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Hardware Retailing March 2018

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Serving Hardware, Home Center & Building Material Retailers

Ready to Roll

Make Customer Service a Priority in Your Paint Department 62 How You Can Compete in Amazon’s World 44

VOLUME 214 • ISSUE 3 • MARCH 2018 • HARDWARERETAILING.COM

Special Events Got You Scared? Follow This Guide 74


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A History of Success Orgill is an Important Member of Our Team!

“We know Orgill can help us find anything we’re looking for, and everything our customers need.” Rusty Flamm l Rusty’s Home Center, Illinois l An Orgill customer since 1996 Family Business

Easy Access

“Rusty’s Home Center began with two people. Our

“Orgill brings such a vast array of merchandise and large

employees are like family, and Orgill is part of that family.”

Staying Stocked “When the industry was in a decline, our competition

variety of vendors to the table. We know Orgill can help us find anything we’re looking for, and everything our customers need.”

slowed down, but we stepped up. It was thanks to Orgill

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For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017

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9 Top Categories

Newer Than New

The National Hardware Show® knows what drives the home improvement industry, so it gathers vendors across nine categories, from traditional hardware to what’s trending in pet products, homewares, outdoor living and more.

If you’ve ever wanted to know what’s cooking in the industry, this is your chance to see it first. Inventors Spotlight provides opportunities for vendors to debut new products and new vendors to enter the market.

Around the World

Outdoor Fun

Take a trip in the International Sourcing Area on the show floor to see what trends are on the rise outside the U.S. and Canada. Explore international cultures in the home improvement industry to gain a new perspective.

There is always a feast of products and treats in the Tailgate, Backyard and Barbecue area. If you’re craving some Las Vegas sunshine and burgers hot off the grill, take a stroll and do some product research, too.

What will you find? The North American Retail Hardware Association (NRHA) All-Industry Conference is held in conjunction with the National Hardware Show®. This event combination means you benefit from independent-specific educational and networking opportunities and tens of thousands of the latest home improvement products right at your fingertips. Discover the unexpected, May 8-10 in Las Vegas.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

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2018 NRHA ALL-INDUSTRY CONFERENCE 2/14/18 9:49 AM

VOLUME 214 • ISSUE 3 • MARCH 2018 • HARDWARERETAILING.COM

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Serving Hardware, Home Center & Building Material Retailers

Save Money on Payment Services and Technologies Credit card processing and payment services can be pricey for small businesses. Working with Clearent Intelligent Processing, the North American Retail Hardware Association has an affordable solution.

Consider this option. A Retailer-Focused Program Clearent offers business owners low processing fees and access to the newest technology. Customers can tap into cutting-edge services like EMV chip card processing, mobile checkout and more.

“Having a cost-effective and reliable credit card processing solution is important. Clearent provides options that are highly worth considering for an independent home improvement business owner.” Dave Gowan | Vice President of Finance and Business Services | NRHA FOR MORE INFORMATION, VISIT CLEARENT.COM/NRHA

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Reduce Employee Turnover

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Make Customer Service a Priority in Your Paint Department 62

When you invest in training your employees, you show them that they are valued members of the team, which improves their job satisfaction and loyalty to your business.

How You Can Compete in Amazon’s World 44 Special Events Got You Scared? Follow This Guide 74

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FOR MORE INFORMATION, GO TO NRHA.ORG/TRAINING


MARCH SPONSOR Bring your ideas to the table. NRHA creates opportunities for conversations between independent home improvement retailers of all affiliations and sizes, so you can share your ideas and learn new ones from a variety of industry professionals.

Get involved. Take the first step. NRHA offers topic-focused roundtables, educational conferences, events and retail management programs. With dozens of options and ways to engage, you can explore what’s most important to you. Regardless of how involved you are, your voice matters.

We’re stronger together. “We are all facing the same issues, and working together is going to make us, and our industry, stronger.” Scott Jerousek | Farm and Home Hardware | Wellington, Ohio JOIN US TODAY AT NRHA.ORG/MEMBERSHIP


Serving Hardware, Home Center & Building Material Retailers

Ready to Roll Make Customer Service a Priority in Your Paint Department 62 How You Can Compete in Amazon’s World 44

VOLUME 214 • ISSUE 3 • MARCH 2018 • HARDWARERETAILING.COM

Special Events Got You Scared? Follow This Guide 74


MARCH SPONSOR Bring your ideas to the table. NRHA creates opportunities for conversations between independent home improvement retailers of all affiliations and sizes, so you can share your ideas and learn new ones from a variety of industry professionals.

Get involved. Take the first step. NRHA offers topic-focused roundtables, educational conferences, events and retail management programs. With dozens of options and ways to engage, you can explore what’s most important to you. Regardless of how involved you are, your voice matters.

We’re stronger together. “We are all facing the same issues, and working together is going to make us, and our industry, stronger.” Scott Jerousek | Farm and Home Hardware | Wellington, Ohio JOIN US TODAY AT NRHA.ORG/MEMBERSHIP


Serving Hardware, Home Center & Building Material Retailers

Ready to Roll Make Customer Service a Priority in Your Paint Department 62 How You Can Compete in Amazon’s World 44

VOLUME 214 • ISSUE 3 • MARCH 2018 • HARDWARERETAILING.COM

Special Events Got You Scared? Follow This Guide 74


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THE TOOLS TO BUILD YOUR DREAM, YOUR WAY

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. Vendor Partners:

That’s the power of independence. Learn more about the PRO Hardware program by contacting Shari Kalbach, Vice President, 303.792.3000 or shari.kalbach@pro-group.com. Find us online at www.prohardware.com PRO HARDWARE DISTRIBUTORS: 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


Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

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 SOCIAL MEDIA LINKS

@NorthAmericanRetailHardwareAssociation @NRHA_Official North American Retail Hardware Association nrha_official HEADQUARTERS STAFF

ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter

MULTIMEDIA DESIGNER Graeme Haase GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

MEMBER SERVICES

CIRCULATION

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

CIRCULATION DIRECTOR Richard Jarrett

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665

SALES/NRHA VENDOR PARTNER

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

3

PRODUCTION SERVICES

SALES AND PRODUCTION ASSISTANT Freda Creech

EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org

2

SENIOR DESIGNER Lynnea Chom

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

RETAIL LEADERSHIP INSTITUTE

1

PROFILES EDITOR Renee Changnon

PRODUCTION MANAGER Nancy A. Vondersaar

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

Now that the 2018 North American Retail Hardware Association (NRHA) All-Industry Conference is right around the corner, there are a few reasons we’re on the edge of our seats.

FEATURES EDITOR Melanie Moul

PRESIDENT AND CEO Bob Cutter

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

4 Reasons NRHA Is Ready

4

Meeting people like you. We connect with retailers all year. What we love about our conference is that it brings retailers together, regardless of wholesaler or business size. Stellar presentations. Event speakers will deliver actionable info you can take home. Have a seat in the NRHA Village, the home of the conference, and take it all in. Two words: photo booth. We can’t wait to see your smiles! Grab a friend and strike a pose in the NRHA Village to capture your favorite conference memories. Social media ramp up. This year, we’re growing our social media coverage of the conference, keeping you tuned in to all the highlights, wherever you are.

Find out what else is on tap for the event at nrhaconference.com. If you’re already registered for the National Hardware Show®, you’re all set to attend!

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

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.

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HARDWARE RETAILING | March 2018

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


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Contents MARCH 2018 | VOLUME 214 | ISSUE 3

82 PROFILE

Finding Inspiration in Community Learn how McGuckin Hardware in Boulder, Colorado, draws inspiration from customers, employees and the mountain air to make unique connections with community members across several social media platforms.

90 PROFILE

62

A New Hardware Haven After nearly a century of business in Marcus, Iowa, Marcus Lumber has reinvented its presence with inspiration from another independent retailer—Hartville Hardware. The family business recently completed an addition and store remodel with hopes of becoming a retail destination that customers are willing to travel out of their way to visit.

CATEGORY SPOTLIGHT

Paint Yourself Out of the Corner

One of the easiest home improvement projects someone can make that will have a big impact on their living space is a fresh coat of paint. Discover how you can address the needs of DIYers and professionals who come to you for the latest tools and color mixes to ensure the finished space is on point.

56 MARKETING

On the Campaign Trail Managing a marketing campaign that is cohesive and delivers results can be challenging for someone new to the process. This guide breaks down the best practices for launching a campaign that boosts your brand and brings customers in the door. 4

HARDWARE RETAILING | March 2018

From the Capital It’s important to be knowledgeable about legislative issues that may affect your operation. This report offers insights into the U.S. tax system for online retailers, businesses large and small and everyday citizens.

Departments

44 RESEARCH

How Can You Compete Online? It’s important to put your business in front of customers online, but as independents, how can you compete against e-commerce giants? We dug into the data to see what customers want, and we talked to retailers to hear the strategies that work for them. Learn how retailers are setting themselves apart, one click at a time.

96 LEGISLATIVE REPORT

25 74 OPERATIONS

The Life of the Party There are a lot of moving parts when hosting an in-store event, so make sure you have carefully planned every detail. Find out how to draw customers into your business through in-store events, while at the same time saving a little cash.

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 22 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . . New Products 36 . . . . . . . . . . . . . . . . . . Checkouts 98 . . . . . . . . .Newsmakers/Calendar 102 . . . . . . . . . . . . . . . . . Last Word

On the Cover Tim Doehrmann combined the forces of Tim’s Ace Hardware and Interiors Roecker’s in Peoria, Illinois, to get into paint . NRHA photo by Kelsey Truex


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On the Web

EXPERT INSIGHT

Tips From an Event Planning Expert What does it take to plan large-scale events? NRHA event manager Katie McHone-Jones shares details and offers advice to help you work through planning your own events at TheRedT.com/event-planning.

PROFILE

Industry Retailer Makes It Big on Facebook In a matter of days, Triangle True Value Hardware in Greenwood, South Carolina, grew its number of Facebook page Likes from 800 to 35,000. To learn what made this business go viral, visit TheRedT.com/glitter-paint.

PRODUCTS

TRAINING

What’s Trending in Paint This Year? Get a look into the hottest new paint colors with this trend roundup at TheRedT.com/colors-2018. Take a look at the colors you can add to your paint department to make it a must-visit destination for customers.

Taking Leadership Development to the Next Level It’s time to get serious about career advancement for your next-generation family members and key employees. Get an inside look at NRHA’s Retail Management Certification Program at TheRedT.com/rmcp-fall-2017.

Go to nrha.org/colors-2018 to access a free downloadable tool you can use to introduce your employees to the new 2018 colors.

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HARDWARE RETAILING | March 2018

This series of quick lessons on topics such as selling skills, merchandising, product knowledge and operations is made for all employee levels. Visit nrha.org to see what’s available and to download lessons. Prepping for Spring Selling This month, NRHA will release a video with retailer tips on how to have a successful spring selling season. Use this and other lessons to refresh your employees’ selling skills and product knowledge on some of the season’s most popular projects.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail


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Independent Thinking

Learning and Growing Together

O

“As quality

employees become harder to find, developing the ones you already have becomes paramount to your success.

”

ne of the primary roles of any trade association is to associate, to bring its constituents together to discuss business issues and learn from each other. At the North American Retail Hardware Association (NRHA), we help independent home improvement retailers associate in a number of ways, primarily through the programs and initiatives of the NRHA Retail Leadership Institute. The Retail Leadership Institute is an initiative by independent retailers to develop programs focused on providing educational and networking opportunities that strengthen owners, managers and key employees and fill a need in our industry. It currently includes a variety of educational and working programs, including: • NRHA Retailer Roundtable series (launched in 2012) • NRHA Retail Management Certification Program (launched in 2013) • NRHA Foundations of Leadership Program (launched in 2017) Roundtables give retailers an opportunity to meet and discuss relevant issues and share best practices on topics of their choice. Today, we host a dozen roundtables annually, bringing together more than 100 retailers to learn from each other. The Retail Management Certification Program provides an intensive, college-level retail management and leadership program that facilitates the development of high-potential individuals looking to advance their careers as independent retailers. Students have included many children of owners starting the succession planning process. Our 10th class starts in April, and nearly 150 retailers having graduated from the program to date. Our most recent addition to the lineup is the Foundations of Leadership Program. This program provides a foundational course in leadership development so people who are new to management can develop basic leadership skills. We have discovered in the 100-plus students who have completed or are currently enrolled in this program is that many seasoned managers have also enrolled. These are folks who never had the opportunity to go through a formal leadership development program until now. This brings up an important point. In one of my favorite leadership books, “Learning Leadership” by James Kouzes and Barry Posner, the authors’ research suggests there is a leadership gap that exists in all industries. They discovered that the average age of leadership development program participants is 42 years old. However, those same participants started leading people at 33. That’s a difference of nine years, which suggests we are putting people into management positions before they learn the basics of leadership. Are we are setting our people up to fail? Not intentionally. The takeaway here is that we probably aren’t doing everything we can to ensure our next-generation leaders have the tools they need to guide their operations into the future. The book also states that more than 50 percent of young people want to be leaders in their organizations, but their greatest fear is a lack of professional growth opportunity. And their willingness to stick around may be contingent on how well we respond to this need. They not only need leadership and retail management training, they want it. Developing future leaders is one of the most critical issues the industry is facing. We all know today’s challenges—increased competition, finding (and keeping) good employees and the lack of formal succession planning. As quality employees become harder to find, developing the ones you already have becomes paramount to your success. If you have someone in your organization who needs industry-focused development and growth opportunities, consider what your association has to offer through its Retail Leadership Institute. Learn more at nrha.org/rli.

Scott Wright, Executive Director, Retail Leadership Institute

swright@nrha.org

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HARDWARE RETAILING | March 2018


YOU BUILT IT.

WE’LL BOOST IT. We’re not just another wholesaler selling you stuff. We use the strength of our national brand to help you reach and engage customers, increase foot traffic and build basket size—coaching you toward success. When you’re ready to reshape your business, we make it as quick and simple as possible: You keep your store name and choose the product assortments you want. And you’re up and running in 45 days. You’ve built a great business. Now take it up a notch.

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

©2018 True Value Company. All rights reserved. TVRD-13957


Taking Care of Business

A Scary Proposition

W

“You have the

opportunity to better understand what is motivating today’s consumer when it comes to shopping and buying online.

”

hen it comes to movies, books, podcasts and other forms of entertainment, I have always been a fan of horror. Beyond liking the occasional spine chiller, one of the aspects I really appreciate about the genre is that most good quality horror makes us reflect and ask, what is it that truly makes us afraid? So, I want to ask you this question when it comes to your business: What is it that scares the heck out of you? For more and more independent retailers these days, the man behind the hockey mask looks a lot like Jeff Bezos and the monster under the bed is offering free two-hour delivery. This mounting fear of online competition could be seen in research the North American Retail Hardware Association (NRHA) conducted toward the end of 2017. We asked independent home improvement retailers about the biggest challenges facing their businesses in the coming years, and for the first time since we began conducting the study, online competition ranked among the highest concerns. It doesn’t help allay any of these fears when you see headlines nearly every day about how Amazon continues to evolve its model to meet consumer demands and you hear phrases like “retail apocalypse” casually thrown around. And while there are a lot of things going on right now for independent retailers that are somewhat unsettling, I have to ask you the question: What is it that is truly scaring you? Are you frightened that consumers will suddenly flip a switch and begin buying all their lightbulbs, hammers and nails online? Are you scared that Amazon will offer coast-to-coast two-hour delivery? Or are you really, deep down, scared that you simply haven’t done enough with your business to create a value proposition for your customers that can overcome these threats? I understand that retail has evolved immensely over the past two decades, and we will likely see even more change coming over the next two. I also understand that it CAN be scary to see change coming at you so fast that you are forced to react to it with great expediency. But you cannot allow this fear to paralyze you! Fortunately, the home improvement industry has largely been spared from the full onslaught of online commerce over the past several years. But THIS WILL CHANGE! Right now, you have the opportunity to learn from what has happened in other retail markets, and you have the opportunity to better understand what is motivating today’s consumer when it comes to shopping and buying online. You can use this information to better tailor your offering to meet these changing needs. For some insights into these trends, take a look at this month’s article about how you can compete online on Page 44. Make no mistake in what I’m saying. I am not suggesting that there is nothing to fear here. What I AM saying is that you MUST start preparing your business for what’s lurking outside the door, and you cannot allow yourself to be paralyzed by fear or slowed by casual indifference to the threat. After all, there is no shame in being scared, but there is definitely a price to be paid for failure to act.

