C E N T U R Y C L U B R E TA I L E R S E L L S B U S I N E S S TO E M P LOY E E S
May/June 2021 Vol. 13, No. 4
THE INDUSTRY’S DIGITAL LEADER
Retailers Share Their Best & Worst
Business Decisions
ALSO INSIDE:
Building Traffic With Amazon Pickup Hub Q&A With House-Hasson’s New President
WE HAVE THE TOOLS
Power Up Your Tool Selection
Orgill is the No. 1 distributor of power tools to the independent channel. We offer the widest range of best-selling power tools and accessories from trusted brands so pros and consumers alike won’t leave your store wanting more.
Get in touch to bring real value to your store’s power tool offerings: 1-800-347-2860 Ext. 5141 | Orgill.com/powertools
CONTENTS May/June 2021 ■ Vol. 13, No. 4
35
PRODUCT SPOTLIGHT: FIND HOT ITEMS TO LIGHT UP SALES IN 2021
FEATURE: RETAILERS SHARE THEIR BEST AND WORST BUSINESS DECISIONS
Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware Cartoon: Scott Jensen Amazing But True Hardware Stories How’s Business? Regional Reports on Business Conditions Shop Talk: Hardware Products Review Main Feature: Retailers Share Their Best and Worst Business Decisions Dealer Profile: Ward Lumber Transitions Ownership to Employees 5 Questions for Steve Henry Building Traffic With Amazon Hub Technology Update: Is an Omnichannel Experience Necessary for Your Customers? Category Report: Hardware and Fasteners Product Spotlight An Inside Look: Store Pets In the News Upcoming Events Retail Ideas Behind the Numbers The Hardware Connection app is available for iPhone, iPad, Android and Amazon. Download here.
Like us on Facebook by clicking here.
4 ■ THE HARDWARE Connection ■ May/June 2021
60 8 10 14 16 18 32 35 40 47 51 54 58 60 62 64 68 69 72
Connection
TM
www.TheHardwareConnection.com
VIRTUALLY GUARANTEED GROWTH. and online shopping into a seamless experience. Consumers can shop whenever they want – from wherever they are. As a Do it Best member-owner, you have a powerful, fully-customizable ecommerce tool to help you build a robust, localized dot com presence. Do it Best has four game-changing features to help you meet the needs and expectations of your customers, including same day in-store pickup, member-sourced inventory, enhanced curbside pickup, and the all new Pick N Pack app to help your associates manage online order notification, retrieval and fulfillment. Do it Best ecommerce gives you the tools you need to reach your customers wherever they are and bring them to exactly where you want them to be — your growing business.
>> WATCH AND LEARN
To learn more, call us today at 888-DO-IT-BEST (888.364.8237).
“
These features make it even easier to give our customers the convenient shopping options they expect, plus we’re getting more online business and foot traffic in our stores — it’s a win-win. Douglas Wasiura
“
In today’s marketplace, ecommerce has blended in-store
Sr. Vice President of Marketing & Ecommerce Valu Home Centers
ADVERTISERS’ INDEX A.O. Smith/Reliance Water Heaters | www.RelianceWaterHeaters.com . . 25 DAP Products Inc. | www.dap.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Do it Best Corp. | www.doitbestonline.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 ECi Software Solutions | www.ecisolutions.com . . . . . . . . . . . . . . . . . . . . . . . . .9 Emery Jensen Distribution | www.emeryjensendistribution.com. . . . . . . . . 11 Epicor Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . . . . 24 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . . . . 20 JH Specialty | www.jhspecialty.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Oakfair Industrial Inc. | www.tradecraftus.com. . . . . . . . . . . . . . . . . . . . . . . 29 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3 Police Security Flashlights | www.policesecurity.com . . . . . . . . . . . . . . . . . . 17 RapidFix / LHB Industries | www.rapidfix.com . . . . . . . . . . . . . . . . . . . . . . . 23 Rescue/Sterling International Inc. | www.rescue.com . . . . . . . . . . . . . . . . . . 26 Retail Automation | www.retailautomation.biz . . . . . . . . . . . . . . . . . . . . . . . 27 Skeeter Hawk | www.nebotools.com/skh/ . . . . . . . . . . . . . . . . . . . . . . . . . . 22 STIHL USA | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 The QUIKRETE® Companies | www.quikrete.com . . . . . . . . . . . . . . . . . . . . . . 15 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 31
Connection
TM
91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
6 ■ THE HARDWARE Connection ■ May/June 2021
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624 Contributing Writers: Doug Donaldson, Gary Pittsford, John Fix III The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2021 by the publisher. No editorial may be reproduced without the prior permission of the publisher.
www.TheHardwareConnection.com
editor’s note
I
By Chris Jensen
Are You Taking Steps to Avoid the Worst Mistakes?
f you really pin down a high-performance retailer and get them to open up about their best business decisions, most will admit that the spectacular end result was not all brilliance but also a fair amount of luck. Luck runs the other way, too. This month’s cover story—turn to page 35—has retailers sharing their best and worst business decisions, and I always find retailers’ bad decisions to be the most revealing. How did they regroup after that mistake and turn it into a positive and what would they do different with the benefit of hindsight? The smart ones always turn sour lemons into tasty lemonade. Also in that story is a link to 21 retail experts revealing the biggest mistakes retailers make. I have seen these same mistakes pop up in stores I have visited through the years. One of the most common ones I’ve seen is probably “clinging to the past and not putting customers first.” If your store looks exactly the way it did in 1980, that is not something to be proud of. I have yet to meet the retailer who did not see sales increase after a store remodel. And if you claim to put the customer first you might check how
8 ■ The hARDWARe Connection ■ May/June 2021
many signs you have by the checkout informing your beloved customers of all the negative rules you expect them to follow. “Failing to be data driven” is another good one and I’d say that is increasingly becoming an insurmountable obstacle. I’m still amazed when I occasionally stumble upon a hardware store that does not have a point-of-sale system, which is a simple way of saying they have no idea what they have in inventory. Amazon and the big boxes are awash in data and they know how to use that information, so independent retailers need to arm themselves for battle with at least some technology tools. I will combine “neglecting your employees” with “underestimating your customers,” because these “mistakes” stem from the same problem—a failure to communicate. You should be seeking formal and informal feedback from your employees and customers on a regular basis. Have a suggestion box, hold focus groups and just ask them directly how you can do a better job of meeting their expectations. It just might lead you to make a few more “best” decisions. n www.ThehardwareConnection.com
Focus on what matters most. Whether you are a small hardware store or a multi-location building material supplier, ECI’s business management software will streamline your processes so you can get more done faster. Plus, it’s cloud-based so that you can work anytime, from anywhere!
Schedule a FREE software health check with a consultant today. GET STARTED
www.ecisolutions.com | How business gets done.
TREND WATCH
By Craig Cope
Adding a Virtual Component to the Industry’s Leading Conference for Independent Retailers
A
cross the U.S. restrictions are being eased or completely lifted and everyone seems excited to welcome summer. The same can be said for the 33rd anniversary of The Hardware Conference and our host property, the 5-star JW Marriott Marco Island Beach Resort. The pools are open, the white sand beach is manicured daily, restaurants are serving gourmet meals and we are in the middle of planning the industry’s largest independent hardware conference. Having a year without the Conference provided Shanti, my wife and co-host, and me the opportunity to evaluate every aspect of the Conference. When an event has a successful run over three decades there is fear of changing even the smallest aspect. Given a year to truly evaluate all components of the Conference both internally and externally led us to a simple realization. An event billed as one “where relationships are formed” cannot take place annually, for only three days, in one East Coast location. As mentioned in my column in our last issue, this year’s Conference will feature a virtual option. The decision to offer a virtual option was easy, but the
hard part was deciding on what content will be available. Working with our virtual event partner, 526 Media Group, and Conference sponsors, I am pleased to announce the details of the first Virtual Hardware Conference and what the virtual participants can expect. Both the virtual and in-person Conferences begin on Thursday, August 12 at 9 a.m. with the Epicor Technology Forum. Epicor will host a full-day training session focusing on the following key topics: • Inventory Best Practices • Mobile Tools to Better Serve Your Customers • What’s New with Epicor for Retail • Advanced Reporting and Analytics Virtual attendees will hear and see everything taking place in the training. And like in-person attendees, virtual attendees can ask questions of the trainer by raising their “virtual hand” and submitting their questions. The Epicor Technology Forum is scheduled to conclude at 2:30 p.m. Since this is the first year of offering both in-person and virtual options, one-on-one meetings following the forum are reserved for those in attendance.
10 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
IN-PERSON
SEPTEMBER
24 - 25 Gain a competitive edge in your market this September as we gather safely in-person!
O R L A N D O, F L
JOIN US
IT’S GOOD TO BE BACK: •
Take advantage of our biggest and best deals of the year
•
Over 1000 vendors representing the best products in the industry
•
Family-friendly destination that offers many attractions and perfect weather
SCAN THE QR CODE TO ENSURE YOU RECEIVE YOUR EXCLUSIVE EDGE EMAIL INVITE! Or visit https://lp.constantcontactpages.com/su/FgfBgRm
TREND WATCH Starting one hour later at 10 a.m. begins a presentation sponsored by ECi Software Solutions on “Exit Planning for Store Owners,” which will be presented by Gary Pittsford, president and CEO of Castle Wealth Advisors. The presentation will build upon a recent webinar I co-hosted with Gary covering topics such as getting ready for a sale, monetizing and valuing your business, familyowned businesses succession planning and ensuring financial security. While the webinar was one of the most popular we have co-hosted, the medium and time allocation was limiting. The Conference removes both of those constraints by extending the duration to four hours and enabling both inperson and virtual participants the ability to ask questions or explore a topic in greater detail. In addition to simulcasting both the Epicor Technology Forum and ECi-sponsored presentation, they will both be recorded and available for viewing for one full year. This option eliminates the need to choose which event attendees must select. The virtual platform also features an interactive show floor that mimics the layout of the in-person Conference. The layout provides a “virtual booth” containing the following information for all exhibiting manufacturers: brief company bio, products manufactured and company representative’s contact information. The virtual show floor is also available
for one full year, allowing in-person or virtual attendees the ability to follow up. All in-person attendees are automatically registered for the virtual Conference and given a login/password to the virtual platform. In addition to the virtual conference, in-person participants enjoy three cocktail receptions, two breakfasts, two dinners and Saturday’s half-day activity. The registration fee for in-person attendees is $109 per person or $299 per person if you wish to attend the Technology Forum or the “Exit Planning for Store Owners” presentation. Registration and payment for the in-person Hardware Conference are available on our website at https:// thehardwareconference.com/new-registration-form/ or by scanning the QR Code below. Registration for the virtual conference is free and available in the coming days. Once available we will include the registration link in our registration form listed above. Please check back shortly. We are excited to offer the virtual conference as a complement to the inperson event to help independent hardware dealers, manufacturers and wholesalers strengthen the two-step channel. We look forward to hosting you in either Marco Island, Fla., on August 13-15, 2021, or any time on our virtual option. ■
12 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
BATTERY POWER. MADE BY STIHL. ƒ
ONE BATTERY. MULTIPLE TOOLS. REAL BENEFITS. Increase your sales per square foot by offering your customers what they want: the legendary performance of STIHL in an easy-to-use battery platform. One battery. Multiple products. And the power to boost your bottom line.
