Hardware Connection October 2014

THE INDUSTRY’S DIGITAL LEADER

91900 Overseas Highway Tavernier, FL 33070 www.thehardwareconnection.com

Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126

Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864

Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

Director of Vendor Programs: Diane Allen diane@thehardwareconnection.com 317-432-9177

Beacon Awards Director: Tom Delph tdelph@thehardwareconnection.com

Contributing Writers: John Franklin, John Fix III, Doug Donaldson

By Chris Jensen

Is Your Business Safeguarded from Complacency?

Independent retailers face everexpanding threats to their business on a regular basis, including competition from big boxes, encroachment from online sellers, inability to find qualified employees, burdensome government regulations and economic downturns.

I would argue that the biggest threat is complacency. When I read news reports of a hardware retailer going out of business, there is invariably a quote from the long-time owner saying something along the lines of “Our little business just couldn’t compete with the big boxes.”

Really? Then why are so many independent retailers thriving in the midst of big-box competition? It’s easier to blame the big boxes than for these owners to admit they got complacent. Complacency can take lots of forms. Do you abstain from advertising because you reason your store has been around forever and everyone knows where you are? Actually, 24 percent of Americans have moved in the past five years, so there are a lot of people moving in and out of a community. They won’t know your store is there unless you regularly advertise or promote your business.

I’ve never visited a hardware retailer who didn’t say they offer excellent customer service. However, when asked about their formal training program most admit they don’t have one. The big boxes all have formal training programs.

The majority of retailers have not adopted a comprehensive plan to prepare for or deal with the aftermath of an emergency or natural disaster such as flooding or a fire. Winging it when the flood waters are rising is never a good strategy.

Most retailers’ retirement plan is to sell their store for a nice profit, but only 20 percent have a formal succession plan in place. The other 80 percent run the risk of being next to explain to the local newspaper why they are going out of business.

We can certainly see other examples of complacency in society. Print newspapers assumed people would always want to read the morning paper. They still do, but they now prefer to get their morning news from a variety of digital sources.

I guess if you close your eyes and tap your heels together three times, there is always the chance you’ll wind up back home in Kansas. n

Athe way i see it

By Tom Chasteen

Evaluating a Niche Category That Breaks All the Rules

s I get older (I’m 58) I find myself acting like my father did when I was much younger, behavior at the time that I thought was old-fashioned. Although I don’t think completely like my father, who was a hardware store owner for 35 years, there is no question even after I lost him 18 years ago that he still has a great deal of influence on how I think about business today.

I will never forget the look on my father’s face when I would come up with what I thought was a brilliant idea that was admittedly a little out of the box to grow our family hardware business.

A painful lesson that I learned very early on in my hardware career was that coming up with ideas was one thing, but putting them into action and making them profitable was quite another as my father would remind me time and time again.

Home Depot only had two stores in Atlanta and was being called an anomaly by industry leaders, while hardware stores were making the transformation from a commercial hardware store format to a retail hardware store format. Pricing was typically at a standard 40 percent gross margin and the merchandise mix was the standard: paint, tools,

electrical, plumbing, hardware and maybe some sporting goods or lawn and garden other than picks and shovels.

My father thought for many years if you marked up your merchandise more than 40 percent you were ripping off the customers and stocking something other than traditional hardware merchandise was simply not acceptable. Once when I suggested putting in an ice cream cooler he remarked “we aren’t a drug store.” When we went with our first POS system and retired the cash registers he never touched a keyboard. However, he did dive into the computer printout the POS system provided and reviewed the gross margin and price exception reports daily.

We debated the merits of variable pricing so vigorously that my mother, who also worked in our family business, had to intercede often. Discussing niche merchandising seemed to always come down to the issue of gross margin vs. gross margin dollars. Until we implemented the POS computer it was impossible to verify anything other than gross sales, cost of merchandise sold and the checking account balance.

With the emergence of the big boxes and their retail pricing strategies and the increased competition from non-traditional

Introducing Epicor Eagle N Series™. Now, it’s easier than ever to do more for your customers, from POS to back office—with the next generation of Eagle®. A new user interface helps to simplify tasks. Built-in, real-time analytics brings smarter, faster decisions. Streamlined workflows eliminate complexity. And in-context training and support are just a click away. Get there. Explore Eagle N Series today at 888-463-4700 Get there with Epicor®

For the third consecutive year, IHL Group has named Epicor #1 vendor for

the way i see it

retailers such as grocery stores and drug stores, the concept of niche marketing is now very common with most independent hardware retailers.