Dan M. Tratensek, Publisher

dant@nrha.org

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HARDWARE RETAILING | March 2018


GET TOOLS. NOT RULES.

Who’s really the boss at your store? When you’re a True Value® Retailer, you are. You choose from a flexible menu of omni-channel marketing tools, manage your promotions and decide which of our 80,000 popular hardware items you want to offer. No forced participation, no penalties. At True Value, we don’t strong-arm you. We support you.

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

©2018 True Value Company. All rights reserved. TVRD-13957


Mike Kimball, CEO - Ian Williams, COO Fresno Ag Hardware, Fresno, California


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For your very own fastener destination, contact Glen @ 800-444-7313 x 120

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NRHA News

A Day in the Life During NRHA’s RMCP

A

dvanced, industry-specific leadership training sounds useful, but what all does it actually entail? Retail professionals who attend the North American Retail Hardware Association’s (NRHA) Retail Management Certification Program dedicate six months to enhancing their careers. Students of the college-level program study multiple topics related to retail operations management, strategic planning and leadership to become better managers.

Day 1 An Evening of Networking and Entertainment

Day 3 Culminating Discussions and Project Presentations

Laughter Brings the Group Together

Case Study Analysis

On night one, the 15 students attended a private improv show at a local comedy club. During each visit, NRHA facilitates after-hours dinners and events to give students time to swap stories and share ideas.

The third and final day kicked off with students, sponsors and industry guests attending morning sessions where the entire group participated in two discussions about real-life industry case studies. Attendees had the opportunity to provide insights and share opinions about details of the cases.

“The biggest thing I got from the program is the wealth of knowledge from others in the group, and then taking information back and implementing it into our business,” says student Grant Franklin, store manager of The Hardware Company and Hull Lumber.

Day 2 Seminars, Discussions and Activities

Class Is in Session During the first full day, students participated in five classes on budgeting, financial analysis, employee engagement, sustainable excellence and mutual accountability, led by Ball State University professors, retail leaders and industry experts. Class time included a mix of lectures, group discussions, breakout activities and role-playing scenarios. “It’s a great learning environment, and it was very helpful to learn from professors and industry professionals,” says student Dan Kennedy, contractor sales representative at Penticton Home Hardware Building Centre. “You almost can’t put a price tag on the amount of knowledge that comes through the doors.”

14

To give business owners and potential students a better idea of what happens during a course visit to NRHA headquarters in Indianapolis, Hardware Retailing recaps what students and sponsors experienced during the third visit of the Fall 2017 session, which took place Jan. 16-18. For more information about the program, visit nrharmcp.com. To see a video recap of the most recent visit, go to TheRedT.com/rmcp-fall-2017.

HARDWARE RETAILING | March 2018

Business Improvement Project Presentations Throughout the course, students developed improvement projects to be implemented at the businesses where they work. Students split into three groups and gave 15-minute project presentations to a room of their peers, business owners and a panel of expert judges. The audience asked questions and provided feedback on each project. Three finalists were selected, who then presented their projects to the entire group. Business improvement project topics included employee training, delivery, category resets, marketing and sales strategies. “Attending this program has developed my employee’s leadership skills, further advanced his position in the company and continues to accentuate his talent, bringing out the best in him,” says TJ Colson, director of store operations at Wilco and program sponsor. “We’ve achieved and seen positive growth.”

A Final Celebration After two days of class and project presentations behind them, students and other attendees enjoyed a closing reception and dinner in City Hardware, NRHA’s event space. Program staff and instructors recognized the students for their hard work as the group enjoyed one last evening together before taking what they’ve learned back to their respective companies.


™

YOUR STORE

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GROW YOUR BUSINESS WITH THE STRENGTH OF SAKRETE ™

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Andrew Rapoza, Key Accounts Manager 214.991.0280 • andy.rapoza@oldcastle.com © COPYRIGHT 2018. ALL RIGHTS RESERVED. SAK17-487


NRHA News

NRHA Employee to Visit Independents Along Mississippi River

A

n NRHA employee is headed to five cities in five states in five days with stops at numerous independently owned businesses along the way. On March 12, NRHA profiles editor Renee Changnon is hitting the road with Independent We Stand for its annual road trip. This year’s trip, called “The Great American River Road Trip,” will have the group journeying 1,400 miles along the Mississippi River with stops in multiple cities, including the Minneapolis-St.Paul area; Davenport, Iowa; Cape Girardeau, Missouri; Memphis, Tennessee; and New Orleans and Baton Rouge, Louisiana, to name a few. “The goal of this trip is for Independent We Stand to promote the unique experiences and the economic impact of America’s Main Streets on local economies,” Bill Brunelle, co-founder of Independent We Stand, says. “Our theme this year is ‘Local Memories. Lasting Impact.’” Brunelle says in recent years he’s seen a desire among consumers to support local businesses as part of the larger buy local movement. Changnon is eager to support and learn from independent businesses during the trip. “Not only will we visit multiple home improvement retailers, we’ll have the opportunity to soak up city cultures and support many local businesses from hotels and restaurants to car dealerships and boutiques,” Changnon says.

“For five days we live, breathe, eat and sleep local. It’s an incredible experience.” The overarching goal of the trip is to spread awareness about local economies and brick-and-mortar businesses, as well as to promote Independent We Stand’s annual Main Streets Contest, presented by STIHL. You can visit MainStreetContest.com until April 22 to nominate and vote for your favorite Main Street. The winning main street is awarded a $25,000 grand prize. During the trip, Changnon will be taking over NRHA’s Instagram and Facebook and will be sharing daily stories on hardwareretailing.com with details from her journey.

Follow Along March 12-16 Instagram nrha_official Facebook @NorthAmericanRetailHardwareAssociation You can also see posts about the trip by searching #RiverRoadTrip and #LocalMemoriesLastingImpact.

Renee Changon has previously joined Independent We Stand on its annual road trip on behalf of NRHA twice before. During the 2016 Great American Route 66 Road Trip, she met Wayne and Shelly Sonchar, owners of BTU Do it Center in Las Vegas, New Mexico.

16

HARDWARE RETAILING | March 2018


NRHA News

5 Myths About EMV

I

n the world of credit card processing, there’s a lot to keep up with. Credit card processor and NRHA Business Services Partner Clearent presents some of the most common myths about EMV technology below. For more information about Clearent and to take advantage of a plan designed for independent retailers, visit clearent.com/NRHA.

MYTH

1

Merchants are protected if they are PCI-compliant.

PCI compliance is still critical, but EMV is a different security method. The goal of the Payment Card Industry Data Security Standard (PCI DSS) is to protect cardholder and sensitive authentication data during the payment process. For example, the PCI DSS restricts the storage of card numbers to reduce the likelihood of theft. EMV adds another layer of security, using advanced cryptography to make it extremely difficult to create counterfeit cards. Retailers need PCI DSS to protect cardholder data and EMV to reduce counterfeit fraud.

MYTH

leads to slower transaction 2 EMV times and longer customer wait times.

While standard EMV can lead to longer transaction times, Quick Chip technology makes EMV transactions just as fast as swiping a magnetic stripe card. With Quick Chip technology, merchants can process EMV transactions in just two seconds, instead of 15 seconds, like with standard EMV. Ask your merchant services provider if they offer this new technology that can help you dramatically reduce checkout times and improve the overall checkout experience for your customers.

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HARDWARE RETAILING | March 2018


MYTH

3 Upgrading to EMV is too costly.

The cost to upgrade to EMV is reasonable for many merchants. While the upfront cost of upgrading equipment and training staff may seem cost-prohibitive to some, each business operator needs to carefully evaluate if its future fraud losses will be higher than the costs of upgrading. Credit card terminals that support EMV can be purchased for just a few hundred dollars. So, businesses that use a single POS terminal can upgrade to EMV for the cost of a night out with their spouse. On the other hand, many businesses use POS systems to manage their business. It can be expensive to upgrade such systems depending on many factors, including the specific POS software and hardware, the number of stations and service fees charged by the reseller or dealer. For most retailers, the long-term benefits will outweigh the costs because EMV can help merchants decrease fraud, lower chargebacks, increase customer satisfaction and build trust and adopt new technologies, such as contactless payments.

MYTH

merchants don’t need to 4 Small worry about EMV.

All merchants who accept card-present payments will be impacted by the transition to EMV. Many small operations may have low fraud rates now, but that is likely to change. Criminals are good at finding the most vulnerable targets to defraud. As the larger retailers implement EMV-capable point-of-sale systems, small retailers who don’t implement EMV will become an increasingly attractive target for counterfeiters.

MYTH

won’t solve the fraud problem 5 EMV because fraud will shift online.

Fraudsters may shift their efforts online, but reducing card-present fraud is highly beneficial. EMV has proven to significantly reduce card-present fraud around the world, especially counterfeit card use. Plus, EMV card manufacturers are working on other features to make card-not-present transactions more secure, such as one-time passwords, on-card displays and other features accessible through personal card readers.

Red Lion® Battery Backup System When the electricity goes out, homeowners will have peace of mind knowing their investment is protected with the Red Lion® Battery Backup System. This efficient pump puts less strain on the battery, and the proven switch technology minimizes mechanical hang-ups. They have a nice basement. Keep it that way.

redlionproducts.com March 2018 | HARDWARE RETAILING

19


DRIVEN TO BE THE BEST. EXPERIENCE OUR DRIVE FIRSTHAND AT THE 2018 DO IT BEST SPRING MARKETSM

At Do it Best Corp., we are Driven to Be the Best in every aspect of our business. That drive is delivering game-changing opportunities that help our member-owners compete and win every day. The 2018 Do it Best Spring Market is your chance to discover firsthand how advancements like The Color Bar™, Merchandising Essentials and Digital Marketing Services generate immediate sales and long-term profitability. You’ll meet the experts—Do it Best Corp. leaders who are ready to share strategies and customizable tools that can be implemented in days. And don’t forget the thousands of jaw-dropping purchasing opportunities available only at this event.

Come see for yourself how Driven to Be the Best will drive your success, too.

“The market gives us the ability to showcase the very best of Do it Best. It’s the ultimate experience for prospects and members to leverage the purchasing power, resources and expertise of our co-op.—all in an easy-access location in a great city with world class amenities.” —Vince Slack, Meeting and Market Planning Manager

2018 DO IT BEST SPRING MARKETSM Indiana Convention Center, Indianapolis I May 18-21 For registration information, contact 888-DO IT BEST or memberservices@doitbest.com.

independentsdoitbest.com


Trends Homeowners Make Their Kitchens Smarter

Applied to Retail If your business hasn’t ventured into home technology yet, now might be the time to make a change.

Technology continues to be a growing area of interest for homeowners—a trend that is showing up in their kitchen remodeling projects. Houzz, an online home improvement community, surveyed more than 1,700 homeowners who completed a kitchen renovation in the past year, are in the process of a kitchen remodel or planned to start one in three months. The Houzz research shows that 90 percent of homeowners buy new appliances during kitchen remodels, and 25 percent of the new appliances they purchase feature technology, such as touch-screen controls and built-in speakers.

Check with your co-op or distributor about best practices for getting started with smart home products. Consider conducting your own research to see if you can find a tech niche. Use paper surveys at the checkout counter, send short surveys to your email list or teach employees to ask customers what home technology interests them. Selling small, portable wireless speakers and the products needed to install charging stations for smartphones may be steps in the right direction.

Houzz also reports that one in seven homeowners adds new electronics, such as home assistants like Google Home and Amazon’s Alexa, during kitchen renovations. In addition, the data shows that wireless or Bluetooth speakers and charging stations for electronics are increasingly popular tech upgrades.

Top Kitchen Electronic Updates for Homeowners Who Add Tech Percentages represent the number of homeowners

TVs

64%

Docking/ Charging Stations

52%

Wireless/ Bluetooth Speakers

35%

Home Assistants

22%

Central Control Panel for Lights, Thermostats, etc.

16% 0

10

20

30

40

50

60

70

80

25 percent of the new appliances homeowners buy feature technology, such as touch-screen controls and built-in speakers. Source: 2018 U.S. Houzz Kitchen Trends Study

22

HARDWARE RETAILING | March 2018


New Products

“Our customers were asking

for more camping and fishing gear, and these beds have been really popular among them.

2

”

—Christina Swingle, Vision Ace Hardware

“I’ve seen this tote take a

shirt soaked in skunk scent and within 15 minutes there was no scent at all. The Ozone Tote is effective and popular with hunters.

”

1

—Matt Stafford, Pride Ag Resources Ace Hardware

1. Inflatable Camping Mattress ®

®

The Coleman QuickBed Single High Airbed—Full fits standard sheets for a full bed and supports up to 600 pounds. An antimicrobial sleep surface, plush top and ComfortStrong™ coil construction add to its comfort. The bed works with all Coleman airbed pumps. Coleman 800-835-3278 or coleman.com

2. Scent-Removing Tote The Scent Crusher Ozone Tote eliminates odors from hunting gear, sports gear and more. With Ozone Activated Technology, the ozone generator attached to the 40-gallon container can remove odor from items within 30 minutes. The process is chemical-free and leaves no scent, residue or harmful byproducts. The tote can be used to store hunting clothes, athletic wear and even food. Scent Crusher 877-575-3173 or scentcrusher.com

24

HARDWARE RETAILING | March 2018


RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Chad Husted at chusted@nrha.org.

“A lot of campgrounds don't allow you to bring your own wood anymore. The Swedish Torch is great for those situations or just for a backyard get-together.

4

”

—Josh Patrick, Appalachian Ace Hardware

3 “These rubber twist ties

fill the void for materials that don’t need heavy-duty tie-downs and won’t work with bungee cables.

”

—Marc Green, L.L. Green’s Hardware

3. Fire-Starter Log

4. Reusable Twist Tie

The Swedish Torch is a complete fire system cut from one log. The torch lights with one match and burns for two-plus hours with little or no smoke. They’re debarked, cut and then heat treated to 165 F, making them dry and environmentally safe to transport. Available in sizes large and mini.

The Gear Tie® Loopable™ Reusable Rubber Twist Tie can cinch and loop through itself to secure and hang an assortment of items, including industrial hoses, extension cords and air compressor hoses. The integrated loop gives users the ability to thread the tie and cinch it for greater strength. The tie is available in black, orange and yellow.

Swedish Torch Supply 404-874-9983 or stsfire.com

Nite Ize 800-678-6483 or niteize.com

March 2018 | HARDWARE RETAILING

25


New Products

5 5. Washing Machine Connectors The Eastman brand washing machine connectors feature PVC-wrapped stainless steel hoses that are triple reinforced for added burst strength. They are specifically designed for high-efficiency washing machines. The hoses have 90-degree elbow connectors for tight spaces, solid brass nuts and ½-inch diameter hoses. EZ-Flo International 800-486-5256 or ez-flo.net

BRPT HONDA POWERED Honda engine for powerful and reliable performance

LIFT HANDLES Built-in lift handles make transport easy

NARROW WIDTH

SHARK TEETH

With just a 24” width, fits through narrow paths and gates with ease

Carbide tipped Shark teeth for power and durability

www.braveproducts.com/HRM | (866) 281-4421

as seen at

CARRYING

LOG SPLITTERS

26

EARTH AUGERS

HARDWARE RETAILING | March 2018

GENERATORS

PRESSURE WASHERS

PUMPS

TRENCHERS


6

6. Color Label Printer The Brother QL-800 series offers black and red printing over the entire printable area of a label. Users can create labels with black and red text up to 3 feet in length. It can be connected by wired or wireless technologies. The printer is compatible with Windows and Apple operating systems and can also be connected to smartphones and tablets. An optional battery, sold separately, allows for mobile printing. Brother International qlsolutions@brother.com or brother-usa.com

CABLE PULLERS AND FENCING INSTALLATION PRODUCTS quality built for durability & performance you can count on

Dual Drive Gears Galvanized 3/16” Aircraft Cable

Drop Forged Steel Slip Hooks with Safety Latches

High Strength Electro-Plated Steel

ONE TON

TWO TON

FOUR TON

ONE TON

TWO TON

STANDARD

STANDARD

STANDARD

PROFFESIONAL SERIES

PROFFESIONAL SERIES

3/4 -Ton Rope Puller

1-Ton Strap Puller

Fence Pliers

1/2-Ton Wire Grip

Contact Ancra Consumer / Industrial Sales Group at 800-626-8353

Woven Wire Stretcher

cicustomerservice@ancra.com

Fencing Wire

Stretcher

consumer.ancracargo.com March 2018 | HARDWARE RETAILING

27


New Products

8 7 Stop and smell the Toters.

