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By Chris Jensen
Sometimes the craziest ideas turn out to be the best ones. Just about every entrepreneur will say they want to think outside the box, but then they go back to doing what everyone else is doing. I have visited a lot of hardware stores and talked to a lot of hardware retailers through the years, but few have been as entertaining and enlightening as Adam Taylor, the youthful and energetic owner of Trust Hardware on the outskirts of Indianapolis.
Adam spent four years getting his store up and running and then doubled his space. Next it was time for the game-changing experiment—staying open 24 hours a day, 365 days a year. It’s the type of bold risk most retailers would never consider.
AMAzon IS puttIng RetAIleRS of All SIzeS out of buSIneSS, SloWly but SuRely, So It’S no tIMe to buRy youR heAd In the SAnd And do buSIneSS the WAy you’ve AlWAyS done buSIneSS.
Retailers who live in small towns or rural areas probably cannot make a 24-hour store work, but if I’m an urban retailer I would give it some thought. Nuthouse Hardware in New York City
has been staying open 24 hours for a number of years, but New York City is truly a city that never sleeps.
Amazon is putting retailers of all sizes out of business, slowly but surely, so it’s no time to bury your head in the sand and do business the way you’ve always done business.
Adam is full of ideas and enthusiasm, not easy for someone who is working 120 hours a week to give his business the best chance for success. Selling hardware is just the start, as he envisions creating a hub of commerce with a shipping station (he already has) and drivethrough order pickup 24/7. In his future vision, the retailer will take over the role of bank and post office while selling anything and everything on demand, but staying open 24 hours a day is the key. Turn to page 36 to read his full story.
As the 34-year-old Adam says, “There isn’t a person my age that has sold as many different items, tried as many different things and royally screwed up more stuff than I have, but I’m finally starting to get this thing figured out. Commerce is going through the greatest shift in history and you better have a plan. I think I do and I think I’m close to having the blueprint done and let’s see how it plays out.” I wouldn’t bet against him. n
By Tom Chasteen
One of the things I feel the most uncomfortable about is change. How much simpler would it be if everyone you hired did a great job and was committed, honest and dependable?
Over the past 38 years as a hardware store owner I’ve attended so many forums, advisory group meetings and seminars that I have lost count. In just about every one of those discussions the issue of employee training and hiring always comes up in one way or another.
Sometimes it seems we are all in pursuit of a magical pill that you can give to a new prospective employee so that they magically show up to work on time, dressed appropriately and completely trained on how to receive merchandise, stock the shelves, wait on customers, cut keys, handle returns, repair screens and check inventory levels.
Unfortunately, that magical pill we all seem to be looking for is much like the “fountain of youth” that Ponce de Leon was seeking somewhere in Florida, probably near Disney World.
It was during one of those industry meetings that I learned the employer’s prayer, which I will never forget. It
goes like this, “Oh God, I hope this one works out.”
If you are hiring people to work for you, you will always make mistakes hiring people. The real trick is to learn how to minimize those mistakes and correct them as quickly as possible. What follows are some of the ideas I have picked up from other retailers over the years that have helped me.
First, we never allow an applicant to fill out an application in the store and turn it in. Our rationale for this is very simple: if the applicant doesn’t have the initiative to take the application home (or somewhere), fill it out and bring it back, then they probably don’t want a job very much or aren’t interested in working at all.
Second, I think the next step starts with the initial screening process. In today’s world where everything is public information and is usually free, running a background check on a potential employee is very easy and can help eliminate a huge hiring mistake before you even interview someone.
Third, I like to at least sit in on every interview. For me understanding where someone has been and why they are
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applying for a job with our company is very important. I also like to ask them what their five-year plan is. I cannot tell you how many people would say “Oh, I only need a job for a year or so and then I’m going cruising to the Bahamas on my boat.” We have never hired anyone with the intent of letting them go in a year or so. More importantly, we would have probably never known what their plans were if we hadn’t asked. Of course, that’s assuming the applicant is honest with their answer.
Fourth, we always ask the applicant in the interview if we can follow up with their previous employer. I was always amazed at the number of excuses or explanations of why they left or were
terminated by their previous employer. And more times than not, as you can imagine, the past employer had a different view of the applicant’s work ethic. One other thing we picked up on is that if you are speaking with a past employer that is a big company and you are directed to the HR department they are typically very guarded as to what they will say. However, there is one magic question to ask. “Is this person eligible to be rehired at your company?” If the answer is “yes,” then we always thought of that as an endorsement. If the answer is “No,” then you can draw your own conclusion.
Fifth, we always ask the applicants to walk around the store after their
the way i see it
interview and speak with our other employees so they could get a feel for our business. I was always amazed when some would say “Oh, that’s OK, I don’t need to do that.” You can imagine what I was thinking when they said that. Once the applicant left the store, I would go around and ask the other employees what they thought. I cannot tell you how many times an employee’s conversation with the applicant saved me from making a bad choice.
Sixth, I would say the employer’s prayer just before I hired them and then we would invest as much time as we could in training the new employee and
bringing them up to speed as quickly as we could.
I wish I could tell you my system always worked but I can’t. However, what I can say with 100 percent certainty is that it did help me eliminate some very bad choices that I may not have eliminated otherwise. Hiring is nothing more than a calculated gamble. I just tried to improve my odds, because there was only one thing harder in my view than screening potential new employees and that was having to let someone go because I made a bad choice.
From one retailer to another, let me know your thoughts at tom@thehardwarestore.com. n
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On a regular basis I get asked for PCP pipe. The other day I was asked for PCP cement. Then I was asked if he should use the glue first or the cement. It was a long day.
Matthew Abramsky
Tony’s Ace Hardware Hazel Park, Mich.
My funniest job appli- cation was a girl who had been a cashier at Staples. On her applica- tion, she said that she was a cashier most of the time, but sometimes she “worked over at the returns counter.” That still cracks me up.
Kenny Rowland Youngs True Value Hardware Columbia, S.C.
was installing a rain tank on a customer’s ranch and drilled the wrong size hole in the side of the tank, so I needed to go to another hardware store to get a hole saw. I asked the manager if he had any hole saws, and he pointed me down the third aisle. I went up and down several times and didn’t see it. I asked him again and described what I was looking for and he said: “No sir, we don’t have any hole saws. I thought you were talking about whole saws.”
Michael Ferweda Zinger Hardware Austin, Texas
My favorite this time of the year is bulk seed. These people who have lived in large cities with no yards will come in and decide that they want a garden for the first time. They want some advice, but of course they have watched every home and garden show on TV and know what those shows have said. Some will come in and ask “How much do I need for a row?” One wondered if she could just broadcast bean seeds. Had a woman ask about growing corn in a pot. Waiting for the customer to come in and ask for marijuana seed.
Bob Brame Cadiz Hardware | Cadiz, Ky.
Sales and customer counts YTD?
Overall, we’re down about 6 or 7 percent from last year. Mainly, it’s seasonal. We didn’t have any big snowstorms after January. But once it warmed up in April, business started picking up again.
Best niche categories? We’re known for replacement parts for older homes. We either have the products, can duplicate them or cobble things together for customers. With our service and knowledgeable staff, we are able to help anyone who comes in.
Best and worst business decisions you’ve made? Years ago, we carried toys. When a big toy store opened and toy sales were waning it was a very good decision to get rid of the toys and fill up the space with hardware. For the worst decision: In 1980, we decided to purchase another store about 10 miles from here. When you go into those situations, you think you know everything. Turns out, we really didn’t know anything. That store lasted for about six
years and was a bad decision. We lost money and luckily got out of it without damaging our current store.
Biggest challenge facing your business? Maintaining good help. I’ve had people who have worked for me while in college or high school and stick with us for five or six years. But when those guys leave, it’s tough to replace them because they have acquired years of knowledge. Aside from hiring good people, watching cash flow is another challenge.