One of the biggest niche markets being embraced by independent hardware retailers is the food/snack category. Unlike most items in a hardware store’s inventory the snack category is a consumable and is purchased by the same customer as many as two and three times a day. This is unlike most hardware merchandise where once a customer completes their project they no longer need more of the same merchandise.

That ice cream cooler we put in years ago is one of the most profitable displays in our store. The gross margin averages 28 percent (I have a convenience gas station next door), but I average just over 9 turns a year in less than nine square feet. You may wonder how my father felt about that or if I put in the ice cream cooler after he retired.

I finally convinced my father to try the ice cream cooler after we had our POS system up and running for a year. I did not want to hear the inevitable negative comments if I was unable to document the benefits of putting such an unconventional group of products in our family hardware business at such a low margin.

My approach was to first evaluate and convince my father of the potential profitability of the ice cream cooler (or any niche product). To do that I used a “teeter totter” example to demonstrate

that low-margin profitability can be overcome with significantly higher inventory turns. At that time we were averaging a 40.2 percent gross margin and 2.9 turns. If you multiply 2.9 turns times our 40.2 percent gross margin you get a 116.58 gross profit index.

At the time I estimated we could generate 6 turns at a 25 percent gross margin for a 150 gross profit index. Putting our average gross margin profit index on one side of the teeter totter and the estimated ice cream cooler gross profit index on the other I graphically demonstrated my hypothesis to my father, who quickly said “OK, now prove it.”

So for a year we tracked the ice cream cooler’s sales (margins and turns) with our POS system to validate my hypothesis. What we found was that our ice cream turns were actually 7.5 turns and our gross margin was 26 percent, which yielded a gross profit index of 195.

Several things need to be mentioned as well. None of this would have been possible without putting the ice cream cooler in a prime location and it does require minimal electricity. Also, I find it difficult not to give a child who comes in with their parent a free ice cream when they leave, although I make sure the parent buys something first. I have had quite a few parents come in the store and say they had to come here so little Sally or Jimmy could get a free ice cream—now that’s a real marketing value as well.

Just in time for the holidays, Crescent brings a selection of 72-tooth tool sets your customers won’t be able to resist, with three popular mixes in addition to our best-selling 148 piece set. All come in a rugged storage case, meet or exceed A.N.S.I. specs, and are guaranteed forever.

The food snack category is an excellent place to use the teeter totter evaluation. I think you will find that products and brands like Jack Link’s with excellent POS merchandisers can and will exceed some of your most profitable hardware categories, but location is critical. Retail price points are not nearly as critical on impulse merchandise as long as you are in the ballpark. And unlike a 10-in-one screwdriver or a flashlight, beef jerky snacks are like ice cream in that they can be sold to the same person multiple times on the same day. I now use and teach the teeter tooter approach to vendors who come into

our store and want us to stock a new item. And I use the teeter totter to hold them accountable by agreeing if we don’t achieve enough turns to offset the reduced margin they will come in and pick up the remaining merchandise for a full refund after a mutually agreed trial period.

The best news is the teeter totter evaluation method makes us consider what we can sell in a hardware store. Let me know what you think from one retailer to another at tom@thehardwareconnection.com. n

Tom Chasteen, the publisher/principal of The Hardware Connection, operates Tavernier Hardware in the Florida Keys.

HARDWARE HUMOR

–SUCCESS–

PHI LOSOPHY

SERVING OTHERS AS WE WOULD LIKE TO BE SERVED

MAKING THE BEST EVEN BETTER ® MISSION

HELPING OUR MEMBERS GROW GOAL

At Do it Best Corp., we believe this number says it all about our #1 goal of helping our independent member-owners grow their businesses. Because they are the experts in their individual markets, they have the freedom to choose only the Do it Best Corp. programs that best meet their needs. From advertising and customer rewards, to ecommerce and much more, we offer menu-based, scalable and fully customizable solutions to help drive traffic, increase sales and grow customer loyalty.

WHAT IS YOUR CO-OP DOING FOR YOU?