7. Universal Blade

Spring cleaning is easy as ...

+

=

Retailers nationwide are helping their communities with solutions for odor control with Toter’s PowerFresh odor eliminators and cart liners. With our latest products, we’ve curbed the smell of trash day and delivered extreme freshness and odor-fighting power to Toter trash carts – the legendary brand that’s Built for Extremes. We’re spreading the freshness. We hope you’ll spread the good news to your customers.

Free POP Display with your first order of cart liners. try.toter.com/odorcontrol

28

HARDWARE RETAILING | March 2018

The One Fit Titanium-Coated Carbide Blade is a universal titanium-nitrite coated oscillating carbide blade. It has the ability to cut hardened bolts, deck screws, rebar, cement board, steel and copper pipe, drywall, wood and tile among other applications. Imperial Blades 800-743-9844 or imperialblades.com

8. Work Light The M18 RADIUS™ Compact Site Light with Flood Mode provides two lights in one. Area mode provides 2,200 lumens of light output while flood lighting provides 1,000 lumens. The main body of the light provides 360 degrees of area light, while an independent array of LEDs on the side provide 90 degrees of task lighting. The battery provides 24 hours of use and is recharged with an AC inlet. The light has a self-centering metal hook to hang by. Milwaukee Tool 800-729-3878 or milwaukeetool.com


9 10

9. Gel Lubricant WD-40® Specialist® Spray & Stay Gel Lubricant is designed for greater staying power, allowing it to be used on vertical surfaces and moving parts like chains, cables, gears, rollers and bearings. It has self-healing technology that softens to lubricate when there’s friction and solidifies to protect against rust and corrosion on multiple surfaces including metal, plastic and rubber. WD-40 888-324-7596 or wd40.com

10. Reciprocating Saw Blades The LAZER CT™ and DEMOLITION CT™ reciprocating saw blades are carbide-tipped and designed to last 10-times longer than bi-metal saw blades. The blades differ in design, with the tall blade profile on the LAZER CT delivering straight cuts and long tooth life. The DEMOLITION CT’s thick blade provides durability and control during application. Lenox 800-628-3030 or lenoxtools.com

March 2018 | HARDWARE RETAILING

29


New Products

11

12

American Made & Profitable For Over 80 Years

11. Protective Dog Coat The Dog Chore Coat from Carhartt is a quilted nylon-lined coat featuring cotton duck fabric and a corduroy-trimmed collar that can be tucked inside. Hook-and-loop closure tabs at the neck and chest allow for adjustments in fit. Two pockets provide storage. It is available in sizes small, medium, large and extra large for all breeds and sizes of dogs. Carhartt 800-833-3118 or carhartt.com

12. Smart Home Lock With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical. Ask for our Product Catalog which provides product descriptions and size specifications.

Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road, Hicksville, NY 11801

30

HARDWARE RETAILING | March 2018

Baldwin Enhanced from Reserve is a smart lock that uses Kevo technology to allow users to lock and unlock their homes via a smartphone app. Using this technology, users can also grant access remotely for others. The app allows users to control their lock from anywhere in the world. Locks are available in 15 styles and eight finishes. Baldwin Hardware 800-566-1986 or baldwinhardware.com


13

14 13. Heavy-Duty Note Paper Post-It® Extreme Notes are durable communication tools for punch lists, measurements and reminders. They can stick to surfaces found on job sites like tile, steel, cement, PVC and more. The Dura-Hold™ Paper and Adhesive is water-resistant and can withstand extreme heat and cold and wet conditions. Post-It 800-395-1223 or post-it.com

14. 2-in-1 Hatchet Hammer The Hardcore Survivalist Hatchet features a 19-ounce head and an 18-inch American hickory wood handle. The head is made with 4140 tool steel. The hatchet also features a nail/stake puller in the blade, and the opposing hammer side has a patented recessed striking face. It comes with a custom-fitted leather sheath. This product is made in the U.S.

One Can To Rule Them All

Hardcore Hammers 630-965-3218 or hardcorehammers.com

For information and a FREE sample, visit

Rust Patrol® is a revolutionary rust preventative, lubricant, penetrant, and moisture displacer. It does all of these things and does them extremely well! Active at the molecular level, Rust Patrol® saves your customers time and money by working more quickly, lasting longer, and with less product. Rust Patrol® truly is “One Can To Rule Them All”! Aidant Brands®

rustpatrol.com/march Follow RustPatrol on:

Prevent Rust • Lubricate • Penetrate

March 2018 | HARDWARE RETAILING

31


New Products

16

15 15. Oil Filter Wrenches

16. Food Storage Bags

Heavy-Duty Swivel Handle Oil Filter Wrenches are ergonomically designed with cushion grips and adjustable loops. The yoke and link assembly allows for a strong grip without crushing oil filters. The wrenches come in five sizes for different types of filters.

Inspired by eggshells, Ovtene bags are made primarily of calcium carbonate and other bio-materials. The bags extend shelf life, taste, smell and color of food. The packaging restricts bacteria growth by creating a microclimate that is resistant to liquids and permeable to gases. Ovtene is available in bags, rolls and sheets and are all 100 percent recyclable.

Lumax 704-940-6988 or lumax.com

32

HARDWARE RETAILING | March 2018

Ovtene 617-852-4828 or ovtene.com


17 18

17. Plumbing Connector System The Insta-Plumb plumbing connector system can replace standard undersink plumbing with a watertight connection that doesn’t require glues, primers, solvents, nuts or washers. The line offers a variety of undersink couplings and fittings. These fit together using a locking connector system, with an unlock tool allowing the pipes to be disconnected and reconnected. Keeney Mfg. 800-243-0526 or keeneymfg.com

18. Top-Load Water Dispenser The Aquarius Top Load bottle cooler can dispense three water temperatures: hot, cold and room temperature. With no need for a pipe connection, the bottle cooler can be placed anywhere. The 11-inch dispenser height can accommodate modern refillable bottles. A bottom load option is also available. Oasis International 800-646-2747 or oasiscoolers.com

March 2018 | HARDWARE RETAILING

33


Checkouts EMPLOYEE TRAINING

Hands-On Training Brings Retailers Together

W

hen it comes to helping customers with a project, the best advice often comes from someone who has done the project themselves. That was the kind of knowledge Jamie Gentner, chief operating office of Center Hardware & Supply in San Francisco, wanted to offer her employees. Last year, she and several other independent hardware stores in the area hosted their first how-to project knowledge seminar. “I’m part of a group of retailers that meets every few months to talk about business,” she says. “We’ve all had the idea for a while that a hands-on seminar would be good. But doing that on our own would be expensive, so we wondered if we could do it together.” Gentner found an instructor at a local community college who was willing to teach the classes. Employees would learn

how to do basic plumbing and electrical projects, such as wiring a switch or connecting the different types of pipe. Twenty students attended the two-day seminar. The total price, which included materials and paying the instructor, came to about $200 per day, per student. Several stores in the group sent one or two students they thought would most benefit from further knowledge. With the success of the first class, Gentner and her fellow retailers hosted their second class in February. “There is a tremendous value to this type of hands-on learning,” she says, but bringing students from different stores together had its own value, too. “There’s also a benefit to these employees being in a group with others who have similar jobs. It’s a time to interact and share ideas. There is a lot of community and connectedness along with the learning.”

In the electrical seminar, hosted by Center Hardware & Supply, employees had the opportunity to complete several projects, giving them hands-on knowledge so they would be better prepared to answer customers’ questions.

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

36

HARDWARE RETAILING | March 2018


Photo by: Michele Bridgeforth

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Checkouts

CUSTOMER RELATIONS

Puzzles Keep Customers Guessing

C

uriosity is a powerful motivator. So, when Neil Schneider started putting rebus, or pictogram, puzzles in the front window of his store, J&M Hardware & Locksmiths in New York City, he hoped they would at least make customers curious enough to come inside and find the answer. “One of our first puzzles was a roll of paper towels with the word ‘mutiny’ across the top,” he says. “It was ‘Mutiny on the Bounty.’” Schneider also posted a sign that there were more puzzles inside. Soon, he had attracted not only some new customers, but also a loyal following of puzzle solvers. Soon, Schneider began creating a new set of puzzles every few weeks and got one of his customers to help design them. Nearly 13 years later, Schneider estimates he’s created nearly 1,000 puzzles. They’re usually organized around a theme, such as famous people or classic toys. There’s always something hardware related. They’re also educational and entertaining. “Once we had a grade school teacher who took a copy to hang on his classroom door,” Schneider says. “It was a good way to get kids to think and maybe teach them something they didn’t know, especially with the frequent cultural references. Schneider also says the puzzles help create connections. “When you’re helping a customer solve a puzzle, you’re not just the businessman and they’re not just the customer. You’ve made a more personal connection.”

Neil Schneider co-owns J&M Hardware & Locksmith. Every few weeks, Schneider creates pictogram puzzles to provide an interactive game for customers.

Can you guess the answer to this puzzle? It’s from Schneider’s series “100 Most Influential People.” Go to TheRedT.com/rebus where you’ll find the answer and more puzzles. Want rebus puzzles for your own store? Contact Schneider at neilnschneider@gmail.com.

38

HARDWARE RETAILING | March 2018


Join Us in Dallas! ACe HArDwAre 2018 SPRING CoNveNtIoN

SAVE DATE tHe

MARCH 14-17, 2018

Service. Convenience. Quality. Free Initial Inventory* 5% gross profit improvement in year one Lowest cost of goods – We can prove it!** Access to the Best Brands

myace.com 630.990.6900 TXT

*Incentive varies by store. Format/size are based on Discovery recommended products and quantities. Incentive given as a credit, not as cash or a loan. **Ace 2016 Retail Financial Report, Profit Planning Group. Based on comparison to competitive suppliers.


Checkouts

COMMUNITY RELATIONS

Give It a Twirl

H

ardware stores are usually known for certain aesthetics. Whether it’s the familiar sight of the hardline items you expect or a local contractor running in for a crucial pickup, these things are to be expected when walking into stores like Umatilla Ace Hardware in Umatilla, Florida. But a sight you might not expect to see might be the bright colors and fluffy ruffles of the leotards and batons belonging to the members of Dee’s Dolls, a twirling studio run out of Umatilla Ace Hardware by co-owner Dee Ann Wilson. Other owners include Chuck Wilson (Dee Ann’s husband), Roy Carter, Deloris Carter and Cade Carter. While Dee’s Dolls has existed for many years going back through Dee Ann’s family, the space for the studio opened up about a year ago when the business reallocated space, says store manager Jon Wilson. It also isn’t the first unique twist Umatilla Ace Hardware has taken on its business model. Deloris Carter, Dee Ann’s mother, had run an antique shop inside Umatilla Ace Hardware for many years, Jon says. The shop was separated from the main salesfloor by a partition wall.

Old

New

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40

HARDWARE RETAILING | March 2018

Dee Ann Wilson leads two nieces and a granddaughter in twirling practice at their facility inside Umatilla Ace Hardware.

The Magnet Source® brand is a proven profit center with over 250 SKUs, trilingual packaging, customized planograms and free merchandising graphics.


“When Deloris retired, we changed the store layout to allow for more salesfloor space, and that opened a back area that had been storage for the antique store to now be used for the twirling studio,” Jon says. Baton twirling is serious business for this family, with Deloris having attended the University of Tampa on a twirling scholarship. The original incarnation of the team was the Show Dolls, which combined with several other competitive twirling teams in the area, would eventually form into Dee’s Dolls. Dee Ann began teaching twirling at a young age and the tradition has been passed down through the family, with her granddaughter recently beginning her training. Teams under Dee Ann’s direction have won numerous titles, including some at the state level. Several students have gone on to become college majorettes. April-Ann Wilson, Dee Ann’s daughter, also taught for the team. Dee’s Dolls compete in area competitions as well as events like local parades. “It’s a really great tradition in the family and something that sets our business apart from others,” Jon says. The Dee’s Dolls program also brings attention to Umatilla Ace Hardware with frequent visitors for classes and the unique nature of a retail hardware store also hosting a twirling team. “It’s not something you see every day, but it really works out with the space opening up and how long the family has been involved in the sport,” Jon says. “We look forward to being known for the team for a long time.”

Trophies showcasing the success of the Dee’s Dolls team are on display inside Umatilla Ace Hardware.


Checkouts

COMMUNITY RELATIONS

Helping a Business, Serving the Town

P

arry’s in Hamilton, New York, calls itself “a modern-day general store.” Thanks to a partnership with a local clothing resale store, customers can even buy clothing there. Worn Again Clothing Store is run by the local Baptist church and for the past few years has been renting space at Parry’s. “Their old building was being sold, and they needed a new place to sell their clothes,” says Parry’s manager Andrew Hicks. “We had a little extra space, so we worked out a deal.” Now, the clothing store is staffed by volunteers three days a week. During that time, customers can make purchases or drop off donations. While the store pays Parry’s rent for the space, the bigger advantages, Hicks says, are being able to help out the local community and seeing an increase in customers visiting the store. “We see more people coming in when the resale store is open,” Hicks says. “And because the clothing is in the back of the store, customers have to walk through the store and can shop on their way back or on their way toward the front. It’s a win for everyone.”

The Worn Again Clothing Store, a local clothing resale store, leases about 200 square feet of space from Parry’s.

SOMETHING

IS COMING...

Visit us at www.something-gel.com to get your FREE Sample or pick it up at the National Hardware Show in Vegas.

BOOTH

4908


MERCHANDISING

On Full Display

E

very year, for one night, Buffalo, Missouri, keeps the lights on late. November is a time of celebration around the U.S. with the beginning of the holiday season. In the town in southwest Missouri, they celebrate with an annual Women’s Shopping Night, and Buffalo Hardware had a new idea in 2017 to get in on the fun. The business has participated in Women’s Shopping Night before. It’s an event where businesses across town stay open late and feature deals and giveaways. This year, Buffalo Hardware owner Tim Jasper had an idea for displaying crafts created by his sister-in-law that would leave a lasting image. “We wanted to create something that would stand out and could display items that could hang,” Jasper says. “It created a nice space for that event, plus it’s an item my sister-in-law can use at fairs and other events in the future.” The frames created a merchandising opportunity for Buffalo Hardware that not only displayed the crafts for sale, but drew in customers. Over the years, Jasper and his staff had built up the handyman skills that helped them build the display. With just over 3,000 square feet of salesfloor available, the retailer has always had to figure out unique ways to use his space. “When you’re this small and you carry such a variety of things, you have to rely on your gut to fit everything into the store,” Jasper says.

Buffalo Hardware in Buffalo, Missouri, built a custom display area for craft items during a recent small business event.

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43


Competing Online in an

Amazon World hint

D

Retailers Are Expanding Their In-Store Experience Online

ouble-digit sales increases, a website that’s easy to shop, tech experiments like drones and a steadily growing product mix make Amazon more formidable by the day. Amazon has transformed customers’ expectations for retailing with convenience and near-instant gratification in the form of cheap same-day or free two-day delivery. Traditional big-box retailers, including Home Depot and Lowe’s, have also become e-commerce giants in their own business sectors through the years. The implications are plentiful for independent businesses, in ways that aren’t always obvious. Recent research from the North American Retail Hardware Association (NRHA) shows that 95 percent of independent home improvement businesses have websites and 55 percent sell products online.

