Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
Associate Publisher: Craig Cope craig@thehardwareconnection.com 804-690-0666
By Chris Jensen
Independent retailers continue to worry about the competitive threat posed by the big boxes and online competitors such as Amazon, which is why it makes even more sense for independents to focus on getting customers to support local, family-owned businesses.
Take back Main Street by stressing your local roots and playing up your local ties to the community. Keep reminding customers that every dollar spent locally keeps more money in the community. Post old pictures of your store and of your town through the years and you will be surprised at how many favorable comments you receive.
Seek out locally produced products to sell like gourmet food and hand-crafted items, which helps you develop an assortment that cannot be found at the boxes. Display these local goods near the front of your store with prominent signage identifying them as locally produced.
Hold regular special events such as Ladies Night outings and enlist the support and participation of other local businesses, who can help you promote the event. In smaller towns, it pays to carry categories that cannot be found locally such as toys, office and school supplies, greeting cards and pet food.
If customers have to drive to the next town to buy those product categories, then they are more likely to buy their hardware products elsewhere.
Provide incentives to shop local by offering a customer loyalty or rewards program. It is a way to thank and reward your best customers for their patronage, distinguish your store from the competition, keep your store top of mind and encourage repeat visits.
If your community does not have a “Shop Local” campaign underway, then take the initiative and start one.
Convince influential local business leaders to join your efforts. Come up with a name and slogan that locals can identify with. Develop a campaign kit with a member list, welcome letter, window decals and a flier listing benefits.
Statistics demonstrate that independent retailers in towns with active “Buy Local” campaigns report stronger sales than towns without such campaigns.
If you start a Buy Local campaign its success will still be dependent on you differentiating your store by offering quality products at a fair price, delivering a fun and pleasant shopping experience, offering superior service and showing that your business is there for the long haul. ■
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By Tom Chasteen
Ihad lunch with some hardware friends recently and we were discussing how things have changed dramatically since we all came into the hardware business 40-plus years ago. We all agreed this is a totally different business environment we work in today. Technology has radically changed our business in so many ways from ordering merchandise, receiving merchandise, selling merchandise and even how we handle our accounts receivable and accounts payable.
However, we also agreed the core of our business has not changed. We need to develop an inventory assortment that appeals to our customer base, we need to keep merchandise in stock, we need to collect the money for the merchandise we sold and the cycle repeats itself again when we buy more merchandise.
Those three basic components of buying the merchandise, selling the merchandise and collecting the money will never change. As most independent hardware retailers already know, we can make this process as complicated or as simple as you would like.
The one component I would like to talk about now is the buying segment and specifically the replenishment process of buying more merchandise. To be even more specific, I want to discuss how critical it is to maintain current replacement pricing of your inventory in your point-of-sale system.
In the mid-1970s there was a smart guy named Jim Pence, who would give “Margin Management” seminars at wholesaler shows. I was so intrigued with Jim’s seminars that I took them multiple times and even developed my own presentation later on for the marine industry. One of the cornerstones of Jim’s message was that it is critical that a retailer maintain not just current replacement costs, but that they also adjust the retail prices of their merchandise on the shelf.
Think about it for a moment.
Theoretically, if a store has $300,000 in inventory at cost and the store is averaging 2 turns a year, then they have bought $600,000 of merchandise. If inflation is running 5 percent, then it is conceivable that the $600,000 of merchandise at some point also will go up
5 percent due to inflation. Five percent of $600,000 is $30,000.
Now none of us do business theoretically. We do business in real money and we deposit real money in the bank. However, if you do not keep up with current replacement costs of your merchandise you will literally not be able to replace the same number of items you had on the shelf before you sold any. Jim Pence used to refer to this process as “going broke while making a profit.”
The past six to eight years have not been as critical as previous years, because inflation has been low and so has our economy. However, as our economy improves and unemployment goes down, it will only be a matter of time before raw material prices go up, manufacturing costs go up, warehousing costs go up and, as a result, so will our net landed cost of merchandise on our loading docks.
I honestly don’t know very many hardware store owners who don’t enjoy interacting with their customers and would rather be on the floor versus looking at a computer monitor or a spreadsheet. I used to hate the administrative part of running our family hardware business. I wanted to be where the action was—where the rubber hit the road—and making it rain was what successful people
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the way i see it did. That was true back then and it is true now. Just as it was back in the 1970s, it is still possible to “go broke making a profit.”
So I strongly suggest that if you are like I was and you are getting a little lax in keeping up with your price increases you might want to get back into the routine again. After all, even in my little example of a store with just $300,000 in inventory and only two turns, even at 3 percent inflation that amounts to $18,000. By the way, the Consumer Price Index (CPI) was 2.1 percent for 2016.
If you want to do a quick gut check, then estimate what your inventory is, multiply it by 2.1 percent (CPI) and ask
yourself if you can afford to ignore the equity in your inventory.
Check with your primary wholesaler to make sure you are receiving current price updates. If you are a little behind on your current prices a good place to start is with your A and B movers first and then work your way through the rest of your inventory.
I have lost track of Jim Pence over the years, but I owe him a debt of gratitude for patiently teaching me how I could “go broke while making a profit.” I am interested in hearing your thoughts on this subject, from one retailer to another, so contact me at tom@thehardwarestore.com. ■
“We see Epicor as more than just our technology provider—they are another partner that will help us keep our high-quality customer service. If it’s easier to do a transaction; if you can look at the information and be confident that what the inventory says is there, is really there, that enables us to serve customers better, which makes our business stronger.” Dan
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We have a lot of fun down here all the time. This store is known as a place where you can be yourself. When there are kids in the store, they’ll hide in the dryers and jump out and spook people.
Greg Carter Roller Hardware Alliance, Neb.
Acustomer came in with an old trac- tor he wanted repaired. We sug- gested that he look at some of our newer mowers, but he was having none of it. He insisted on fixing his old tractor and repeatedly said there’s no way he’s buy- ing a new tractor. Well, I let him take a test drive and mow some of the grass out front of the store, and he came back in and said, “Write me up, I’m buying it.”
Dennis Herr EM Herr Farm & Home Center Columbia, Pa.
We had one guy trying to steal a pair of bolt cut- ters by tucking them in the back of his pants. He bent over and they were sticking out.
Michael Ferweda Zinger Hardware, Austin,
Texas
Not everybody is a doit-yourselfer. We had a bright, high-IQ teacher buy an aerator for his faucet. He wanted it replaced because it was dripping, but obviously, the dripping was coming from somewhere else.
Greg
B&C
Fowler
True Value Home Center Grass Valley, Calif.
Sales and customer counts so far in 2017? We started the year out slow, and we’re behind last year by about 1 percent. The slow start is kind of on us. We were lackadaisical last year and didn’t want to reinvent ourselves because of the current political environment. We’re a very ag-related and railroad-dependent store. We’re tied to the coal economy, so I was timid about spending money to bring in new products.
Best niche categories? Our biggest niche is appliances. We’re also trying to be known as a grill destination with Weber grills. We’ve put our grills more in the center of the store to help customers recognize that niche. We also carry pellets, which have done well for us.
Do you offer any employee incentive programs? We do offer a 1 percent commission on appliance sales. I also try to reward employees individually on a regular basis. If I see
an employee doing a really good job, I’ll pass them a $20 bill, but it’s nothing that’s set in stone.