Learn how you can put our support for independent business owners to work for you. Call us today at 888-DO IT BEST (364-8237).

www.independentsdoitbest.com

HUMOR

HARDWARE STORIES Amazing but TRUE HARDWARE

Susan

Harlan of Vickery Do it

Best Hardware in Smyrna, Ga., has an outdoor sign that she tries to change weekly. Here are some of her favorite postings: “Not just hardware people—project therapists!” “Caulk and talk—both offered here!” and “You know you’re going to lose it sometime—keys made here!” She was wondering what other retailers post to their signs, so we turned to the master of clever signs:

Larry Perry of Woodstock Home & Hardware in Woodstock, Vt.

The Art of Brushmaking

Purdy brushes are handcrafted from the finest materials by experienced Purdy brushmakers who undergo two years of training before they can craft their own brushes. Like every true artist, every Purdy brush is “signed” by the person who made it – a mark of pride in a job well done, offering peace of mind to professional painters that the tool in their hand was made with the highest level of quality.

How’s

Business?

MIDWEST

Sales and customer counts so far in 2014?

Customer count is up about 5% and sales are up a little over 6% from the previous year. We’ve had an increase in overall economic activity. In our area, remodeling and construction are up. Plumbers and electricians are coming from five states away to do work. We have one of the lowest unemployment rates in the United States.

Best niche categories?

Plumbing is our best niche with 18% of store sales. The largest department is paint and sundries. Number two is lawn and garden, which we have made into a four-season department by featuring winter products

such as ice melt. Last year, we sold 16 semi-loads of ice melt.

New initiatives planned for this year?

No, I don’t think so. It’s more evolutionary. We were one of the first stores to get True Value’s Destination True Value format and that’s being refined for some departments, adding and expanding it. We’re already into rental

How’s Business?

and commercial supply, but we’re in an old grocery store with 13,000 square feet and have used just about all our space. What’s key to your success with U-Haul?

We did a market survey and the numbers told us that the area would be good for a rental store. We started with trucks and that grew. As people came in asking for other rental equipment, we’d make note and figured out what else we wanted to offer. Now, we’re one of the largest U-Haul rental facilities in the Midwest and in the top 100 nationwide. It takes time to get established and there is a learning curve. Some stores might try to run rental their own way, but going with U-Haul procedures has worked out very well.

I’ve also been surprised how well moving boxes have sold. Now, we have about 12 feet of shelf space devoted to boxes, and we sell about $1,000 a week with 50% margin. On just about every move, people spend $100 to $300 on boxes. It’s unbelievable. During peak moving season, we’ll sell $2,000 to $3,000 worth of boxes a week. Also, pay attention to your rating on the U-Haul web site. People put a lot of stock into those ratings and it’s a reflection of your whole store.

Bob Votroubek Handy Hardware True Value Rock Island, Ill.

NORTHEAST

Sales and customer counts so far in 2014?

Customer counts have been up some. But the local economy has been in the dumps and that’s affected business a little bit. This used to be a mill town, and we’re just now seeing a resurgence with other companies. We have a unique situation in Fall River; we are now paid to dispose of trash. Starting in August, we are selling city trash bags at zero percent profit. Lots of customers come in to get the bags.

Best niche categories?

Paint is one of my best categories and everything follows suit from there. We carry the Ace line of paints and Valspar.

New initiatives planned for this year?

Unfortunately not. We just keep plugging along.

Rick Schwartz Schwartz Ace Hardware Fall River,

Mass.

SOUTH

Sales and customer counts so far in 2014?

Both are up a little. Sales are up 10%, and customer count up 2%. We have a small lumberyard and there has been some more new construction this year. At one point, we were supplying the lumber for five or six houses at once. Our store has been here 100 years and I’ve been here 40 years. We have a Lowe’s 20 minutes away and a True Value five minutes away.

Best niche categories?

Lumber is 50% of sales in dollar volume. We just started selling building materials 10 years ago. Fortunately, I hired the right people and that’s been a real big boost to our volume. We’re in a small community and usually brought in about $1.5 million a year. But after Hurricane Gustav in 2008, we jumped to $4 million, then dropped $2.25 million. Last year, we made $2.7; this year it’ll be about $3 million. We couldn’t accomplish that without our lumberyard.

New initiatives planned for this year?

Now we’re going after industrial supply business. There’s a plant on the Mississippi River that’s doing a $2.5

billion expansion. That’s been phenomenal, working our way into that business and getting orders. We were selected as a local supplier, so we’re at the top of the list when they need something.

Favorite smartphone apps you use for business?