John Frentz Frentz & Sons PRO Hardware Royal Oak, Mich.
Sales and customer counts YTD? We started in 2011 and are a very small store; we only have 2,000 square feet. We had a hard winter, a little slower than last year, about 20 percent lower. The very mild winter didn’t help. We have to be very careful about what we stock, such as rock salt, because we don’t have storage, so we take a hit if we have extra left over.
Best niche categories? We consider ourselves the 7-Eleven of hardware. If customers forget something and don’t want to deal with the hassle of a big box, we’re here. Paint sundries has been very strong for us. Our district sales manager can’t believe how many brushes we’ve sold. Catering to contractor account customers is also a major part of our business. We have 102 account holders and about 30 are regulars, who we see almost every day.
Best and worst business decisions you’ve made? Going with Bostwick-Braun and working with PRO has to be the best decision we’ve made. Bostwick-Braun enabled us to stay an independent store. Probably the worst decision was buying a programmed key machine for $5,000 to cut chipped keys. We haven’t made that back.
Biggest challenge facing your business? The biggest challenge is knowledge about our pricing.
Mike Meixsell and Barbara Werkheiser are owners of Nazareth Hometown Hardware.
Customers think small town stores like ours charge more than big boxes. There are 126 items in our store that beat Home Depot and Lowe’s by $1 or more. We’re lucky because we’re an independent store, so it’s easier to pass on savings to customers.
Barb Werkheiser Nazareth Hometown Hardware
Nazareth, Pa.
Sales and customer counts YTD?
We’re pretty good, up about 15 to 20 percent. Down here in Florida, the economy is turning around and the housing market is doing well. We’re doing more advertising, especially Facebook and more internet-style marketing.
Best niche categories? We do well with YETI® and Big Green Egg. We also offer sharpening services.
Best and worst business decisions you’ve made? Probably the best decision for the hardware store was getting
bigger-ticket items. Ever since we started stocking YETI, Big Green Egg and Weber, we’ve done well. It’s also been good to regularly bring in new products and carry other lines of products. By doing that, we convert a 10-cent washer sale into a $20 sale for items that customers didn’t think they could buy at a hardware store. The worst decision was to open up a second store before we were ready. Three years ago, there was a location of another store going out of business. My advice: Don’t buy a location that had previous troubles unless you can identify what the troubles were.
Biggest challenge facing your business? Our challenge is staying in front of customers and being noticed. We’re on a back road in a big city. People who have lived here 20 years didn’t know we were here. Once customers come through the doors, they often become regulars. Another challenge has been internet shopping. Lots of customers are ordering products
online. We’re shielded a little, because people want to pick up parts to fix things like a broken toilet right away.
Jeremy Peterson Family Hardware Cape Coral, Fla.
Sales and customer counts YTD? We’re up about 8 percent. Everyone has a good attitude with the new administration in place, so I think the economy is on an upswing.
Best niche categories? We’re pretty big in STIHL. We do various other services, such as key cutting, pipe threading and blowing in insulation. For the insulation, it’s not enough to keep two hands busy all weeks, but some weeks we do spend 40 hours blowing in insulation.
Best and worst business decisions you’ve made? In 1991, I bought out my uncle, who had part ownership. The worst decisions have been some hiring decisions.
Biggest challenge facing your business? Definitely personnel. We employ about 40 people. A big part of the challenge is the declining work
ethic. It’s difficult to find people who are dependable and have a good work ethic. My inside help has been with us for multiple years, but there has been some turnover in the yard.
Kyle Morgan
Trico Lumber
Hughes Springs and Linden, Texas
Sales and customer counts YTD?
We’ve seen an uptick this year, a little bit less than 10 percent, but definitely noticeable. We do a lot of windows, screens and glass. We’re weather driven, so when we had rains and heavy winds,
we were doing lots of window repairs. That’s a big percentage of our business. And as weather gets hotter, we’ll do more screens. Summer is our Black Friday. We also do well with our property management companies.
Best niche categories? In West Hollywood, the code enforcement is really strict, so rental companies have to maintain their properties’ screens. We have a large installation staff, with six crews. In addition to regular, aluminum windows, we also install soundproof windows and are an authorized
dealer of CitiQuiet Soundproof Windows.
Best business decisions you’ve made? One of the best decisions has been expanding the screen and window installation department. It’s also been a good decision to add new items to the store, sometimes on a monthly basis. It was also a great decision to stay open on Sundays.
Biggest challenge facing your business? Trying to stay competitive in a market of super big-box stores. Everyone at Home Depot shops price. We have a national distribution company that allows us to buy at lower prices. We were able to put our pricing at a level with Home Depot. On the top-selling 100 items, we were lower or a bit over.
Rick
Hardware store owners are always looking for new products that they can stock to set themselves apart from the big boxes and other competitors in their trade area. When looking for products to highlight in Tom’s Shop we try to look for quality products that will complement an independent hardware store owner’s product mix and will help in their quest to set their store apart from the other stores in the marketplace.
We look at the quality of the product as well, and we try to qualify the company and their ability to supply their products to the two-step hardware
By Tom Chasteen
channel. Finally, we try to pick products that we think will appeal to a hardware store customer. In essence, I approach evaluating new products like I have for the past 38 years as an independent hardware store owner.
Finally, we do not charge manufacturers when we agree to do a product review in Tom’s Shop. If you feel you have found or manufacture a quality product that other hardware store owners could sell in their stores and would like to share that information, please email me the information and I will personally follow up with the manufacturer.
EcoSmart is one of those products we feel has a lot of potential with independent hardware stores. EcoSmart has developed a complete line of tankless water heaters that will fit just about every residential application from whole homes to the smaller water heaters we will be reviewing in this column.
EcoSmart sent us samples of its Eco Mini 2.5 gallon tank electric water heater and its Eco Mini 4 gallon tank electric water heater. Both units are designed to produce hot water upon demand using an electric heater element in the
small, self-enclosed water tank. When the samples arrived we were immediately impressed with the colorful fourpanel retail packaging. One whole panel is dedicated to showing the retail consumer how to install the product using easy-tounderstand graphics.
Both the EcoSmart Mini 2.5 and the Mini 4 are 120 volt heaters and simply plug into a regular household receptacle, making it extremely
easy for the average homeowner to install the units under a vanity, kitchen sink, wet bar sink or wash basin in a shop or utility room.
Once we received the sample units we gave them out to our
testers without any instructions, which is part of our policy. If our testers have problems figuring out how to use a sample product we are reviewing, then so will the customers of independent hardware stores, so the ability to understand how to use the product is also a part of our process.
Typically, we will have one or two testers who will make suggestions on how the packaging or the instructions could have been a little better. However, in the case of the EcoSmart review, not one of our testers had any issues installing the test units. In fact, several commented on how easy it was to install the units and how good the directions were. Everyone commented on how well the units kept up with hot water demand. One of our testers hooked up the unit to a freestanding outdoor shower, dialed back the thermostat and said it worked perfectly.
All of our testers gave the EcoSmart Mini water heaters a thumbs up. If you are looking to add to your plumbing department selection, then you might want to take a look at EcoSmart’s line of tankless water heaters.
For more information, click on this video link.
Swan has developed a very interesting lightweight hose that meets or exceeds the demands of a conventional garden hose at a fraction of the space to store it and it is significantly lighter in weight. The Swan Flex Hose comes in 25 and 50 feet lengths and is lead free, drinking water safe and is rated to over 400 PSI and has a limited lifetime guarantee.
The samples we tested were 50 feet in length and came with crushproof hose ends. Our testers all commented on how light the hose was and how kink resistant it was. One tester commented that “if it does get a kink just shake the hose and the kink will come right out.”
Other testers mentioned that to collapse the hose to its smallest size all you need to do is let the hose drain as you are rolling it back up.
The hose is made with a very durable nylon type material on the
outside that seemed to be very resistant to abrasion on rough surfaces like driveway pavers. While none of our testers needed to repair the hose, the directions on the packaging said you could use a ½ hose repair coupling if it was necessary to repair the hose.