New initiatives planned for 2017? The biggest thing is not to be afraid. Last year timidity took over and we paid for it. We’re not going backward ever again.
Greg Carter
Roller Hardware, Appliance & Rental Alliance, Neb.
Sales and customer counts so far in 2017? We’ve been a little soft, about 10 percent down. January was unseasonably warm, so that was
challenging. Weather drives the business in the north.
Best niche categories? We have a large fastener department. We’ve been here for 53 years and offer good customer service; we’re known for that. We also do a full rental store
with sales and repair.
New initiatives planned for 2017? We’re looking to do a little refreshing of the store and keep it current. We’re also looking to try to get some outside sales, commercial and industrial sales. I will look to make those contacts with a couple of other key employees.
Paul Sickel
Westville True Value Hardware
Plaistow, N.H.
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Sales and customer counts so far in 2017? Sales are up 6 to 8 percent, but customer counts have been down. We’re primarily a contractor store, with about 70 percent contractors and 30 percent d-i-yers.
Best niche categories? We’re strong in outdoor power equipment. We have recently expanded paint 10-fold. We’re also known for fasteners. We have a 120-foot fastener aisle.
Do you offer any employee incentive programs? If an employee signs up 50 customers to our rewards program, they’ll get a $100 gift card.
New initiatives planned for 2017? We’re doing a contractor survey so we can focus our sales and promotions on contractors. We’re also sending out a quarterly flyer for contractors. We’re looking to begin a contractor rewards program and a contractor
rental center. We’re planning to reduce the amount of space devoted to slower departments, such as automotive and housewares, and replace them with more power tools and fasteners. We are starting a more robust marketing plan and have hired a marketing company to redo our website, Facebook and coordinate promotional programs throughout the year.
Tony Esposito
Lumber Barn Bradford, N.H.
Sales and customer counts so far in 2017? Good. We’re up about 10 percent so far. I believe people feel better about the economy, so they’re spending more money.
Best niche categories? We have a decorating center, and floor coverings and tile have done well for us.
Do you offer any employee incentive programs? Not really. Most of our folks have been here a long time. In addition to me, my wife and son, we only have two other employees. New initiatives planned for 2017? We don’t really have any planned. We do more reacting than planning. We take what comes along. We’ve been here a long time and we’ve got our regular customers to take care of. We’ll just do the same thing over and over again.
Sammy Hackleman Magnolia Home Center Greenwood, Miss.
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Sales and customer counts so far in 2017? Of our three stores, one is up about 2.5 percent, another flat and another down 1 percent. So, fairly flat overall.
Best niche categories? We do a lot of lock rekeying in all our stores. We’ve
also developed a nice business with chip keys. That really differentiates us from other stores. It only takes up maybe 1 square foot at the service desk. We’ll put a folding sign outside and customers notice it and come in for chip keys.
New initiatives planned for 2017? We’re planning on beefing up the lawn and garden department, which is growing fast for us. We’ve always been heavy in weed killer and chemicals, but we’re going to add outdoor furniture and fire pits.
Scott Wilson
Valley Ace Hardware Tempe, Casa Grande and Sun Lakes, Ariz.
Sales and customer counts so far in 2017? Slightly up from last year. We opened in 2013, so we’re relatively new. As we project year-over-year growth, we’re right at what we were expecting, even with the weather being a little crazy. Last year, we had a decent increase over the previous year. Looking at customer counts, we’re still reaching households that didn’t know we’re here. Best niche categories? We do well with pet supplies. We’re going to be expanding that category. We only have a 28-foot aisle and that’s not enough to hold all the food, so we have to put some on end caps. We also do pretty well with the pellet grills.
New initiatives planned for 2017? We’re going to adjust inventory so it better fits what’s selling. We have a 9,600-square-foot sales floor, so we have to stick with what’s performing. For example, we’re in a pretty good demographic area, and our dollar aisle hasn’t been performing, so we’ll scale that down. Then we’ll bring in some higherend items like YETI® coolers.
So far for the first quarter of 2017 the economy is looking very promising. Unemployment is down, the stock market is setting all-time highs and interest rates still remain low compared to previous years. Most retailers I have been speaking to at the spring hardware shows are seeing definite signs of their local economies starting to grow.
However, there always seems to be a short lag time before some industries begin to experience an economic recovery and the independent retail hardware channel is one of those segments. As a whole, the independent hardware store channel seems to be behind the curve when the economy starts to improve, because consumers will not start spending discretionary money until they feel their jobs and families are secure.
I have always watched new home starts, how long homes are on the market before they sell and manufacturer’s willingness to launch new products as barometers for the independent
By Tom Chasteen
retail hardware channel. When new home starts start going up, existing homes start selling and we start seeing companies invest in new products—those are all good signs for independent hardware retailers.
We have some really neat new products that we will be reviewing later on this year. So far we have Shop-Vac’s line of drum fans to review, a new line of SP Air tools, Legacy’s Flexzilla Pro air hoses, EcoSmart’s line of 2.5 and 4 gallon ECO MINI instant water heaters and Corona Clipper’s new line of hand clippers and loppers. And we aren’t even through the first quarter of 2017. Rust-Oleum is one of those companies that just keeps growing its brand and diversifying the products it offers to the independent hardware channel. In this issue of Tom’s Shop we will review Krud Kutter’s kitchen degreaser and stain remover and RustOleum’s newest Wipe New® product RainBrella. All three rated very high with our testers.
product #1: rust- oleum | rainBrella
RainBrella® is a glass treatment for auto and truck windshields that “repels rain, mud and dirt instantly,” and it absolutely lives up to its billing. It is easy to put on and it will last for more than 100 car washes.
Each kit comes with two packets of cloth WipeIts™ infused with the RainBrella chemical that you wipe on a clean windshield with the nitrile gloves included in the package. You allow the RainBrella to dry for 15 minutes and then you wipe it clean with the microfiber buffing cloth that is also included with no extraordinary effort. Then you repeat the process one more time and you are finished.
As one tester said, it took more effort to actually clean the windshield before he applied the RainBrella than it did to apply the two coats of RainBrella. All of our testers said it took them 30-45 minutes and they were done. As one tester mentioned, he thought it actually worked better than the promotional video. All of our testers rated RainBrella an excellent product. Check out the demo video.
Krud Kutter has added two new products to its lineup: Kitchen Degreaser and Rust, Calcium and Lime Stain Remover. The Kitchen Degreaser was a huge hit, cleaning ovens, stove tops and kitchen countertops. Unlike other kitchen cleaners there is a very light scent and there is no sticky residue left behind. Our testers remarked how easy it was to clean up even dried drippings in the oven and stove tops without
smearing it over the surface, requiring even more time to clean up the clean-up.
In addition, Krud Kutter’s Kitchen Degreaser is food safe and nontoxic and meets U.S.
EPA “Safer Product Standards” and is safe to use on countertops, cabinets, stove tops and even carpets and fabrics.