CHARGE UP YOUR BUSINESS TODAY: STIHLUSA.COM/DEALERS
HARDWARE HUMOR
14 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
HARDWARE HUMOR
Amazing but TRU
E
HARDWARE
I
ft his had a customer who le hbor and myna bird with a neig k vacawent off on a two-wee brought tion. He returned and overed it his bird home, but disc noise. He was making a horrible d asked called the neighbor an . ‘In the where he kept the bird ’ was the hall near the bathroom ed up the reply. The bird had pick ng and sound of a toilet flushi g it you was so good at imitatin nce. couldn’t tell the differe Dick Beal Retired retailer Merritt Island, Fla. * Originally posted on Hardlines Digest
STORIES H
ad a phone call a few ye ars ago that went something lik e this: Customer: I’m looking for a piece of glass. Do y’all cut glas s? Me: Sure, we cut singleplate window glass. What size are you looking for? Customer: Well, I need a piece that’s about as wide as one of my arms when I stretch it out, and comes up to about my bellybutton when it’s on the ground. Me: Okay, do you know the size in feet and inches? Customer: Um, let me call you back. Taylor Cox Cox Hardware & Lumbe r Houston, Texas * Originally posted on Ha rdlines Digest
I
was once offered a $50 tip after assisting a young couple in determining if their 2-1/2- year-old daughter had swallowed a large coin. The parents looked up our store in the Yellow Pages under metal detectors. We placed the cute young lady standing up on a plastic chair and scanned her with a high $ detector that provides accurate target ID and target depth. After only a few seconds the metal detector signaled a target indicating a penny. Based on the target’s location and depth I advised the parents they could anticipate needing no more than two additional mornings of diaper “treasure hunting.” I said I couldn’t tell the penny’s date or if it was laying heads or tails. The parents were pleased that the child hadn’t consumed the larger half dollar or silver dollar that were missing from where the child had been playing. Ed Tisdale | Retired owner of Family Hardware | Cape Coral, Fla. * Originally posted on Hardlines Digest
16 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
NO OTHER HEADLAMP CAN DO ALL OF THIS Introducing the next generation of MORF™ Removables, the brand that made ordinary headlamps obsolete. When the MORF headlamp is removed, the base stays lit. It’s more than bright. It’s brilliant. See more at PoliceSecurity.com. POLICE
SECURITY FLASHLIGHTS
REMOVABLES Contact Matthew.Kaye@policesecurity.com.
R230 (ABOVE)
RUGGED HEADLAMP + MAGNETIC LED FLASHLIGHT Waterproof, drop-proof. Perfect for camping and the great outdoors
B300
HEADLAMP + MAGNETIC PIVOTING FLASHLIGHT Designed for mechanics, DIY and industrial hands-free use
L300
HEADLAMP + MAGNETIC FLASHLIGHT AND HANGING LANTERN Ideal for hands-free camping, outdoor activities and DIY
P300
HEADLAMP + MAGNETIC PIVOTING FLASHLIGHT Designed for tight spaces, home improvement and hands-free use
COVID-19 UPDATE:
How’s
Business?
MIDWEST
Sales and customer counts in 2021? What overall impact has COVID-19 had on your business? Of course, sales are up and our profit margins are up with all the price increases. Customer count is about the same as the previous year. Our cash flow is really good. New initiatives planned for 2021? We started a building project last year to replace our lumber shed. We’ll be continuing on that project. Strongest niche categories? We’re in the middle of nowhere, 60 miles from the nearest Sutherlands and 80 miles from a big-box store. We try to keep a little bit of everything, but lumber is one of our biggest niches. Also, we sell a lot of steel roofing. We’re big on special-order stuff. People drive 40 miles to shop our store, so we like to be able to have or order whatever they need. What have you learned during COVID that will make your business stronger for the future? It’s
18 ■ THE HARDWARE Connection ■ May/June 2021
Toronto Lumber’s owner Sharri Fuller (left) is joined in the business by her son and daughter-in-law, Drew and Jessie Hoag.
Toronto Lumber put up this sign in response to all the questions and comments they’ve been getting about lumber prices.
www.TheHardwareConnection.com
How’s Business?:: COVID-19 UPDATE been surprising how people adapt and move forward with projects. We’ve seen how our customers go ahead and put in windows during the pandemic. We want to be there for them. The biggest struggle during COVID-19 has been supply of materials. It’s been tough getting metal roofing. It’s a struggle to know what to tell customers and to price products, when we don’t know the price until it comes in. The biggest thing I’ve noticed is the distributors’ attitudes. They used to try their hardest to help and give information. Now, they seem to have given up, and it’s really hard to get a straight answer out of anyone.
Sharri Fuller and Drew Hoag Toronto Lumber Toronto, Kan.
NORTHEAST
Sales and customer counts in 2021? What overall impact has COVID-19 had on your business? So far, 2021 has been way up, about 15 percent up. That is until construction started in front of the store in April. In the Northeast, we had a severe winter, and in January and February, we sold a lot of winter-related items like
HARDWARE COMPANY
August 12-14, 2021 Sevierville Events Center Sevierville, TN
We invite you to visit our Market and see what we have to offer:
• Unmatched Super Savers • Lots of Cash Spiffs • Hot Deals at Bonus Buy Breakfasts • Easy Payment Terms and Dating • Industry Leading Vendor Participation • Exciting New Items • Electronic Ordering
• State-of-the-Art Marketing Program • Advertising & Merchandising Solutions • Travel Rewards • Room Reimbursement • Great Food & Entertainment • Educational Seminar - Thursday August 12 • Golf Tournament - Thursday August 12
Register for our Let’s Go Live & In Person Market on etoolbox.net
For more information about our Let’s Go Live & In Person Market, contact us today!
1-800-333-0520 ext. 212 • www.househasson.com • House-Hasson Hardware Co., Knoxville, TN 37914 • service@househasson.com
Made with expertise. Made for you. Jaspan Hardware has established a niche selling grills.
shovels and ice melt. Then in March, we started selling a lot of fertilizers. It’s embarrassing, but we have had a big uptick in business because of COVID-19. However, the supply chain has been stressed to the max. We’ve had to change brands with some products to keep them in stock. New initiatives planned for 2021? We’re going to continue doing what we did during the pandemic—phone orders, curbside pickup, assemble and deliver gas grills. We did purchase in larger quantities, but it’s still a challenge to get seasonal products in the store. Strongest niche categories? We’re known for Weber grills, because we do sales and service. We’re an authorized Weber warranty center. Customers come to us because we can service what we sell. We cover most of New Jersey. We’re also known for beach chairs, and those have been a real strong seller in the past year. What have you learned during COVID that will make your business stronger for the future? www.TheHardwareConnection.com
POS and productivity solutions to simplify your life as a hardware retailer
Learn More
How’s Business?:: COVID-19 UPDATE
Seasonal lawn and garden sales have been strong despite supply challenges.
Before COVID-19, we would have never considered offering curbside service. During the pandemic, we saw right off the bat we had to take a chance and offer our customers
curbside service. The staffing situation during the past year has been very challenging. We’ve lost two staff members and haven’t been able to replace them. I work seven days a week, with no days off. We’re very concerned about how to handle the new CDC guidelines. The employees are very concerned about their safety and don’t know how to figure out if a customer is or isn’t vaccinated. Marc Geller Jaspan True Value Hardware Manasquan, N.J.
SAVE MONEY! WILL NOT DRY OUT IN THE BOTTLE!
UV LIGHT ACTIVATED ADH ESIVE FILLS HOLES & CRACKS
DRIES CRYSTAL CLEAR
CURES IN SECONDS
FOR REPAIRS IN THE HOME, WORKSHOP OR GARAGE
GO BEYOND SUPER GLUE WITH RAPIDFIX® UV ADHESIVE CALL 800.542.3697 FOR PRICING! RAPIDFIX.COM
Hardware POS You Can Trust Your POS needs have been our priority for over 28 years. You can count on J3 to be there when you need us.
Stock Tracking
Estimator Tool
Lumber Pricing
Profit Analysis
Effectively manage long inventory lists, from paint supplies to power tools Manage changes to lumber by percentage of cost, retail, board or square footage
Build estimates while updating inventory to find the right price for customers Determine ways to increase revenue with our robust reporting tools
Upgrade to a POS you can trust. Get a demo today!
1-888-600-5522 | sales@j3pos.biz | www.j3pos.biz
How’s Business?:: COVID-19 UPDATE
SOUTH
Sales and customer counts in 2021? What overall impact has COVID19 had on your business? It’s been great, but by May, it’s starting to taper off a little bit. Last year was phenomenal, with a 26 percent increase over 2019. The impact of COVID-19 has been positive from the amount of business, but it’s frustrating because of not knowing how to deal with masks, gloves and the health-care part of it. Then, in the fall, there was a shortage of materials,
The door and window category has seen the biggest increase in sales.
increases in prices and demand that’s flowed into 2021. It’s been tough getting materials. New initiatives planned for 2021? At this point, we’re just trying hard to keep filling orders and not concerned with growth. Over a 16-month span, we’ve seen 25 percent growth but not any increase in workforce. We’d like to get back to normalcy. Strongest niche categories? Lumber, windows, doors and building
HELP YOUR CUSTOMERS SAVE $305 OR MORE PER YEAR* Reliance heat pump technology uses ambient air to heat the water, making it 3x more efficient than a standard electric water heater. *Compared to a new 50-gallon standard electric water heater
RelianceWaterHeaters.com.
WE LEARNED FROM THIS.
TO MAKE THIS.
ANTS CAN ACCESS THE BAIT. CHILDREN CAN’T. There is nothing to open, which means there is no pesky push down and turn cap on these RESCUE!® Ant Baits. Ants get wiped out and kids stay safe. What parent wouldn’t like that?
Visit AntBaits.com to learn more about RESCUE!® child-resistant ant baits.
How’s Business?:: COVID-19 UPDATE
Willingham and Sons installed this outdoor hand wash station last April to keep customers and employees safe.
materials. Customers come to us for reliability and customer service. Lumber is our bread and butter, but windows and doors have seen the biggest increases. What have you learned during COVID that will make your business stronger for the future? We learned that we’re adaptable, and we can figure out different ways to get materials. We went outside of our comfort zone to secure products for our customers. One example is lumber, which we’d always bought from our co-op. But we found out there are other good products out there and we adapted to be able to fill orders. Austin Willingham Willingham & Sons Building Supply Newberry, S.C.
Point of Sale Your Way. Independent and Versatile Software Solution for the Independent and Versatile Retailer.