44

HARDWARE RETAILING | March 2018

Some independents got into e-commerce decades ago and have developed momentum in online retail. Many others have more recently begun to dabble in online selling using distributor platforms or building their own. But how can you position your business to stay relevant online in an era when that’s the place where more and more consumers are beginning their shopping cycle? How are retailers finding success in a busy online marketplace? NRHA surveyed nearly 400 retailers in the independent home improvement sector to learn how they answer those questions. The Farnsworth Group, a research firm in Indianapolis, conducted a consumer study to supplement NRHA’s retailer data. Read on to learn what consumers want and how independent retailers from across the industry are striving to serve them in the evolving e-commerce marketplace.


The Most Important Elements of a Retail Website

From the Retailers’ Perspective

1

Basic information about the business

1

Product pricing information

2

Service offerings

2

Ability to see what products are available and in stock

3

Product or department offerings

3

Easy to find product information

4

Contact information

4

Easy searchability

5

The ability to buy products online and have them shipped to the store

5

Reviews and recommendations

Source: North American Retail Hardware Association

‘Do It Differently’ Nearly 60 percent of the independents who participated in NRHA’s new research feel they cannot currently compete online against big retailers. About 57 percent, though, think they will be able to compete with what other home improvement industry websites offer within five years. Many retailers are finding ways to use their websites, even without e-commerce, to serve their customers. However, they don’t expect to get as large as Amazon and the big boxes online or become the new standard for what e-commerce should look like. “You can’t let it discourage you,” says Jessica Bettencourt, president of Klem’s in Spencer, Massachusetts. “The functionality of website like Amazon’s is very difficult or impossible for a small retailer to meet. However, there’s an opportunity to learn how you can do it differently or maybe even better.”

46

From the Consumers’ Perspective

HARDWARE RETAILING | March 2018

Source: The Farnsworth Group

Independent retail operations, such as Klem’s, are finding that their online operations can complement what they’re already good at in stores, such as expert DIY advice and personalized customer service. Bettencourt has been focusing on store renovations, and she thinks Klem’s website is the next area due for a major remodel. The company’s current website offers customers the ability to check Klem’s inventory in real time and find out what events and promotions are happening in the store, but has plenty of room for improvement, Bettencourt says. “I think there are a ton of things that we could do better,” she says. “Obviously, we can’t be Amazon. But where do we want to go and how do we get there? The primary focus of my e-store is really my current customers, for the most part. Selling products across the country isn’t realistic, but I think I can do a better job of servicing my communities online.”


Meeting Customer Expectations While many retailers are excelling online by providing unique, specific content on their websites, delivering on customers’ e-commerce expectations can be difficult for several reasons. Many retailers say the lack of employee time to commit to website maintenance and limited budgets to develop and implement e-commerce options on their websites are two driving factors slowing their entry into e-commerce. Chief among retailers’ concerns is having the right people and enough time to make e-commerce a reality for their businesses. About 55 percent of survey respondents say they don’t have the manpower required to effectively maintain an e-commerce presence. And 53 percent of survey respondents say they don’t have enough time to devote to bringing e-commerce capabilities to their customers.

“Customers who walk in our store expect they’re going to get a better level of service in a family-owned place,” Bettencourt says. “It’s really challenging for us to bring that same service level to the web without having all the resources these other big businesses have.” NRHA research indicates that many industry retailers have websites but aren’t satisfied with them. On a scale of one to 10, with 10 being “most satisfied,” nearly half of respondents rate their satisfaction at a five or lower. Fortunately, they are listening to their customers and are willing to be creative, particularly with social media. Many retailers are using a combination of social media platforms and websites to present online the personality, uniqueness and superior level of service that shoppers want from independent stores.

Challenges Preventing Retailers From Offering E-Commerce These respondents currently do not offer e-commerce. They could select more than one answer.

I don’t have the manpower

54.8%

I don’t have time to set it up

52.9%

I don’t know how to set it up

45.2%

It’s too expensive

35.6%

17.3%

Other*

My customers aren’t interested in buying online

0%

10%

12.5%

20%

30%

40%

50%

60%

% of Respondents *Survey respondents who answered “Other” say they are in the process of developing an e-commerce business, don’t see the value in it or are not sure they can compete online. Source: North American Retail Hardware Association

March 2018 | HARDWARE RETAILING

47


Some priorities retailers have for their websites, such as presenting store location information, are not business differentiators, but are basic customer expectations. Retailers can’t rely on those alone. The research from The Farnsworth Group and NRHA shows that retailers are aware of what online customers say they value in a business’s website, such as product details and product availability in store. Plenty of retailers offer e-commerce functions, but even the retailers who don’t often know what customers expect from their websites. There’s other good news, too—most customers agree with retailers that, when it comes to home improvement, online-only businesses cannot meet all of their needs.

Prioritizing Customer Needs Bettencourt’s goal isn’t to strive valiantly for Klem’s to become progressively more like Amazon.

Instead, she wants to make the website a high-quality service that meets customers’ changing expectations. “We know that our online presence, especially our e-store, has a very long way to go,” she says. “I think that customers might give a little leeway when you’re a local business, but there’s only so much leeway when it’s 9 p.m. and they’re trying to figure out what to do first thing in the morning.” Prioritizing the doable things customers are asking for is important, she says. “Their time is really valuable,” she says. “The big thing going forward is, how do you save them time? It’s quite a percentage of our online orders that are picked up in store. It saves them a walk through the store.” Klem’s likely won’t sell products worldwide, but can do better at keeping inventory up to date and marketed well on the website, Bettencourt says.

Starting Online, But Ending Up in Stores

38%

73%

27%

of consumers say they research or shop online for home improvement products more than once a month.

of the time, shoppers will make their purchases in a local store, even if they researched products online.

of the time, purchases happen online, but mostly through the website of a store with a physical presence.

Source: The Farnsworth Group

48

HARDWARE RETAILING | March 2018


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Common Functions Retailers’ Websites Perform Respondents could select more than one answer.

Communicate basic information (store hours, address, phone number) to customers

96.1%

Communicate what products are offered in the store

89.2%

Communicate what services the store offers

85.3%

Give customers an avenue to contact the retailer

70.7%

Share interesting and personal information about the business, such as employee bios

0%

20%

40%

58.2% 60%

80%

100%

% of Respondents Source: North American Retail Hardware Association

“Our website is a necessary

vehicle to get our message out there—who we are, why we’re different and what we’re doing to create excitement within our store.

”

—Bill Jablonowski, Jabo’s Ace Hardware

Online Strategies Many retailers feel their best online weapons against encroaching e-commerce threats are advertising special events and reinforcing their brands to attract customers to their physical stores. The main focus for Bill Jablonowski, owner of Jabo’s Ace Hardware in North Texas, and Andy Darnell with Howard Brothers in Georgia, is building their companies’ online identities authentically, even without their own proprietary e-commerce offerings. Jabo’s has three locations and Howard Brothers operates five stores, and both retailers offer a portal to their wholesalers’ e-commerce platforms.

50

HARDWARE RETAILING | March 2018

Howard Brothers’ website connects customers to what are essentially online catalogs of the company’s main product offerings: equipment sales, parts and service and repairs. A news section includes sales flyers, blogs about store events and industry happenings. The Jabo’s Ace Hardware site features large graphics advertising in-store events, an upcoming community fundraiser and current job openings alongside links to the company’s social media accounts. Having a web presence is an opportunity to solidify the Jabo’s Ace Hardware brand for customers, Jablonowski says. “Our website is a necessary vehicle to get our message out there—who we are, why we’re different and what we’re doing to create excitement within our store,” he says. “At the end of the day, we’re hardware store owners, not internet gurus. We’re retail experts and we’ve focused our lives on how we can make retail work for us.”

Looking at Sales On average, retailers who participated in NRHA’s research say digital sales account for 7 percent of their operations’ overall sales. More than 80 percent of the retailers believe that


figure will grow throughout 2018. About 70 percent believe their investment in e-commerce has been worth the sales they’ve gotten from it. At Jabo’s Ace Hardware, online orders through the company’s wholesaler e-commerce portal are increasing each year, Jablonowski says. Jabo’s recently made its site mobile friendly to best present information to customers. “We knew it was important to have a website out there that works on a variety of platforms,” Jablonowski says. His focus, though, is on getting as much foot traffic to his three stores as possible. Darnell, who is director of marketing and communications for Howard Brothers, built his company’s website himself. Howard Brothers is still researching how to best compete online. “We still haven’t figured out an e-commerce solution to the level that I think we should have,” Darnell says. While his store does link to his wholesaler’s e-commerce portal, their online inventory might not accurately reflect what’s currently available at a Howard Brothers location, he says.

A Drive Toward Digital Whether their e-commerce stores are robust or not, many retailers are learning that creating a multiplatform retail presence boosts business. They are leaning on social media strategies, engaging content and in-store events to differentiate their operations from the big boxes. For Darnell and Howard Brothers, that means increasingly driving the company’s marketing budget toward digital advertising. Radio spots are the company’s biggest advertising expenditure, but Howard Brothers will be slowly paring down its money spent on radio ads to beef up online marketing initiatives, like running targeted Google AdWords campaigns, Darnell says.

Developing a Unique Online Identity More than 60 percent of the retailers NRHA surveyed do not currently have a budget for online marketing and development, but 85 percent of respondents maintain a social media presence to stay top of mind with customers. Retailers say sharing photos and information and spreading

Retailers’ 5 Most Popular Uses for Social Media

To run Facebook ads

To spread the word about events, sales or promotions

To share photos and information To share how-to articles or videos

To communicate directly with customers

Source: North American Retail Hardware Association

March 2018 | HARDWARE RETAILING

51


the word about upcoming events are the most common ways they use social media. About 65 percent of retailers use social media to draw traffic to their websites, while also promoting their brick-and-mortar operations. Klem’s has more than 15,000 Facebook followers who engage with the business by participating in online contests, viewing photos and asking questions. Howard Brothers regularly posts videos to its social media accounts, often of employees demonstrating new products or promoting in-store events. Videos build the company’s brand and help customers connect with Howard Brothers in a meaningful way, Darnell says. “Our videos do really well,” he says. “If somebody finds a product video and they see one of our salespeople online, they know they can come in and talk to that person directly.”

For Howard Brothers, competing against Amazon and other online retailers sometimes means using the competitors to their own advantage. Howard Brothers sells new products on Amazon using a seller’s profile the business created roughly a decade ago. The company also sells used equipment parts on eBay. Howard Brothers then ships products directly to customers who order on Amazon or eBay. Even without direct e-commerce capability on its website, Jabo’s Ace Hardware is still incorporating technology into its operations. Jablonowski says that soon, his website will include a feature that allows customers to send questions directly to staff members via text message, initiating a one-to-one dialogue instantly with prospective customers.

In the Trenches The Nuts and Bolts of Order Fulfillment For the NRHA survey respondents who offer some level of e-commerce, customers buying online and having their orders shipped to stores is the most common method of order fulfillment. Of the retailers who offer e-commerce, nearly 80 percent say they use this fulfillment option.

When asked how happy they are with the current e-commerce experiences they offer on a scale from 1 to 10, with 10 being the most satisfied, the average response to NRHA’s survey was 5.4, suggesting that many retailers are still trying to determine the best strategy for how their businesses can compete online.

Can online-only businesses meet all of the needs of today’s hardware or home improvement shoppers? From the Retailers’ Perspective

No . . . 85.8%

Yes . . . 3.8%

From the Consumers’ Perspective

No . . . 71.0%

Yes . . . 29.0%

Other* . . . 10.4%

Source: North American Retail Hardware Association

Source: The Farnsworth Group

*Survey respondents who answered “Other” who did not say “I don’t know” or “I hope not” believe e-commerce fulfills the needs of younger generations and customers who know what they’re doing.

52

HARDWARE RETAILING | March 2018


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Are the elements consumers expect of your website different from what they want or expect from big-box store websites?

Do you have different expectations for big-box home improvement store websites compared to local hardware store sites?

From the Retailers’ Perspective

From the Consumers’ Perspective

60%

59.6%

60%

50%

56%

50%

40%

30%

21.2% 20%

19.2%

10%

40%

30% 20%

10%

0%

0% I don’t know

No

Yes

Source: North American Retail Hardware Association

More than half of NRHA’s survey respondents feel that within five years they will have a website allowing them to compete directly online with bigbox retailers. What that may mean varies by business. Jabo’s Ace Hardware is ready to follow and meet customers wherever and however they’re shopping, Jablonowski says. And Howard Brothers’ future online strategy will continue to rely heavily on generating unique content that establishes the business’s commitment to the communities it serves. “The better we can look online from a reputation standpoint, the better,” Darnell says. “When someone is comparing us against a local competitor, we’ll always have the edge. They’ll go to whoever they feel most comfortable with, and our goal is to make us their top choice.”

A Physical Advantage Jablonowski believes brick-and-mortar stores will always have a competitive advantage over e-retailers. Survey participants echo that sentiment nearly across the board, saying their businesses will remain relevant because customers, especially in the home improvement industry, still want in-store experiences.

54

% of Respondents

% of Respondents

44%

HARDWARE RETAILING | March 2018

Yes

No

Source: The Farnsworth Group

“Being able to hold a

product is important. Nothing replaces the ability to see and touch a product in person.

”

—Bill Jablonowski, Jabo’s Ace Hardware Plus, if customers have a problem, such as a broken toilet, Amazon won’t coach them through fixing the issue, survey respondents say. The folks at the locally owned home improvement store demonstrate products, explain the differences between similar items and make sure the customers know what to do when they get home to tackle a project. “Being able to hold a product is important,” Jablonowski says. “Nothing replaces the ability to see and touch a product in person.”

Hardware Retailing staffers Kate Klein and Todd Taber contributed to this article.


Marketing: Building a Campaign

By Todd Taber, ttaber@nrha.org

Make Your Marketing Magnetic Boosting Business and Catching Customers With Effective Marketing

56

HARDWARE RETAILING | March 2018


W

e’re only a few months into the new year so Hardware Retailing thought now would be the perfect time to review the basics of crafting a cohesive marketing campaign. By carefully coordinating your marketing efforts, your operation can boost sales, engage customers and amplify your brand by breaking through the clutter. The clutter is thicker than ever, says Hilary Welter, marketing and research coordinator for the North American Retail Hardware Association (NRHA).

In her role, Welter has helped the association accomplish wide-ranging marketing campaigns to advertise events, raise awareness about association products and services and strengthen its brand. On the following pages, she offers helpful insight into the steps of a marketing campaign. So whether you’re totally new to developing a marketing campaign or have led your operation through dozens, take a few moments to review the most important components to make your marketing magnetic in 2018.

Go for the Goal

Know Your Audience

A marketing campaign is simply a plan to reach a goal. You can develop a marketing campaign for any goal your business has, from increasing foot traffic or advertising a special sale to strengthening your operation’s brand recognition, Welter says.

While every step of a marketing campaign is important, correctly identifying your target audience is key. Without reaching the right demographic, your marketing campaign has little chance of success, no matter how hard you and your staff work.

It’s important to keep your marketing goals realistic. A clearly defined goal keeps every subsequent part of a campaign in order, giving each element a purpose to help structure the overarching campaign.

Let’s say you and your team want to encourage customers to sign up for your e-newsletter. Directing your marketing toward customers who haven’t yet subscribed is beneficial, but it’s also important to think of who you’d ideally like to see sign up: new homeowners, younger customers and local builders would be good demographics to target.

“Without a specific goal, it’s difficult to gauge if your marketing efforts are working,” Welter says. “If you’re spending time and money on marketing but aren’t using it to achieve anything specific, you may be wasting your resources without realizing it.” Make sure your goals are achievable. While it would be great to get 100,000 new subscribers to your e-newsletter in a month, it’s not probable. Setting lofty goals seems ambitious, but they can dilute your marketing efforts and lower morale if the goals aren’t met. Start with a practical goal that your staff can work toward.

Welter says that one way to think of potential marketing targets is by considering your longtime customer base and then going one step removed from them. “You probably don’t need to spend much time and energy marketing to your loyal, lifelong customers,” Welter says. “But it may be worth asking yourself, ‘Where are these customers’ children, grandchildren and friends shopping?’ How can you market to those people, too?”

March 2018 | HARDWARE RETAILING

57


Plan Your Tactics The most effective marketing campaigns incorporate tactics that make the marketing goal clear and compelling, using vehicles that reach the target demographic directly. Planning exactly how you’ll accomplish your marketing goal is the make-or-break moment.

hashtags that incorporate your location, your store name and e-newsletter info to help amplify your reach. Post a screenshot to Instagram to help people become familiar with the e-newsletter’s design. It’s also possible to promote social media posts, which could be an inexpensive method that draws more eyes to your marketing efforts.