The packaging for the Swan Flex Hose was also excellent, allowing the consumer to actually touch and feel the hose through a cutout on the front of the box. All of our testers noted that they were very satisfied with the way the hose performed.
We hope you find these product reviews helpful. All of our testers are either commercial tradesmen, serious d-i-yers or just regular
hardware store customers, so we get a crosssection of opinions from various skill levels. If you have any suggestions please let me know at tom@thehardwareconnection.com.
lthough adding a few new items to your inventory on a weekly basis is a good thing, sometimes it is just not enough. Over time your inventory can become stale and to prevent stale inventories, you need to look at whole categories as a unit and make large-scale adjustments within those categories. Periodic category management is the only way to keep your whole inventory current and productive.
Category management is a daunting task to do well by yourself, since the most important job you have is taking care of customers. Today, we have the luxury of computerized inventories and this magical report now exists in many wholesalers’ distribution centers. It is normally referred to as an assortment planner.
Every hardware store needs to review categories of product periodically and it is really tough to do this on your own. However, many retailers buy from a co-op or wholesaler that is in a position to collect data from hundreds or even thousands of stores and a large number of manufacturers as well.
By John Franklin bottom line
Although an assortment planner has much of the work done in digesting sales data, each retailer still must spend some time reviewing the recommendations and making the actual physical implementations in the store.
When you do actually sit down to review your assortment planner, compare all new items carefully and avoid carrying multiple brands of the same product. If space allows, give your customers a “good, better and best” choice rather than a “good, good, good” choice.
If your primary wholesaler’s distribution center is a long ways away from your store, be reasonable when selecting items based on your location and climate. Some categories have little or no seasonal fluctuation, but some have huge seasonal swings.
Part of assortment planning is reviewing older, slow or non-selling items. Try not to be stubborn on slow sellers. If you have items that you have carried for some time that are slow sellers, consider a change and don’t hang on to them for sentimental reasons. If you have some
items that sell marginally, consider running a tracking history on them. You may find that you have just one or two customers buying this product.
Monitor all new items over time and weed out the failures to make room for more successful items. Although good previous sales history puts odds in your favor, keep in mind that they are still odds, not guarantees. Just because you sold an item well last year doesn’t guarantee you will do the same this year.
Let’s discuss how to set order points on new items with no history. First, you must determine if the item has a minimum sales threshold like table legs that need a minimum of four or clothes line pulleys and shelf brackets that need minimum sale quantities of two. Next, set a reasonable level to start. Once set, monitor the new items every week. If the item sells out within a week, raise the order point. If it sells out again, raise it again. Keep doing this each week until you don’t sell out. In this way you will quickly find the correct order point. An order point of 1 may get you 52 sales a year, but a higher order point may sell 200. You won’t know what sales are possible unless you give it a chance to find the real order point.
On review, you should also lower order points where sales history cannot justify your initial order points. I
would run a sales report with order points and then sort the report from both ends. Look at only the extremes where your order point is either too big or too small. Then manage by exception to fix the big problems while leaving the bulk alone. You do not have to tweak every single item indefinitely.
To make the job easier in the beginning, go with your wholesaler’s recommended retail prices. After you get everything else set up, then go back and review your prices against your competitors to see where you can raise prices and where you must lower prices.
Remember that when you add a new item to your assortment, it may well be an item carried by one of your competitors. If your customers are currently buying this item from your competitor and you want them to buy it from your store, you must be close on the price or your new item will simply fail.
When you add a hundred new items to a gondola you need to have some idea of the space required to properly set it up. To reduce confusion and prevent a big mess in you store, consider doing just one or two categories at a time so you can devote the necessary manpower to get the job done quickly.
This is a necessary time to weed out non-productive items. Get them off prime shelf or peg space and onto a
clearance shelf at a reduced price. You need open areas to add new items. Then and only then will you will have enough room to add new and potentially more productive items.
If your store layout allows for gondola expansion by raising the height or narrowing the aisle width, consider yourself lucky. Most stores are already maxed out. However, even if you do not have a lot of extra room, the process will still improve your productivity.
Try to get dating. Most suppliers offer programs for large assortments with future payments that help ease the initial expense.
How successful are assortment planning projects? During the last 10 years I worked for a retail chain of seven stores, we did about 100 category assortment changes. We typically did three to five categories per store every three years. I can say that each and every one of these 100 assortment changes was well worth the work. Each category we fine-tuned produced a considerably better rate of increase than the average whole store increase for the period after we did the change. Some of the department and category changes we did resulted in huge sales gains.
The bottom line is this: done well, assortment planning can be the most powerful tool you have in your store to increase sales. You should set up a program where you do an assortment plan in each department every other year
or so. This approach may be especially helpful in seasonal categories.
The reason assortment plans work so well is because they deal with both good and bad producers. If all you do is routinely remove slow sellers, you quickly end up with empty peg space that generates no sales and an out-of-stock look. If all you do is add new items, you end up with an overly crowded store that is cluttered with a lot of non-productive product. Properly done, an assortment plan helps you replace slow sellers with good sellers at the same time.
There are several effective ways to work on a field assortment plan. One method is to download the assortment plan into your store system and run a report that compares the items on the plan with those currently in your inventory. If you cannot do this, some computer systems may allow dropping the store inventory and the field assortment plan into another separate program, like Excel, and then comparing the two.
A third method is to just sit in front of two computers and work line by line comparing the plan with your current inventory. If this is your only choice, then get your wholesaler’s field staff to help you.
For example, if we were planning to do a 12-foot planogram of lawn and garden supplies, we would bring
up the current plan on one computer and then review the plan line by line with the store system. We would enter every code in the store computer. If it was already a stock item, we would notate the field file as such. If the item was not currently in the inventory, we would notate the file as such. This goes quicker than you might think. However you get your data, what you must create are three separate product lists. The first list you must have is a list of all items in both the assortment plan and your current inventory. A second list must be all items that are in the “plan only” but not currently in your inventory. The third and final list you need is the
list of all items in your current “local only” inventory that are not on the new plan.
The first list, the current stock list, is the easiest. You already have the items, so just blow them off the field order report, unless you are getting really good dating and can use a reorder.
The second list takes a bit more analysis. As we said earlier, before you order a bunch of new items make sure that you do not have a similar current item.
The last list, your “local only” assortment of product, needs to be reviewed carefully. If you have additional space available above and beyond what is required for the new planograms, you should consider carrying additional
items on this list that are good sellers and are not duplicates. However, I am sure you will find that there are a bunch of dogs on this list that need to be let go.
Here is where pre-planning helps. Once you have this list, and before you get the new product delivered to your store, work to reduce the stock on this list. You need the space, so you may need to reduce the price on some or all of these items. It may help to move a lot of this product to a clearance endcap to liquidate while you are waiting for the new goods to arrive.
Don’t forget to order peg hooks and other display items and have them ready before the arrival of the new assortment. Planned well, it makes for an easy job.
Done properly, a good assortment plan will not just produce results, it will get noticed by your customers. They won’t know exactly what you did, but they will know you did something and they are apt to share positive feedback. And what retailer doesn’t love getting that?
John Franklin has nearly 40 years experience in hardware retailing in the United States, most recently as merchandise manager at Williams Lumber & Home Centers in New York. He is available for retail consulting or you can contact him with questions at john@ thehardwareconnection.com.
Adam Taylor keeps Trust Hardware in Indianapolis open 24/7, because he believes that is his best strategy to compete against Amazon.
Click to Learn Why Adam Taylor Keeps His Store Open 24/7
Trust PRO Hardware in Indianapolis has been open 24 hours a day, 365 days a year since last November.
By Chris Jensen
It’s 3 a.m. and Adam Taylor is busy stealing customers from all but one of his competitors. He is selling plumbing parts, batteries and soda and renting carpet cleaners while other hardware retailers are sleeping. He is on a mission, and there is no time to sleep until the mission is completed.