If you are looking to stock a tough all-in-one kitchen degreaser in your cleaning department, we
don’t think you will go wrong with Krud Kutter’s Kitchen Degreaser. Check out the video here.
products review
product #3: dual-action polisher shurhold
product #3: Krud Kutter | rust calcium and lime stain remover
Krud Kutter’s, Rust, Calcium and Lime Stain
Remover is a really good all-around quality stain removing product. If your store is located in an area that has hard water or is high in minerals, then you definitely should consider stocking this product.
Krud Cutter’s Rust, Calcium and Lime Stain
Remover works equally well indoors and outdoors, everything from removing calcium from shower heads and removing water stains on the house or rust stains on a concrete driveway. Heavier stains may need multiple applications, but nothing we have found works as well as Krud Kutter’s Rust, Calcium and Lime Stain Remover.
This product really does work as well as it does in this video.
iF You have a product You thinK is eXceptional, then either speaK with the manuFacturer and asK them to email me or email me directlY at tom@thehardwareconnection.com .
This is the ninth year of From Tom’s Shop and many of the products we review come from suggestions we receive from independent hardware store owners who currently stock these products. If you have a product you think is exceptional, then either speak with the manufacturer and ask them to email me or email me directly ( tom@thehardwareconnection.com ) with the product information and I will follow up with the manufacturer. Nothing carries more weight than a retailer who knows a product and is selling it in their store.
As always, thank you for reading Tom’s Shop—it is one of the best jobs I have ever had.
X Reduce labor costs while ensuring proper coverage
X Forecast staffing needs accurately using POS data
X Improve staff accountability for assigned tasks
X Manage schedules from any mobile device
“We’re saving at least two to three hours a week with Epicor Scheduling+ software. With easy access to the cloud-based system, our employees enter schedule requests directly into the system…The time savings is a notable improvement, allowing more time for customer-focused activities.”
Bob Riva, Co-Owner | C.A. Lindell & Son, Inc.
Motivating employees. It’s always tough in a retail store.
You want to be as successful a retailer as Apple, as Nordstrom, as Lululemon, but you know you haven’t got a snowball’s chance in hell of seeing that kind of success unless you can truly engage your shoppers and keep them interested in what you have to sell.
And the only way to do that is to get your employees to engage those shoppers, to get them to commit to creating an exceptional experience for visitors so they buy from you, instead of scan and buy online from a competitor.
The big question is how to get your employees to focus on the customer?
Employee motivation is an elusive creature.
I know a manager who asked his crew what would motivate them during the holidays. They wanted a Secret Santa. So he went along, that is until one clue
By Bob Phibbs
was he had to sit on Santa’s lap and ask for his last clue.
Motivating employees is perhaps the hardest thing any manager ever has to work toward.
You worry that you are not connecting, that your words don’t resonate deeply with your employees and you struggle to figure out a magic formula.
And that’s good—that’s because employees don’t come to us hard-wired to perform well in a vacuum. Unless you can find a way to connect powerfully with your crew, your sales are doomed to failure.
I know, it seems easy to say just pay them more. But many times, no matter how much you pay them, after a period of time, their self-motivation wanes.
That’s because when you employ people, you are also taking on all of their innate hardships and challenges, the things they deal with at home, along with the things that keep them up at night.
Take proper steps to motivate employees to sell.
You are taking on the whole person, for all of the good and the bad that brings. Their natural tendency is to do less and less unless someone encourages them to do more.
When it’s time to open the store and welcome your customers each day, it becomes your daily challenge to help your employees put their best face forward, focus on serving the customer and keep their eyes on the goal of closing as many sales as possible. And off of Facebook or WhatsApp.
For some retailers, this challenge is settled by simple performance metrics: dollars. You close X number of sales, you get more money in your paycheck. For many retailers, especially luxury retailers, a commission or performance bonusincented sales metric makes sense.
However, if you find yourself in a position where commission-based sales don’t work for your company, like with most hardware retailers, you still have to find new ways to motivate your employees. Here are three ideas to help motivate your sales associates that don’t involve paying them based on the number of units they move.
For your best-performing associates, it is great to give them a little bit of something special. Maybe it’s a box of especially good chocolates at the end of a hard week. Maybe it’s a bottle of Scandinavian water they weren’t expecting. Maybe it’s a 30-minute massage.
I know one owner who surprised her crew for beating their daily goal with pizza, bowling and champagne—and it worked great.
Maybe it’s just a handwritten thank you note from you, the boss, who they look up to, mailed to their house. Or when you pass out a gift certificate toward a fine dining restaurant when you spot them doing something particularly well.
Ultimately, it doesn’t really matter what the luxury is. It only matters that you took the time to think of them and thank them for their amazing work in an impromptu fashion.
People want to feel important. If you have good people on your team, make them feel important and they are more likely to stay on your team.
To put a finer point on it, the more important and special you make them feel, the more likely they will make your customers feel important. A caveat, don’t publish your criteria or you will have to do it each and every time, much like a contest, which defeats the purpose.
Time is our most precious resource, and there is no sweeter way to reward one of your sales team associates than to give them a few hours of their time back.
So for your top performer this month, give
them a half or full extra day off—with pay. Do it without any fanfare. Just let this person stay home, sleep late, take care of their kids or go to a movie while you cover their shift. Don’t make a big deal about it. It’s not a contest; it’s a
gift that you are giving them. And when they come back, they will be refreshed.
If you have seen the movie Office Space, then you understand the importance of a red stapler. It represents something that is yours. Even if it’s only a stapler, you have earned it.
Office space, literally, can feel very much the same. It is home. When you designate physical space to an employee, you are telling that person that they have a place here. A permanent place. They matter. This is not a small thing.
For your best retail associates, carve out a place in the back to set their photos of their kids and their dogs, a place for them to pin ridiculous things they might print out from Facebook— whatever. While big companies like Google let employees bring their dogs to work and maybe you can’t, the goal is to
let employees feel at home when they are at work.
These ideas only work if you hire people who have some internal motivation. You cannot motivate a rock to move—I don’t care what you try.
If you feel stuck with certain unmotivated employees, don’t give up on motivation but do get rid of the rocklike employees.
When you have done the hard job of whittling down your applicants, onboarding them to your culture and giving them retail sales training, your number one job is to see what helps them stay motivated and change it up often.
That way it keeps everyone wondering what they will get for hitting a goal, doing a good job or extending themselves for your customers’ benefit. And that’s great motivation for everyone, not just your sales team. n
Bob Phibbs, the Retail Doctor®, has helped thousands of retail businesses since 1994. His clients have ranged from multi-national brands to small business mom and pops. With over 30 years experience beginning in the trenches of retail and extending to senior management positions, Phibbs has been a corporate officer, franchisor and entrepreneur. He is the author of “The Retail Doctor’s Guide to Growing Your Business.” His newest product is SalesRX, his online retail sales training.
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All retailers know how hard it is to find good employees, whether you are looking for an entrylevel associate or a store manager. That is why it is essential to come up with a plan to recognize and reward your star performers, otherwise you risk losing them to another company.
Individual recognition is always appreciated, but it is also important to make every associate feel like they are part of a winning team. Share financial goals for the store, keep staff informed of progress and reward everyone when team goals for sales and profits are hit.