To increase subscribers for your e-newsletter, consider directing your marketing at people who are already invested in your operation in some way but haven’t subscribed. This method can help your team get its footing and work out any bugs before you expand your campaign to reach more people.

Welter recommends setting a schedule to organize your marketing tactics. By charting when you send e-blasts, social media posts and direct mailers, you can ensure you don’t bombard potential attendees and sour them on your brand.

Pushing beyond your reliable clientele can work wonders for your business. Take time to write a quick summary of your e-newsletter’s benefits to post on your Facebook account. Condense that message and send regular Tweets using

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HARDWARE RETAILING | March 2018

“You can brainstorm and plan all day, but if you don’t have a schedule for execution and a point person to make sure all the elements of the marketing campaign are launched and seen through, it’s very easy for initiatives to fall through the cracks,” Welter says.


Rise Above Common Marketing Pitfalls What are your company’s top marketing challenges? HubSpot, a marketing software developer, recently surveyed business owners for its 2017 State of Inbound report.

Read about the top pain points companies face and get simple solutions to overcome them to give your marketing campaign the best shot at success.

Top Pain Points by Percentage of Respondents

40%

63%

28%

Generating traffic and leads

Proving the ROI of marketing initiatives

Securing enough budget

Be sure to … get your message out as widely as possible, stay focused on your target demographic. From physical flyers to targeted social media posts, generating traffic and potential customers comes from many different sources.

Be sure to … measure, track and record as much marketing data as possible. Analytics give you and your team concrete data on which tactics pulled their weight and which options you should reconsider as you launch future campaigns.

Be sure to … make the most effective use of your budget. Research possible expenditures and evaluate which is most effective to reach your audience and accomplish your goals. Social media posts are low-cost options that amplify your marketing.

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Take Advantage of Team Talent

Track Your Success

The best marketing campaigns use team members’ individual strengths. Think strategically about how to best harness your team’s skills and talents to achieve your marketing goals.

Honestly evaluating the successes and challenges you faced as you launched a campaign is a valuable portion of any initiative. Big-picture evaluations like whether you increased sales at your store or attendance at an event can be good barometers of how your marketing efforts panned out, but there are other ways to measure your success.

Does someone in your operation have a background in journalism or communications? Try encouraging that person to write some content advertising your e-newsletter and how your target demographics can benefit from subscribing. Is there someone on staff with a background in art or design? Give them time to design a graphic that can be used in your social media posts, flyers or mailing material. By expanding your company’s marketing efforts with clearly defined goals, tactics and responsibilities, you can even boost employee morale and energize your employees just as much as you’re hoping to engage customers. If you’re unsure of where to start or don’t have a large budget, looking to your team’s talent can be a great starting point, Welter says. Team members can authentically instill your brand into all marketing.

Planning Your Next Marketing Push Developing a marketing campaign that includes a direct goal, is targeted toward specific demographics and strengthens your brand can make all the difference for your business in 2018. Whether your marketing efforts increased sales by a single penny or thousands of dollars and whether you grew in-store event attendance by a single person or by 10, take stock of what worked and what didn’t in your marketing campaign. This information can make you a more nimble and

60

HARDWARE RETAILING | March 2018

“Measuring ROI with your marketing campaign is important because it lets you know whether the time and money you’ve spent were worth it,” Welter says. “If you’re spending thousands of dollars in print ads and mailings, but don’t know if you’re making money off of those efforts, finding a way to track them can help.” For direct mail, adding a specific code to coupons and tracking how many are redeemed can give you an idea of how successful that tactic is. Digital marketing allows retailers to zero in on specific campaign metrics, and by evaluating link clicks, post impressions (how many people saw your social media posts) and email open rates, you can further refine how impactful your marketing efforts were and learn which tactics to use in the future.

knowledgeable retailer and even help you capture your community’s interest. “Campaigns are so useful because they require you to really think strategically about how you’re spending your time and money to use marketing to meet your goals,” Welter says. “They may take a little time on the back end, but it’s definitely worth the extra effort.” How are your operation’s marketing efforts coming along? Tell us about your successes and struggles at facebook.com/hardwareretailing.


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HARDWARE RETAILING | March 2018


By Chad Husted, chusted@nrha.org

Help Me, Help You Prepare for Customers’ Needs in Paint and Sundries

A

paint department can be a beautiful focal point for any home improvement retailer. For the customer, paint brings a bright, vibrant display of colors to a store, but it’s not all aesthetics for them or the retailer. Paint gives possibilities. A customer walking into a great paint department isn’t thinking about the most practical item they need to accomplish a task. Paint can open up creative avenues for each customer, giving life to a project they discovered online or have been

mulling each time they’ve entered a room they want to transform. Retailers can latch on to that creative spirit with their own innovative takes on their paint and sundries departments. Developing a strong paint department requires focus on several factors, from industry knowledge and product selection to unique merchandising methods and relevant events. To offer a refreshing take on changes in paint and sundries in 2018, Hardware Retailing spoke with retailers at two independent home improvement businesses that have devoted significant time and energy to the category.

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Tim Doehrmann and Stan DesCarpentrie have done more than feature the paint department at Tim’s Ace Hardware and Interiors Roecker’s in Peoria, Illinois. The store on the north edge of Peoria is the combination of Tim’s Ace, which opened in 2006, and Interiors Roecker’s, a paint and sundries supply store that has been serving the area since 1942. In 2011, the businesses merged together, with Roecker’s owner DesCarpentrie becoming the new manager at Tim’s Ace. The business has placed paint at the front of its future—quite literally. The paint department is what customers see first when they walk into the store. Another business that has invested heavily in paint is Cloverdale Ace Hardware, a retail location that is part of the larger Fraser Valley Building Supply (FVBS) company. The business also includes several Fraser Valley RONA stores and the FVBS Contractor Division, says FVBS president Ray Cyr. Cyr and paint and commercial sales specialist Jim Dojack have placed Cloverdale Ace in a strong position for paint and sundries in the Surrey, British Columbia, region with connections to paint professionals and DIY consumers. These retailers have seen the changes and advancements made in the paint and sundries category over time and offered their takes on how best to serve the modern paint customers as well as supplying the ambitious projects they are taking on.

Aiding in Adventure By its creative nature, paint can be both an exciting prospect and an intimidating task. Technique and hard-earned skills can play a larger factor in painting than other DIY and home improvement projects. While professionals will always have their place in the market, more homeowners are taking on tasks themselves and are looking to retailers as sources for not just products but also advice and guidance, Dojack says. These adventurous DIY consumers can come into stores with great enthusiasm about a project, which gives a retailer a strong chance for the sale if they can keep pace with the technologies and materials used in paint and applicators. These can include the newest brushes with bristles designed for specific paints or knowledge about products across the price spectrum and how they can be used to complete projects. “Consumers are more educated than ever in paint,” Dojack says. “Before, we as the paint experts were saying what was trendy and the customer had no way of knowing whether that was accurate. Now, they’re coming into the store and dictating what the trends are, so we have to do our homework.”

Left: Tim’s Ace Hardware and Interiors Roecker’s is the combination of two Peoria, Illinois, businesses that saw a better future as one entity. Right: Tim’s Ace owner Tim Doehrmann (right) and manager Stan DesCarpentrie (left) have made paint a priority for the business.

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The paint and sundries department at Tim’s Ace Hardware and Interiors Roecker’s is designed to offer customers a comfortable area to look over different brands and colors of paint as well as wallcoverings, which are rising in favor among consumers.

Bring in professionals to educate interested DIYers and employees through in-store demonstrations. Partnering with paint professionals to educate staff and customers can boost your business and theirs.

DIYers often find projects online on websites like Pinterest, Dojack says, but they come into the store expecting to be able to just point out a color or technique, walk out with a bucket and be ready to go. “Our customers know what they want, but websites that are offering this information are only taking the customer halfway. They’re not helping the customer wrap up the entire project from start to finish,” Dojack says. “That’s where we have to translate for the customer. ‘How will this paint look when it’s in your home, with the light the way you want it? It won’t look in person like it does on your computer screen.’” In the paint category, knowledge and training is highly important for retail employees. Bring in professionals to educate interested DIYers

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and employees through in-store demonstrations. Partnering with paint professionals to educate staff and customers can boost your business and theirs. At Tim’s Ace Hardware and Interiors Roecker’s, manager DesCarpentrie uses his paint expertise in a number of ways. Not only can he be an in-store resource for customers and a sounding board for pros, but he has established a service for Tim’s Ace in which he makes in-home visits to help customers with design decisions. The home visits allow DesCarpentrie to display the color palette where it will live, Doehrmann says. “The paint color is, of course, affected by what’s around it, and it’s not just DesCarpentrie bringing the colors out,” Doehrmann says. “He has an eye for design that many don’t have and he can offer expert opinions on floor coverings and countertops that will play off of color choices. Customers from all over ask him for in-home visits.” The service also works as a connection to contractors. Tim’s Ace can provide the paint a customer needs, but the entire design might require a contractor to finish. “When I end up helping with things like countertop design selection, that may not help us increase sales,” DesCarpentrie says. “But it sets up a long-term relationship with a customer. Customers who are painting a room might install a new light fixture or upgrade their molding. There’s add-on potential with paint.”


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With options in paint and sundries growing each year, being able to offer a larger variety of price points will be paramount in coming months. Options include products that combine paint and primer in one formulation, low-VOC paints and specialty items like milk-based paints for specific projects. Tim’s Ace offers multiple lines of paint, Doehrmann says. Having the higher-quality paints is necessary to be considered a real go-to paint store, he says, but going directly to those items isn’t always in the best interest of the customer. Lower-priced paints can accomplish similar tasks, and if a retailer is familiar with the paints involved, they can assist a customer in keeping their project within budget. “We’re all about the truth when it comes to paint selection and what price a customer should be looking for. When you tell the customer the truth, they know you’re invested in their project and not just a potential sale,” Doehrmann says. When a customer comes in with a specific project, such as a faux finish on reclaimed furniture for a distressed look that DesCarpentrie has seen continue to grow, starting at the bottom of the price point

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and working up allows the customer to see the options they have to achieve the project. Or, if it isn’t a specific project the customer is attempting, the choice to select a more eco-friendly paint that will accomplish the same task leaves a lasting impression in a customer’s mind. “We don’t want the customer to be the one to say, ‘Stop, I need to go less expensive.’ We’ll take them up through the price points and explain just what kind of result you’ll get with each option. Some people want to go right to the top, and that’s fine if they know what they want and don’t mind the cost. But being able to serve trends at every price point is how you attract repeat business,” DesCarpentrie says.

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Get the Latest App(licator) While retailers must be ready to assist customers attempting new design trends through education and training, the customer won’t be able to finish the project of their applicators aren’t compatible with the type of paint those chose. Understanding the right tools is one of the latest tasks retailers are contending with at Cloverdale Ace and other paint-focused stores, Cyr says. Paint customers might be more educated about design and color options than ever before, but the applicator technology will often be very foreign to DIYers, he says. Bristle technology and the proper method of application are more varied than most customers know, and it falls to the retailer to make this clear. “A big part of the responsibility of the store employee, especially for DIYers, is getting the appropriate sundries to complete the job. You want to make sure you’re selling the whole package when you have this customer in your store,” Cyr says. “Nothing is more frustrating for the customer than not having the right tools when they get home.” Cyr cites the shift to acrylic paints in recent years as one product advancement that has affected business, but a more recent change

has been on the applicator side of the category. There are now more options, and more specialized products, than ever before. “The technology has really evolved on the applicator side of things to match the advances in the paint. Edging tools and sundries are now much more advanced and specialized,” Cyr says. DesCarpentrie looks to another example with some of the more high-end paints offered at Tim’s Ace. Not only do those paints react differently to brushes than more common paint, but even the method of application is altered by the characteristics of the paint. With more customers taking on projects themselves, this kind of applicator knowledge will become more of a focus. Some paints go on heavier than others, which means they’ll have greater coverage. Yet DesCarpentrie has seen professionals that think they’re laying it on too heavy. Heavier paints also need a microfiber brush in order to hold more product on the bristles and to keep the paint even as it is applied. “These are all things that customers never really had to think about before, so it’s a change in the industry,” DesCarpentrie says.

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Customers often look to their local hardware retailer for product knowledge, which is especially important in paint sales. With so many items needed to accomplish painting tasks, retailers must make sure they’ve fully supplied customers before they leave the store.

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At Cloverdale Ace, Dojack is also seeing an evolution of applicators with new brushes being designed to achieve a smoother finish with fewer applications. He looks to manufacturers making hollow-point brushes as an example of this change. Zero-VOC paints are often incompatible with older brushes and applicators. When a modern product can save a customer time and money, there’s a greater likelihood of a combo sale.

“Older paints used five coats compared to two with these new brushes and advanced paints,” Dojack says. “I just saved a customer a day of painting and money on another can. That’s the goal for long-term business.”

Color Selector Trendy colors often come full circle, as can design themes that fall out of favor and are later revived with a new generation. Retailers are seeing consumers make stronger, bolder color choices and pairing them with wallpaper and other wallcoverings as a focal point. Tim’s Ace carried wallpaper selections even as wallcoverings became less popular, and they’ve recently seen a resurgence in use. In DesCarpentrie’s home visits, he sometimes uses wallcoverings in combination with paint to create rooms that have received strong receptions from customers. “By having the whole package, you’re able to put that room together. You do one, they’re wowed, then they come back for more rooms. That helps us sell paint, sundries and wallcoverings again,” DesCarpentrie says. In paint color trends, recent choices include a move to whites and grays of different intensities, Doehrmann says.

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“The Midwest is usually a few years behind the coasts on those things, and whites have been strong on the coast for a while. Grays are still strong, but lighter versions are really getting traction. The off-whites are different as well. People are looking less to the yellow styles of off-white and to more cooler shades,” Doehrmann says. Bright colors that have sometimes dominated interior design in past years will continue to be in the customer palette, Dojack says, but as feature pieces. Wallcoverings have been used similarly in recent years. “Trends are heading toward classic combinations, but more subdued, simple and low key,” Dojack says. Since paint can be such an emotional decision for customers, Dojack says a retailer can get a feel for why a customer is choosing a particular shade, and he believes the current mood of many consumers is leaning toward calm spaces. “Paint can be a very personal business, far more than other departments in a hardware or home improvement store. You establish close relationships,” Dojack says. “Color choice is being made with that in mind, which is why I think you’re going to see these calmer colors showing up more often.”

Cloverdale Ace Hardware, part of Fraser Valley Building Supply, has focused on developing its paint department to become a destination store.


25 By Jesse Carleton, jcarleton@nrha.org

The Big Day Is on Its Way Your Special Events Survival Guide

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boost in sales, a crowd in the store, lots of goodwill toward your business—there are many reasons why you might host a special event. These events offer a great way to bring the community together with your business front and center. But they’re also a lot of work. A successful event, regardless of the size, requires careful planning and attention to detail. A half-hearted attempt that results in chaos on the big day may do more to embarrass your business than advance it. So how can you make sure you’re ready? The details will vary according to your specific plan, but if you want to survive your first or 50th event, you should follow a few guidelines.

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To find out more, the editors of Hardware Retailing spoke to three retailers who have proven records of hosting outstanding events. You can find out more about these retailers on the following pages. Also check out some other resources on this topic. First, see what NRHA’s event manager Katie McHone-Jones says about organizing NRHA’s All-Industry Conference at TheRedT.com/event-planning. For a timeline to help you prepare, visit TheRedT.com/event-checklist. Then, don’t forget to prepare your staff for the big day. Go to nrha.org/FreeTraining and click on “Operations” where you will find two Trainer’s Toolbox lessons, “Getting Ready for the Special Event” and “During and After a Special Event.” These tools can get your employees ready to help.