Every Store is Different and Unique
Find out how our approach to software and support gives you the tools needed to succeed as an independent retailer.
www.retailautomation.biz
(724) 283-4675
www.tek4retail.com
In-store inventory is what your customers want expect. MOCE empowers thousands of independent hardware stores to meet their customers where and how they want to do commerce.
Ship-to-Address Ship-to-Store Shop In-store Inventory
Should we talk? mocecom.com
Ecommerce preferred partner
How’s Business?:: COVID-19 UPDATE
SOUTHWEST
Sales and customer counts in 2021? What overall impact has COVID-19 had on your business? We’ve been up and down. Too many products are too hard to get. The disruption in the supply chain hasn’t been good. New initiatives planned for 2021? No idea.
R.H. McCary Hardware joined the Century Club in 2012.
Strongest niche categories? Plumbing and outdoor equipment like power tools. What have you learned during COVID that will make your
Tradecraft is a new brand in the U.S. market, our
step ladders with more versatile and larger working tray compare to other brands. We supply step ladders with features heavy-duty slip-resistant feet, extra heavy duty 3” serrated aluminum step and oversized molded feet and A heavy duty and larger working tray more. top Counter Step Ladder is one of the most innovated items. Just 3 steps to switch the mode from regular step ladder to countertop step ladder, the patented flyarm with pad will protect countertop from scratch while using countertop ladder mode. A counter step ladder is your best choice for home improvement tool. Counter Step Ladder Video https://www.tradecraftus.com www.TheHardwareConnection.com
THE HARDWARE Connection ■ May/June 2021 ■ 29
How’s Business?:: COVID-19 UPDATE business stronger for the future? I don’t really think it’s a matter of one business, but the state of the country. If I can’t get stuff in the store, I can’t sell it. Andy Waters R.H. McCary Hardware Winnsboro, Texas
WEST
Sales and customer counts in 2021? What overall impact has COVID-19 had on your business? I really don’t count 2020 because it was such an unusual year. We’re up over 2019 but down over 2020. We’ve been busy and COVID-19 has been good for business, but it’s been a challenge with distribution, actually getting the products. New initiatives planned for 2021? We’re looking to expand and get better at what we are already good at. We have a mix of about 40 percent contractor, 60 percent do-it-yourselfers and we want to strengthen our customer base. We’re looking at improving customer service and beefing up our lawn and
Brad Helms has seen business level off at Helms True Value after a sales explosion last year.
garden department. Strongest niche categories? We’re known for our live goods, all kinds of plants. We have 3,917 square feet of space for live goods. We also are known for irrigation supplies and our paint department has been good, too. What have you learned during COVID that will make your business stronger for the future? Sourcing products has been hard, but we’re fortunate overall. Brad Helms Helms True Value Hardware Selah, Wash.
30 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
k l a T Shop HAR
S REV T C U D O R DWARE P
W
By Craig Cope
IEW
hile June 20 is the official beginning of summer in the U.S., many consider Memorial Day the kickoff of summer. With the holiday upon us, people will break out the outdoor power equipment and get started on their projects. Some will discover their gaspowered equipment might not start or perform properly. This will lead them into hardware stores searching for a high-quality replacement. For many, the answer can be found with one company—STIHL. Their founder had a guiding principle: “To ease peoples’ work with and in nature.” Known for its chainsaws, STIHL also offers a wide variety of gas, battery and electric power tools for just about any outdoor job. Their cordless power tool segment is broken down into four groups: AS, AI, AK and AP systems. The AS system is designed for the occasional ground and garden projects. The AI system is designed for smaller projects with an integrated battery that plugs directly into the wall socket. The AK system offers increased power and is intended for frequent use by the weekend homeowner. The AP system is the
professional-grade line for extensive use. We had the opportunity to test two battery-powered and one electric-powered piece of equipment: • RE 110 Plus - corded-electric pressure washer with a built-in pressurized hose reel. • BGA57 - battery-powered handheld blower. • FSA 60 R - Cordless brushcutter.
Product #1: re 110 PluS PreSSure wASHer StIHl The RE 110 Plus is an electric-powered pressure washer with 2,000 PSI of water pressure and offers a host of accessories. The RE 110 Plus comes standard with an integrated hose reel, two nozzles (flat-jet and rotary), an aluminum telescopic handle and a detergent
32 ■ THe HARDWARe Connection ■ May/June 2021
www.TheHardwareConnection.com
sprayer. The pressure washer also includes a handful of clever design elements including a side door with compartments for storing nozzles, a wand hook on the opposite side and even a holding location for the GFCI plug. Click here to view a brief video highlighting a few of these key features. Our testers had the chance to utilize the RE 110 Plus on typical outdoor cleaning activities: washing cars, decks and driveways, and even barbecue grates. The pressure washer performed flawlessly on every task, making our tester openly question why he keeps his gas-powered washer. STIHL also provided their accessories for the unit, which includes a vehicle cleaning kit, rotary washing brush and rotary surface cleaner. The vehicle kit provides two additional nozzles, a wash brush and an integrated squeegee. The rotary brush has nylon brushes and the head is adjustable to accommodate multiple working angles. Each accessory performed as expected, but the rotary surface cleaner was our tester’s “must-have” accessory. The accessory turned what was normally a full day of washing the driveway into just one hour.
delivering a maximum air volume of 123 mph. The blower is powered by a fast-charging lithium-ion battery capable of providing up to 25 minutes of run time. The battery unit is compatible with other AK-system products. The unit weighs only 7.8 lbs and is approved for indoor use with only 59 dB(A) of sound. Click here for a brief video. When handed the product our tester immediately commented on the Product #2: overall light weight and balance of BGA57 Blower the unit. Our tester was impressed StIHl at the amount of air velocity the unit provided from such a light weight Part of the AK system, the BGA 57 is a handheld battery-powered blower and compact unit. Our tester has a www.TheHardwareConnection.com
THe HARDWARe Connection ■ May/June 2021 ■ 33
k l a T p o h S E PR HARDWAR
ODUCTS R
EVIEW
traditional backpack blower, but like many finds it’s too much of a hassle to drag out the unit for just a small job. This is where the BGA 57 shines, making it an excellent addition for someone looking to purchase a highquality blower without any of the hassles and noise of a gas-powered blower.
Product #3: FSA 60 r trIMMer StIHl The FSA 60 R is the most powerful trimmer in the AK system and officially launches in June 2021. The trimmer utilizes a brushless motor, creating an almost wear-free motor that virtually eliminates the need for routine maintenance. The trimmer comes standard with the AutoCut® C 6-2 with EasySpool™, which gives the user the ability to respool without disassembling the head. The FSA 60 R is also lightweight, weighing only 9.8 lbs with a run time of 25 minutes with the AK 20 battery. Once quickly assembled our tester started pointing out all the ergonomic features including the loop handle, lever controlled throttle and shockabsorbing grip. However, what stood out to our tester during use was the flawless line dispensing of the 34 ■ THe HARDWARe Connection ■ May/June 2021
AutoCut® C 6-2 with EasySpool™. A simple tap on the ground extends the double cutting strings. He went further, explaining while the line dispensing was not new he had never experienced a system so smooth and flawless. If you currently stock STIHL trimmers, then make sure you make room in your assortment for the FSA 60 R. www.TheHardwareConnection.com
feature
Retailers Share Their
Best and Worst Business decisions By Chris Jensen & Doug Donaldson
Jason and Melanie Haley, owners of Ace Hardware of Clarkston, were scrambling to keep up with their fast-growing business even before the pandemic hit.
H
ardware and home improvement retailers are forced to make lots of big and small decisions on a daily basis, a reality that has been amplified by the COVID-19 pandemic. Many of these decisions are not significant in the grand scheme of things, but looking back with the benefit of hindsight, retailers can determine that certain strategic decisions proved to be vitally important to the success of their businesses. Of course, there are also the inexplicable and downright bad decisions that www.TheHardwareConnection.com
could have been crippling and can now be viewed as a valuable lesson learned. It’s also good to listen to what the experts say. To find out what 21 retail experts think is the biggest mistake retailers make and how to avoid similar missteps, click here. We asked hardware retailers from around the country to share their best and worst business decisions and what follows are their responses. We hope you can take their advice and gain insights that will help you navigate a more defined path toward success.
THe HARDWARe Connection ■ May/June 2021 ■ 35
FEATURE We finished 2020 up 47% and through Q1 2021 we are up another 49%, but we expect that number to come down as we move forward up against that crazy Covid curve. Best Decision—The best decision we ever made was overcapitalizing the business. I did not have much of an appetite to increase my borrowing way over what our pro forma stated, but Ace insisted and it was the best decision we made to follow the recommendation. We exceeded our year-one projection by over $1 million and never would have had the cash flow to finance the growth if not for that extra capital. Worst Decision—The worst decision we ever made was reducing our stock room and storage space when we were setting up the store. We assumed it would take 10 years to reach the sales number in our pro forma, but we reached that number in our first year. We planned to ease into any additional requirements for space over the years, but instead were dead out of space within 10 months. We have since continued to add rented space and storage containers to manage the growth. You can always shrink a stock room and expand the sales floor, but you cannot shrink the sales floor to expand the stock room once you start growing. Jason Haley Ace Hardware of Clarkston Clarkston, Mich.
Bobby Heuser (left) and his parents Renee and Bob Heuser all left rewarding careers to open a hardware store together in 2015. They now operate two Heuser Ace Hardware stores in South Carolina.
Bobby Heuser holds an MBA and previously worked as a consumer strategist for a major bank, so he is accustomed to relying on data to make strategic decisions.
Worst Decision—I think this is important given today’s very challenging hiring environment, but one of the worst things I’ve done over the years is hiring someone because I needed someone, despite the person not being a good fit. Filling a gap is a short-term problem, and this gives a short-term solution, in exchange for a long-term problem. That’s a bad deal, and something I’ve tried to continue reminding
36 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
myself as we work through this staffing shortage. Only hire folks because I want them as an employee, not because I want to eliminate a gap. Best Decision— Don’t be afraid to fail. We bring in a minimum of one new brand every year, and if it fails that’s fine, we walk away from it. But we inevitably find a few successes over time, and it keeps the store fresh and interesting. Bobby Heuser Heuser Ace Hardware Bluffton and Hardeeville, S.C.