Taylor is a high-energy entrepreneur whose goal is to shake up the sleepy world of hardware retailing. He has more energy on two hours sleep than most people have after eight hours, but then most people don’t work 120 hours a week like Taylor does.
Taylor opened Towne Center Hardware on the outskirts of Indianapolis in July 2012 with a 3,200-square-foot sales floor
The checkout area stocks a lot of impulse consumables like soda, chips, laundry detergent and paper towels, so customers don’t have to run into Walmart to grab a few items.
and just enough capital to buy a modest selection of inventory.
About eight months ago he expanded to about 6,400 square feet and is slowly in the process of changing the store name. “I will be changing everything over to Trust Hardware to reflect the strong belief I have in the importance of trust in any relationship, but especially with the customer,” he says.
This past November, he took a big plunge and started staying open 24 hours a day, seven days a week. He did this even though he only has one other employee, not counting his dad who comes in and helps out.
“Amazon is going to steamroll a lot of retail businesses. The number one way to compete against Amazon is to stay open. The internet never closes,” Taylor says. “When Amazon says they are closed for a period of time so their employees can spend more time with their families, then I will close then too. Otherwise I’m staying open. I don’t close for holidays. I’m open 365 days a year, even on Christmas.”
Taylor points out that his rent is the same whether his store is open eight hours a day or 24, so his expenses don’t really go up staying open. “It takes a while for people to learn about you and develop new shopping habits, but I’m not going
Upper left: Late last year the store doubled in size to 6,400 square feet.
Upper right: The paint department helps attract female customers at all hours of the day and night.
Bottom right: Roscoe the dog is a popular attraction for customers.
anywhere. If you’re not going to stick to something big like being open 24/7, then don’t bother in the first place,” he says.
Towne Center Hardware was open from 5 a.m. to midnight for a short time and while Taylor got some response to that, he found that didn’t really grab people. “Being open 24/7 eliminates the question of wondering ‘Are they open?’ which forces customers to go to the internet to fill a product need,” he says.
Right now about 15 percent of Taylor’s sales are coming in non-traditional store hours and that figure is slowly growing. “Once the sun starts coming out earlier and it stays light later I expect to see business pick up more,” he says.
Taylor’s product mix reflects a customer base that is non-traditional and without a lot of shopping options at night. So he sells ice, chips, soda, laundry detergent, cereal and bait and tackle, in addition to the core hardware categories. “This is a working-class area and people get home after 6 p.m. and start working on projects,” he notes.
So who shops at a hardware store at 2 a.m. or 4 a.m.? Taylor sees police officers, firefighters, nurses and all sorts of people just getting off a late shift. Then there are the workers who are resetting, painting, remodeling or cleaning stores like Starbucks and Target. “They can’t do that work during regular hours, so they’re working at night and need some quick supplies,” he says.
Customers come from neighboring towns and communities up to 50 miles away. “People call all the time and ask ‘Are you really open?’ Early birds come in at 4 a.m. ready to start their day and I can help them get what they need,” Taylor says.
One time the power went out, so Taylor lit candles and took credit card information by hand. “You do what you have to do. People will know I’m here and
The best way to improve the store is to listen to customers and give them what they need, explains Owner Adam Taylor.
they don’t have to wonder whether the store closed at 6 or 8 or whether it’s open on Sunday. I’m always open. Sunday is my second biggest day, so I can’t imagine being closed on Sunday,” he says.
He is never alone in the store, because his faithful dog Roscoe is always there with him.
“Customers come in just to say hi to Roscoe. He’s the biggest attraction,” Taylor says.
The store’s doors are never locked. “A lot of times I just cover the hours and I’ll rest when I can. I’ll hear the door chime and I can be awake right away without being groggy. Then I can go back to a deep sleep immediately, so I never feel tired despite the long hours,” he says.
As Taylor explains, “I didn’t want to just throw a new employee into working a night shift all alone, but I plan to bring someone in this spring. It’s easy to do inventory or pricing or unload a truck when it’s late at night or early in the morning and I’m by myself.”
Taylor has placed signage all over the inside and outside of the store touting it is open 24 hours. He intends to have a new sign on the top of the building soon that touts the store’s 24/7 hours. Other than some promotions on the internet
Signage promoting the store’s 24/7 hours is prominently displayed in multiple places.
and on Facebook, it’s mostly been word of mouth. “I wanted to work through the kinks first before I really announced it to the world. You don’t want to tick off a customer by not having your act together,” he points out.
Plumbing is the biggest selling category in the middle of the night, whether it’s someone having sump pump problems or needing a discharge hose. “One customer had a water leak at 2:30 a.m. and he was very happy we were open. Then there’s this lady who keeps coming in and renting a carpet cleaner in the middle of the night,” Taylor shares, adding that he’s starting to get positive Google reviews from customers.
Taylor, who is 34 and single without kids, studied finance and business in college. “I did mobile home sales for six years, but I never wanted to be stuck in a cubicle with a corporate job. That’s just not me,” he says. His longterm vision is to own multiple hardware stores that are all open 24/7.
Taylor’s retail philosophy is simple: listen to customers and have what they
Convenience lumber, drywall and plywood are stocked so they can compete for fullproject sales.
need. “I got rid of a wide selection of the same product, which helps me keep a tighter inventory. I may not have the lowest prices compared to the big boxes, but I have fair prices and I can get customers in and out in 60 seconds. It’s a value proposition,” he says.
He is almost finished with a reset of the store and then he has a long list of initiatives to tackle. Some of his ideas include adding tool rental, a STIHL dealership, 24-hour delivery, house call service, a drive-through for online and call-in orders plus a workstation where customers can bring in projects to work on. “Some will be epic failures, some will work but need tweaking and some will be home runs. I can’t wait to try them all out and see how it goes,” he says.
To Taylor’s way of thinking, the glass is always half-full and more importantly, he got to pick the glass. “I’ve poured my whole life into this store. I don’t take days off or holidays, but I’m debt free and I’m my own boss,” he explains. “We’re in the middle of the greatest shift in the history of commerce and the entire landscape is changing fast. What a fun time to be in retail.” n
his year’s National Hardware Show® in Las Vegas was filled with promising new products. The following pages profile 10 innovative products found at the Hardware Show that offer strong sales potential. Click on the links to the vendors’ web sites and
• MudGun™ Drywall Finishing System uses pre-loaded MudPaks™ or mud pulled directly from 5-gallon tubs. MudGun™ promises a more successful process and professional finish for drywall pros and inexperienced users.
• In addition to applicator, which resembles a caulk gun, the MudGun™ contains 2 specialized nozzles and adjustable finishing head that facilitate process of embedding tape and preparing drywall surface for sanding and painting.
• MudGun™ Small Repairs Kit (model #09600) is for painters, remodelers, d-i-yers and others who make small repairs. Kit uses convenient
discover if these new items are the right fit for your business.
MudPaks™ (premixed drywall compound tubes) that provide a simpler and neater alternative to manually applying compound out of a bucket. In addition to the applicator, nozzles and finishing head, the kit contains an inside corner smoothing tool and 6” taping knife.
• MudGun™ Pro (model #09610) is for tackling larger drywall projects. Includes a loading ring that allows you to fill the applicator directly from 5-gallon bucket.
REVERSIBLE JAW ADJUSTABLE WRENCH
• Channellock® Reversible Jaw Adjustable Wrenches are strong, reliable and more versatile than ever for use on bolts and round stock.
• The angled teeth on the reversible jaw grip are tight on pipes and rounded fasteners.
• Line includes: 806PW 6” Adjustable Wrench
Reversible Jaw, Wide, Chrome; 808PW 8”
Adjustable Wrench Reversible Jaw, Wide, Chrome; 810PW 10” Adjustable Wrench
Reversible Jaw, Wide, Chrome; and 812PW 12” Adjustable Wrench Reversible Jaw, Wide, Chrome.