Some retailers like to give out an annual bonus at the end of the year. However, when you give out an annual bonus it becomes expected. Consequently, employees don’t act with urgency or purpose. When profits and sales go down, so should bonuses. It is also hard for employees to act with urgency toward a sales goal if the
By Chris Jensen
Meg and Stew Weiss recognize a “Teammate of the Year” for each of their five Montana Ace stores. Last year they honored Walt Kaplan from their store in Polson, Mont.
period or payoff is too long, so keep incentive programs to a weekly, monthly or quarterly period.
What follows are what other retailers are doing to recognize and reward employees.
Karla Robson of Slavens True Value in Cortez, Colo., hands out “Bravo” cards if one employee goes out of the way to help another employee, which encourages teamwork. “The helped employee gives the helper a Bravo card, thanking them for the help. They then bring to me so I can see it. I put in a box and draw a name each month, clearing out the box each time I draw,” she says.
Robson gives out $20 gift certificates to a local restaurant, grocery store or coffee shop. At Christmas she gives out $25 Visa cards. “The Bravo program has been well received. We have been doing it for several years now. Sometimes if I go to draw and there are not too many names in the box I go around and remind folks to think if someone helped them recently. Then they remember and give cards to each other. I really like that they reward each other,” she says.
Retired retailer Dick Beal of Merritt Island, Fla., shared, “Whenever I got a good report from a customer on an employee going over and above I put a $20 bill in an envelope with a note thanking them for providing excellent customer service. Their feedback told me that recognition was probably more important that the 20 bucks,” he says.
Brett Seright operates three Seright’s Ace Hardware stores in Idaho. He offers up to a 10 percent bonus each month to all of his employees based on a specific set of metrics. For associates those metrics include shrinkage, inventory accuracy, average transaction size increase over last year, items per transaction increase over last year, Secret Shopper
Clovis True Value in Clovis, Calif., features its employees in all its ads, which are also posted on the store’s Facebook page.
score, product of the month increase over last year and Ace Rewards percentage. “Each category is weighted differently and can be changed as our focus shifts,” he points out.
Seright has a main “Hardlines Bonus Program” spreadsheet that draws on the data from a series of other files that are generated monthly through Compass analytics software. Each month Seright prints out sheets showing the goals and how the goals are weighted so employees can see the goals for the upcoming month. “We try to keep the metrics simple,” he says.
“Realize that your incentive program won’t be a magic bullet. Employees are motivated by different things, and dollars in the bank is just one of them,” Seright advises. “You need a manager that is effective and can coach to these areas daily so the employee can see how they can influence these numbers. The only measure we have that is individual to the employee is the Ace Rewards percentage and we’ve seen a great impact there,” he adds. n
Home Ace Hardware has been expanded three times since moving to a new location in 1991.
By Chris Jensen
Gary Johnson and his son,
Gary Johnson knows all about building a business from the ground-up. From where he started, there was nowhere else to go but up.
In the 1980s Johnson oversaw a $100 million territory as a senior sales manager with Belknap Hardware in Louisville, Ky., with about 100 sales representatives and a customer service department reporting to him. “I was the youngest person to ever hold that position in the company, but it
wasn’t what I wanted to be doing,” he recalls.
So in 1986, with Belknap Hardware starting a fast slide that would end with the company’s demise that year, Johnson packed up and moved his wife Paula and two young sons to Columbus, Ga., taking a low-paying, middle-manager position.
Johnson did have another plan— he wanted to buy the small hardware store across the street. “Looking back now, I guess I was young and foolish and didn’t really know what I was doing,” he says with a laugh.
He invested $200 in the beginning, with a promise to pay more each month over time. “I put $200 in the cash drawer and said ‘That’s my financing.’ It was one out the door, one on the shelf and one coming in the back,” he says.
Belknap was selling products at discounts up to 60 percent, so Johnson ordered $40,000 of inventory to put in the tiny, 1,500-square-foot store. “I didn’t have the money to pay for it. I talked to the head of commercial lending for the bank and got a loan for $16,000 without a local address. I left with a check,” he recalls.
“Not sure if it was smart or foolish, but I went without a salary for the first five years and kept investing back in inventory,” he adds. “Luckily my wife was able to get a job as a school teacher.”
After three years of long hours and slow progress, Johnson knocked out a wall to expand Home Ace Hardware to
2,900 square feet and kept growing the inventory. In 1991 he was able to buy the property across the street, which enabled him to have an 8,000-squarefoot sales floor. The store has been expanded three times since then and now features 17,000 square feet of indoor and outdoor selling space and $1 million in inventory.
“The secret to our success is outstanding customer service from our long-time employees and diversification
into niches like outdoor power equipment,” says Johnson. “Also, you need to know how to change quickly by listening to customers and giving them what they want and need.”
His 37-year-old son, Seth, joined the business full time in 2004, and he has been instrumental in growing the outdoor power equipment business. “He’s increased our volume by two-thirds since he joined the business and it’s because of his people skills. Customers just love him,” says his proud father.
“We sell 1,000 units of STIHL a year and sell zero-turn mowers up to $12,000. People are only going to buy a big-ticket mower from someone who gives them sound advice. We have
the advice and the service after the sale, and we only do warranty work on mowers we sell,” Johnson points out.
Another key has been adding a U.S. Post Office station in 1988, which helps drive footsteps. It brings in an average of 200 people each day.
Home Ace Hardware sells 40,000 pounds of pecans a year, available whole, shelled, cracked or in pieces.
“People drive from all over town to get a bag of our roasted peanuts. We’ve sold at least a 50-pound bag every day for the last 10 years. You have to glamorize that because it brings back memories for people, a family tradition at Christmas
since 1986. That helps our holiday traffic pick up,” Johnson points out.
Pine straw is another traffic-building niche. They sell 40,000 bales of pine straw a year, “We put it in front by the store entrance so people see it. You have to find things that will bring in customers on a weekly basis,” he says.
There is no industry near the store, yet Johnson has learned that selling to consumers is not enough. “The local army base (Fort Benning) is the biggest part of our economy, so we got into the rental market. We’ve got anything that is a replacement item,” he says.
They started with 200 square feet in parts for outdoor power equipment and that has turned into a huge business for them. “We do 100 to 150 units a week in repair work. Parts is a great niche that requires two trips to the store,” Johnson points out.
“I’ve learned a lot from my dad,” says Seth. “He’s always stressed the importance of getting people in the door—that’s the hard part. Then it’s up to your knowledgeable employees to market what you have to offer.”
Home Ace Hardware is getting ready to expand again. They broke ground on a second store in December, a culmination of three years of planning. Located 14 miles away in the northern part of Columbus, it is projected to open by mid-July.
The new 15,000-square-foot store will be located right next door to a new
Home Ace is known as a destination for outdoor power equipment and high-end mowers.
Walmart Neighborhood Market. “We had to sign a non-compete clause that we wouldn’t infringe on the categories they sell in that store,” Johnson points out.
Johnson is investing more than $2 million in the new building and inventory, which is about 10,000 times greater than what he invested in his first store. It’s been a long, hard journey over the past 31 years to get to this point, but he wouldn’t change a thing in retrospect.
“For five years I didn’t take a day off. I couldn’t afford to hire help. Everything I made I poured back into the business. What’s happened with my business is a miracle,” he says.