Brian Buswell, owner of All American Do it Center, has found success going into smaller markets that are underserved by home centers.
close to 1,000 apartments. I could never have done all this retaining 100 percent ownership. Worst Decision—Without a doubt the worst decision I made and repeatBest Decision—My best decision was to sell shares in the company and edly made for decades was to tolertake on minority partners. In the begin- ate subpar performances from my employees. It was not hard to see their ning, we started in one store with 600 deficient efforts: not meeting expectasquare feet of showroom. Recruiting tions, lack of problem-solving abilities, talent was difficult, if not impossible. lack of looking ahead and anticipating Our town of 500 people was not a issues. I always made excuses, citdraw. Our facilities saw their heyday before the advent of forklifts and were ing my lack of effort in training them properly or their lack of experience. I not going to help building a team. reasoned that things would get betPushing the narrative of potential ter with more time. They didn’t. Those growth to interviewees was a heavy individuals wasted my time and the lift. Ownership in the company was company’s resources. the only way I could think of to recruit Looking back on it now, I believe talent and not eventually lose them to I did not do those individuals any greener pastures. favor by keeping them around. It was It worked. We now have three 30,000-square-foot home centers, rent- evident they really did not want to be employed by us. They could have al departments with over $2 million of inventory, a steel panel manufacturing been searching for work more fulfillfacility and develop real estate owning ing had I let them go when I first knew www.TheHardwareConnection.com
THe HARDWARe Connection ■ May/June 2021 ■ 37
feature
All American Do it Center opened its third ground-up store in Richland Center, Wis., in late 2014.
18,500-square-foot space. The customers have responded really well to the new store. Brad Helms Helms True Value Hardware Selah, Wash.
Best Decision—The in my heart it was not going to work. best decision It might seem like a rationalization, would be bringbut everybody has a niche; they just ing in my son, need to find it. Drew Hoag, to Brian Buswell work here. I’m All American Do it Center Sharri Fuller has owned and getting near Tomah, Richland Center and operated Toronto retirement and Sparta, Wis. Lumber in Kansas put in lots of for over 40 years. hours. He’s added another dimension, a younger brain Worst Decision—The worst misto figure things out. We’re excited about take was being closed on Sundays. the future. This has been a lumberyard Starting about 1998, we’ve been open since 1880, so we look forward to fixing every day now. it up and keeping it going. Best Decision—The best decision Worst Decision—Probably the has been expanding into a new building, from a 7,500- square-foot store to a worst one was buying a lumberyard in 1980 at 18 percent interest on the loan. Although lawn Sharri Fuller and garden is one of the top Toronto Lumber categories at Toronto, Kan. Helms True Value Hardware, Brad Helms believes there is still lots of room to grow sales in that category.
Worst Decision—Probably the worst has been complacency, being stagnant and not growing with the times as needed. In 2009, there was a nuclear plant
38 ■ THe HARDWARe Connection ■ May/June 2021
www.TheHardwareConnection.com
Austin Willingham has learned to embrace retail technology.
being built in our area. It was a 10-year, $10 billion project, and we didn’t know about it. One of our competitors started selling to the project, and we would see truckloads of their lumber driving right by our store. We were dumbfounded, but we researched and found out about the project and that we were behind the times. We weren’t doing our homework. We didn’t even have an email then. Best Decision—That leads to the best decision, which is getting into the digital age. We brought in an electronic point-of-sale system and set about changing our business. By 2014, our business had increased 57 percent. We embraced technology and were able to do more business in less time. Austin Willingham Willingham and Sons Building Supply Newberry, S.C.
Best Decision—Bringing in Weber gas grills. We started selling them about 25 years ago. A customer called and asked if we could get him a Weber gas grill. We were impressed with how well constructed the grill was. From that original customer, he told his neighbors and they bought from us, and it just www.TheHardwareConnection.com
Bringing in Weber grills has been the best decision for Marc Geller at Jaspan Hardware.
grew from there. Last year, we sold 150 gas grills. Year to year, we’re consistently selling about that same number of grills. Worst Decision—Not taking in Benjamin Moore paint when we had the chance. We were with another paint company and didn’t switch soon enough. Someone else in the area started selling Ben Moore, then we couldn’t get them. Marc Geller Jaspan Hardware Manasquan, N.J.
Worst Decision—We should expand. We’re getting to the point of needing more room. We need a bigger place and outgrew this one years ago. So, it would have been helpful to expand earlier. Best Decision—The best decision was getting into more categories, such as zero-turn mowers and a bigger lawn and garden department with more outdoor power equipment. Andy Waters R.H. McCary Hardware Winnsboro, Texas
THe HARDWARe Connection ■ May/June 2021 ■ 39
DEAlEr profilE
WARD LUMBER
TRANSITIONS OWNERSHIP TO EMPLOYEES
cEntUry clUB rEtAilEr BEcomEs first workErownED coopErAtivE in nortH coUntry rEgion Click here to view video.
Jay Ward ensured the longterm viability of his family’s century-old business by selling ownership to his employees.
he employees of Ward Lumber have made history by purchasing the 131-year-old business as a worker-owned cooperative. The transaction marks the first employee ownership transition of its kind in the North Country region of New York State. The Century Club retailer, which has locations in Jay and Malone, N.Y., and employs more than 50 local people, has been in Jay Ward’s family for four generations.
Ward Lumber staff at the Jay, N.Y., store
T
40 ■ The hARDWARe Connection ■ May/June 2021
www.ThehardwareConnection.com
Ward Lumber staff at the Malone, N.Y., store.
Ward, who will continue his leadership role as the company’s chief executive officer, completed a contract with his employee team that makes Ward Lumber the largest worker-owned cooperative in the region. “Every business is going to go through a transition, whether that is by design or default,” said Ward. “Rather than choose liquidation or selling to some other business that would change the culture, I wanted to look at employee ownership. “While I’m not going anywhere, and I really want to stress that for our customers and our employee team, we’re creating this worker co-op to take Ward Lumber into the future beyond me,” he added. “I’m fourth generation, we’ve been here for 131 years and I don’t want to be the one to end Ward Lumber. “Employee ownership vests the control of the company in the hands of the people that work it every day, who live in the communities that we serve and have that vested interest in ownership,” Ward said. “I really www.ThehardwareConnection.com
Ward Lumber’s board of directors, from left to right: Derrick Manson, Alex Pond, Jay Ward, Linda White and David Bruso. Additional board members include Scott Christian from the Jay location and Debby Straight and Kevin Kennedy from the support center.
wanted to empower the employee team to make decisions on their behalf and for their benefit.” Ward Lumber has been a business pillar in the community since 1890, providing local jobs, supporting the region’s farm and construction industries, and having direct and indirect economic impacts on area businesses and communities. Ward is an ownermember of the LBM Advantage buying cooperative. Ward Pine Mill, the manufacturing division of the Ward Lumber family enterprise, is operated by Jay’s brother, Jeff Ward. Ward Pine Mill became an independent business in 2017 and is not included in the employee ownership transaction. “The main thing that’s changing is I’ll be reporting to a board of directors of our employee team,” Ward said, noting they have been working on the transition process for more than
The hARDWARe Connection ■ May/June 2021 ■ 41
DEAlEr profilE three years. Ward will remain heavily involved operating the business for the foreseeable future. “My daughters have goals and talents that take them elsewhere, so I talked with them before embarking on this and asked how they felt about Ward Lumber changing. There’s some sadness, there’s a lot of emotions that go along with this, but they’re definitely on board,” Ward said.
How EmployEEs ArE rEActing
Jay Ward was proud to carry on the company tradition passed on from his father, Sid Ward Jr. (left), who retired in 1997 and passed away in August 2020. The elder Ward made and sold thousands of cutting boards over the years, giving 100 percent of the proceeds to local charities.
Alex Pond, a member of the governance board who has been employed with the company for more than six years, said, “This coop is more than a change in ownership. It’s an opportunity to shape a future for Ward Lumber that is best for the business, our staff and the community. It’s an amazing way for people like me to help carry Ward Lumber into the next generation.” Pond added, “Three years ago, Jay came to us and asked if it (selling to the workers) would be something you guys would want to continue, that way the business wouldn’t need to be sold off. Here we are three years later, and it happened. It was just an idea and then it flourished. It’s quite amazing, to be honest.” “Employee ownership is important to me, because it gives us a chance to keep Ward Lumber in the Ward Lumber family,” says Paul Mintz,
worker-owner. “It might not always be in the Ward family, but we have a culture, we have a way of doing things and we want to keep that moving forward and employee ownership is the way to achieve that.” Another worker-owner, Kevin Kennedy, says, “It’s a team feeling, because everybody has a little more stake in the game. People are going to work harder and with each other.” “Anything we do we know we’re kind of doing for ourselves, being an owner-employee,” says Corey Fleury, worker-owner. “It’s an exciting concept for us, a way to keep the name of Ward going on throughout the years and keep up with the employment and the job.” “When you have a vested interest in something, it makes you enjoy your job even more, because it’s not just for the company but it’s for yourself
42 ■ The hARDWARe Connection ■ May/June 2021
www.ThehardwareConnection.com
Ward Lumber has been serving the North Country region of New York since 1890.
said. “Cooperative ownership models improve business productivity, increase wages and boost employee retirement savings. All this while creating greater stability and resilience for businesses, workers and local communities. I applaud Jay Ward and the Ward Lumber team for securing their future through employee ownership, and ANCA for their good A UniqUE sUccEssion plAn Ward Lumber’s journey to employee work supporting innovative economic development.” ownership began in May 2018, when “It has been an honor to support Ward met with U.S. Senator Kirsten Ward Lumber along their path to workGillibrand (D-NY) at an event hosted er ownership,” said ANCA Executive by the Adirondack North Country Director Kate Fish. “We believe that a Association (ANCA) at its Saranac diversity of business ownership modLake offices. The Senator met with els strengthens our regional economy local business owners and economic and expands opportunities for aspiring development leaders to promote the Main Street Employee Ownership Act, entrepreneurs—particularly as we face tens of thousands of business closures which proved to be instrumental in across the region due to retirement. Ward Lumber’s ownership transition. We applaud the Ward team for their The federal legislation, designed to forward thinking and hard work makimprove access to capital and suping this transition happen.” ply technical assistance to businesses Ward and his staff also worked interested in employee ownership, was championed by Gillibrand and passed closely with Rob Brown, director of business ownership solutions at the with bipartisan support in 2018. Cooperative Development Institute “Ward Lumber’s successful transi(CDI), to provide intensive support tion is a great example of how we and training on the business transienvisioned the Main Street Employee tion process. Brown helped guide the Ownership Act would work for busiteam through the worker ownership nesses across the nation,” Gillibrand
personally,” says Tammy Hebert, worker-owner. “I never thought that we’d all be owners of Ward Lumber, so if we all stay and we all continue to do what we do I don’t see things changing in that respect. I’m very excited that we’re taking the bull by the horns and making all this happen.”
www.ThehardwareConnection.com
The hARDWARe Connection ■ May/June 2021 ■ 43
DEAlEr profilE transition—from financial and business analysis to legal structuring and financing of the buyout. “It’s been amazing to watch these workers develop the leadership and business skills needed to take over,” Brown said. “By solidifying the local ownership of the business and jobs, these workers can now chart their own future and the future of the enterprise and build wealth through ownership.” Ward’s flexible succession plan and successful buyout were also supported through training, business plan development and grant writing assistance provided by the SUNY Canton Small Business Development Center (SBDC) at Clinton Community College (CCC), financing from Cooperative Fund of New England (CFNE) and Capital Impact Partners, and a $250,000 grant from Empire State Development (ESD) awarded through New York State’s Regional Economic Development Council initiative. “The Ward Lumber team certainly should be looked at as leaders in the employee-ownership movement, to not just maintain local jobs and keep small businesses in operation, but to preserve legacies and livable wages for resident retainment in the North Country,” said Angela Smith, assistant director of SUNY Canton SBDC at CCC. Ward Lumber’s transition to worker ownership comes at a time when local businesses face significant challenges,
Alex Pond (left) is one of the worker-owners who now shares in the ownership and decision making with Jay Ward (right), whose family had operated the business for 131 years.
exacerbated by the COVID-19 crisis. In New York State alone, even before the pandemic, an estimated 3,700 businesses closed each year due to owner retirement, leading to a loss of 13,260 jobs annually. Surveys indicate 79 percent of business owners want to retire in the next 10 years and 33 percent in less than three years. Fewer than one in five owners have a credible succession plan, and most do not understand business transition options or processes. As New York’s North Country contends with these odds, its rural communities face widespread business closures and job losses that would have detrimental impacts on the regional economy. There is an extremely limited pool of candidates with the interest, experience and financing to purchase a business such as Ward Lumber, and there are downsides to selling to a national chain
44 ■ The hARDWARe Connection ■ May/June 2021
www.ThehardwareConnection.com
who would be less invested in the employees and the community. Employee ownership models such as worker cooperatives offer a viable solution that can help sustain businesses and jobs. Worker-owned businesses tend to maintain above average retention rates of talent, weather economic stressors better than traditional business models and keep wealth in local communities.