• Designed with the homeowner in mind and a focus on durability and ease of use, the newest addition to the YARDMAX line of products boasts a Briggs & Stratton Professional Series engine as standard and a 10:1 reduction ratio, turning 10 bags of yard waste into 1 bag of mulch.
• Features a highly versatile design and stamped steel construction to efficiently mulch yard waste. Engineered for productivity, this garden chipper delivers direct
• Victor’s Wi-Fi Enabled Product Line offers users the ultimate convenience of receiving catch alerts directly to their smartphone device, eliminating the undesirable task of continuously crawling into and under dark crawl spaces or small dusty attics to check traps for activity. With one ping to the homeowner’s smartphone, they will know the trap has made a catch and then, and only then, will they need to go retrieve it.
drive engine power to ensure constant self-feeding chipping with no lag time.
• Two J-shredder hammers and two rectangular hammers cut wood down to size and mulch yard waste with ease, while two chipping knives ensure optimal performance.
• Has the ability to chip branches up to 3” in diameter, using a powerful 208cc displacement engine.
• The Wi-Fi Enabled Product Line from Victor uses advanced smart circuit technology to quickly sense and dispatch a rodent once it the trap, seamlessly ately alerts the homeowner.
• Upon each catch, a real-time notification is sent to the connected mobile device. Users simply download Victor’s Smart-Kill app and connect traps to their own Wi-Fi. From there, users can monitor traps from any location using their mobile device for instant peace of mind.
“Where Relationships Are Formed”
SEPTEMBER 8-10
Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.
Epicor will offer full-day, hands-on training sessions for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.
Honor the Industry’s Best
at the 2017 Beacon Awards
Sponsors:
Co-Sponsors: FOR
The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry.
• Clear Gorilla Glue offers users the same recognizable versatility and strength for which Gorilla is known in a crystal clear, no-foam formula.
• This extension to the Gorilla legacy is born from users’ need for translucent glue that sidesteps the hassle of foam.
• Clear Gorilla Glue bonds virtually everything, giving users the freedom to create in more innovative ways than ever before. Gorilla Glue is water resistant, safe for indoor and outdoor use and strong enough to stand up to the elements.
• Available in 1.75 fl. oz bottle, it bonds glass, foam, wood, metal, ceramic and more.
• First illuminating smart product with Amazon Alexa inside lets consumers do more with fun, convenient features including a visual clock and sleep-enhancing light.
• Sol combines functional illumination, a contemporary design, visual indicators for everyday tasks, sleep-based light and all the skills you’d find in an Amazon Alexa product without the need for a standalone Alexa device.
• Pair visual light cues with everyday tasks such as checking the time. Turn the 60-watt equivalent light to daylight or soft white color temperatures with a voice command or through the C by GE app. This allows white light tuned to mood in each room without changing a light bulb.
• A warm light is used to increase melatonin before bed, while a cool, vibrant light helps produce energy in the morning.
4-PIECE KIT
• The compact square tub comes with everything needed to repair small holes in drywall, plaster, stucco and wood in one application, with no shrinking or cracking.
• The ONETIME® Lightweight Spackling kit lets homeowners patch and prime in one fast, easy step.
• The premium pre-mixed formula spreads easily and is paintable in minutes. The kit also includes a repair patch, sandpaper and spreader with complete instructions, all sealed inside a square tub—a shape that works particularly well with the spreader.
• To apply, simply adhere the patch to the damaged area, spread the drywall compound to cover it completely and let it dry according to the instructions. Then sand smooth and finish with a damp sponge. It’s the perfect kit for getting walls in shape before painting.
• Includes 8 grill models that feature the GS4 highperformance grilling system, which includes Weber’s Infinity ignition, high-performance burners, proprietary Flavorizer Bars and a completely updated grease management system.
• The Genesis II E-210 Gas Grill is the entry-level model and is designed to fit on a small patio or balcony. It features 494 square inches of total cooking area.
• The Genesis II E-610 Gas Grill is the top of the line model. It features 6 tool hooks, 2 side tables, built-in lid thermometer, 60,000 BTU-per-hour burners, porcelain-enameled lid, 998 square inches of total cooking area, and porcelainenameled, cast-iron cooking grates.
• Each Genesis II comes iGrill ready. Open up a new world of grilling possibilities with the iGrill 3 Bluetooth thermometer. iGrill 3 monitors food from beginning to end, and notifies you once it has reached the perfect degree to serve.
Weber-Stephen Products 847-934-5700 | www.weber.com
• Nite Ize has solved the problem of that long-forgotten bowl of unidentified keys with colorful, flexible IdentiKey™ Covers.
• These four colorful, universal key identifiers have write-on tabs that fold under to keep the writing protected and keys readily identifiable.
• These covers make it easy to organize and identify keys of all shapes and sizes.
• The combo pack pairs these key identifiers with two S-Biner MicroLocks for quick and secure attachment to key rings.
• Caterpillar is expanding the Cat® RP Series portable generators line with the introduction of the RP12000 E. The new generator fills out the top of the series, delivering 12kW of running power and new features to meet the specific needs of emergency home backup, DIY enthusiasts and contractors.
• The RP12000 E has a new, larger frame to house a larger, powerful 670cc V-Twin engine. The engine has a fully pressurized oil system and delivers up to 15kW of surge power, making it suitable for powering more equipment and heavy loads.
• The all-copper generator delivers a clean power with less than 5 percent total harmonic distortion, which is suitable for sensitive electronics and tools. Engineers also included a lowidle mode option, which optimizes fuel consumption and noise levels and reduces engine wear.
• With runtimes over 11 hours (at 50% load), customers will be able to work an entire day without needing to refuel.
Do it Best Corp. used its spring market, held May 19-22 in Indianapolis, to help its member-owners raise the bar with their paint department.
The co-op unveiled The Color Bar, a re-envisioned in-store experience for the paint department. It features a core focus on building customers’ confidence in their color and product selection and is offered in a range of flexible configurations.
In addition to scalability for different store floor plans, The Color Bar offers members a female-friendly, consumerfocused layout, interchangeable call-outs for trending colors, product line flexibility and cross-merchandising opportunities.
“This new design experience puts color front and center,” explained Rich Lynch, vice president of marketing.
“The Color Bar provides consumers and store employees an opportunity to develop a greater confidence in color while selecting the right product for their painting project with every visit.”
With 12 different components centered on brand-specific color selectors
Click to See Dan Starr Explain What’s in Store for the future of Do it Best Corp.
Dan Starr addressed Do it Best members during the co-op’s spring market.
for Do it Best Quality Paints, Pratt & Lambert and Valspar, The Color Bar provides the co-op’s members with a fully branded space, regardless of store size or layout.
“When it comes to paint, consumer tastes and trends can change quickly, and The Color Bar empowers our members to adapt just as quickly,” Lynch added.
“We know the brick-and-mortar experience is still the key driver in this category, and The Color Bar now sets the standard for an exceptional in-store experience for our members across the industry.”
President and CEO Dan Starr stressed the importance of The Color Bar from a competitive standpoint. “We need member traction quickly. This is a category our members can win. In paint,
you have a consuming public that is not as excited about going into a large warehouse store to buy paint. Our members can create a great store-within-a-store,” he said.
“The timeframe from idea conceptualization and R&D to building something in eight months is really something new for us. It demonstrates how agile we can be,” Starr pointed out.
Speed to market and accelerating the pace of change were the common themes cited by Do it Best executives in interviews during the market. This comes on the heels of the co-op announcing sales are up 6 percent year to date, with about one month left in its fiscal year.
As part of an initiative to make markets easier for members, Starr noted the co-op worked non-stop to develop and launch the Market Savings Builder that made the process of creating a purchasing plan and ordering market deals much easier. “Now members no longer receive a big stack of paper for each market. We had been doing it in an antiquated way.”