The new store will serve an area full of dual-income households with greater disposable income, so the product mix will change somewhat. “We will have different niches, because niches that work in our current store will not work there. We’re waiting to see what customers want,” says Johnson, who adds that it will also include a post office station.
The current store has 24 employees, while the new location will have 15-16 employees. “We’ve already hired some new staff and are training them now so they can see how we do things,” Johnson
By listening to customers and giving them what they want, Gary Johnson has turned Home Ace Hardware into a store of first choice in Columbus, Ga.
says. “First impressions mean a lot, so we have to show customers at the new store that they can get the advice they need.”
Home Ace Hardware has won the Readers’ Choice Award the past four years for best hardware store in Columbus. In 2015 they were honored by the local Chamber of Commerce as a small business giant, while the city cited the store for its contributions to the area. A special Congressional recognition plaque hangs on the wall. Awards and recognition are nice, but Johnson is prouder of the role he has played in shaping people’s lives.
“We’ve had young kids come in here and learn what it takes to wait on people and offer advice. They’ve gone on to great things,” he says, listing past employees who went on to become engineers, nurses, policemen and even one launching rockets for NASA at Cape Canaveral.
He sponsors soldiers out of Fort Benning so they have a connection to the community in which they are
stationed. He has been supporting the local animal rescue mission for 30 years. He has hired a number of at-risk kids so they have a shot at success. “Some people just need a second chance. You’ve got to give back. All these things we do are so important to people,” Johnson says.
Having good employees has been an integral part of their success. “Most of our employees make between $12 and $14 per hour. I’d rather have someone competent and knowledgeable than always be hiring. Most stay with us a long time. It’s so important that customers have a good first impression with who they see,” Johnson says.
Customers have to be convinced to come to your store instead of the big boxes, according to Johnson, who has discovered the right blend of people, products and pecans to offer them. “If you have something worthwhile, they’ll be back. If someone is having a bad day, they know they’ll be taken care of at our store,” he says.
These days Johnson’s role is to help his son, who has a bachelor’s degree in entrepreneurship and family business from Auburn University. “Seth is already making most of the decisions for the business,” Johnson says. “I don’t make any major decisions without consulting him—I’m here to help him out. It’s such a blessing that I get to work with my son every day.” n
The Beacon Awards banquet is a firstclass event to recognize “the best of the best” retailers.
This year’s Hardware Conference, set for September 8-10 at the JW Marriott in Marco Island, Fla., promises to be better than ever. The Marco Island Marriott has been undergoing a major remodel and upgrade and has now reached JW Marriott status. The industry’s premier event for independent retailers will again be highlighted by the Beacon Awards, a recognition program that was introduced four years ago.
The Beacon Awards, which are cosponsored by The Hardware Conference and The Hardware Connection, are designed to honor the “best of the best” independent hardware/home improvement retailers while encouraging a new generation of retailers to make their mark in the industry.
Premier Beacon Award Sponsors include Apex Tool Group, Epicor Software Corp., Sunnyside Corporation, Rust-Oleum and 3M. Additional wholesaler sponsorship support comes from
Sponsors:
Co-Sponsors:
Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.
The Beacon Awards honor the Retail Beacon Award winners for each of the participating wholesalers, plus the Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet. Whether it’s an existing retailer opening a branch store or a newcomer opening a ground-up business, these new stores represent the future of the industry.
Here are last year’s Beacon Award honorees:
• Retail Beacon Award: Fuller and Son Hardware, Little Rock, Ark.; owned by Bobby, Jeff and JR Fuller.
• Retail Beacon Award: Murdale True Value, Carbondale, Ill.; owned by George and Diane Sheffer.
• Retail Beacon Award: Bomberger’s Store, Lititz, Pa.; owned by the Bomberger family.
• Retail Beacon Award; Orme Do it Best Hardware, Cambridge, Ohio; owned by Karen McCoy.
• Best New Store, Under 20,000 square feet: Heuser Ace Hardware, Bluffton, S.C.; owned by Bobby, Bob and Renee Heuser.
• Best New Store, Over 20,000 square feet: All American Do it Center, Richland Center, Wis.; owned by Brian Buswell.
“There are so many outstanding retailers out there, so to be singled out for an award like this was just amazing. We were very appreciative and humbled, and we greatly enjoyed attending The Hardware Conference and seeing what that was all about,” said Buswell.
Get your nominations in now for the Best New Store award, as the deadline of May 15 is fast approaching. Any dealer can nominate his store and nominations are accepted from wholesalers.
Judging will be based on any or all of the following criteria: financial performance (sales, profits, margins, etc.); community involvement; store design; merchandising displays; promotion activities; specialized product areas/ niches; employee training/recognition programs; and innovative retailing concepts.
The honorees and sponsors of the 2016 Beacon Awards.
• Store must have been open at least one year, to a maximum of 4 years.
• Can be new ground-up store or it can be a substantially expanded existing store.
• Can also be a store built to replace store destroyed by natural disaster.
• Store must feature all the core departments: electrical, plumbing, tools, hardware, paint and lawn & garden.
• Can also be new to business owner, if substantial changes are made.
• Can be a branch store.
The Beacon Awards Banquet will be held Friday night, September 8, 2017 at the JW Marriott in Marco Island, Fla. Honorees will receive: all-expenses paid trip for two to the 2017 Hardware Conference in Marco Island including conference registration, airfare, hotel and meals; Beacon Award plaque and feature article in The Hardware Connection.
Please include detailed information for each of the judging criteria, attach any relevant pictures, list the date of new store opening and also provide retailer name, store name, square footage, address, phone number and email address. Email nominations by the May 15 deadline to Chris Jensen at chris@thehardwareconnection.com. ■
By John Fix III
While spring weather was deciding whether it wanted to stay or just visit for a short time, retailers were discussing issues such as Facebook marketing and showrooming on Hardlines Digest.
most common way seemed to be to hold a sweepstakes/drawing for a predetermined time,” he posted.
Pruitt wondered what items work best to give away, how much he should spend on those goods and how long should he run the Facebook contest, keeping in mind that he is in a largely suburban/ rural area.
Facebook Marketing
Tim Pruitt of Avilla Hardware in Arkansas felt he was behind the times in using Facebook as a marketing tool, so he finally decided to get with the program. “First step, get the ‘Likes’ flowing in. In speaking with other dealers, the
Brandon Buckalew of East Grand Forks Hardware Hank in Minnesota responded, “I looked into this a few years ago and ran into issues trying to figure out what the laws are. I also struggle with trying to figure out if this is for new ‘Likes’ or if it’s for everyone. If for the new ‘Likes,’ then how do you figure out who has liked you since posting? Also, don’t get hung up
on who likes or follows you. It’s a quality thing, not a quantity thing.”
He added, “If you want to build it right, strive for engagement. There is a reporting thing that will tell you what percent of your followers are engaging with each post. Most are lucky if you have 1%. If you have 20 followers and 5 or 6 people engage regularly you will attract the right kind of followers. If you have 5,000 followers and only have 5 or 6 engaged, then you are serving the same number of followers. Don’t get hung up on giving away money just for the ‘likes.’ I like a lot of pages that never show up on my feed.”
