult a lawyer to be aware of the specific laws they need to know. The goal through all of this, however, is not to scare managers and employees into behaving well, but to educate the team how to be more empathetic and realize how to act. The law is just the floor, not the ceiling. Don’t violate the law. Company culture shouldn’t be to just comply with the bare minimum, but to be respectful all around. HR: What training should employers implement to address and prevent harassment? PP: At Emtrain, we encourage all employers to provide education and training for everyone, not just their high-level management. In the past, training on this topic has only emphasized providing training and awareness to owners or managers of a business. I find that this is because an employer thinks if they educate employees on this topic, they could turn around

and sue them. However, I believe educating on harassment will do the opposite. A more informed team of employees knows their rights and responsibilities, and by seeing that the business they work for is committed to preventing and stopping these issues, there is a better chance the employer and management will be made aware of issues right away. This process ensures any inappropriate behavior or actions from others are handled when it’s at a 1 instead of a 9. While an employment lawsuit is bad, repercussions on the business could be worse. If there isn’t an open forum for employees to voice their concerns, there is a greater chance they will take their problems to social media, blogs or even to the press. To keep it top of mind, however, quick check-ins and follow-up questions and answers can make a big difference as well. HR: Why should a retail operation have an open dialogue about workplace harassment? PP: The emphasis has previously been about training only owners and managers, because the employer is worried an employee will sue them in the case of harassment. However, it’s the opposite. More informed employees who are committed to these issues will address a problem as soon as it happens instead of letting something get out of control. In my organization, we stress in-house training, whether it’s a live training seminar or an online format. However, training is just a small piece of a large puzzle. As a continuation, I encourage micro-learning sessions to keep all employees on the same page. I also encourage all employers to look at this conversation as an opportunity to make certain they are complying with the law, and in turn, create a healthier workplace culture. No matter who an employee is, make them feel welcome. This is the best decision you can make. If you have created a productive, engaged workplace, the better off you are as an employer. I recommend that those employers who provide training in harassment have a meeting with the entire company present. This method assures employees that the high-level people in the company want to know if there are issues and that everyone should be treated with respect.

Patti Perez Vice President of Workplace Strategy Patti Perez is a certified human resources executive specializing in workplace harassment at Emtrain, a company that creates healthier organizations through online compliance training, expert guidance and data analytics. Learn more at emtrain.com.

February 2018 | HARDWARE RETAILING

Newsmakers The Latest on Home Depot’s Business Acquisitions

Going Private Is Not a New Suggestion for Sears

Former Ace Chain Owner C. Jay Buikema Dies at Age 78

The Home Depot made deals to buy two businesses during the second half of 2017, eyeing opportunities for future growth online and in its brick-and-mortar locations. TheRedT.com/hd-acquisitions

A shareholder recently released a letter asking the retailer “to form a board to look after shareholders, to temporarily suspend short-selling in Sears’ stock, and to evaluate strategic alternatives that include going private,” CNBC reports. TheRedT.com/sears-private

C. Jay Buikema, longtime owner and CEO of Buikema’s Ace Hardware stores in Illinois, died Dec. 5. TheRedT.com/jay-buikema

Amazon, Walmart Online Prices Closer Than Ever A new study from financial data firm Market Watch finds that Walmart and Amazon’s online prices are closer than ever, Business Insider reports. TheRedT.com/amazon-walmart-price

Sears Takes DieHard Auto Parts to Amazon Sears Holdings has taken another aspect of its business to Amazon, announcing it will sell DieHard auto products on the e-commerce site, according to the company. TheRedT.com/sears-diehard

Carr Hardware Wins National Retail Contest Independent We Stand awarded its seventh annual Independent Small Business of the Year award to Pittsfield, Massachusetts-based Carr Hardware. TheRedT.com/iws-carr-hardware

Home Improvement Retailer Busy Beaver Expands Pittsburgh-based home improvement retailer Busy Beaver has announced plans to open five new locations in 2018, the company reports. TheRedT.com/busy-beaver

Target Buys Grocery Delivery Company Shipt

Menards Plans to Build Robotic Warehouse

Target has purchased delivery startup Shipt Inc., a deal which will enable the retailer to complete same-day deliveries from about half of its 1,800 stores by summer 2018, according to Bloomberg. TheRedT.com/target-shipt

Menards has announced plans to construct a new warehouse that will incorporate a 60-foot-tall robotic system to speed up delivery times and cut operating costs. TheRedT.com/menards-robots

Home Depot Readies $15B Share Buyback During its 2017 Investor and Analyst Conference, Home Depot’s board of directors announced plans to initiate a $15 billion share buyback program, according to Reuters. TheRedT.com/hd-buyback

Attorneys: Lumber Liquidators’ $36M Settlement Excludes the Injured Attorneys representing people who say chemicals from Lumber Liquidators flooring made them ill claim a new settlement, valued at $36 million, excludes their clients. TheRedT.com/lumber-settlement