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Meet the Retailers Dustin Wilkins Rocking R Ace Hardware Harrisonburg, Virginia Dustin Wilkins is the assistant store manager at Rocking R Ace Hardware in Harrisonburg, Virginia. He holds a biannual power tool tent sale that includes his major power tool vendors, a customer appreciation dinner and crowds of mostly pro customers. For the past three years, Wilkins has also helped organize a ladies’ night around Christmastime. The event has grown in popularity and includes door prizes, how-to demonstrations and food cooked fresh on the grill. He also gets participation from other local businesses.

Jason and Danica Huddleston Woydziak Do it Best Hardware Lyons, Kansas The signature event at Woydziak Do it Best Hardware in Lyons, Kansas, is a children’s safety day. Owners Jason and Danica Huddleston, who have four children, hold the Safety Day at city hall across the street from the store. With the assistance of local law enforcement, children create free IDs and discuss important topics such as not talking to strangers and bullying. A couple of years ago, the Huddlestons also agreed to pay for and organize the town’s annual Christmas parade when the city could no longer fund it.

Mike Unterreiner Hartman Hardware Shawnee, Kansas Nearly 13 years ago, Mike Unterreiner, owner of Hartman Hardware in Shawnee, Kansas, wanted to create a way for members of the community to show off their classic cars. He put his organizing skills to work, and today, the Wheels & Dreams Car, Truck and Bike show draws more than 350 cars and 3,000 car enthusiasts. Unterreiner gets a permit from the city to shut down the street in front of his store and gets sponsors from nearly all the downtown businesses. It has become a big boost to local commerce.

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Set Your Goals Every event should have a purpose and you should be able to clearly define it.

Share Your Passion Whatever your goal, choose something that will get you and your staff excited. The Christmas parade is only one of the many events the Huddlestons coordinate. One of the largest is a safety day, which is designed to promote child safety in the community. In fact, nearly every event they organize is in some way centered around children. “The biggest key in having a successful event is finding what you are passionate about,” Jason says. As parents of four children, the Huddlestons understand the importance of offering familyoriented activities, but they also have a larger picture in mind. “We realize that we’re a community with a lot of older people in it. If children grow up and feel that their hometown has nothing to offer them, they are likely to move away. We want to start establishing good memories in those children now so they feel a connection with the town when they get older.”

If you’re tackling your first event, start with something simple. You will learn from your mistakes and successes and build from there. One easy way to go too big too fast, for example, is with sale items. By offering merchandise at a discount, you can draw a crowd, but overspending is counterproductive. “Don’t try to give away so much merchandise so that you’re not making any money,” Unterreiner says. “Don’t run yourself out of business while trying to promote your business.”

Know Your Audience and Your Message Try summarizing the goal for your event in a sentence or two. Is it clear enough that everyone on staff can easily understand what you are trying to do? You’ll also want to make sure your event makes sense with your customer base. For example, you might want to simply say thank you to your customers for their business, you might want to promote a particular department in your store and drive sales, or you might be helping a local nonprofit raise money. With a clear goal in place, you can make sure everything you do for the event works toward it.

Start Small and Know Your Limits If anyone knows how complicated a large event can be, it’s Unterreiner. For the past 13 years, he has been on the planning committee for his town’s annual car show. He begins several months before the event taking care of getting sponsors, scheduling entertainment and ordering trophies for the winners. But it didn’t start that large. As one of the founders of the event, Unterreiner needed some time to learn the demands of handling a large crowd. “Don’t try to go too big at one time, but grow gradually,” he says. “Otherwise, it might end up costing you more money.”

The tool show at Rocking R Ace Hardware includes a local radio personality to add excitement to the event.

Money-Saving Tip Connect with a cause. If part of the goal of your event is to help a nonprofit, you could actually share the costs of your event while helping a worthy cause. The local charity you choose to support can help advertise your event through its own channels. Give other businesses a chance to get in on the action with sponsorships, too. Sponsorships can increase the amount of money you are able to donate, help pay for your expenses and increase your visibility. More than likely, others will be eager to help.

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Sweat the Details Once you’ve established your goal, organization is your biggest asset.

Schedule Outside Vendors

Start Early Depending on the scope of your event, you might start planning four to six months in advance. When planning their children’s safety day, the Huddlestons start by choosing a date. “We have the event at city hall, so we choose a date that will be OK with them,” Danica says. “We also don’t want to conflict with other events in the community, such as high school graduation.” While you can’t work around everything going on around town, it’s best to avoid big events that could divert your audience. Even if you don’t think another event in town will conflict with yours, it may be big enough to cause road closures (for example, a 5K race that runs through town). Even if your customers don’t go to the race, it could still make it more difficult for them to come to your store.

Once the date is established, you can schedule services you need from businesses outside the store, such as entertainers, caterers or your vendors. You’ll also need to consider permits or licenses. For Danica, that means purchasing special event insurance (which she needs since she is conducting the event off-site) and contacting a local radio station so they can be present for a live broadcast. Call local authorities for any permits or inspections you may need. For example, if your event involves shutting down a city street or serving alcohol, as does Unterreiner’s car show, you will need to get the appropriate permits from city departments. When appropriate, ask store vendors to attend. They are likely to jump at the chance to show their new products, and they may provide giveaways. Having brand-name vendors your customers recognize at your event also

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lends credibility to your business as the home improvement experts in the area. Having a vendor in attendance is also a great way to introduce a new product.

Get Employees to Help Don’t try to tackle the entire event on your own. Consider delegating responsibilities to other employees according to their strengths. Wilkins has taken on much of the responsibility of organizing the store’s annual tool sale for several years, and now he’s finding others to help. “I know what needs to be done in each phase of the process, so I can match it with the talents of the people on my team,” he says. Put a talented organizer on your team. The planning phase will involve making a to-do list, so you want someone who is thorough and will follow through until every task is finished. If you keep good notes, doing it the next time will be easier. When you get employees involved, they will also take ownership of the event. When that happens, they are more likely to be excited about it and pass that excitement on to your customers.

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Talk It Up If you’re going to throw a party, make sure you let everyone know. Having a well-rounded marketing plan is essential if you want to draw a crowd.

Talk About It in the Store In the weeks leading up to the big day, the store should look as if something is about to happen. Hang posters or banners advertising the event. Create bag stuffers cashiers can hand out at checkout. Most importantly, get employees to talk it up. Personal invitations will be the most effective way to get people to put your event on their calendars. And customers are more likely to be excited about the event if employees are. But the best way to get employee buy-in is to keep them well informed about the details so they can answer customers’ questions.

Talk About It on Social Media Use every type of marketing available to you, including radio spots and targeted email marketing. But next to personal invitations, social media could be one of your most powerful assets. “Facebook has become a very important marketing tool for us, and it’s the way we are reaching a lot of our customers now,” Wilkins says. “We’ve also used it to find customers outside of our immediate market.” Facebook also presents unique opportunities during the event. Wilkins had an employee shoot a Facebook Live video at Rocking R Ace’s last ladies’ night. That video and the photos he posts

Money-Saving Tip If your event is supporting a local nonprofit or community cause, the local media might consider it newsworthy. Prepare a press release talking about your event, then send it out to local newspapers and radio stations. Emphasize the value your event has for the community, not just your store. If they deem it newsworthy, they may publish it, which is a bit of free advertising for you. If you need help putting a press release together, download a template at TheRedT.com/press-release.

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The ladies’ night event at Rocking R Ace Hardware includes local vendors who offer samples of their food.

during the event help generate interest among people who didn’t attend and may be interested next time. The social media content also gives him material he can use to promote the event in the future.

Talk to Other Businesses More than likely, other local businesses would be interested in being a part of a special event, so consider creating some partnerships. Look for ways other businesses can participate. At the ladies’ night at Rocking R Ace Hardware, Wilkins invites other local businesses to share their products and get involved in other ways. “We ask local eateries to donate food,” he says. “They set up a table to give out samples of their food and in return get exposure for their business.” Last year, a local coffee shop brought in coffee, a bagel shop donated desserts and a food truck made grilled cheese sandwiches. When other businesses participate, they will likely promote the event ahead of time to their customers, which is not only free publicity for you, but gives your business exposure to a new set of customers. In addition, partnering with other small businesses in your area strengthens your buy-local message.


Evaluate When the event is over, your work isn’t done. If you want to plan effectively for the next event, learn from your mistakes and successes.

Get Input Early and From Everyone Don’t wait until next year to reflect on your event’s success. Do it right away. A day or two after your event, while it’s still fresh in your mind, gather your employees and talk about it. Save those notes for the next time you host the event. And listen to everyone, including staff, business owners who partnered and customers, during the event or later when you see them in the store. “We get a lot of feedback from our customers every time we have an event, and we listen to their advice,” Unterreiner says. “You need to have the same attitude of customer service when running an event as you do any other day. If you do well and please the customer, they will come back and talk positively about you to others.”

increased awareness about a particular product or department or increased customer loyalty because of the good time people had. Look for new faces in the crowd and work on building relationships. The goodwill generated will stick with your customers long into the future.

Change It Up Your event may have gone well, but that doesn’t mean you should do it exactly the same way next time. Getting stuck in a pattern could mean it loses its energy. The Huddlestons’ safety day has been very successful and continues to grow. Still, Jason looks for ways each year to try something new. “Don’t just continue to do the same thing over and over,” he says. “Each year, it needs to be fresh. We are constantly talking to staff and customers, getting feedback on what we could do better, or just something we can do differently.”

Look for Problem Points and Adjust The most beneficial part of evaluation is finding problem points and fixing them, especially if your event is new or you’ve not had much experience running one. Think through every detail and ask questions such as: Were we able to get customers through the registers quickly? Was there enough parking? Did we have enough food and giveaways? Look for solutions and don’t be discouraged if it takes a few times to get it right. “During our first ladies’ night, we had a huge turnout, but our store layout put us in a bind,” Wilkins says. “There were long lines and people had difficulty getting to the food. The next year we changed a few things, and then finally, by the third year, it was smoother.” If customer interest is low and the difficulties outweigh the successes, don’t be afraid to stop hosting a particular event. Know when it’s time to move on and try something else.

Don’t Focus Only on Sales Especially for events that revolve around sales, it may be easy to emphasize dollars rung up at the register. However, that isn’t the only true measure of success. It’s difficult to measure the residual effects of having a large group of people excited about being at your business. There may be

At Rocking R Ace, Wilkins found he needed to make a few alterations to the store layout to help managing the large crowd at ladies’ night.

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Socially Inclined McGuckin Hardware Captivates the Community on Social Media

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cGuckin Hardware’s slogan is “the everything store,” and for the Boulder, Colorado-area customers it serves, that certainly rings true. Since opening in 1955, the store has grown to offer 18 departments inside the 60,000-square-foot facility with nearly 200,000 separate SKUs. Part of McGuckin’s staying power and its growth in recent years has been because of the way the company has developed its social media presence.

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The company is present on several social media platforms, and most of its followers can be found on the big three: Facebook, which has about 20,000 followers; Twitter, which has nearly 3,300 followers; and Instagram, which has just over 1,500 followers. See Page 86 for more about how McGuckin Hardware utilizes each platform. Whether it’s getting the community excited for in-store promotions and events or letting customers know what’s


McGuckin Hardware added an event.

...

December 29, 2017 at 5:55 p.m.

It’s Tent Sale Time! Stop in Thursday through Sunday, May 10 through 13 for our annual Spring Tent Sale! Save up to 70% off an array of items in the tent representing our many departments and save 10% off the ENTIRE STORE*! 11

happening in Boulder, McGuckin is a go-to source for information for many residents of the mountain town.

The Appeal of ‘Shoppertainment’ McGuckin Hardware marketing and communications specialist Steve Wilke says social media is a vital marketing tool for local businesses because it adds dimension and allows customers to stay connected.

“Social media offers another great portal for your customers to keep in contact with you, and it makes you more relevant,” he says. “Creating new content helps you stay fresh, and maintaining those avenues of communication keeps customers coming back.” Social media is also a powerful advertising tool for in-store events McGuckin Hardware hosts, Wilke says. Aside from shopping, customers make their way into the March 2018 | HARDWARE RETAILING

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The McGuckin Hardware Holiday Shop attracts customers of all ages. The company hires musicians to play holiday music in the aisles, and it advertises the event on social media so customers can make time to check out the displays and enjoy holiday cheer.

store for events like Seed Swap Saturday, where community members can trade seeds to mix up their gardens each spring. Along with serving customers, McGuckin also connects with community organizations in Boulder. “We pick an organization to sponsor each month, and for one week during that month, we ask customers to round up their purchases to the next dollar, and that money goes to the organization,” Wilke says. Groups like Meals on Wheels and the Humane Society of Boulder Valley are two charities the business has recently supported. The company lists all upcoming events on its Facebook page—whether it’s customer-focused or a fundraiser—so customers can plan ahead to participate. In addition to philanthropy, social media keeps McGuckin customers informed about sales and available products. Last summer, the company was able to capitalize on an in-demand item. The August 2017 solar eclipse reached 93 percent totality in the Boulder region.

Social media helps McGuckin Hardware deliver what Wilke calls “shoppertainment.” 84

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Prior to the event, employees noticed many Facebook followers were on the hunt for special eclipse glasses to view it safely. The business ordered about 34,000 pairs of glasses, advertised them directly on social media, and soon sold out, with lines of people out the door, Wilke says. Social media also does the heavy lifting to spread the word about McGuckin events. Wilke says the company’s Facebook page is an integral element to advertising the annual Holiday Shop and biannual tent sale. Social media helps McGuckin Hardware deliver what Wilke calls “shoppertainment,” or giving customers a memorable experience within the store. “Every year in September, we set up a 5,000-square-foot holiday aisle,” Wilke says. “The Holiday Shop has everything from international ornaments to nutcrackers from the Black Forest in Germany. We bring in a violinist, harpist and cellist who park right in the middle of the store to play Christmas carols and rock ‘n’ roll covers for shoppers.” The tent sale has been held twice a year for nearly 40 years, once in the spring and once in the fall. At the event, McGuckin sells special items that buyers collect throughout the year, but it’s also become a prominent community event. Continued on Page 88


Bring your ideas to the table. NRHA creates opportunities for conversations between independent home improvement retailers of all affiliations and sizes, so you can share your ideas and learn new ones from a variety of industry professionals.

Get involved. Take the first step. NRHA offers topic-focused roundtables, educational conferences, events and retail management programs. With dozens of options and ways to engage, you can explore what’s most important to you. Regardless of how involved you are, your voice matters.

We’re stronger together. “We are all facing the same issues, and working together is going to make us, and our industry, stronger.” Scott Jerousek | Farm and Home Hardware | Wellington, Ohio JOIN US TODAY AT NRHA.ORG/MEMBERSHIP


How McGuckin Spends Its Time Online The Boulder, Colorado-based hardware store has grown its online presence across a half-dozen platforms over the last several years. Each space offers the company a different opportunity to connect with community members and customers.

“Facebook has our biggest reach and is our most powerful tool,” Wilke says. “We give our followers content that’s relevant to the community. If our local newspaper posts an article, we’ll share it and offer an angle of how we can help.”

Instagram “A lot of what we post is spur of the moment,” says McGuckin Hardware marketing and communications specialist Steve Wilke. “We are kind of the community center. There’s always something going on in Boulder, so there’s never a shortage of things to post about.” While it’s important to stay tuned in to your community, having a plan during slow news weeks is also crucial for a solid social media strategy. To get started on your plan, visit TheRedT.com/social-media-toolkit.

Facebook owns Instagram, so linking the two platforms takes just a few clicks. With the platforms linked, it’s easy to cross-post content, which means posting the same content on both platforms at the same time. Because Instagram is used to share photos and videos, McGuckin cross-posts visual content on both platforms. “Instagram and Facebook are our most robust platforms, when it comes to content. We try to mirror them, but the visual content is mostly geared toward Instagram,” Wilke says.

Facebook Facebook is McGuckin’s largest social media base, with more than 20,000 likes. The company uses Facebook to share store events, promotions and generally stay connected with the Boulder community.

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alert followers to changes in store hours and to get the word out about natural disasters and emergencies. “We’re known as Boulder’s ‘second responders,’” Wilke says. “In 2013, we had a 1,000-year-flood, and we provided an update feed of what was going on. The first responders and emergency personnel rescued people out of their homes, and the community basically came to us next. We were there to help them get back into their homes.”

reddit Boulder has a dedicated space on the online forum website reddit, and Wilke says the conversations that happen in there offer a similar glimpse into the community that Nextdoor offers. “We look for our name in the posts, and its gives us a little more of a pulse on the neighborhood,” he says.