Paul Dye of Brimfield Hardware in Brimfield, Ill., shared, “I’ve had success with posts a month apart, but it has to be our picture with a caption. Then boost the post. My last Weber post had over 100 picture likes and a few shares. People don’t see a non-boosted post, and it doesn’t matter the amount of followers your store has. Facebook makes it so you have to pay to play. I see sweepstakes posts from stores around the country in my Facebook feed every day and I doubt it drives any traffic in the door for a sale.”
Tony Esposito of Lumber Barn in Bradford, N.H., noted that he recently renovated and converted his hardware store with many new products.
Upper: Brimfield Hardware in Illinois has had success promoting Weber grills on Facebook.
Lower: Brimfield Hardware tried to build awareness of its propane filling service with this Facebook post.
“Suddenly we are experiencing a noticeable amount of shoppers coming in and asking us to match prices. What amazes me is that we have poor cell service in our area and no public Wi-Fi. If we can, we will get close if not match pricing, but we cannot compete with Amazon, eBay and others, so people walk out without allowing us to explain what we do versus the web retailers,” he posted, while wondering how other retailers handle those type of customers.
Kathy Housman at San Diego Hardware in San Diego replied, “We work with a lot of customers who are looking online first. Our store is geared mainly to decorative hardware, hinges
•
•
•
and plumbing fixtures. It is the nature of retail these days. We always try to balance the fact that the customer may be getting it faster, not paying freight, able to return the item easily if needed vs. just the price of the item. At the same time, we want to retain the customer. We say it’s always best to check the website for stock availability, freight or minimums.”
She added, “We have come across customers coming into our store, looking at our products, getting quotes and part numbers, buying one or two items they later return, all to find out they later went online to buy. They are basically using us as a store front for the internet.”
Retired retailer Jim Ertzman of Pittsburgh posted, “If you have remodeled and freshened your presentation of merchandise and services, then you should see an increase in sales. I never went far down the price match road. We honored the nearby Ace promotions when possible. The people asking you to match price are buying on price alone. Often they will waste time and gas going between stores to get the best price, which they don’t consider part of the price equation. These people are not loyal customers. Once you start playing that game they will haunt you over and over.”
He added, “If they are asking you to match online retailers, then it is likely because they need or want
it right now. Otherwise, they would just order it and be done. They may have already decided to buy it from you because you have it in stock. This may just be a meager attempt to get a lower price. If you are going to consider matching, then make them show you the online price including shipping and delivery time. Many retailers advertise they will meet or beat the competition. I wonder what percentage of customers actually take them up on it. My guess is that it is very small.”
Ertzman continued, “If you have a rewards program, this is an opportunity to sign them up. Mention that your prices are competitive and the rewards are a discount on all merchandise, not just the items they want you to match. If you still have their attention you can elaborate on all the benefits of your program and shopping at your store. You might be able to win them over. If not, then don’t let it bother you. Your relationship with those customers likely would never be profitable. Again the 80/20 rule applies—80 percent of sales come from 20 percent of customers. You reward your top customers more and encourage the rest to become more loyal.” n
John Fix III, owner of Cornell’s True Value Hardware in Eastchester, N.Y., started Hardlines Digest in 1996. There are currently more than 1,500 subscribers reading Hardlines Digest. To read more or subscribe, go to www.hardlinesdigest.com .
The Hardware Ambassador ProgramTM was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.
• View Vendor Product Listings by Wholesaler
• Ability to Download Product Listings by Wholesaler Directly into Retailers’ Point-of-Sale Computer Systems
• Check Out Vendor Profiles, Informational Videos & Product Reviews
Click Here to Learn More and View Vendor Product Listings by Wholesaler
Sales of Pliers
(Independent Hardware Channel)
12 Months % Change vs. Year Ago
Pliers: Units
Pliers: Dollars.
Source:
Unit Sales Breakdown for Pliers
Total of 1,270 Items with Sales
• The global power tools market will increase to $46.5 billion by 2025, up from $27.6 billion in 2015, according to estimates from Future Market Insights.
• Power tool batteries are being developed that feature wireless charging technology, extended life and increased performance in conditions below freezing.
• Bluetooth-enabled batteries for power tools include apps that enable users to monitor the amount of charge that remains for use or if the battery is operating at the optimum temperature. Some feature alerts for when a battery is taken outside of a specific range, and a remote disabling feature that can render the battery unusable until re-enabled by the app.
• Some manufacturers have been able to develop air compressors that emit much less noise, which makes them in demand by pros and consumers.
Left: Hartville Hardware in Hartville, Ohio, has long been known for its dominant assortment of tools.
Right: Geneva Ace in Geneva, Ill., offers a power tool selection for pros and d-i-yers.
Low-noise air compressors rate below 75 decibels, reducing the risk of hearing loss associated with frequent exposure.
• Lithium-ion batteries are replacing Ni-Cd battery technology as the preferred choice in power tools since they are lightweight, highly efficient and offer longer run time.
• U.S. demand for power and hand tools is projected to increase 2.9% annually through 2018 to $12.7 billion, according to The Freedonia Group.
• Cordless electric power tools will remain the fastest-growing segment, and will surpass plug-in electrics as the largest power tool category in 2023, reports The Freedonia Group. The professional market will remain dominant over the consumer segment, and will grow the fastest. ■
“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”
John Fix Owner, Cornell’s
Hardware Eastchester, NY
• New end cutters from CHANNELLOCK® are slimmer, lighter and have a better balanced design.
• New cutting pliers include: E358 8”
End Cutting Plier, E356 6.25” End
Cutting Plier and E357 7.5” End Cutting Plier.
• Each plier has CHANNELLOCK BLUE® comfort grips, is made from high carbon steel for superior performance on the job and has an ultimate rust preventative coating.
• Their laser heat-treated cutting edges last longer and each end cutting plier integrates XLT™ Xtreme Leverage Technology. XLT means considerable less time is required to cut compared to traditional highleverage designs. Channellock www.channellock.com 800-724-3018
• New Legacy Series 25’ Tape Measure from Lufkin offers a classic look with high-performance features.
• Features durable, mirror-finish chrome case and quad-rivet end hooks for increased durability.
• 1” wide blade with 8’ standout with nylon coated blade for increased longevity.
• Extra-wide lock button for easy thumb actuation and Hi-Viz® orange, textured strip to help identify tape and prevent dropping. Apex Tool Group www.Lufkintool.com 866-907-9716
• The DWFP55130 trim nailer air compressor enables a large amount of nails to be fired and provides quick recovery.
• Low 71.5 dBA allows for quieter operation.
• Features high-flow regulator for increased performance, dual quick couplers to easily support two nailers, low 12 amp draw motor for easy start-up, and durable oil-free pump provides extended maintenance-free operation.
• 3.0 SCFM delivered @ 90 PSI pump, 2.5 gallon tank and 200 max PSI.
BrusHless reCiproCating saw
• The Bosch GSA18V-125 18V EC Brushless 1-1/4”-Stroke Reciprocating Saw combines an advanced handle design for greater comfort, a powerful 18-volt Bosch EC brushless motor and orbital/nonorbital action to deliver superior cutting performance.
• It delivers 0-2,900 strokes per minute with a 1-1/4” stroke length. The versatile soft-grip handle and easy toolless blade change system highlight enhanced comfort and ease of use.