“Conversions to employee ownership are a unique opportunity to support working people in building wealth and sustaining high-quality jobs,” said Dorian Gregory, CFNE deputy executive director. A ribbon-cutting ceremony will take place at both Ward Lumber store locations and virtually via Facebook Live at a date and time to be determined in June 2021. n
workEr coopErAtivEs ArE An AltErnAtivE sUccEssion plAn for HArDwArE rEtAilErs Worker cooperatives are businesses owned and governed by their employees. Member employees govern the business, share its profits, and make decisions democratically on a one-member, one-vote basis. Worker cooperatives are less common than other forms of employee ownership. According to the Democracy Collaborative, as of 2017 there were 394 worker cooperatives in the U.S. with 6,734 employees. According to the National Center for Employee Ownership (NCEO), as of 2018 (the most recent year for which data is available), there were approximately 6,501 ESOPs in the United States, holding total assets of over $1.4 trillion. The number of ESOPs continues to decline slightly each year—there were 6,717 ESOPs in 2014. Six percent of ESOPs are in the retail trade. www.ThehardwareConnection.com
A 2018 survey of S corporation ESOPs conducted by the NCEO found that ESOP participants represented in the survey have more than twice the average total retirement balance of Americans nationally and that those making less than $26,000 a year also have on average more than double the retirement savings compared to similar workers nationally. A 2017 report conducted by the NCEO compared workers early in their careers, ages 28 to 34, with employee ownership to their peers without and found that being in an ESOP was associated with 92 percent higher median household net wealth, 33 percent higher median income from wages, and 53 percent longer median job tenure. To read our in-depth report on ESOPs in the February 2019 issue, click here.
The hARDWARe Connection ■ May/June 2021 ■ 45
Sponsors:
Co-Sponsors:
Honoring the Industry’s Best Retailers With the 2021 BEACON AWARDS Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry.
The Hardware Conference will be held Aug. 13-15, 2021
For more information about The Beacon Awards are held annu- attending this event along with ally at The Hardware Conference in all other educational seminars, beautiful Marco Island, FL, and are open floor discussions and social activities at the 2021 co-sponsored by The Hardware Hardware Conference, visit Conference and The Hardware www.TheHardwareConference.com Connection magazine.
Learn more at www.TheHardwareConnection.com
Wholesaling
5 Questions for House-Hasson President
Steve Henry
Steve Henry is the new president and CEO of House-Hasson Hardware, replacing Don Hasson, who passed away in February after leading America’s largest independent regional distributor for the past 35 years.
C
ontinuing a series of interviews with key wholesaler execs this year, Editor Chris Jensen interviewed House-Hasson Hardware President and CEO Steve Henry. 1. How has House-Hasson and its dealers weathered the pandemic so far and in what ways has this made the company and its dealers stronger for the future? I would begin by saying as optimistically as I can, that I believe that we www.TheHardwareConnection.com
are finally past the worst of the pandemic. However, it does continue to affect the decisions that we make each and every day. It is my opinion that our great family of dealers and our own hardware business has weathered the storm like true champions.
THe HARDWARe Connection ■ May/June 2021 ■ 47
Wholesaling How do you plan for something as large as what we have been through? The outcome speaks to our great resiliency and strong drive to serve our customers. I believe that in almost every case, our dealers have emerged stronger and more adaptable than they have ever been. The same for our two distribution centers—the neversay-quit attitudes of our management and staff have provided for the continued growth and success of our company through this life-changing event. The strength for the future comes from the fact that we all got knocked around a lot, sometimes daily, but we got back up and we put a band-aid on and went back to work. We had to hire differently, we had to deliver differently, we had to work different hours, we had to become flexible and fluid. We could not do business every day as we always had. I believe that because of the everyday struggles that we dealt with during the pandemic, we have been forced to think outside of the box. It is painful, but sometimes life’s circumstances force us to do things and make choices that are difficult to make otherwise. That is a good thing for the future of our business. 2. You were mentored by Don Hasson since joining the company in 2010. What lessons did you learn from Don and how
has that shaped your management style? My background before coming to work at House-Hasson was mainly financial, because of the years that I spent in banking. I also had a strong business sense dating back to my early work history of learning from my father in retail. I guess you could say that with my education and business experience, I still needed to learn a lot about distribution and the hardware business. This is where Don and his mentoring became so valuable to me and the company. I was fortunate early on in my banking career to have a mentor who was much like Don in both leadership style and business philosophy, so it was very easy for me to fall right in under Don and let him teach me this business. Don was excellent at explaining and teaching concepts and procedures. One of his favorite quotes, and there are many, was “the devil is in the details.” He harped on the details and getting them right and knowing all about what makes things happen. Don was a leader and a front-runner, he wanted to set the pace, but he always had a plan and he instilled in me the need to make sure that the plan was followed to completion. I would say that my management style is different than Don’s. However, I would say that his philosophy and management style has had a direct
48 ■ THe HARDWARe Connection ■ May/June 2021
www.TheHardwareConnection.com
influence in the way that I lead the company. I catch myself sharing his thoughts and ideas quite often and it has been mentioned a few times that I answer a lot like he would, for our business associates. Don has had a profound influence on me and this company, and we will continue on as he expected and will settle for nothing less. 3. How difficult is it to be the new leader for a company that has been run by a strong personality for the past 35 years? What lasting legacy did Don Hasson build at the company? The thing that I notice most about following Don as leader of HouseHasson is that those we do business with have come to expect a strong personality. That gets me a little out of my comfort zone, but I find that I am getting more and more accustomed to growing into that role. Don knew so much about this industry and this company; he was one of the most intelligent people that I had ever been associated with. I believe that he found it easy to be strong and influential because of the fact that he was a few steps ahead of most people in his forward thinking most of the time. To be able to achieve that confidence and comfort takes many years of experience. I am working twice as hard to learn and listen in hopes that someday I will be as knowledgeable www.TheHardwareConnection.com
as Don was. I guess the best way to summarize the answer to this question is to say that I am a work in progress in following Don as the leader of House-Hasson. I do not have the time or enough space to begin to list everything that Don Hasson has done for this company. I will tell you that it was definitely a labor of love—he loved this company and our people like family. He came to work everyday trying to make us better, and that will continue as we strive to follow through on his efforts. Dealer markets were like family reunions to Don. He wanted to provide the best service and hardware delivery to our family of great dealers. Don was driven to make us the best everyday, we didn’t get to slack a single day, we had to get better and we had to stay ahead of everyone else. Don was passionate about making the dealers more profitable and more successful, which fostered loyalty and tremendous growth. We miss Don every day, but his great legacy of love for this business lives on. 4. 2020 was a challenging year for the industry’s supply chain. What are some of the steps you have taken to address this and when do you anticipate your two warehouses being back to normal fill rates? The supply chain issues are not exclusive to our industry as we have all felt the pinch of going to the store THe HARDWARe Connection ■ May/June 2021 ■ 49
Wholesaling talk with our friends and associates in the market environment since January 2020. We are ready, and after a couple of missed opportunities, we will be getting together in Sevierville in person (Scheduled for August 12-14). This is so valuable to us. I would say that it is one of the most important things that we will accomplish this year. The growth that we have experienced has been phenomenal to say the least, and rapid growth brings about its own share of initiatives. Improved technology both in the warehouse and our computer systems are definitely receiving some attention. I suppose that we will be looking at expansion in the near future and upgrades to delivery. Growing pains are good. We have a plan, and now we are working out the details just as Don would have done. We are going to stay the course and hold on to the philosophy and great history that has served us well for the past 116 years. It is fortunate for us that Don set everything in place to carry on his vision and plan. We are here to make sure that it happens with the intention of making it better than he envisioned. We have been richly blessed, and it is my job 5. What major initiatives are on to be a good steward of that which tap for House-Hasson in 2021? has been entrusted to me. We look We are looking forward to getting together with our dealers and vendor forward to the great opportunities community in August for our fall mar- and challenges that we will face each ket. We have not been able to visit and and every day. n and seeing bare shelves. This is something that we have never experienced before on this scale. We have seen particular areas that have been impacted before, but those have been random and short lived. What we are experiencing now creates a lot of challenges: raw materials, inventory, delivery, work force issues and I can go on and on about all of the pieces of this puzzle that create havoc in the current supply chain. The fact of the matter is we do not know when it will be corrected, period. However, until it is, we will continue to look for substitutes where they are available, apply pressure to get our fair share of inventory and provide backhaul opportunities if they make sense to our receiving product. I will also say that, believe it or not, our fill rates are getting better, but are nowhere near our standard. We have an awesome buying department and they have worked tirelessly to raise the inventory levels so that we could provide hardware to our dealers without interruption. This is just another challenge that we will not shy away from until we get where we need to be at expected levels.
50 ■ THe HARDWARe Connection ■ May/June 2021
www.TheHardwareConnection.com
By Chris Jensen
special feature
Building traffic with amazon huB
A
mazon may be the biggest competitive threat facing hardware retailers these days, but that doesn’t mean one should turn down an opportunity to piggyback on the success of the online giant. As the familiar saying goes: if you can’t beat them, join them. An increasing number of hardware and home improvement retailers have signed up their stores to serve as an Amazon Hub, which is a worldwide network of pickup and return locations for those who have purchased something on Amazon.
Home Depot online customers can retrieve orders in as little as two hours at pickup lockers in many of its stores.