Starr told members, “Stop waiting for the perfect time. The pursuit of
Right: Do it Best Corp. has partnered with several members to install prototypes of The Color Bar.
Left: The Color Bar’s flexibility enables retailers to maintain an ongoing focus on both seasonal and community-based color trends.
perfection should never stand in the way of meaningful progress. We’re driven to be the best. We’re here to help you be the best. But we need you to take that next step. The time is now.”
Starr spent time last year talking about change and improvement, but he said there is a need for more than just change. “In today’s business climate you’re greatly at risk if you’re not fast enough. Speed to market is very important and we’re an industry that is not known for that. We need to cultivate a sense of urgency,” he said. “The focus at this market is on what does that change look like and what does it mean to me?”
Competition for members has gotten fiercer and big-box competition is more challenging, Starr noted. “The online marketplace is doing a lot and not just Amazon, but Home Depot is also putting a tremendous amount of resources into its online presence,” he pointed out.
“We’re not happy with a 6 percent sales increase—we’re concerned with where we’re going to be in five years,” Starr said.
Nick Talarico, who replaced the retiring Jay Brown as vice president-sales last November, said the majority of his time has been spent on aggressively finding ways to grow members that can be executed by the co-op and the retailer.
“The common thread between every role I’ve had at Do it Best is being an agent of change,” he said. “My MO is I go in and ask questions. Why do we do this? Sometimes it’s because we’ve always done it that way. That doesn’t mean we should continue to do it that way.”
Talarico added, “The pace of change and speed is incredibly fast. The shift to online is real. Members face the same challenges we do with loyalty of customers. We’re capturing more data to help them, but it comes down to how they utilize it.”
He noted that the biggest long-term challenge facing the co-op is business succession for its members. “Do it Best has starting doing a good job by offering a multi-stage succession planning kit. It encourages our members to start thinking about the process,” he said.
Lynch stressed the importance of jumping on board the “Buy Local” movement. “We think that’s critical. What we see is a growing sentiment
toward supporting local retailers, even with millennials. That is why we partnered with the Independent We Stand organization, so we can piggyback on their efforts.”
Digital advertising will drive future marketing efforts, he pointed out. “Digital is how we’re operating in the Age of Now. An emphasis this year is winning weeks that matter in the ways that matter. The experience of customers in our stores must match all the promises we make to them.”
Members are encouraged to use their website as a hub and build everything around it. “The Do it Best Rewards program drives better data to make more calculated decisions. First, you must have data, second is to be willing to use data and third is to trust the data,” Lynch said.
Steve Markley, vice president-merchandising, said attracting millennials is less about assortments and more about how you market to them. “One of the most precious commodities is time. Those stores that are convenient and help customers save time will be successful, regardless of the demographic,” he says.
Products related to home automation and the connected home are hot, according to Markley, who added that grilling, outdoor living, lawn and garden, power tools and light bulbs are the categories enjoying the most growth over the past year. n
It’s a conundrum. Today’s independent retailers have to think outside the four walls of their business in order to attract consumers to shop inside the very same walls. Yet, that is the position in which small retailers currently find themselves.
Since consumers can purchase anything they want online, independent retailers must find a way to connect with these consumers and entice them to shop in the store—or better yet, rekindle the connection digitally.
The troubling reality, though, is that most businesses are not adapting for this transformation. A new study conducted by Morar Consulting on behalf of Epicor Software found that only 17 percent of retailers feel business transformation is important for success. The research questioned 2,450 business decision makers and employees in businesses in 12 countries across the globe, about their growth performance in the last 12 months.
By Doug Smith, director, product marketing, retail and distribution, Epicor Software
Regardless, numerous independent retailers have already made the digital investment and see the value of a well-connected strategy. Kinnucan’s Specialty Outfitter, a specialty outdoor and lifestyle retailer with 13 locations, utilizes an integrated eCommerce and eBusiness solution for the company’s online store.
“If you’re in the retail business you will eventually have to be an eCommerce business if you want to compete effectively and have any future. We spent a lot of time and energy making sure our brick-and-mortar business was successfully and efficiently operated. Since we had all those pieces in place, it was time to move into eCommerce to expand our business further. The benefit for us is that we’re now able to take our business across county, city, and state lines—geography is no longer an issue,” said Bobby Lake, CEO, Kinnucan’s Specialty Outfitter. “We are excited about eCommerce, and there are bounds of opportunities there for other retailers. They just need to take that leap in moving their business forward.”
BURNCO Landscape Centre is a division of a 103-year-old, family
owned, and aggregate-based construction materials business based in Western Canada. The 16 landscape centers are onestop-shops for landscaping supplies. The business made the shift to offer an online storefront because it recognized the need to compete with a world of options.
“Today’s consumers are used to shopping and comparing prices online, and businesses have to be online to be in the game. If you don’t have the ability to sell, or at least feature your products online in an informative way, it’s going to be tough,” said Steven Sample, administration manager for BURNCO. “Our eCommerce solution allows customers to buy their landscaping supplies 24 hours a day, seven days a week from us online.”
On the flipside, retail executives have good reason to hold tight to those brickand-mortar traditions as they see that many consumers desire to shop in physical stores. Recently, an article appeared in Fortune magazine confirming this point.
“Despite the ease of online shopping, I believe many people still prefer shopping for physical goods in physical stores. In many cases, they’re even willing to pay a premium for the experience,” says Brian Hibbs, comic book shop owner. Hibbs details how he connects to his consumers by “offering special clubs” that are really variants of loyalty programs. There is a monthly charge for the members to belong to the club, but in
numerous independent retailers have already made the digital investment and see the value oF a wellconnected strategy.
return consumers get an experience that enables them to connect with the retailer while building the store’s revenue.
Too often we think of loyalty programs as just points or special pricing when, especially today, consumers are looking for a reason to shop beyond price. They are looking for an experience in your store, a connection with your staff and reason to return. A loyalty program could be just the strategy to add to the overall brick-and-mortar retail approach, one that delivers key customer data and actionable business intelligence fundamental to enhancing the retail experience both in physical stores and online.
So how do you please both the retail executive and the consumer? How do you compete with the ever-looming threat of big-box retailers? I tend to fall in the camp that believes both eCommerce and brick-and-mortar strategies play vital roles in the success of a small retailer. Retailers should embrace innovative in-store technologies and also deliver engaging eCommerce venues for shopping in pursuit of the ideal customer experience. n
Sales of Door Locks (Independent Hardware Channel) 12 Months % Change vs. Year Ago Door Locks:
Door Locks:
Unit Sales Breakdown for Door Locks Total of 2,186 Items with Sales
• Smart home technology is slowly but steadily being adopted by homeowners even in entry-level homes. Keypad and touchscreen technology provides convenience and security while allowing the homeowner to give temporary access to contractors and housekeepers. No more need to carry keys or hide keys by the front door. More importantly, you don’t have to sacrifice style to get the latest entry door hardware.
• The popularity of HGTV shows like “Fixer Upper” has caused barn door hardware to explode in popularity. Decorative barn doors are a contemporary and space-saving solution that adds character and whimsy to a room. They utilize floor space better than swinging doors while adding a decorative flair that can be personalized to a homeowner’s preference.
• More than 30 percent of U.S. homes have at least one connected device and that figure is projected to double to over 60 percent by 2021, according to Statista. These connected devices can control lights, home security systems, blinds, appliances and thermostats,
Left: Orchard Supply Hardware in Florida promotes keyless smart lock options on an end cap.
Right: Zinger Hardware in Austin, Texas, offers a unique assortment of decorative cabinet hardware.
with owners being able to remotely monitor and track their home automation systems via phone or laptop.
• The market for builders and cabinet hardware is estimated to reach $18.1 billion by 2020, driven by a recovering construction market, technological advancements and innovation in hardware design, according to Global Industry Analysts Inc.