174 Million Consumers Shopped Over 2017 Holiday Weekend More than 174 million Americans shopped in brick-and-mortar stores and online, beating the original estimate of 164 million shoppers. TheRedT.com/holiday-shoppers

CANADA Home Depot Buys Bedding and Bath Company The Home Depot recently announced its acquisition of Wisconsin bedding and bath business The Company Store. TheRedT.com/hd-company-store

Walmart Makes Official Name Change to Reflect Modern Retail The company has legally changed its name from Wal-Mart Stores Inc. to Walmart Inc., effective Feb. 1. TheRedT.com/walmart-official

Lowe’s Names First Chief Digital Officer

Encouraging Trades, Training Among Topics at Women’s Leadership Roundtable

Vikram Singh will serve as Lowe’s Cos. Inc.’s senior vice president and its first chief digital officer, according to the company. TheRedT.com/lowes-cdo

The North American Retail Hardware Association (NRHA) hosted its second annual Women’s Leadership Roundtable in Chicago on Dec. 6. TheRedT.com/womens-roundtable

HARDWARE RETAILING | February 2018

Orgill Names New District Manager for Western Canada Orgill Inc. recently promoted Colin Carey to the position of district manager for western Canada. In his new position, Carey will support Orgill customers throughout British Columbia, Alberta, Saskatchewan and Manitoba. “Colin is well-known throughout the industry, has spent almost two decades in management and is passionate about helping retailers find ways to take their operations to the next level,” says Erik Schlaud, Orgill’s vice president of dealer sales in Canada.

RONA Recruits 6-Store Chain in Ontario Doidge Building Centres Ltd. and Mahood Lumber Co. Ltd., which collectively are part of the Doidge TIMBER MART family of stores, have joined RONA. The company operates six locations in Ontario, and all locations serve a mix of retail and contractor customers. Company owner Dennis Doidge cites a desire to make improvements to the stores’ e-retail, marketing and branding as motivations behind the change.

An Industry Legacy: Alan Schoemperlen Retires From Castle After 17 years with the company, Alan Schoemperlen retired from Castle Building Centres Group at the end of 2017. During his tenure, he served as business development

manager for Castle’s western business, traveling wester Canada often. Within his first year with the company, western membership increased from 29 to 40 dealers. Through his nearly two decades with Castle, Schoemperlen forged strong loyalties among retailers in that area.

customers are typically rural or embrace the rural lifestyle, and 50 percent of them live outside urban centers. Peavey Industries now operates 91 stores in five provinces.

Peavey Integrates Strategy and Online Sales With TSC Acquisition in Ontario

Home Hardware Stores has been recognized as one of Canada’s Most Trusted Brands for hardware stores in Canada as BrandSpark International has unveiled its 2017 Most Trusted Award recipients. BrandSpark researchers analyzed the responses of more than 5,000 participants and their reasons for trusting the retailer or service.

Peavey Industries is in its sweet spot: The farm and hardware retailer has seen the sector grow over the past several years and has been evolving to maintain its position as a key retail presence. The company, based in Red Deer, Alberta, operates stores under the Peavey Mart banner. Through an ongoing acquisition process, the company now has TSC Stores in Ontario under its umbrella. Peavey

Home Hardware Named Most Trusted Hardware Store Brand in Canada

For the full story of these briefs, visit hardlines.ca/hardwareretailing.

AD INDEX Ace Hardware Company ......................................... 1 www.myace.com; 630-990-6900

IPG.............................................. French Door Cover www.itape.com; 888-898-7834

NRHA Young Retailer of the Year...........................101 www.nrha.org/yroty

Ajax Wire Specialty Co.......................................... 86 www.ajaxwire.com; 855-966-2529

Iron&Oak............................................................... 70 www.ironandoak.com/HRM; 866-281-4509

Old Masters .......................................................... 79 www.myoldmasters.com; 800-747-3436

Allway Tools ....................................27, 29, 31, 33, 55 www.allwaytools.com; 800-422-5592

Jrco....................................................................... 30 www.jrcoinc.com/HRM; 866-537-6216

Orgill Inc. ......................................................102-IBC www.orgill.com; 800-347-2860

Ancra International/S-Line ............................... 39, 57 www.ancracargo.com; 800-626-8353

Kissler & Co. Inc. .................................................. 71 www.kissler.com; 800-KISSLER

Paladin Data Corporation................................. 11, 67 www.paladinpointofsale.com; 541-803-6060

Brave..................................................................... 61 www.braveproducts.com/HRM; 866-281-4421

Koelnmesse Inc. ................................................... 60 www.eisenwarenmesse.com; 773-326-9925

PRO Hardware ................................................. 40-41 www.prohardware.com; 303-792-3000