What is amazon hub? The Amazon Hub program enables any business with a physical location to offer secure and convenient package pickup and returns to Amazon customers, which can lead to a potential increase in foot traffic and sales. Amazon Hub Counter is a network of assisted pickup locations where Amazon customers can pick up and return packages right at the counter. This creates www.TheHardwareConnection.com
Hardware retailers are signing up to serve as pickup locations for Amazon packages.
opportunities to interact with new and existing customers and expose them to what your store has to offer. Amazon Hub Locker is a secure, self-serve, fully automated kiosk providing a convenient delivery solution for customers to pick up their Amazon THe HARDWARe Connection ■ May/June 2021 ■ 51
special feature packages. Lockers offer a contact-less experience to customers, so it is something to consider if you have underutilized space at your location.
hoW Does amazon hub counter Work? Amazon Hub Counters receive delivTownsend Hardware in Montana posted this eries of Amazon packages every day. on Facebook to promote its location as an They scan packages when they arrive, Amazon Hub Counter. triggering an email to the customer that program soon, which operates the same notifies them that their order is ready way as Amazon Hub. “This all dovetails for pickup. When an Amazon customer arrives to collect their package, they pro- with the ice cream fridge I’m putting in. vide the store staff their pickup barcode That will be in-store sales but will also be plugged in to Door Dash and Uber or six-digit code received via email. Eats for in-home delivery. There are so many opportunities. You are only limited hoW Do retailers like it? Adam Taylor, who operates three Trust by your own mind and what your tolerHardware stores in Indianapolis that are ance is for flowing with what’s coming for retail,” Taylor says. open 24/7, made sure his newest store John Nix of Nix Lumber and that opened in April joined his other two Hardware in Oklahoma City, Okla., stores as Amazon Hub Counters. “We just flipped it on, so I’ll have a much bet- says his store has had an Amazon Hub Counter for about three months. “We ter read on it in a few months. But it’s been smooth so far and traffic is always get about 15 packages a week. It’s fairly easy to do. We have a phone that’s dedithe goal,” he says. cated to it,” he says. Taylor adds, “I’m not afraid of Nix has been pleased to discover that Amazon. We create an experience and quite a few of the Amazon Hub customers value that’s different. I’m happy to have are coming into the store for the first time. them plug into us. Business always has to evolve and I see my stores as hubs of “They have to walk to the back of the store their community. They’re the perfect size and we hand them their package and a 10 percent discount coupon,” he says. to adjust and do stuff like this.” Gwynn Oliver of Taylorsville Hardware He points out that he is also setting up his stores with the UPS Access Point in Taylorsville, Ky., says operating an 52 ■ THe HARDWARe Connection ■ May/June 2021
www.TheHardwareConnection.com
Lowe’s began rolling out contactless pickup lockers last year.
can potentially lead to extra sales. “You just click and scan the bar code. We’re getting two or three a week and it’s catching on more. When people go to the Amazon site this comes up as a local option for people who want an alternative delivery location,” she says. Amazon Hub Counter has been workFor Oliver, serving as an Amazon Hub ing pretty good so far. Her store is just Counter is just a smart business decidoing pickups, not returns, and she points out that Amazon does not require sion. “If I get customers in the door I retailers to have a dedicated space for it want them to see they can get what they need in the store. This will have longin their stores. term potential for us,” she says. “We’ve been doing it about four months. It’s starting to pick up now,” she says. “The site is easy to use but cus- What are big boxes Doing? tomer support has been hit and miss conResearch shows that touchless retail necting with someone. It didn’t take much services will continue to remain popular to set up. Amazon asked if we wanted to with consumers. A study by McKinsey buy a device, but we downloaded the app & Company revealed that 60 percent of and use on our cell phone.” U.S. consumers who are currently doing According to Oliver, the Amazon Hub buy-online-pickup-in-store (BOPIS) plan has brought in some new people. “It has to continue using the service even after brought more awareness and will bring the pandemic subsides. more traffic to the store. We’re in a very Lowe’s and Home Depot have both rural area. People like using this service been adding to their online distribution because they’re out in a rural area and networks and expanding technology their location often can’t be found to and services to support online growth. drop off packages,” she points out. Lowe’s began adding contactless Oliver adds, “We’re not using the sig- self-service pickup lockers for BOPIS nage they sent because it says PUDO orders last year and had installed in (pick up drop off) and not Amazon, and nearly all 1,700 U.S. stores by March I didn’t think people would know what 2021. It was added to 48 Lowe’s stores that means.” in Canada in April. Taylorsville Hardware does not get Home Depot automated pickup lockers any compensation for being an Amazon are available at 1,100 stores, with orders Hub Counter, other than extra traffic that available in as little as two hours. n www.TheHardwareConnection.com
THe HARDWARe Connection ■ May/June 2021 ■ 53
technology update
Is an Omnichannel Experience Necessary for Your Customers?
O
mnichannel marketing puts the customer, not your product, at the center of what you do. Unlike traditional approaches, omnichannel merges channels like websites, emails, social media platforms and in-store shopping to deliver a more consistent and effective brand message. A customer-first approach breaks some of the previous misconceptions and powers of traditional marketing when dollars were spent to drive consumers to do something. There is an opportunity to change the mindset away from using marketing to influence the customer to do something you want them to do, when you want them to do it and how you want them to do it. It is an opportunity to no longer compare online sales vs in-store sales. A sale is simply a sale if it is purchased on your website, on an online marketplace, on a social media platform or in your store. Each of your customers is made up largely of three age groups: Millennials, Generation X and Baby Boomers. While no one likes to be put in a category, each of these groups does have statistically
54 ■ The hARDWARe Connection ■ May/June 2021
By John Henry III
supported buying habits, likes and dislikes. Here are some tips to help you reach an omnichannel experience; and how it could take your business to the next level.
Brand People are introduced, if not overwhelmed, with brand images throughout their lifetime. National brands have set a high bar on consistency to maximize their impressions. What does your brand say about your company? Do you have a brand standards guide? I think you should. A brand standards guide is much more than a logo. It sets the foundation to allow you to be consistent with your audience. It allows you to define logo, acceptable logo variations (if any), colors, fonts, slogan and anything that is a must have or complete no-no for your brand. Once you have completed this effort, take a hard look at any place your brand is represented. Any time your brand is present, and it does not meet your brand standards, it is time to put together a plan to update it. Some activities will take longer, and more money, to complete. It starts with a consistent logo on the front of your store, the top of your website and on all your social media pages. That is the bare minimum. Once you start matching paint to the www.ThehardwareConnection.com
will drive stronger brand relationships and ultimately sales. How do you keep score? How do you use data to help us make business decisions? Buying A good place to start is looking and Now that we look and sound the understanding indicators. Most busisame, we invite customers to shop nesses have access to the following where and how they want. This is not statistics, but few are keeping track of where we talk about if they must wear them on a regular basis. a mask or not. We want our customers 1. Website Analytics to feel comfortable shopping from their 2. Social Campaign Reporting desk, on their phone or in aisle six. Do 3. Number of Transactions In-Store not be surprised if the buying process Would it make sense to see how the starts on screen but ultimately ends at number of website visits correlates with the register. the number of swipes at the register? Brands that win are consistent and What if you could see trends in fluctuaconvenient in their buying experience. I saw a statistic that said as many as 71 tion of reach on Facebook translated to BOPIS (buy online, pickup in store) percent of shoppers will check product orders on your website? Have you ever availability online before purchasing. Are you showing your in-store invento- looked at your top-viewed product catry? Is the price they saw on the website egories online to help you decide to add a new product line? Do you have going to be consistent with the price a landing page for each of your most they find on the shelf? popular aisles in the store? Social media platforms have introIndicators give us a holistic view on duced ‘social commerce,’ which is how platforms can work together. Now exactly how it sounds—the ability to let’s get deeper in the weeds and see sell products within their native shopwhat we can learn about our customping solutions. If your customer is ers. Do you have a reward program? comfortable interacting within these platforms, they are likely comfortable to Do you ask or require an email address when your customers sign up? Would shop there, too. it make sense to see how many of your reward customers purchase online, data analysis purchase socially and purchase inNow that we have achieved surface store? Did you know that you could level consistency, let’s start looking use your reward program email list to under the hood. I have asked you to create a custom audience in Facebook spend time and resources with a prinand Google? ciple that putting the customer first
pantone color in your logo, then you know you are well on your way.
www.ThehardwareConnection.com
The hARDWARe Connection ■ May/June 2021 ■ 55
technology update digital MarKeting
return on inVestMent
We know what our ads should look like, we know where our customers typically interactexperience and we know had extensive withwe thecan create custom audiences increase product. So we recruitedto d-i-yers to our impression rate. Many businesses solicit their feedback. largely focus customer Each usedon FrogTape onacquisition multiple when using digital marketing and do surfaces windows, baseboards not leverage to was increase and corners,this andmedium everyone amazed by the clean usuallyis it to customer loyalty. Howlines important only pros. No awareness one you to possible maintainwith top-of-mind hadsomeone any instance paint bleed orwith with whoofhas interacted diffibrand? culty removing the tape even your after stayed in place for website over a may If weitknow a visit to our week. If you currently door not stock infl uence an online order in-store FrogTape, then bring in a few visit, does it make sense to do a display SKUs of their Pro Grade Painter’s ad campaign to our in-store customTape and Pro Grade Orange ers? When we do a direct mail to our Painter’s Tape, which offers highreward customers, should we see if we er adhesion. ■ can increase redemption with a digital campaign to those same users?
Entrepreneurs typically make decisions to make a return on investment or simply a gut feeling. An omnichannel approach allows you to expand your reach and maintain a scorecard of indicators, with the intent to create additional revenues. John Henry III started JH Specialty in 1998 as a full-service digital solutions company. Results driven, John prides himself on collectively helping his clients sell over $550 million through Ecommerce on the MOCE platform. Go to www.jhspecialty.com and contact him at john@jhspecialty.com.
Read The Hardware Connection When and Where You Want. Try the Mobile Version Today! 56 ■ The hARDWARe Connection ■ May/June 2021THe HARDWARe www.ThehardwareConnection.com www.TheHardwareConnection.com Connection ■ March 2021 ■ 31
CONFERENCE2021 AUGUST 13-15
register here today!