• The tool’s compact design is aided by an angled-motor placement, which allows greater access to hard-to-reach areas. With great balance and weight of only 7.7 lbs., it offers greater utility so users can saw overhead and in awkward positions.
• Is the first cordless reciprocating saw to feature three orbital settings (0-1-2), which are optimized to maximize cutting. Handy variable speed controls include a dial to set the desired maximum speed and an accelerator trigger for adjusting the operating speed.
• Paul Isakson has sold Isakson True Value in Amery, Wis., to Todd Cunningham, who will be reopening it as Hardware Hank.
• Tim Jacobs, owner of an independent pharmacy in Brownwood, Texas, is acquiring 141-year-old Weakley-Watson Hardware in Brownwood from brothers Mike, Bill and John Lee Blagg. The deal saves the oldest hardware store in Texas from closing.
• Brad Dahn has sold Park Ace Hardware in Park Rapids, Minn., to Jeff Cwilka, who has managed Bemidji’s Ace on the Lake for 29 years.
• Steve and Beth Ward have sold Wards Do it Best Hardware in Whitmore Lake, Mich., to Peter Grebeck, who has renamed it Peter’s True Value Hardware.
• The Cotton family is purchasing Hamel & Rowe Ace in De Soto, Mo., and will make it the ninth branch location of Cotton’s Ace Hardware.
• Tyler and Katie DeMaris are opening DeMaris Hardware in St. Ansgar, Iowa.
• Jeff Gillard has opened a new Gillard’s Hardware in Grayville, Ill.
• Chris Smalley opened Newhall True Value Hardware in Newhall, Calif.
• Jud Busbee is selling Busbee’s Hardware in Wagener, S.C., to Paul and Tina Salley, who plan to rename it Palmetto Hardware and Outdoors.
Cole Hardware
• Rick Karp has opened his sixth Cole Hardware store in the North Beach neighborhood of San Francisco.
• Ace Hardware of Bethalto (Ill.) raised $17,068 in 2016 for Children’s Miracle Network Hospitals of Greater St. Louis.
• True Value Co. named Steele’s Hardware, Tannersville, Pa.; Burney True Value Hardware, Aberdeen, N.C.; Ed Young’s Towne Hardware, Williamsville, N.Y.; Morrison True Value, Alpine, Texas; Lewis Mercantile Company, Bayfield, Colo.; Qualheim’s True Value, Shawano, Wis.; Handyman True Value Hardware, Florissant, Mo.; Green Valley True Value, Green Valley, Ariz.; Wilton Hardware, Wilton, Conn.; Nelson True Value, Prairie du Chien, Wis.; Anchorage True Value Hardware, Anchorage, Alaska; Kula True Value, Kula, Hawaii; and Hardware & Lumber Ltd., Kingston, Jamaica as 2016 winners of “Best Hardware Store in Town.” Qualheim’s True Value was named the overall winner.
• Pacific Ace Hardware in Vacaville, Calif., was honored as “best local
building supply/hardware store” in the Daily Republic annual Readers’ Choice poll.
• Giomi Ace Hardware in Yerington, Nev., is celebrating its 45th anniversary.
• Do it Best Corp. has hired Greg Fuller as regional sales and business development manager. Fuller, who spent 35 years at All American Home Center in Downey, Calif., including nearly 20 years as CEO, will lead a team of territory managers covering the western United States. “Greg is extremely passionate about partnering with our members and other independent entrepreneurs to grow their business,” said Rob Schmiedel, Do it Best Corp. national sales and business development manager.
• The Hillman Group announced the hiring of Kim Corbitt as chief human resources officer and Zach Sherburne as chief information officer.
• Ace Hardware Corp. reported 4Q revenues of $1.2 billion, up 5.8% from the prior year. Net income rose 77.7% to $21.5 million and consolidated fiscal 2016 revenues were $5.1 billion, up 1.6% from 2015. Net income increased 3.2% to $161.2 million for fiscal 2016.
• PGA Tour golfer Jim Furyk has signed a multi-year sponsorship deal with Ace Hardware Corp., which is the official hardware store of the Professional Golfers Association Tour.
• Ace Hardware Corp. is expanding its redistribution center in Suffolk, Va., by 138,000 square feet.
• Danze and Gerber have hired Tony Favilla as vice president sales–branded products.
• ECi Software Solutions announced it has acquired American Management Enterprises, dba Mark Systems, a recognized leader in the residential home construction industry. Scott Duman, president and CEO of Mark Systems, has been named president of ECi’s Residential Construction Group. ECi now serves more than 3,200 customers in the LBM, hardware and construction industries. “The addition of Mark Systems makes ECi a leader in the residential home construction sector and enables us to investigate innovative ways to connect home builders with their LBM suppliers. Mark Systems is a very well-run company and we are honored to have
them as part of the ECi family,” said Ron Books, CEO of ECi.
• Eugene Gogel, former co-owner of Pikesville Hardware and Garden Center in Maryland, died March 6. He was 84.
• Leonard Branstetter, owner of Plaza Hardware in Phoenix, died Feb. 6 at the age of 90. He and his wife Karilyn operated the store since 1981, with a focus on treating customers and employees like family. He is also survived by daughters Kristine and Sally and sons Jerry and Keith.
FULL STORY:
• Nicholson Hardware employee celebrates working there 70 years. Click here.
• Consumers prefer brick-and-mortar retail. Click here.
True Value Company held its Spring Reunion February 17-19 in Anaheim, Calif., with a theme that focused on the value of independence.
During the general session, President and CEO John Hartmann told members in attendance, “The value of independence is about respect, trust and freedom. We are independently strong. Our commitment to your success is not something new. We brought ‘wow’ into
True Value held its Spring Reunion in Anaheim, Calif.
every transaction and have brought a decade-long record of new growth. You have the respect, trust and freedom to run your business the way you want.”
Tim Mills, senior vice president of growth, pointed out that in 2016 True Value opened 68 ground-up stores and did 101 remodels. “We are on track to top both those marks in 2017. We lost 177 stores between 2012 and 2016 but sales were up 10 percent, because we have an increasing number of high-volume stores,” he said. “The number of stores buying over $500,000 is up 14 percent.”
Mills added that the co-op expects to have 20 members open or remodel with core Destination True Value sets by the end of 2017.
Abhinav Shukla, senior vice president and chief operating officer, said they have made a big investment in the omnichannel universe. “We experienced 52 percent growth in e-commerce sales in 2016,” he said, adding that e-commerce customers are buying $30 more in the store after picking up an online sale. “Eventually we will have online sales directly transacted out of retailers’ stores. It would be better if consumers knew whether to buy out of store inventory because the retailer has it in stock,” Shukla said.
True Value is working on a total realignment of its distribution network over the next five years, according to
Shukla. “We are going from a national central ship approach to a regional hub and spoke structure. There will be fewer SKUs in central ship and more shipped to members from their local retail support center. We will soon have the ability to ship all products on one truck and with one invoice. This leads to a big cost reduction,” he said.
“We’ve gotten a very positive reception to that from members,” Shukla said. “In 2018 we will do the first hub and spoke region. The large congestion we are experiencing in the Northeast will be fixed first, so that allows us to capture the maximum benefits initially,” he added.