I use the Ace mobile app when I go to conventions. I can look up inventory sales and customer pricing. We do a lot of social media. Every week or two, my daughters will post something on Facebook. They do contests, such as guess the number of nuts in a jar. It creates a lot of interest. We make it fun, not about putting products up there.

Have you done any succession planning?

Yes, I do have an exit plan. One of the young managers is buying into the store. We’ve worked it out that he’ll buy in over 10 years. I didn’t want to wait until I turned 70 then needed to scramble to come up with a plan. I’m continuing to work and because the manager has some skin in the game, he is motivated. That gives me a chance to get out and still keep the store running. We’ve been working out the details during the past three years.

Dan Boudreaux

Dan Boudreaux’s Ace Hardware Napoleonville, La.

Wanna start something?

we’ve got the KEYS

Automotive solutions made simple.

We have vast experience with automotive keys. Also the cloning tools and key machines that enable them to start most of the vehicles on the road today. If you want to start an auto program, contact us to see how we can help rev up your sales.

SOUTHWEST

Sales and customer counts so far in 2014?

We’re up 7.5% over last season. Customer count is up too. There is a lot more traffi c coming through our area. We’re a big second home location state, and this past year-anda-half, things are starting to loosen up and houses are selling and new construction is going up. People are more willing to spend. We’re even seeing some higher-end sales. For example, I’m selling more privatelabel grills. People are splurging for bigger Weber grills and for the more expensive lines. We’re also seeing the per-transaction increase, too. Last year, it was about $27 per

How’s Business?

transaction; now it’s $31 to $32 per transaction.

Best niche categories?

Top categories here are paint, lawn and garden, plumbing and electric.

New initiatives planned for this year?

Next year we’re going to be looking at entering the lumber niche. We’ve had expansions in our lumberyard business with people buying houses and upgrading decks. We’ll also be focusing on Stihl sales. Outdoor power equipment looks like it will be strong.

Trevor Messa South Park True Value Fairplay, Colo.

WEST

Sales and customer counts so far in 2014?

For sales, we’re up about 8% and customer count is up about 3-4%. In our area, new housing has increased. And we’ve had a couple new industries come to town.

Best niche categories?

Small engine repair is really strong for us. Before we started offering small engine repair, people had to drive 30 miles. Outdoor power equipment is also a big niche and we’re adding more of the Stihl line.

Recently, we’ve doubled the amount of fasteners and that’s really been a big hit.

New initiatives planned for this year?

We’re looking at bringing in a rental program. I see that as another niche we can capitalize on. There are no rental yards nearby and I get calls every day about rentals. I think we can do well in it.

Favorite smartphone apps you use for business?

We use the Android platform and also iPhone for Facebook and Twitter. People know our promotions through social media.

Greg Mahler Hoy’s True Value Sweet Home, Ore.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

PRODUCT #1: RUST REMOVER SOAK

WD-40 COMPANY

WD-40 has added a really neat new product to the Specialist lineup of products called Rust Remover Soak. Rust remover products have been around for years but let me give you a few unique characteristics of WD-40’s Rust Remover Soak. 1. It is not an acid and is biodegradable. 2. It is safe to use on painted surfaces, rubber and plastic. 3. It’s a reusable solution and can be used multiple times.

To use Rust Remover Soak effectively, pour the liquid in a container and submerge the product you want to remove the rust from. Depending on how rusty and pitted the item is will determine how long you will need to soak the item. When you are finished removing the rust rinse off the item and dry it off. To prevent an immediate “flash” rust from coming back, use one of the other Specialist products WD-40 makes like Long Term Corrosion Inhibitor.

Our testers used the Rust Remover Soak on several different kinds of

By Tom Chasteen

Click Here to Watch a Short Video of WD-40 Rust Remover Soak

products from steel wood chisel, tongue and grove pliers with vinyl grips, outboard engine parts and even a stainless steel transducer bracket with a plastic grommet. In each case Rust Remover Soak performed very well.

To see a demonstration video click on the link below: www.wd40specialist. com/norust

PRODUCT #2: ELECTRICIAN’S WIRELESS INSPECTION CAMERA | GARDNER BENDER

Gardner Bender’s inspection camera is nothing you haven’t seen before, but what it can do is really cool and has already set a new bar for inspection cameras. GB’s camera has WiFi built in and does not need a network for it to be used on your android, iPhone or iPad. It does require the user to download the free app, which uses minimal resources on your mobile device.