• The 10 most popular cabinet hardware finishes are (in order) : Oil Rubbed Bronze, Satin Nickel, Stainless Steel, Satin Chrome, Brushed Satin Pewter, Weathered Nickel, Lancaster Hand Polished, Wrought Iron Dark, Venetian Bronze and Antique English. Source: usacabinethardware.com.
• A new kitchen trend is hydraulic, easyclose cabinet doors that fold up and out of the way with the push of a button.
• For decorative and cabinet hardware choices in kitchen projects, keep in mind that transitional, contemporary and traditional are the most popular design styles in that order, with industrial and mid-century modern breaking out as emerging design styles, according to the National Kitchen & Bath Association’s 2017 Kitchen & Bath Design Trends Report. ■
The 2017 edition of The Hardware Conference, set for September 8-10 at the JW Marriott in Marco Island, Fla., will look to build on a long tradition, as the industry’s largest gathering of independent retailers will be celebrating its 29th year.
The Hardware Conference is open to any independent retailer, regardless of wholesaler affiliation. Ace, Do it Best, Orgill and True Value all support the Conference, joined by key vendors who participate with tabletop exhibits.
The event is a chance for retailers to mingle and discuss ways to improve their businesses and grow sales and profits in the face of competition, while at the same time combining family fun at a world-class
Right: The open dialogue sessions Saturday and Sunday mornings feature candid discussion between vendors and retailers.
Left: The Hardware Conference is held at the JW Marriott right on the beach in Marco Island, Fla.
resort on a beautiful sandy beach. The Marco Marriott recently was upgraded to JW Marriott status after undergoing a $320 million remodel.
“You have the opportunity to see new products, talk to other dealers and learn from both dealers and vendors in a very relaxed setting,” says Rick Heuser of Handyman Hardware in St. Cloud, Fla.
This year’s Hardware Conference will again be highlighted by the Beacon Awards, which honors the “Best of the Best” retailers in the
The Hardware Conference enables dealers to have one-on-one dialogue with vendors during exhibit hours.
industry. The Beacon Awards are cosponsored by The Hardware Conference and The Hardware Connection with special sponsorship support from Apex Tool Group, Sunnyside Corporation, Epicor, Sashco and Rust-Oleum. They are also co-sponsored by Ace, Do it Best, Orgill and True Value.
On Friday evening, September 8, the Beacon Awards banquet will recognize the industry’s Best New Stores, as well as Retail Beacon Award winners from the four participating wholesalers.
Beacon Award winners will receive all-expense paid trips for two to the 2017 Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award plaque and be featured in The Hardware Connection. The Hardware Technology Forum starts the day before the Conference officially opens on Thursday, September 7. Epicor will again offer a
full-day, hands-on training session for its retailers. Bring your tablet or laptop so you can log right in as you learn new tips and tricks to make your POS software more productive.
The registration fee for attending just The Hardware Conference is $149 per person, while the registration fee to attend both the Technology Forum and the Conference is $299 per person and includes all training plus breakfast, lunch and cocktail reception on Thursday in addition to the other Conference meal functions and activities the rest of the weekend.
Marquee sponsors for this year’s Hardware Conference include The Hardware Connection, Wooster Brush, Krylon, The Hillman Group, Minwax and the Miami Children’s Hospital Foundation. Vendor booths are auctioned off Saturday night with the proceeds benefiting the Miami Children’s Hospital Foundation.
Start making plans to attend a fun, entertaining and beneficial event that can have a positive impact on your business. It is the perfect opportunity to bring your whole family to a five-star resort right on the Gulf of Mexico with three miles of pristine white beaches.
For more information on attending the 2017 Hardware Conference, call conference directors Shanti or Craig Cope at (305) 853-0049 or go to www.thehardwareconference.com. n
• Gina Schaefer and Marc Friedman, owners of A Few Cool Hardware Stores, have purchased Frager’s Hardware in Washington, D.C. from John Weintraub.
• The Drew family has opened Drew’s True Value in Mount Morris, N.Y.
• Mead Lumber Co. acquired 4 Nebraska locations from Kildare Lumber.
• Bill Hayden is opening an Ace Hardware store inside Hayden Mercantile in Steamboat Springs, Colo.
• Ace Hardware in Auburn, Ind., held a grand reopening for its new building in April.
• Barry and Lori Uecker added an Ace Hardware store to their grocery store and pharmacy in Freeman, S.D.
• Mark Thomas and Jerry Edwards added Ace Hardware to the C&R Supermarket in Fayette, Mo.
• Strosniders Hardware will be renovating the former Hardware City location in Kensington, Md., which will reopen as its fourth store this fall.
• Campioni’s True Value is opening in Calumet, Mich.
• Eric and Richard Hassett acquired Carlmont Ace Hardware in Belmont, Calif., as their 6th store.
Frager’s Hardware
• Strasser True Value in Kansas City is celebrating its 100th anniversary.
• Tad and Christy Degenhart are marking the 45th anniversary of Wimberley Ace Hardware in Wimberley, Texas.
• Hepler’s Hardware in New Stanton, Pa., is celebrating its 75th anniversary and building a new store.
• Brent Burger and Michael Roy, owners of Campbell’s Agway True Value in Maine, were honored with the 2016 Distinguished Community Service Award from the Mid-Maine Chamber of Commerce.
• Caribou Jack’s Trading Co. in Soda Springs, Idaho, was the winner of the National Hardware Show’s $100,000 Reimagine Retail contest.
• Frank Carroll, vice president of merchandising for Ace Hardware Corp., has left the company to become the CEO for BroanNuTone. Tom Andrews
• Tom Andrews has been named divisional merchandise manager for Do it Best Corp.
• Hardware Distribution Warehouses Inc. has purchased a 670,000-square-foot facility in Marshall, Texas, which will now become their corporate headquarters. The move will include the consolidation of the Houston and Shreveport distribution centers into the new Marshall location.
• Ace Hardware Corp. reported first quarter revenues of $1.2 billion, up 0.1% from the prior year. Net income increased 8.4% to $28.3 million and the accrued patronage of $34.7 million was up 18.4% percent from 2016.
• Arrow Fastener Co. has been acquired from its parent company, Masco Corp., by China-based Hangzhou GreatStar Industrial Co. Ltd.
• ECi Software Solutions announced the integration between its premier software solution for residential homebuilders, IHMS™, and the Envision online design center from Builders Digital Experience.
• The “Home Sweet Home: Pros’ Edition” study, conducted by Civic Economics and commissioned by Independent We Stand, was released at the Hardware Show in Las Vegas. The Independent We Stand movement is sponsored by
STIHL Inc. Associate sponsors include PPG Pittsburgh Paints and Do it Best Corp. Based on analysis, independent STIHL dealers as well as other independent home improvement and building supply dealers recirculate 250% more local dollars than their major chain competitors.
• Russell Kortendick Sr., founder of Kortendick Ace Hardware in Racine, Wis., passed away April 21 at the age of 98. The World War II veteran started the business in 1951.
Ace Hardware Corp. announced a new financing program for Ace Hardware store owners that will help fuel the company’s new store growth efforts. The new financing program gives qualified Ace store owners access to up to $200,000 in a dollar-fordollar equity match loan for opening a new ground-up store or to acquire a competitor’s store.
Amounts borrowed under this program do not need to be repaid in cash. Instead, loans can be repaid immediately using the owner’s existing Ace Hardware Corp. stock or over
time using future non-cash patronage distributions.
“Ace Hardware store owners now have even more resources to help them achieve their goals of expanding their businesses,” said Dan Miller, Ace’s vice president-retail operations and new business. “In the last three years, new ground-up stores at Ace have reported a nearly 99 percent success rate, and the average store is yielding sales per square foot of $138 in their first year.”
Over time, Ace owners acquire a significant amount of Ace stock and with this financing program they can use that stock to repay their loan. Ace stores who qualify for and choose to participate in the program will be able to grow more aggressively because they can tap into the equity of their existing stock.