“Where Relationships Are Formed”
3 Days of Networking, Relaxing and Learning 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.
Learn More About Your POS System at the Hardware Technology Forum 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 Retailers at the 2020 & 2021 Beacon Awards The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry. Sponsors:
Co-Sponsors:
For More inForMation aBout attending the Beacon aWards along With all other educational seMinars, open Floor discussions and social actiVities at the hardWare conFerence, Visit WWW.thehardWareconFerence.coM
categOrY rePOrt
HARDWARE & FASTENERS TRENDS Sales of Door Locks (Independent Hardware Channel) 12 Months % Change vs. Year Ago Door Locks: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5% Door Locks: Dollars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2% Source: Epicor’s Industry Data Analytics
Unit Sales Breakdown for Door Locks Total of 2,196 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.6% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2% Source: Epicor’s Industry Data Analytics
Seasonality of Sales of Door Locks (Index=100) 120 120
111
111 102
104 104 107 106 104 106
102
107 93
89
93
96
85
93
84 75
84
98
Apr. 2020
May June July 2020 2020 2020
Aug. Sept. Oct. Nov. Dec. Jan. Feb. March 2020 2020 2020 2020 2020 2021 2021 2021
Source: 75 Epicor’s Industry Data Analytics
Door Locks Share of Sales (Latest 12 Months) Keyed Entry
33.4%
0
Combo5
10
15
20
25
30
Keyless
35
24.7% 23.4%
Deadbolt
15.9%
Handleset
2.6% 0
5
10
15
20
25
58 ■ THe HARDWARe Connection ■ May/June 2021
30
35
Source: Epicor’s Industry Data Analytics
Epicor’s Industry Data Analytics tracking information is based on sales from a representative sample of hardlines retailers located throughout the U.S. For more information, call 512278-5800 or email epicorindustryanalytics@epicor.com.
www.TheHardwareConnection.com
Hardware & Fasteners MercHandising : Upper Left: Urban Hardware in Alpharetta, Ga. Middle Left: Riles Home Hardware in Linton, Ind. Lower Left: Capitol Hardware in Santa Barbara, Calif. Upper Right: Belmont Hardware in Belmont, Calif. Middle Right: McKay’s True Value Hardware in Chandler, Ariz. Lower Right: Ronnie’s Country Store in Four Oaks, N.C.
www.TheHardwareConnection.com
THe HARDWARe Connection ■ May/June 2021 ■ 59
PRODUCT SPOTLIGHT LIMITED EDITION STEEL PADLOCK
• 100-year celebration, limited edition 1921D covered laminated steel padlock features commemorative lion logo with vintage stamped key and complementary keychain. • 2-1/8” wide reinforced laminated steel body for superior strength. • The high-security, reinforced, laminated steel body and hardenedboron alloy shackle provide maximum strength and reliability, while the weatherproof lock body and keyway cover protect against moisture, dirt and grime.
• Master Lock’s limited lifetime warranty provides peace of mind you can trust. Master Lock 800-464-2088 www.masterlock.com
YALE SMART DELIVERY BOX • There is a safer, more convenient way to receive packages that deters package theft. • With the August or Yale access app, you can lock, unlock, share access, view delivery history and receive notifications from anywhere. Never miss a delivery attempt again. • Remains unlocked until a delivery is made and then auto-locks. Packages are secured in the box until you’re ready to retrieve them. Works with all delivery carriers. • Protect your packages from weather and conceal your packages from porch pirates. Tether the box to your 60 ■ THE HARDWARE Connection ■ May/June 2021
home or weigh it down with sand. Available with insulated cooler to keep temperatures for food and other perishable deliveries. August Home/Yale Home 844-284-8781 www.august.com www.TheHardwareConnection.com
MT HOME SERIES TILLER • Equipped with Maxim’s medium-sized transmission, the MS50H provides great balance between power and tine speed (approximately 78 rpm max). • Tillers using the medium transmission have less bulk, making them easier to use in smaller places, while retaining the power to work heavy soils and pull attachments, thereby making them the company’s most popular homeowner tillers. • Features rugged all-steel construction, adjustable tilling width,
repairable transmission, drag bar and heavy-duty welded tines. • Simplicity of design makes for ease of use and maintenance. MAXIM, div. of Great Northern Equipment 800-621-2789 www.maximmfg.com
MADE IN THE U.S.A. CABLE TIES • New line of made in the U.S.A. cable ties, constructed of solid-piece 6/6 nylon, are available in numerous sizes and colors, with varying tensile strengths and operating temperature ranges, which will accommodate diverse applications and bundle diameters. • Providing durability and reliability, each cable tie features a flexible selflocking design that allows for quick usability and secure fastening for whatever you need to pack, organize, contain or transport. • Possess a superior pawl design to allow for easy insertion and pull
through, while the tough serrated edges provide secure and precise locking. • The grasps on each end enable the user to grip and tighten the cable tie more securely and the nylon material resists abrasives and chemicals. Mayhew Tools 800-872-0037 www.mayhew.com
www.TheHardwareConnection.com
THE HARDWARE Connection ■ May/June 2021 ■ 61
AN INSIDE LOOK
STORE PETS Max at Midtown Hardware, Tulsa, Okla.
T
he Hardware Connection provides a pictorial look at the many dogs and cats that serve as store mascots. Send pictures of your store pets to chris@thehardwareconnection.com.
Marshall at Dages Hikes Point Paint, Louisville, Ky.
Roscoe at Trust Hardware in Indianapolis, Ind.
Dolly at Woodside Ace Hardware, Winthrop, Mass.
Kobe at Singelstad Do it Best Hardware, Lake Mills, Iowa.
62 ■ THE HARDWARE Connection ■ May/June 2021
Tucson at McKay’s True Value Hardware, Chandler, Ariz. www.TheHardwareConnection.com
Rosie at Al-Joe’s Pet & Garden Center, Hamilton, Ohio.
Coconut at San Diego Hardware, San Diego.
Milo at Stanley’s True Value, Philadelphia. Gino at Hemly Tool Hardware, Thompson, Ohio.
Poplar at Maine Hardware, Portland, Maine. Stanley at Caledonia Village Ace Hardware, Caledonia, Mich. Bo at Kroegers Ace Hardware, Durango, Colo. Stitch at Branneky True Value Hardware, Bridgeton, Mo. www.TheHardwareConnection.com
Zelda at The Hardware at Rochester, Rochester, Vt. THE HARDWARE Connection ■ May/June 2021 ■ 63
IN THE NEWS NEW STORES: • Joel Jacobson opened Jacobson’s Ace Hardware & Greenhouse in Chippewa Falls, Wis. • Hancock Lumber is acquiring Lapointe Lumber, with stores in Augusta and Gardiner, Maine. • Jeff Lepp is opening Kimball Ace Hardware in Kimball, Neb. • Joe Fasula opened his second Gerrity’s Ace Hardware in Scranton, Pa. • Hartford Ace Hardware has opened in Hartford, S.D. • Bomgaars opened its 100th store in Beloit, Kan. • Steve Watson and Holly Wood have acquired Gambles in Granby, Colo., from Casey Farrell. • David Day has acquired Midtown Hardware in Tulsa, Okla., from Jeff Marquis. • RF Buche has acquired The General Store/Ace Hardware in Martin, S.D., from Dave Jones. • Builders FirstSource has acquired John’s Lumber, with two stores in Michigan. • Steve Bartmess has opened Valley Ace Hardware in Helena, Mont. • Ben and Kerri Dishman and Andy Doll opened Ace Hardware Gering in Gering, Neb. • Ace Hardware Marketplace is
•
• •
•
opening in Lexington, Ky. Bryan Kirit is opening Carolina Forest Ace Hardware in Myrtle Beach, S.C. Kenny Queen’s Hardware is opening in Barboursville, W.Va. John and Cris Henkle opened their second Henkle’s Ace Hardware in Joplin, Mo. Gillman Do it Best Home Center held a grand opening for its new store in Gas City, Ind.
Gillman Do it Best Home Center
KUDOS TO: • Discount Builders Supply in San Francisco is celebrating its 60th anniversary. • Great Lakes Ace Hardware, with 58 stores in Michigan, Ohio, Indiana and Kentucky, is marking its 75th anniversary. • Bernie Niehaus of Niehaus Lumber in Indiana was recognized as the 2021 C. James McCormick Community Leader of the Year by the Knox County Chamber of Commerce.
64 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
• In recognition of Arbor WHOLESALERS IN THE NEWS: Day, STIHL Inc. announced its • Do it Best Corp. will be unveiling a support of recovery efforts in two new store design program that has Pacific Northwest state parks with been tested in a prototype at Vassar the planting of 2,021 trees in 2021. Building Center in Vassar, Mich.
PEOPLE ON THE MOVE: • Channellock has promoted Lynn Reynolds to marketing manager and Ken Burchill to product manager. • Jack Mackin is the new president of Concord Lumber in Littleton, Mass. • Do it Best Corp. announced that Russ Kathrein will become vice president of lumber and building materials upon the retirement of Gary Nackers. The company also hired Bobby Chamberlain as LBM business development manager and promoted Michael McCoy to global sourcing merchandise manager, Lauren Wilson to safety and general merchandise manager and Ryan Robie to rental program manager.
Vassar Building Center
• Ace Hardware Corp. reported record Q1 2021 results with revenues of $2.0 billion, up 42.0% from last year. U.S. same-store sales were up 29.9% and Acehardware.com revenues were up 219.6%. Net income rose 191.2% to a record $105.4 million. Total retail revenues for the quarter were $162.7 million, an increase of $50.3 million, or 44.8 percent, as compared to the prior year first quarter. “Samestore sales growth of 29.9 percent, 51 new stores, a 220 percent increase in our digital business and increased retail inventory depth drove the best first quarter in Ace’s history,” said John Venhuizen, president and CEO.
OTHER NEWS: Gary Nackers (left) and Russ Kathrein. www.TheHardwareConnection.com
• STIHL Northwest branch has relocated to a new 100,000-squarefoot facility in Centralia, Wash. THE HARDWARE Connection ■ May/June 2021 ■ 65
IN THE NEWS IN MEMORY:
• Henry Bingham Jr., owner of • Randy Our Hardware Skinner, in Baton Rouge, former board La., passed member of Do away in April it Best Corp. at the age of and owner of 50. He started Tahlequah working at Baker Lumber, Henry Bingham Jr. Hardware at Pryor Lumber age 14 and was and Wagoner Randy finally able to realize his dream of Lumber in Skinner owning his own hardware store Oklahoma, in March 2016. He was also the passed longtime pastor of Restoration of away April 28 at the age of 76. Joy Church. He is survived by his wife Patty, • Arnold Bruggeman Jr., who sons Mike (Angela) and Steven owned Bruggeman Lumber in (Summer), daughters Lisa (Brett) Sand Springs, Iowa, from 2006 to and Kristen (Bill), 16 grandchildren 2017, passed away April 12 at the and 4 great-grandchildren. age of 73. • Kenneth Wangler, former • Dale Runke, former owner of Ace president and co-owner of Hardware in Robbinsdale, Minn., Wangler Electric and True Value for more than 40 years, died April Hardware, passed away March 26 at the age of 72. 8 at the age of 85. A 1990 fire destroyed the business, which was the first True Value store in Buffalo, FOR THE FULL STORY: N.Y. • House-Hasson Hardware • Mitchell “Mick” Boundy, former setting records with store sets. owner of Boundy True Value Click here. Hardware, passed away April 29 at • S&L Do it Best Hardware opens the age of 86. He served in the U.S. to honor family member who died Army during the Korean War. of COVID. Click here. • Bill McNees, president of • Bowie Lumber and Ace Congleton Lumber in Lexington, Hardware in Bowie, Texas, plans Ky., passed away April 10 at the to rebuild after being destroyed by age of 69. fire on April 19. Click here. 66 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
Recent Features From The Hardware Connection April 2021: The Next Big Thing in Home Improvement Retailing—We first introduced our readers to Adam Taylor of Trust Hardware in our May/June 2017 issue, outlining how he was testing how to keep a hardware store open 24 hours a day, 7 days a week. Four years later, he just opened his third 24/7 store and has plans for a fourth. With proof of concept now complete, see how Taylor’s innovative idea has a chance to transform home improvement retailing. March 2021: Cause Marketing: Community Support That Connects with Customers—Discover how 7-store Carr Hardware has found the right balance between being a good community citizen and reinforcing that connection with customers. The company’s cause marketing and community involvement helped it be named the National Independent Small Business of the Year in 2017. February 2021: How to Snag the Best Employees--Discover tips from other hardware retailers on the most effective methods for attracting and hiring new employees, as well as retailer feedback on the impact of proposed minimum wage changes. December 2020: Breathing New Life Into a Tired Store— Stace Heston took a big leap of faith when he bought an iconic store that had fallen on hard times and closed. See how he has breathed new life into Miller’s Do it Best Hardware in Spokane, Wash. November 2020: Unleashing the Power of Digital Marketing—Discover how two retailers, Town Hardware & General Store in N.C., and Nabors Do it Best Home Center in Miss., are taking advantage of digital marketing tools to help them attract new customers and grow their businesses. Sept.-Oct. 2020: Striving Toward a More Diverse and Inclusive Industry—Gina Schaefer of A Few Cool Hardware Stores explains what diversity, equity and inclusion mean for her 13 Ace Hardware stores in the Washington, D.C. area.