None of our testers had any issues downloading the app and loved the ability to see what they were seeing on a much larger screen than the

traditional 2 inch by 2 inch screen. They also liked the ability to take a picture on their phone and immediately text it to someone they were working with.

I used the GB inspection camera on my android phone (Samsung) and an iPad mini (the regular iPad was just too big to hold and manage the inspection camera). I found it very nice to see the inspection area on a

Congratulations to the 2014 Beacon Award Winners

How do you win a Beacon Award? By being the “best of the best” among independent hardware and home center retailers. These five businesses earned that honor for 2014 and received their awards in September at The Hardware Conference.

We congratulate them all and say a special thank you to the three winners who use Epicor ® Eagle® business management software.

Retail Beacon Award

Complete Home Center, Hernando, Mississippi

True Value of Concord, Concord, North Carolina

University Ace Hardware, Auburn, Alabama

Best New Store Under 20,000 Square Feet

Gecko True Value Hardware, Dallas, Texas

Best New Store Over 20,000 Square Feet

Geneva Ace Hardware, Geneva, Illinois

To learn more about Epicor software visit us at www.epicor.com/eagle or call 888.463.4700 today.

• Complete Deck Care Program

• Available in 5 Grab & Go Colors

• Easy to Choose & Easy to Use

• Educational Packaging & Innovative Formulation

• Wood Stain & Sealer - All in One

high-resolution screen and I also liked the ability to text or email the video or a single picture to someone immediately. The app was very easy and user friendly to download and use.

If you have a chance stop by the GB booth at your next show and ask them to give you a demonstration or click on the link below and see a demonstration. http://www.gardnerbender. com/en/wic-100

PRODUCT #3: ISPINMOP® CICLONE ISPINMOP

The Ciclone iSpinMop® has some company in the mop category, but our testers found the iSpinMop a superior product in many different areas. The mop will pivot 360 degrees, it easily spins with limited force and you have the ability to make the mop as dry or wet as you would like.

The iSpinMop is also very compact and easy to maneuver around a home, office or apartment. Unlike

Click Here to Watch a Short Video of the Ciclone iSpinmop

other similar products there are no peddles to step on and it comes with a machine washable microfiber mop head.

The mop also has the ability to stand up straight on its own on the floor, which eliminates the handle from falling over and knocking something over if you have to stop for a moment while mopping to answer the door or phone. It is easy to change the mop head and it also has a nylon bristle attachment to help remove really stubborn grime. Take a few minutes and watch the video at http://www.youtube.com/ watch?v=7MIJY3rF6B4 or contact Ciclone Ispinmop at info@cicloneispinmop.com.

The 17-in-1 Painter’s Tool. Its 18th use is pumping up retail profits.

Click Here to View Our

Carrying a 17-in-1 is like having a whole toolbox in your pocket. But for retailers, it’s more like a hole-in-one than a whole-in-one. Multi-tools are big sellers, outstripping putty knives and scrapers more than 2 to 1 as top-producing tools. And this one is destined to become the next #1 seller in your retail set. Ask your HYDE® rep for details.

By John Franklin

Guidelines for Good Merchandising

Some people think merchandising is making the store look full. Some people think merchandising is just something you have to do every day to make your store look better. Some people think merchandising is getting as much merchandise to neatly fit on the sales floor as possible. Some people think that merchandising is a constant and never-ending job that has to be done because the boss likes it that way.

The truth is that they are all correct. Merchandising is a lot of things to a lot of people. After spending 40 years in retail trying to execute my vision of good merchandising, I have to admit it’s a subject near and dear to me.

Properly done, merchandising is the most powerful tool we have as retailers to entice customers to buy from us. The vast majority of hardware retailers have become better merchandisers by

bottom line

default just to survive. Read on to learn a few of my favorite guidelines for good merchandising.

Good merchandising is getting as much product displayed on the floor as possible in a neat, organized, easy-toreach position so customers can shop easily, find what they want and also notice stuff they didn’t want when they came in.

That last part is important. We must merchandise our stores better for impulse shopping. Many successful stores have made sizable sales gains creating impulse areas throughout their stores. Properly merchandised impulse areas can create additional sales because they entice customers to leave with products that they did not intend to buy when they walked in the store.

Color is an important element to attract the attention of customers, as demonstrated here by O’Hara’s True Value in Ottumwa, Iowa.