The new financing program is available to qualified, existing Ace owners with two or more stores, and all Pinnacle-achieving Ace retailers.
Ace also announced a restructuring of its East Coast retail support network that will strengthen the company’s overall distribution network in anticipation of the co-op’s continued growth.
By the first quarter of 2018, Ace will open a new Retail Support Center in Fredericksburg, Pa. This 1.1 million square-foot distribution center will serve Ace Hardware retail stores throughout Pennsylvania, New York, Virginia, New Jersey and Washington D.C.
Following a rigorous analysis of the company’s overall distribution network,
including its wholesale division, the company has decided to consolidate its distribution efforts to ultimately strengthen the overall retail support network. As a result, Ace will close its Retail Support Center in Prince George, Va., a small crossdock in the Baltimore area, and the Emery-Waterhouse operations in Portland, Maine and Pittston, Pa.
“Ace Hardware intends to grow even more aggressively over the next several years. As a result, we are augmenting our distribution capabilities to be faster, nimbler and stronger than ever before,” said Lori Bossmann, Ace executive vice president-supply chain, inventory replenishment and retail support.
The changes to Ace’s East Coast retail support network will take place in phases over the next 24 months, with the new Retail Support Center in Fredericksburg, Pa., and existing, recently expanded facility in Wilton, N.Y., absorbing distribution operations for the region.
The restructuring does not change Ace’s strategic direction for Emery Jensen Distribution, Ace’s national wholesale operation, which encompasses Jensen Distribution on the West Coast, and EmeryWaterhouse on the East Coast. “Ace will continue to grow its wholesale business with streamlined distribution and even greater strength,” said Mark Spanswick, newly appointed president and general manager for Emery Jensen Distribution. ■
Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.
Who’s Eligible to Join?
• Independent Hardware Store Owners and Managers
• Vendors Involved in the Two Step Hardware Industry
• Service Providers Involved in the Two Step Hardware Industry
• Wholesalers/Distributors
• Industry Professionals
• Membership benefits include up to six networking events per year held in conjunction with other industry events.
• Each event will have a business focus offering direct and immediate benefits.
• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.
• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.
House-Hasson Summer Dealer Market
June 15-17, Sevierville Events Center, Sevierville, Tenn.
United Hardware Fall and Winter Buying Market
July 28-30, Minneapolis Convention Center, Minneapolis
World Pet Association SuperZoo
July 24-27, Mandalay Bay, Las Vegas, Nev.
Ace Hardware Fall Convention
August 17-19, McCormick Place South, Chicago
Florida Hardware Company Fall Dealer Market
August 10-12, Double Tree Hotel and Convention Center, Orlando, Fla.
Independent Garden Center Show
August 15-17, Navy Pier, Chicago
Orgill Fall Dealer Market
August 24-26, Boston Convention Center, Boston
Blish-Mize Fall Dealer Market
September 15-16, Overland Park Convention Center, Overland Park, Kan.
Bostwick-Braun Fall Dealer Market
September 21-23, Seagate Convention Center, Toledo, Ohio
HDW Fall Dealer Market
September 8-10, Shreveport Convention Center, Shreveport, La.
Home Hardware Fall Market
September 23-26, Henry Sittler Building, St. Jacobs, Ontario
Monroe Hardware Fall Market
September 15-17, Myrtle Beach Convention Center, Myrtle Beach, S.C.
PACOA Fall Dealer Market
September 9-10, Queens College, Flushing, N.Y.
The Hardware Conference
September 8-10, JW Marriott, Marco Island, Fla.
www.thehardwareconference.com
True Value Fall Reunion
September 25-27, McCormick Place West, Chicago
Do it Best Fall Market
October 13-16, Indiana Convention Center, Indianapolis
House-Hasson Hardware Fall Dealer Market
October 26-28, Sevierville Events Center, Sevierville, Tenn.
Mills Hardware Hank in Arnold, Neb., has built a successful lawn service business.
Mills Hardware Hank in Arnold, Neb., has been in the lawn service business since 2001, when Terry and Dena Mills got a Nebraska certified spraying license along with additional insurance. They started with a little tank on a trailer and sprayed 150 lawns the first year.
The niche business grew quickly, so in 2004 they purchased a pickup with a flatbed and went to a larger 500-gallon tank. In 2005 Terry and Dena were honored to receive the Nebraska Small Business Administration Entrepreneur of the Year award.
They expanded the lawn service to additional communities in 2010, so they purchased another pickup and flatbed and soon were spraying 400 lawns. Sonin-law Andrew Tickle joined the team, got licensed and now sprays with his own rig.
By 2013 they had expanded to 500 lawns. They now have two lawn spraying rigs with 500-gallon tanks and a bare ground weed control rig with a 500-gallon tank, all on flatbed pickups. Mills Hardware covers eight towns and lots of farms and ranches.
They offer four liquid applications where they use a 300-foot hose and spray lawns and a full application that is put on dry with the spreader. They also offer lawn aeration in the spring and fall.
By diversifying into the lawn service business, Terry and Dena were able to afford to build a new 12,000-squarefoot building for hardware in 2007 to replace their old 2,000-square-foot store. Growth has been steady ever since.
Dave’s Ace in Milton, Wis., held a giant rummage sale this past August, but it was not designed as a clearance for closeout items in the store. Owner Dave Warren came up with the idea so staff and family could find a new home for unwanted household items. The event was held on a Friday and Saturday in the store’s greenhouse and it created a buzz of interest from customers while helping staff members clear out their closets.
Dave’s Ace held a two-day rummage sale in its greenhouse.
Plainfield Hardware in East Montpelier, Vt., was already operating like a general store, so it was not surprising to see a deli added to the mix last April.
It helps when you can rely on a chef, Joe Smith, who is a graduate of the New England Culinary Institute. Smith makes most of the fare in-house, relying primarily on locally grown and produced products.
Now customers can come in and grab a breakfast burrito, a spinach, goat cheese and walnut salad or maybe a turkey, bacon and pesto sandwich.
The deli helps bring in customers to the hardware store and vice versa, providing a nice cash flow to the business.
Plainfield Hardware now operates a deli in its store in East Montpelier, Vt.
Umber’s Do it Best Hardware in Fort Wayne, Ind., finds that its customers respond well to humor, so Owner Dave Umber looks for ways to amuse and entertain on the store’s exterior signboard and then shares on their Facebook page. He also holds regular contests in the store and on Facebook to keep customers engaged and to generate conversation topics.
Upper Two: These signs were displayed in the spring at Umber’s Do it Best Hardware.
Lower Right: Umber’s Do it Best Hardware asked its Facebook followers to make this steampunk hardware art piece and bring it into the store for a $10 gift card.
Lower Left: A customer at Family Hardware in Florida just couldn’t resist sharing their idea of stripper humor, so Owner Jeremy Peterson quickly shared it with the store’s 3,214 followers on Facebook.
$28.3 million
Net income reported by Ace Hardware Corp. for the first quarter of 2017, up 8.4% from the prior year.
670,000 Square footage of facility in Marshall, Texas, that Hardware Distribution Warehouses Inc. purchased with plans to use as their new corporate headquarters and warehouse.
$348 million
Size of the U.S. beekeeping market, with 29,484 businesses generating 4.4% annual growth, according to IBISWorld research.
3.3%
Percentage of retail employees arrested for workplace theft, according to Jack L. Hayes International.
42.7%
Percentage of inventory shrinkage in retail caused by employee theft, followed by shoplifting (35.6%), administrative error (15.4%) and vendor fraud (3.7%), according to Statistic Brain Research Institute.
$1.5 billion
Amount of economic activity that would shift to U.S. hometowns if professional contractors, builders and tradespeople shifted 10% of their purchases from national chain retailers to independent retailers, according to the “Home Sweet Home: Pros’ Edition” study released by Independent We Stand and conducted by Civic Economics.