Click here to see our archive of past issues.
UPCOMING EVENTS JUNE Hearth, Patio & Barbecue Expo Virtual HPBExpo Connect June 23-26 PRO Group 2021 Virtual Group Merchandising Conference June 21-24
JULY United Hardware Fall and Winter Virtual Buying Market July 19-25
AUGUST Blish-Mize Fall Buying Market August 26-28, Overland Park Convention Center, Overland Park, Kan. House-Hasson Hardware Summer Dealer Market August 13-14, Sevierville Events Center, Sevierville, Tenn. Orgill Online Buying Event August 16-27 The Hardware Conference August 13-15, JW Marriott, Marco Island, Fla. www.thehardwareconference.com Wallace Hardware Co. Fall Dealer Market August 11-13, LeConte Center, Pigeon Forge, Tenn.
SEPTEMBER Ace Hardware Fall Convention September 21-23, Orange County Convention Center, Orlando, Fla.
Do it Best Corp. Fall Market September 27-30, Indiana Convention Center, Indianapolis Emery Jensen Edge September 24-25, Orlando, Fla. Hardware Forum Italy September 22-23, Fieramilanocity, Milan, Italy Home Hardware Virtual Fall Market September 27-October 4 True Value Fall Reunion September 30-October 2, McCormick Place, Chicago
OCTOBER China International Hardware Show October 8-10, Shanghai, China GIE + EXPO October 20-22, Kentucky Exposition Center, Louisville, Ky. National Hardware Show October 21-23, Las Vegas Convention Center, Las Vegas, Nev Shanghai International Hardware Show October 20-22, National Exhibition & Convention Center, Shanghai, China
NOVEMBER Epicor Insights LBM User Conference November 15-17, San Antonio
For a complete listing of calendar dates, click here. 68 ■ THE HARDWARE Connection ■ May/June 2021
www.TheHardwareConnection.com
retaiL ideas
caPitaLiZinG on the huGe demand For canninG suPPLies As COVID-19 raised questions and concerns about supply chain issues and food security for consumers across the country, home gardening has exploded in popularity over the past year. A result of that boom has been a subsequent spike in demand for canning supplies, which is leading retailers like Friedman’s Home Improvement to work extra hard to keep up with demand from their customers. Friedman’s, which has four locations in northern California, has long been known in their marketplace as a destination in the canning category. They have traditionally put out dominant pallet stack displays and market to the area during the canning season. They also have a large demand based on the area they are located in. Ed Casey, who is the Friedman’s buyer for the category, does a good job keeping up with trends in canning and making sure that the products are environmentally safe. He pre-buys as much product as possible to ensure they stay in stock. Last year was a struggle because of increased demand and logistics challenges, so Casey expanded the suppliers to fill the needs of his customers. The category went into quite a resurgence during the last recession, which brought it back to life, according to Casey. “Vendors learned a lot after last www.ThehardwareConnection.com
Friedman’s Home Improvement builds out huge stackout displays to show they are a destination for canning supplies.
TIME TO HA RV ES T &
PRESERVE
AUGUST GA RDEN SA LE THUR SDAY, AUG. 8th - 11t
h
20% OFF
AL L BA LL JA RS REG: $2.49 - $13.79 I SALE: INCLUD ES LIMITED $1.99 - $11.03 COLOR S
30%
OFF 2-PIECE FRUIT HARV REG. $24.99 | SALE $17.49
25%
OFF PICKING TUBS
ESTER
REG: $4.99 - $27.99
20%
OFF BALL CANNING SUPP
l SALE: $3.74 - $20.99
REG: $1.59 - $21.99
N080819G SALE VALID 8/8/19 - 8/11/19 friedmanshome.co m
WHILE SUPPLIES LAST.
NO PRIOR PURCHASE
SANTA ROSA - 584-781 1 4055 SANTA ROSA AVE. PRICE ADJUSTMENTS
OR ADDITIONAL DISCOUNTS
PETALUMA - 774-8400
429 N. MCDOWELL BLVD. APPLY. ANY PERCENTAGE
-OFF DISCOUNTS DO NOT
SONOMA - 939-8811 1360 BROADWAY
APPLY TO SPECIAL ORDERS,
GIFT CARDS OR DELIVERY
UKIAH - 468-7811 1255 AIRPORT PARK
LIES
l SALE: $1.27 - $17.59
MONDA Y - FRIDAY 6am
BLVD.
- 8pm
SATURD AY 7am - 7pm SUNDAY 8am - 7pm
SERVICES. WE RESERVE
THE RIGHT TO LIMIT PURCHASE
QUANTITIES. ITEMS MAY
VARY FROM ILLUSTRATIO
NS.
Friedman’s promotes canning supplies with digital and social media throughout the canning season.
year. Ball/Jarden Home Brands did a lot more with pre-billing this year,” he says. Casey’s approach to merchandising is simple: stack it high and watch it fly. “We try to get products out a little early. We have year-round gardening but it’s typically a strong selling season from June through October. You have fruit The hARDWARe Connection ■ May/June 2021 ■ 69
retaiL ideas trees in the fall and vegetable gardens in the spring,” he points out. Friedman’s jumped into the category early to test the waters and as it grew, so did their marketing. “We do a lot of social media and have an extra presence in digital and print media for canning supplies,” Casey says. He adds, “We’ve been here 75 years and our customer base comes from a far distance. We have to tailor the displays to the store’s footprint. Our larger store has a bigger stackout with smaller displays in the other stores. As you get more into the category, there are more sizes of jars to stock and different types of fermentation lids.” Casey says he is hearing good things about Jarden’s ability to keep up with demand this year. “There aren’t more than two canning jar companies, so it’s not so easy to ramp up supply,” he says. The pandemic-fueled spike in demand for canning supplies is reminiscent of the Victory Gardens during World War II, Casey notes, which were planted by families to prevent a food shortage. “Sales have definitely been up over last year and the year before. As people gain confidence in their ability to can, they will remain in the hobby,” Casey says.
Melaco Sisters Hardware has become the local source for school spirit wear during the pandemic.
Melaco Sisters Hardware in Cut Off, La., has found a unique way to give
back to the community while attracting new customers at the same time. With COVID-19 restrictions making it difficult for parents of students at nearby South Lafourche High School to access the facility and purchase spirit wear (which is a consistent source of additional revenue for the school), Lauren Melancon Guidry—who co-owns the business with her sister, Vanessa Melancon Pierce—met with the school’s student council and began bringing in the merchandise on consignment. The spirit wear is prominently placed it in front of the store. Not only is the Do it Best store helping the school continue to raise money during a difficult time, they are helping attract younger and more female customers. It is another example of how Melaco Sisters supports local artisans and makers. They display and sell high-end furniture hand-crafted from cypress wood by a local artisan, as well as locally made dog treats, locally hand-crafted
70 ■ The hARDWARe Connection ■ May/June 2021
www.ThehardwareConnection.com
GivinG Back to the community With unique LocaL items
Decorative oyster shells and locally made dog treats are among the artisan items that can be found at Melaco Sisters Hardware.
sales in March, for example, as well as increased engagement among team members with customers. n
decorative oyster shells and handmade fishing tackle crafted by a member of their team. The best part about these locally made items is that they cannot be found at the big boxes or other chains.
Tum-A-Lum Lumber has seen sales rise since introducing a monthly sales contest that rewards the employee that sells the most of a specific item.
creative incentive ProGram is drivinG saLes Even as store leaders consistently look for unique ways to incentivize their team, two things in particular almost always work: money and food. Tina Kipper, branch manager for Tum-A-Lum Lumber’s Hood River, Ore., location, has devised a creative way to combine them to drive a successful result. As part of her goal to increase average transaction purchases, Kipper selects a specific product each month—such as Mr. Clean® Magic Eraser—and rewards the employee who sells the most with a $50 gift certificate to a popular local food truck that visits the store daily. The contest helped the location realize a significant increase in product www.ThehardwareConnection.com
The hARDWARe Connection ■ May/June 2021 ■ 71
e h t d n i h e B Numbers
74%
Percentage of DIYers who planned to start a project in the next few weeks (when asked in April), according to the COVID DIY Home Improvement Impact Tracker from The Farnsworth Group and the Home Improvement Research Institute.
87%
Percentage of Gen Y who planned to start a project in the coming weeks, according to the COVID DIY Home Improvement Impact Tracker.
83%
Percentage of DIYers who had purchased home improvement products in-store in April, along with 43% who had purchased online, delivered to home; 19% purchased online, picked up in store; and 4% did not purchase during the month, according to the COVID DIY Home Improvement Impact Tracker.
45%
Percentage of DIYers who reported in April that
they had received a COVID-19 vaccine, with the highest concentrations coming from baby boomers and the West and Northeast regions, according to the COVID DIY Home Improvement Impact Tracker.
12%
Percentage of DIYers who were planning to spend much more money than normal on DIY projects over the next few weeks, compared to 26% who planned to spend a little more, 54% the same amount, 5% a little less and 2% much less money, according to the COVID DIY Home Improvement Impact Tracker.
26%
Percentage of DIYers who say COVID has impacted their DIY projects by leading them to tackle more, compared to 14% who say it has caused them to tackle fewer DIY projects and 60% who say it has had no impact, according to the COVID DIY Home Improvement Impact Tracker.
72 ■ The hARDWARe Connection ■ May/June 2021
www.ThehardwareConnection.com