Delta Faucet Company......................................... IFC www.deltafaucet.com; 800-345-3358

Lifetime.................................................................BC www.lifetime.com; 801-882-1326

Radia ..................................................................... 35 www.radiaproducts.com; 800-221-1083

Diversey................................................................ 56 www.diverseybrands.com; 980-221-3235

Lumax ................................................................... 26 www.lumax.com; 844-660-6876

Red Devil ................................................................ 9 www.reddevil.com; 800-423-3845

Do it Best Corp. ...................................................... 7 www.independentsdoitbest.com; 888-364-8237

Mars...................................................................... 37 www.marsdelivers.com

Rust Patrol ....................................................... 62-63 www.rustpatrol.com; 713-400-3100

Dosko.................................................................... 87 www.dosko.com/HRM; 866-418-0474

Master Magnetics Inc. .......................................... 59 www.magnetsource.com; 888-293-9190

SureCan ................................................................ 18 www.SureCanUSA.com; 801-827-0500

ECI RockSolid MAX ......................................... 72-73 www.ecirocksolidmax.com; 800-588-5128

Maxim................................................................... 19 www.maximmfg.com/HRM; 888-376-0849

True Value Company....................................... 15, 17 www.truevaluecompany.com; 888-291-7229

Fiskars Brands Inc............................................. 3, 45 www.fiskars.com; 866-348-5661

Metaltech Scaffolding ........................................... 81 www.metaltech.co; 800-363-7587

Wastequip ............................................................... 80 www.toter.com; 800-424-0422

Flame Engineering ................................................ 78 www.flameeng.com; 800-255-2469

Mi-T-M Corporation............................................... 32 www.mitm.com; 800-553-9053

Watcher Total Protection........................................... 5 www.watcherprotect.com; 877-289-2824

Howard Products Inc. ........................................... 58 www.howardproducts.com; 800-266-9545

Midwest Fastener............................................ 12-13 www.fastenerconnection.com; 800-444-7313

Wet & Forget.............................................. Belly Band www.wetandforget.com; 888-727-8524

HSI................................................................... 50-51 www.hardwaresuppliers.com; 800-334-5625

NRHA All-Industry Conference ....................................... 83 www.nrhaconference.com/reception

Woodland ................................................................ 28 www.pinecar.com; 573-346-5555

Hy-Ko Products Co................................................ 38 www.hy-ko.com; 800-896-7890

NRHA Retail Leadership Institute......................... 94-95 www.nrha/rli.com

Wooster Brush Company .................................. 21, 75 www.woosterbrush.com; 800-392-7246

Imperial Blades ................................................ 22-23 www.imperialblades.com; 608-204-0019

NRHA Business Services....................................27, 29, 31, 33 www.nrha.org//business-services

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

February 2018 | HARDWARE RETAILING

Last Word

Why Merchandising Matters

aintaining your store’s merchandising is hard work. It requires constant attention to detail and usually a little creativity. From time to time in the pages of Hardware Retailing, we offer some of the best practices and tips for improving your merchandising. This month, for example, you can read the story on endcaps on Page 82.

As your days get busy, you may think it’s simpler to let some of your good merchandising habits slide. Resist the urge as if your business depends on it. Good merchandising helps improve your profitability, so it’s important to make sure your store looks its best. Here are four reasons why you shouldn’t ignore this part of your business.

Customer Satisfaction Customers want to find what they need easily and quickly. Good merchandising helps organize the store and suggests additional sales, improving the shopping experience. For example, cross-merchandising puts project-related items together so customers can easily find everything on their lists. When customers feel as if your store is easy to shop, they will return, again and again.

Improved Price Image There’s a common perception among consumers that independent retailers have high prices. But it’s no secret that even discount retailers use variable pricing combined with merchandising techniques to produce their low-priced image. For example, dump bins and pallet displays are two techniques that reinforce a low price image. If customers see an ample supply of a discounted item, they might assume that the rest of the store has good prices too.

More Profitable Salesfloor Merchandising can influence many measurements of retail productivity, such as sales per square foot or gross margin per square foot. For example, strategic product placement on a checkout counter can suggest impulse purchases, which will improve transaction size. Good merchandising techniques teach you how to create a store that doesn’t appear crowded, but doesn’t waste space either.

Productive Employees If good merchandising helps customers easily find what they need, then they won’t need to spend as much time asking for directions when they come in your store. Of course, you want to be willing to help, but your employees would rather spend more time helping customers solve home improvement problems than directing traffic. Maintaining merchandising will make your employees’ jobs more rewarding for them, too.

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HARDWARE RETAILING | February 2018

“These are the innovators, these are the people who are taking their businesses to the next level.”

James Cabirac | Kief Hardware | Cut Off, Louisiana | Two-Time Honoree

LEARN MORE OR SUBMIT A NOMINATION TODAY AT NRHA.ORG/YROTY.