The goal to improve shipping speed, reliability and delivery quality with Ryder has been a great success story, according to Shukla. “We were able to retain 80 percent of our drivers and reduce freight rates to members, which is unheard of with fuel prices higher. We’ve also been able to optimize routes so we’re driving fewer miles. The Ryder transportation initiative is going to be completed this year,” he said.
From a product standpoint, the company’s vision is to have True Value stores be viewed as a destination for
paint, Shukla pointed out. “We have announced a partnership with Benjamin Moore to offer the Coronado paint line. We have a 2-4-1 paint strategy—offering two brands: EZ Care and Coronado, with four price tiers to choose from, which combined will make us the number one paint destination,” he said.
Shukla added, “We want to have a national paint product. We have invested a lot in store associate training for paint. It gives consumers confidence that they are buying a brand that they care about. It’s also a good way to attract female shoppers and expose customers to other categories in our stores.”
He continued, “This is an industry first to have an integrated color center with one color center, one set of colorants and one tinting system, all on one invoice. It makes the process of buying paint easier and more intuitive.”
Heath Ashenfelter, vice president and chief merchandising officer, said coming into 2016 True Value had 23 different private-label brands. “We want to go forward with 10. We have already revamped eight with new logos and packaging with two more to go. We want our private-label brands to be more innovative and not just a value alternative. Retailers are looking for value that helps them stand out,” he said.
Ashenfelter added, “At True Value, we are looking to feature high-value brands. We’re spending more time talking about brands such as Carhartt, STIHL, YETI and the new Coronado Paint from Benjamin Moore. These are brands that your customers know and trust and they can be a difference maker, because they can only be found at independents.” ■
MARCH 2017
Ace Hardware Spring Convention
March 16-18, Georgia World Congress Center, Atlanta
Blish-Mize Spring Buying Market
March 17-18, Overland Park Convention Center, Overland Park, Kan.
International Home + Housewares Show
March 18-21, McCormick Place, Chicago
NLBMDA Spring Meeting & Legislative Conference
March 27-29, Renaissance Dupont Hotel, Washington, D.C.
APRIL 2017
Ace Canada Spring Buying Show
April 22-24, RBC Convention Centre, Winnipeg, Manitoba
Home Hardware Spring Dealer Market
April 2-4, St. Jacobs, Ontario
Lumbermen’s Association of Texas and Louisiana Annual Convention & Buying Show
April 5-7, Gaylord Texas Resort, Grapevine, Texas
Wallace Hardware Spring Dealer Market
April 11-13, LeConte Center, Pigeon Forge, Tenn.
MAY 2017
Do it Best Corp. Spring Market
May 19-22, Indiana Convention Center, Indianapolis
National Hardware Show
May 9-11, Las Vegas Convention Center, Las Vegas, Nev.
JUNE 2017
House-Hasson Summer Dealer Market
June 15-17, Sevierville Events Center, Sevierville, Tenn.
JULY 2017
United Hardware Fall and Winter Buying Market
July 28-30, Minneapolis Convention Center, Minneapolis
AUGUST 2017
Ace Hardware Fall Convention
August 17-19, McCormick Place South, Chicago
Florida Hardware Company Fall Dealer Market
August 10-12, Double Tree Hotel and Convention Center, Orlando, Fla.
Orgill Fall Dealer Market
August 24-26, Boston Convention Center, Boston
2017
HDW Fall Dealer Market
Spetember 8-10, Shreveport Convention Center, Shreveport, La.
The Hardware Conference
September 8-10, Marco Island Marriott, Marco Island, Fla.
www.thehardwareconference.com
True Value Fall Reunion
September 25-27, McCormick Place West, Chicago
For a complete listing of calendar dates, click here.
Hardware retailers are facing increased local competition from Dollar General, Dollar Tree, Family Dollar and similar dollar store formats, which means price-conscious consumers are becoming even more price conscious.
Dollar Tree, which operates about 13,600 stores in the U.S., reported sales of $20.7 billion for fiscal 2016, up 33.7 percent from the prior year. Dollar Tree, which completed an acquisition of Family Dollar in 2015, opened 584 new stores last year. Dollar General, which operates about 13,200 stores in the U.S. and Canada, reported sales of $20.4 billion for fiscal 2015.
Everything stocked in a Dollar Tree store is priced at $1 or less, while items at Dollar General and Family Dollar are low priced but not necessarily all under $1. These dollar stores carry categories often found at hardware stores such as seasonal decor, housewares, automotive, storage, electronics, pet supplies, toys, gifts, craft supplies and snack food.
Some independent hardware retailers have decided to take a proactive approach to this fast-growing competitive threat—they are introducing their own dollar deal sections in their stores.
Leeper Hardware in Jefferson City, Tenn., has been enjoying success with
In addition to regular pet supplies, Driscoll’s Home Center offers dollar deals on select pet products.
Driscoll’s Home Center in West Pittston, Pa., devotes an entire aisle to dollar deals such as food storage, toys and cleaning products.
Leeper Hardware in Jefferson City, Tenn., places a dollar table outside its store.
Northeast Ace in Old Forge, Pa., has a Crazy Deals section devoted to items under $1.
Dave’s Ace in Wisconsin has found a niche selling adult coloring books.
dollar tables that feature more than 100 items to choose from and are displayed outside the store entrance, according to Owner Lisa Williams.
“It’s a rare customer who doesn’t walk away without something extra from those dollar tables,” she says. “We’re trying three different price points, so the overall margin is higher.”
Dave Warren, who operates Dave’s Ace in Milton and Evansville, Wis., has discovered a discount niche with adult coloring books. “I can’t say I totally understand the appeal, but a lot of people are becoming interested in adult coloring books. Even my wife has begun finding her inner child,” he says. “Although many places sell them for as much as $10, we have several titles for only $1 each.”
Dollar sections or dollar tables are a niche opportunity to help retailers boost average transaction size and improve the store’s price image, while hopefully preventing customers from becoming regular shoppers at the Dollar Tree store up the street.
Retailers who have been successful with dollar deal merchandising suggest starting small and experimenting with
All American Do it Center in Richland Center, Wis., has a dollar deals department located near the front.
products and categories to see what resonates with your customer base.
A new way to get your store’s name out there is to use a mobile billboard on a truck, van or other large vehicle. Since the ad is on the move a lot, it gets more ad impressions. One study stated that 95 percent of people who drive by a mobile billboard see it, with 80 percent being able to recall details from the billboard, according to the Transportation Advertising Council.
Shell Lumber & Hardware uses mobile truck billboards on occasion to promote the Miami-based store. n
$36.1 billion
Amount of consumer spending on lawn and garden in 2015, according to the National Gardening Association.
36%
118.4 million
Number of people in the U.S. in spring 2016 who did gardening activity within the last 12 months, up from 117.4 million the previous year, according to Statista.
114.8
Consumer Confidence Index® for February, up from 111.6 in January, according to The Conference Board.
823,000
Number of singlefamily housing starts in the U.S. for January, up 1.9% from December, according to the U.S. Census Bureau.
Percentage of U.S. households that participated in food gardening, with 34% participating in flower gardening, according to the National Gardening Association.
40%
Percentage of U.S. males aged 18-34 who say they would “ideally buy everything online,” compared to 33% of females aged 18-34 who agreed with that statement, according to DDB Worldwide. n