Pinterest Nextdoor This website connects people to their neighbors, and residents can request service people or post about community events, missing animals or other neighborhood occurrences. McGuckin uses the website to find out what’s going on in its neighborhood and stay tuned into people’s needs. “We use Nextdoor as a window into the neighborhood and to see what people are talking about,” Wilke says. “The information we get there may inform what we run in an ad that week.”

The project-sharing website has a home for McGuckin and its customers, too. The company uses the platform to share project ideas and get inspiration. McGuckin’s boards are organized by hobbies, projects and locations, including fairy gardens, backyard chickens and Boulder, Colorado. “We use Pinterest for project inspiration, and sometimes we put our own twists on existing projects,” Wilke says. “We also use our own Pinterest page to post unique designs of our own, projects that are thought up by the marketing department or the diverse brain trust that is our staff on the salesfloor.”

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“Make sure you’re creating original content

on a weekly basis to make people want to follow your social media channels. You’ll see traffic grow, and soon your community will see your page as a dependable resource.

”

—Steve Wilke, McGuckin Hardware

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“Our tent sale—especially the spring one—is the landmark sale,” Wilke says. “The sales run Thursday through Sunday, and we get a permit from the shopping center next door to put up a huge tent in the parking lot.” In addition to helping the company advertise events, social media has also helped McGuckin Hardware communicate store updates, such as when the store was remodeled last year. Departments swapped locations, impulse items moved close to registers and LED lighting was updated throughout the store. Thanks to the hardworking staff, patient customers and regular social media updates about the progress, the store never closed during the remodel. Wilke knows that not every hardware store is able to have a dedicated marketing team to oversee its website and social media, but he recommends a few simple things every home improvement business can do to boost its online presence. “Social media is a very powerful tool that doesn’t require a lot of money,” he says. “Listen to your customers and take note of what they’re searching for. Make sure you’re creating original content on a weekly basis to make people want to follow your social media channels. You’ll see traffic grow, and soon your community will see your page as a dependable resource.”

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Wilke says the company plans to experiment with other platforms and digital capabilities that social media offers this year. “Over the last five years or so, people have started asking, ‘What’s McGuckin going to come up with next on social media?’ Right now, we use Facebook Live to show customers what they’re missing during in-store events


and to capitalize on the idea of shoppertainment. At Christmastime last year, we rounded up all of our employees and they sang Christmas carols on Facebook Live,” he says. Wilke says video- and photobased content is crucial for success, and it can also help bring in younger customers. “Our goal is to find new and creative ways to appeal to the younger demographic,” he says. “That’s something we’re always tinkering with. We’re going to work with Snapchat this year, since it’s geared toward a younger crowd.” The company is also looking to grow its email list by focusing on community-related content in its messaging, although Wilke says he is happy with the performance of the current e-newsletter, which has an open rate of about 25 percent. “We send a monthly e-newsletter to about 41,000 recipients,” he says. “We want to expand our reach, and we try to do that by not selling something every time. We make sure to fill our newsletters with information about what’s going on in the community, what we’re doing and how it’s all related.” Wilke says everything about being successful in digital spaces boils down to content. “Making yourself as relevant to your local community as possible will help your customers recognize your value,” he says. “They need to know they’re more apt to get service and get someone who cares about their project.” While Wilke says “content is king,” he also says coming up with fresh content shouldn’t be a stressor. “Content comes from your people: your employees and your customers. Open your eyes and ears to your store and your community, and the content is often right there, hidden in plain sight.”

Manager Jason Hight presents a check to the Humane Society of Boulder Valley.

Hardware Retailing staffers Melanie Moul and Todd Taber contributed to this article.

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‘If You Build I

t, They Will Come’ Iowa Business Uses Expansion to Widen Audience, Create Retail Destination By Renee Changnon, rchangnon@nrha.org

W

hen a fire destroyed Marcus Lumber Co.’s shop buildings, lumber shed and delivery vehicles in 2004, the Leavitt family found a way to turn their bad luck around. Instead of closing its doors, Marcus Lumber was reborn with a brand new 18,000-square-foot building that included an expansive showroom. Within the past year, Marcus Lumber has added an additional 7,500 square feet to its building as part of its expansion and renovation plans. According to Grant Leavitt, a fourth-generation member of the Leavitt family, which has owned the 137-year-old Marcus, Iowa, business since 1920, the family hopes their most recent remodel will solidify Marcus Lumber’s reputation as a destination retailer. “Our business is located in a small town,” Leavitt says. “The overall population is decreasing in our county and town. By expanding and remodeling Marcus Lumber, we wanted to make a statement that our home improvement store is worth traveling to. That desire helped fuel our own desire to create a showroom people would talk about and appreciate.”

Following the Leaders Before Marcus Lumber opened the doors to its new showroom, the Leavitt family went through years of research and planning. Leavitt says they visited several successful independent retailers’ stores across the country, which included Fox Home Center in Alsip, Illinois, Millard Lumber in Omaha, Nebraska, and two stores in Ohio. “We made it a point to visit several hardware stores and lumberyards,” Leavitt says. “We spent an entire day at Hartville Hardware, asking questions and gaining inspiration from their leaders. It was invaluable.” Hartville Hardware, located in Hartville, Ohio, is considered the largest hardware store in the U.S. and helped the Leavitts see a destination retail location in action. While in Ohio, the family also went to Keim Lumber Co., in Charm, Ohio. While Keim Lumber is larger than Marcus Lumber’s business in scale, it also serves consumers in a small, rural community. “All the stores we visited provided us with great examples of things we wanted to implement in our showroom,” Leavitt says. “Many of these businesses were

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larger than ours, but they gave us many great takeaways and provided us with the chance to connect to other retailers and take note of ideas that were implemented into our operation.” Aside from visiting other retailers, the Marcus Lumber team also made a point to attend a variety of trade shows, like the International Builders’ Show, the Kitchen and Bath Industry Show and their co-op markets, Leavitt says. The remodel was a family affair, which included Grant Leavitt, his brother Clay, his father Bob, uncle Jim and cousin Tom, making it a total team effort. The ambition to move the business forward stems from the example of the third generation, which includes Bob, Jim and Tom. With help from their strong team of employees, Leavitt says it has been a success.

“When we first added a showroom after our fire in 2004, we saw the improved shopping experience our customers had.

”

—Grant Leavitt, Marcus Lumber Co.

Showing Off Their Showroom Walking through the doors of the newly renovated Marcus Lumber presents shoppers with everything they need from a hardware store—and much more. For the professional builder or DIYer, the newly renovated showroom is what really leaves an impression, Leavitt says. The showroom includes a window center, which features 30 installed models on display. It also has model homes equipped with siding and stone, plus 80 different types of doors, which include exterior, interior, patio and storm doors. There is even a composite deck surrounded by artificial turf and a realistic backdrop to help customers visualize the products in real-life settings. “When we first added a showroom after our fire in 2004, we saw the improved shopping experience our customers had,” Leavitt says. “The showroom is meant to make selling more enjoyable and, quite frankly, easier.” Expanding on the idea of a full mock home in the store, the showroom is meant to provide inspiration for all spaces in the home. It has bathroom fixtures and installations for customers to walk through, including 27 bathroom vanities, plus working shower and faucet displays that highlight the latest trends in style and finish.

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At Marcus Lumber, customers have the opportunity to design and plan their dream homes by walking through the new showroom. The store has 27 bathroom vanities in addition to working shower and faucet displays, which help customers choose what items they want to purchase.

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“Our goal was to

build something so impressive that they want to come to us first. Since we revealed our new showroom, it has paid off in dividends.

”

—Grant Leavitt, Marcus Lumber Co.

One way Marcus Lumber creates a unique experience for its customers is through technology. Designers can help customers create and visualize a remodeled room with virtual reality glasses.

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The store also has 12 different kitchen displays featuring various types, styles and colors of cabinets to choose from. One of the model kitchens is a fully functional test kitchen that the family plans to use for events and demonstrations. “The test kitchen features a 12-foot-wide screen that shows store ads and can tune into a camera above it,” Leavitt says. The remodel also incorporates technology to help customers create and visualize their rooms through virtual reality. “This technology isn’t widely used by our customers yet, but having the capability in our store is huge,” Leavitt says. “Our thought process is that people who are intrigued by virtual reality will be impressed by our capabilities and tell their friends about us.” Down the line, Leavitt says they plan on adding more technology to the business, like QR Codes and video signage, which are just another way to stand out. “Customers can go to Sioux City, Iowa, to shop or they can come to us for their home improvement needs,” Leavitt says. “Our goal was to build something so impressive that they want to come to us first. Since we revealed our new showroom, it has paid off in dividends. This was a complete team effort and our employees have helped make our dreams a reality.”


Building a Foundation With Help From Retailers When the Leavitt family decided to create a new showroom experience at Marcus Lumber, they turned to their peers in the industry for inspiration. Before beginning their remodel and expansion, the family visited a handful of hardware stores and lumberyards across the country seeking advice and ideas they could implement in the store design. •

•

Hartville Hardware, Hartville, Ohio Dubbed “America’s Largest Hardware Store,” this retail business is the epitome of a destination retailer. Hartville Hardware has many unique features, including an 1,850-square-foot Idea House, which is a complete house built inside the business to showcase the store’s Kitchen & Bath Design Center. Fox Home Center, Alsip, Illinois Considered a premier design center for consumers in the Chicago suburbs, Fox Home Center offers high-quality products that aren’t found in big-box stores.

The showroom covers a wide array of designs for the kitchen, bathroom and closet. •

Millard Lumber, Omaha, Nebraska Millard Lumber is a three-store chain that features design centers in two of its locations. The company provides a wide variety of services, including design consultations, delivery, installation services, green alternative building options and more. The business also offers a broad selection of home improvement product offerings, including windows and patio doors, decking, trusses, walls, floors, millwork, insulation, roofing, cabinetry, hardware and more.

•

Keim Lumber Co., Charm, Ohio Keim Lumber Co. is another Ohio business that is large in size and provides a wealth of ideas for its customers. The store’s showroom displays everything from plumbing and bath displays and model kitchens to doors, windows, closets and more.


Legislative Report

Small Businesses Taking on Taxes To keep retailers more informed about the legislative issues that may impact their businesses, Hardware Retailing will be providing regular updates in future issues and online.

O

nline retail sales continue to grow each year, however, they remain exempt from sales tax. The sales tax exemption for e-commerce sales has created a competitive disadvantage throughout the retail industry for Main Street businesses. The growth of e-commerce has attracted the attention of small business owners and the government. Throughout 2018, business owners should follow the Supreme Court closely as it takes on this issue. In 1992, the Supreme Court ruled in favor of the Quill Corp. in Quill Corp. v. North Dakota. The court upheld previous laws affirming that states cannot impose sales tax collection obligations on businesses lacking a physical presence in the state. At the time, Quill Corp. had established nexus, or physical presence, in the state, and North Dakota law required in-state companies to collect sales tax. The company argued protection under the Commerce Clause of the U.S. Constitution, which permits Congress “to regulate commerce with foreign nations and among several states” concerning tax collection. Quill Corp.’s argument using the Commerce Clause allowed them to win their case. Small business owners and consumers primarily favor a system in which online retailers

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collect sales tax and pay those taxes back to the originating state. The issue addressed by the Supreme Court is that if nexus is the determinant for how e-commerce is regulated, companies are liable to double taxation, which is unconstitutional. Moving forward in 2018, there are two possible outcomes to online sales tax collection. • Congress could pass a federal regulation that fulfills sales tax obligations by payment of the originating state, given the Supreme Court Commerce Clause ruling. • The U.S. Supreme Court could reverse its previous ruling in Quill Corp. v. North Dakota. Given the disagreement in Congress concerning sales tax solutions and rising tension between brick-and-mortar businesses and online retailers, many on Capitol Hill believe the Supreme Court will ultimately resolve the issue. In July, the No Regulation Without Representation Act of 2017 was introduced in the U.S. House of Representatives and was then referred to the subcommittee on Regulatory Reform, Commercial and Antitrust Law. Ultimately, the legislation hit a dead end. This issue will be vital for retailers to monitor in 2018 as competitive marketplaces grow online.


The Impact of Tax Reform

Renewal of Child Tax Credit

President Donald Trump recently concluded his one-year tax reform agenda with the Tax Cuts and Jobs Act of 2017. As a result of this legislation, small businesses can expect to see a dramatic change this year. The tax rate for small businesses (also called pass-throughs) has been capped at 25 percent. However, due to Senate budget rules, the tax cuts for individuals and pass-throughs expire after 2025. The lowered corporate tax rate, which dropped from 35 percent to 21 percent, is permanent. Moving forward, businesses are now able to deduct 100 percent of what they spend on capital investments. Businesses will be able to completely write off equipment that is purchased rather than it depreciating over an extended period of time. In the world of running a retail business, success often begins at home. Parts of the tax plan intend to help people retain more of their take-home pay. Here are a few highlights, by the numbers, that people can expect to see in 2018.

• $2,000 credit per child under age 17 • Full credit is available to families with incomes up to $200,000 (single) and $400,000 (married)

Increase in a Zero Percent Tax Bracket • Standard deduction of $12,000 (single), $18,000 (single parents), and $24,000 (married)

Repeal of Affordable Care Act Individual Mandate Fee • Although Americans are still required to purchase health insurance by law, the fine for not purchasing insurance was repealed as part of the tax plan. In 2017, the U.S. saw substantial economic growth. Throughout 2018, business owners, employees and consumers can expect to see increased returns on investments and more money in their wallets. Jeff Cardwell is the deputy director of communications for the Lincoln Roundtable, a conservative grassroots political organization. He interned in the Office of the Vice President for Vice President Mike Pence and is on the advisory council for the People Helping People Network, a nonprofit that assists Central Americans affected by natural disasters.

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Newsmakers

3 Counterpoints to the ‘Retail Apocalypse’

M

any news reports suggest retail is headed for its ultimate demise, and it’s often referred to as the “retail apocalypse.” With the news of store closures, bankruptcies and layoffs coming almost daily, that’s an easy conclusion to come to. However, according to Mark Mathews, vice president of research development and industry analysis at the National Retail Federation (NRF), the data doesn’t add up to an impending Armageddon. In fact, he says the retail sector has made remarkable strides in adapting to what he calls a “fundamental shift” in the way consumers shop. “The consumer doesn’t see the channel anymore,” Mathews says. “They just want to buy in the most convenient way.” Mathews says retailers who have successfully bridged into omnichannel sales have focused on that shift in how people shop and have made it easier for consumers to access what they need. This ease of shopping contributed to sales growth during the 2017 holiday season. Retail sales grew 5.5 percent over the holidays, including both online and brick-and-mortar sales, according to NRF data. Mathews says despite that growth, the myth of the retail apocalypse is still strong. Hardware Retailing spoke to Mathews to find out why the retail apocalypse theory doesn’t pan out, and he offered three compelling counterpoints. 1. The labor statistics aren’t an accurate representation of retail workers. Every month, the U.S. Bureau of Labor Statistics publishes a report on retail employment. Mathews says that if that number is down, it’s seen as proof of the industry’s downfall. However, Mathews says those numbers only include employees of establishments where retail sales actually occur, not warehouses, distribution centers or headquarters affiliated with retail companies. “They’re only capturing a small portion of retail workers,” Mathews says. “The jobs situation for retail is not nearly as bleak.” 2. Amazon isn’t killing retail; it is retail. Mathews says some of the fastest growing online retailers are traditional brick-and-mortar businesses, and 9 out of 10 online businesses have stores. “If you don’t have the ability to compete in store and online, then it’s going to be difficult,” he says. “It’s not about Amazon, it’s about a fundamental shift in the way we purchase things.” 3. Sensationalism feeds the narrative. People have a nostalgic bond to retail locations, so when they hear a store is closing or going bankrupt, it furthers the retail apocalypse idea, Mathews says. “It’s national news when a retail store goes bankrupt, and it resonates with us because we think, ‘Oh, I used to shop there,’” Mathews says. “In 2016, the top 10 bankruptcies weren’t retailers. There’s certainly a degree of that going on, but on a national level, we don’t see much of a reduction in the number of stores.”

Mark Mathews is the vice president of research development and industry analysis at the National Retail Federation. In his role at NRF, Mathews is responsible for helping develop, evaluate and direct the research initiatives for NRF’s Retail Research and Analysis Center. He has more than 20 years of experience in various research roles.

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Upcoming Events March 15-17 Ace Hardware Spring 2018 Convention & Exhibits Dallas

23-24 Blish-Mize Spring Buying Market Overland Park, Kansas

April 11-13 Wallace Hardware Co. Inc., Spring Dealer Market Pigeon Forge, Tennessee

14-17 Home Hardware Market St. Jacobs, Ontario

May 8-10 National Hardware Show® Las Vegas

8-10 NRHA All-Industry Conference Las Vegas

18-21 Do it Best Spring Market Indianapolis

July 27-29 United Hardware Buying Market Minneapolis

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.


9 Top Categories

Newer Than New

The National Hardware Show® knows what drives the home improvement industry, so it gathers vendors across nine categories, from traditional hardware to what’s trending in pet products, homewares, outdoor living and more.

If you’ve ever wanted to know what’s cooking in the industry, this is your chance to see it first. Inventors Spotlight provides opportunities for vendors to debut new products and new vendors to enter the market.

Around the World

Outdoor Fun

Take a trip in the International Sourcing Area on the show floor to see what trends are on the rise outside the U.S. and Canada. Explore international cultures in the home improvement industry to gain a new perspective.

There is always a feast of products and treats in the Tailgate, Backyard and Barbecue area. If you’re craving some Las Vegas sunshine and burgers hot off the grill, take a stroll and do some product research, too.

What will you find? The North American Retail Hardware Association (NRHA) All-Industry Conference is held in conjunction with the National Hardware Show®. This event combination means you benefit from independent-specific educational and networking opportunities and tens of thousands of the latest home improvement products right at your fingertips. Discover the unexpected, May 8-10 in Las Vegas.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

2018 NRHA ALL-INDUSTRY CONFERENCE


Newsmakers Instagram COO Says Users ‘Want to Hear From Businesses’ In a panel at NRF 2018: Retail’s Big Show, Instagram COO Marne Levine talked about how businesses can make strong connections on the social platform. TheRedT.com/nrf-coo

Chatting With Lowe’s, Courtesy of Apple A new feature in the latest operating system from Apple will offer an avenue for Lowe’s to provide customer service through text messages, according to Apple. TheRedT.com/lowes-apple

House-Hasson Launches New Advertising Program At its February market, House-Hasson launched its Digital Deals program in an effort to improve the profitability

of its independent hardware store and lumberyard retailers. TheRedT.com/house-hasson-deals

Tariffs Imposed on Solar Panels, Washing Machines Earlier this year, the Donald Trump administration announced tariffs on imports of solar panels and washing machines as part of the administration’s focus on “America First,” according to The Wall Street Journal. TheRedT.com/solar-tariffs

LED Lighting Helps Walmart Save $100M The big-box retailer installed more than 1.5 million LED light fixtures at its stores, according to industry publication Electric Light & Power. TheRedT.com/walmart-led

Combat the Growing Cost of Return Fraud National Retail Federation research shows that the average loss per return fraud incident is $1,766. TheRedT.com/return-fraud

New Programs Highlight of United Hardware’s January Buying Market

‘We’re Going After Sears,’ J.C. Penney CEO Says

Just days after the New Year, retailers attended the 2018 United Hardware January Buying Market, seeking new products and niche opportunities. TheRedT.com/united-programs

Marvin Ellison, J.C. Penney’s current CEO and a former Home Depot executive, has his eye on Sears’ appliance business. TheRedT.com/jcpenney-sears

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Ace Hardware Company ............................................... 39 www.myace.com; 630-990-6900

Jrco............................................................................... 92 www.jrcoinc.com/HRM; 866-537-6216

Radia ............................................................................... 7 www.radiaproducts.com; 800-221-1083

Ajax Wire Specialty Co.................................................. 30 www.ajaxwire.com; 855-966-2529

Kissler & Co. Inc. .......................................................... 32 www.kissler.com; 800-KISSLER

Red Devil ...................................................................... 65 www.reddevil.com; 800-423-3845

Allway Tools ...................................................................... 3 www.allwaytools.com; 800-422-5592

Lock-tile Industries LLC ................................................ 18 www.locktileusa.com; 888-562-5845

Red Lion ....................................................................... 19 www.redlionproducts.com; 844-250-4981

Ancra International/S-Line ....................................... 27, 79 www.ancracargo.com; 800-626-8353

Master Magnetics Inc. .................................................. 40 www.magnetsource.com; 888-293-9190

Rust Patrol .................................................................... 31 www.rustpatrol.com; 713-400-3100

Big Green Egg............................................................... 93 www.biggreeenegg.com; 800-793-2292

Maxim........................................................................... 78 www.maximmfg.com/HRM; 888-376-0849

Sakrete.......................................................................... 15 www.sakrete.com; 214-991-0280

Brave............................................................................. 26 www.braveproducts.com/HRM; 866-281-4421

Metaltech Scaffolding ................................................... 33 www.metaltech.co; 800-363-7587

Santint........................................................................... 69 www.santintusa.com; 847-350-6911

Cole’s Wild Bird ............................................................ 37 www.coleswildbird.com; 877-426-8882

Mi-T-M Corporation....................................................... 88 www.mitm.com; 800-553-9053

Sashco .........................................................................IFC www.sashco.com; 800-767-5656

Delta Faucet Company.................................................. 61 www.deltafaucet.com; 800-345-3358

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

ShurTech Brands LLC ................................................... 71 www.frogtape.com; 800-321-1733

Diversey........................................................................ 41 www.diverseybrands.com; 980-221-3235

Motorola Solutions................................................................... BC www.acsradios.com; 800-248-5391

Sika Corporation............................................................ 59 www.usa.sika.com; 800-933-SIKA

Do it Best Corp. ....................................................... 20-21 www.independentsdoitbest.com; 888-364-8237

Mr. Longarm .............................................................................29 www.mrlongarm.com; 800-821-3508

Sunnyside Corporation.................................................. 87 www.sunnysidecorp.com; 800-323-8611

Dosko............................................................................ 43 www.dosko.com/HRM; 866-418-0474

National Hardware Show .........................................................75 www.nationalhardwareshow.com

SureCan ........................................................................ 55 www.SureCanUSA.com; 801-827-0500

Dutton-Lainson Company.............................................. 86 www.dutton-lainson.com; 402-462-4141

NRHA All-Industry Conference ................................................99 www.nrhaconference.com

Tacoma Firelogs............................................................ 95 www.tacomafirelogs.com; 253-272-4107

Epicor Software Corporation......................................... 58 www.epicor.com; 888-463-4700

NRHA Credit Card Processing ........................................103 www.clearent.com/NRHA

True Value Company................................................. 9, 11 www.truevaluecompany.com; 888-291-7229

Fiskars Brands Inc................................................... 23, 45 www.fiskars.com; 866-348-5661

NRHA Membership....................................................... 85 www.nrha.org/membership

Wallace Hardware ........................................................... 49 www.wallacehardware.com; 800-776-0976

Franmar......................................................................... 68 www.franmar.com; 800-538-5069

NRHA Training....................................................................................101 www.nrha.org/training

Warner Tool..................................................................... 72 www.warnertool.com; 800-444-0606

Gel Seal Technologies .................................................. 42 www.something-gel.com

O’Berry Enterprises Inc. ............................................... 86 www.123itsdone.com; 800-459-8428

Wastequip ....................................................................... 28 www.toter.com; 800-424-0422

Howard Products Inc. ................................................. 101 www.howardproducts.com; 800-266-9545

Old Masters .................................................................. 73 www.myoldmasters.com; 800-747-3436

Wet & Forget................................................Belly Band, 17 www.wetandforget.com; 888-727-8524

HSI.................................................................................. 5 www.hardwaresuppliers.com; 800-334-5625

Onward Mfg. ................................................................ 53 www.omcbbq.com; 800-265-2150

Woodland ........................................................................ 89 www.pinecar.com; 573-346-5555

Imperial Blades ........................................................ 34-35 www.imperialblades.com; 608-204-0019

Orgill Inc. ............................................................. 104-IBC www.orgill.com; 800-347-2860

Wooster Brush Company ................................................ 67 www.woosterbrush.com; 800-392-7246

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

100

HARDWARE RETAILING | March 2018


Westlake Ace Hardware Buying Washington State Business Westlake Ace will buy the Dennis Company, a 110-year-old hardware chain that has five locations in Washington state. TheRedT.com/westlake-dennis

With the changeover, the product selection at the Marcil stores will double to more than 40,000 SKUs and will include home appliances and a bigger seasonal department.

Castle Adds Three Members in First Weeks of 2018 Finding ‘Purpose’ With Stanley Black & Decker CEO James Loree, Stanley Black & Decker CEO, spoke to Fortune magazine about what it takes to define the tool company’s purpose. TheRedT.com/stanley-purpose

CANADA RONA Presence Increased in Quebec With Marcil Conversions Lowe’s Canada is switching all its Marcil stores to the RONA banner.

Castle Building Centres Group announced new members in January: Murexpair Inc. in Sherbrooke, Quebec; Timber Spirit Supply in Spiritwood, Saskatchewan; and LKQ Building Supply, a specialty supply operation in Saskatoon.

New Look for Co-op Stores Caters to DIYers, Contractors Federated Co-operatives Ltd. has invested in updates to its home centers. The 35,000-square-foot Greystone Co-op Home Centre in Saskatoon replaces a smaller store down the road. Part of the

refresh includes standardizing layouts in the stores, while creating more traction for contractors.

British Columbia Association to Celebrate 80th Year With Hot Springs Bash The Building Supply Industry Association of British Columbia is celebrating 80 years of business and will host an anniversary event at Harrison Hot Springs Resort in July. Thomas Foreman, president of the organization, says the event will bring the province’s building supply industry together to allow association members and supporters to network, relax and be inspired. The event will also have a trade show featuring new products.

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

Reduce Employee Turnover

When you invest in training your employees, you show them that they are valued members of the team, which improves their job satisfaction and loyalty to your business. FOR MORE INFORMATION, GO TO NRHA.ORG/TRAINING

March 2018 | HARDWARE RETAILING

101


Last Word

Finding Your Facebook Footing

O

n page 44, the North American Retail Hardware Association (NRHA) dives into data from hardware, home improvement and lumberyard retailers to learn what they’re doing to help their operations stand out online. About 85 percent of respondents reported that they have a social media presence for their business. Facebook was by far the most widely used social media platform, with nearly 99 percent of respondents using the platform to promote their business to customers. If you’re primarily using Facebook to engage with customers, you may be facing new challenges. In January, Facebook reconfigured the algorithm that determines which posts individual users see first in their news feeds. Now, posts from friends and family are highlighted, but businesses can strategize to ensure their posts don’t drop to the bottom of customers’ news feeds. Social media management platform Hootsuite has some advice for retailers who want to stand out from the cyber crowd.

1. Stream Your Team Hootsuite says one of the most effective ways of ensuring your Facebook posts are highly visible is by incorporating videos and using Facebook Live, Facebook’s video streaming feature. Livestream an in-store event or special promotion to help reach as many potential customers as possible. 2. Go With Graphics Even if you’re not quite ready for prime time on Facebook Live, simply adding a custom graphic to your posts can help you stand out online and encourage people to like or comment on your post, which can boost its ranking in news feeds. Download ready-to-go graphics at TheRedT.com/shop-local. 3. Don’t Be Shy If you’re noticing a sharp downturn on the impressions your Facebook posts are getting, don’t be afraid to make a post explaining the algorithm changes directly. Remind your followers that by adjusting their settings, they can see your operation’s posts first in their news feeds. Post a screenshot and step-by-step instructions to ensure your customers know how to continue seeing your creative content.

Which Social Media Platforms Do You Use? Respondents could select more than one option. Many retailers use multiple social media platforms.

98.6% Facebook

29.2% Twitter

28.7% Instagram

16.3% LinkedIn *Most respondents who answered “Other” use Pinterest.

6.2% *Other

2.4% Snapchat

0%

20%

40%

60%

% of Respondents Source: North American Retail Hardware Association

102

HARDWARE RETAILING | March 2018

80%

100%


Save Money on Payment Services and Technologies Credit card processing and payment services can be pricey for small businesses. Working with Clearent Intelligent Processing, the North American Retail Hardware Association has an affordable solution.

Consider this option. A Retailer-Focused Program Clearent offers business owners low processing fees and access to the newest technology. Customers can tap into cutting-edge services like EMV chip card processing, mobile checkout and more.

“Having a cost-effective and reliable credit card processing solution is important. Clearent provides options that are highly worth considering for an independent home improvement business owner.” Dave Gowan | Vice President of Finance and Business Services | NRHA FOR MORE INFORMATION, VISIT CLEARENT.COM/NRHA


From the Source

By the Numbers

Retailer-led panels offer insights into how the industry’s leaders are innovating and succeeding in their markets. From young retailers to top guns, everyone has an opportunity to make their voices heard.

NRHA conducts exclusive research to show the growth of the industry and how independents are competing. Our methods ensure that the information presented at the conference is current and relevant.

In the Know

After the Show

Get the scoop on best practices in technology (smart home and competing online) and small business operations (retaining employees and the customer experience) from expert keynote speakers.

Everything on the NRHA Village Stage is presented with independent retailers in mind, so get ready to take actionable lessons back to your operation that will help you differentiate your business and move forward.

You need to hear this. Do you know what it takes to compete as an independent home improvement retailer in today’s economy? Join us in Las Vegas, May 8-10, at the 2018 North American Retail Hardware Association’s (NRHA) All-Industry Conference, to hear firsthand from retailers, industry experts and channel partners to get the latest on trends and best practices to become a better and more profitable retailer.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

2018 NRHA ALL-INDUSTRY CONFERENCE


HYDE GROUP Construction Division rolls out high-end paint applicator program to U.S. retailers and pro suppliers

The Canadian Connection

Hyde Group evolves from a U.S. manufacturer to a North American Consumer Products Group.

T

en years after I.P. Hyde launched Hyde Manufacturing in 1875, two Hyde employees migrated to Canada to start their own company. That company was A. Richard – which, like Hyde, was destined to dominate a number of pro tool categories in its own country. Fast forward to 2003, when Hyde purchased A. Richard and began a transition from U.S. manufacturer to North American Consumer Products Group. Today, HYDE® and RICHARD comprise the Hyde Group Construction Division, and deliver impressive North American market share in high-quality tools for drywall, paint, tile, masonry, wall repair, sanding, and other categories.

O CANADA Category managers for RICHARD, in Canada, and HYDE®, in the U.S., share updates on product development via a conferencing system.

UNITED WE SELL [right] Hyde Group showcases category innovation from “Two Quality Brands” at the National Hardware Show. [top photo] Corey Talbot discusses the level of quality in the RICHARD paint applicator program.

The group’s latest success story: a robust paint applicator

program created and sold extensively in Canada. That program is now available to U.S. retailers and pro suppliers. While Hyde supplies a number of international markets, Canada is essentially Hyde Group’s second home. “We have a long history there,” noted Hyde Group President Rob Scoble, “with a large manufacturing plant in Quebec province, an excellent reputation for supply chain management, and substantial retail placements based on RICHARD as Canada’s number one pro brand in its categories. Hyde’s evolution into a North American supplier was both timely and fortuitous, Scoble notes. “In the last few years, a large number of our U.S. customers have expanded into Canada. Our supplier capacity is now at a premium for helping major customers grow that market.” Perhaps most important is the rich contribution both Hyde Group companies make to category management. “We have similar expertise, but we also each have specialties.” says Corey Talbot, Vice President of Sales and Product Development for the Construction Division. “Richard, for example, is very strong in high-end paint applicators, tile tools and sanding. Together we bring significant innovation to many categories.” Hyde Group packaging has been North American-compliant for nearly a decade, he added, using a three-language format that meets U.S. and Canadian standards. “We’re a very experienced partner for companies doing business beyond the border.”


Rusty Flamm Rusty’s Home Center Illinois

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For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017


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