Good merchandising can be a delicate balancing act. It is having wide enough but not too wide aisles. It is having high enough but not too high gondolas. It is proper adjacencies of related product to help customers make a quick choice because all items necessary for a complete job are in the same general area.

Good merchandising is responding to the proper season before the season responds to you. Seasonal displays that set up before the true beginning of the season are way more successful than dragging the stuff out when customers ask for it in season. Savvy retailers know they can effectively extend a season in the beginning, but not at the end.

Good merchandising means every item should be within reach, but if it is

bottom line

not in reach, it should be within view. And if it is not in view it must be represented somehow on the sales floor. Items in your stock room are mostly a waste of space in the stockroom. Unless items are out of season, or specially ordered for a customer, they should not be left in the stockroom unless they are back-up stock for items represented on the sales floor.

the Price of Good merchandisinG

In my opinion, the price of an item is the single most important part of the merchandising job. There are two unforgivable questions that must never be asked by customers in your store. The first is: “Do you work here?” The second is: “How much is this?”

The first question can be avoided simply with uniforms and name badges. The second cardinal sin must be avoided by proper identification with bin tags or some other signing method so the customer knows what the price is. This must be done every single time on every single item every single day. No exceptions ever!

If you don’t know how much it is, don’t put it on display. All you will do is waste everyone’s time and make customers mad. All the other great things you do in your store are negated with an unpriced item.

Why? First, it is embarrassing to a customer to stop and ask someone how much an item costs, especially if your answer is higher

One of the most overlooked aspects of good merchandising is making sure every item in the store has a visible price.

than the customer thinks and they cannot afford it. The customer must know the price to make a buying decision and most of the time they will simply not ask. They will not make the purchase and quietly walk out.

It is also an annoying waste of time for an employee to drop everything and run to look up a price. In the present age with UPC scanners, we as retailers are often tempted to lower our standards on pricing product. A customerfriendly store never makes their customers ask for a price.

the dePth and breadth of the Problem

To better understand another important merchandising concept, I need to define some terms. For this discussion I want to define display breadth as the actual area the product takes up on the gondola shelf side to side and top to bottom. It is mathematically the amount of gondola wall space covered by the product whether on a hook or on a shelf.

bottom line

For example, you can double the display breadth of an item by simply making two rows side by side on the shelf. In any store, gondola wall space is usually finite. You have just so much in the store and you cannot easily add more without adding on to the building. Therefore, increases in display breadth, that is, taking more room side to side, must always come with sacrifices on some other product.

Display depth is defined as the area the product takes up on the shelf, front to back. It is essentially the amount of floor space taken up by the product. The big difference between breadth and depth is that increases in display depth always come with sacrifices in aisle width.

To better understand display breadth, consider the following analogy. How many red Corvettes will you find in the Chevrolet showroom? The answer is that you only need one of an item on display to get the customer’s attention. It is clear to the auto dealer that if your display area can only handle five cars, then you put five different cars in the display space. You keep all similar vehicles and all duplicate (back-up stock) vehicles outside in the yard.

Your store is really the same. If you minimize display breadth, you can stock the widest assortment of different things in your store. If you can offer two well-selected choices instead of one in the same physical space you usually do better.

So, good merchandising is also the balance we keep every day between the number of different items we carry and the amount of each item we carry. More choices mean potentially more sales, but too few on hand may create lost sales. You should only carry on the floor what you absolutely need on the floor and no more. If you have extra space, don’t fill it with more of the same thing, add something new.

merchandisinG for oPerational efficiencY

I believe most retailers are doing a fine job of general merchandising, but I would challenge some to go one step further. Using the ideas of display breadth and display depth, consider remerchandising your store for all the normal reasons but add a new oneoperational efficiency.

Many years ago as merchandise manager in a store I noticed that every time a warehouse order came in, the department staff would usually not be able to put the full order out all at once. For example, they would take five out of the tote, put three on the sales hook and set aside the remaining two to be sent back to the stockroom. This was a highvolume store with properly set min/max points. It was not excess ordering, it was insufficient floor stock space. The problem was that the order quantity needed for just the week would often not fit on the sales floor.

EASY TO USE. EASY TO CONTROL. HARD TO KEEP ON THE SHELF.

WD-40 Trigger Pro®. The same formula your customers know and trust to get the job done, in a convenient non-aerosol can.

WHY YOU SHOULD STOCK WD-40 TRIGGER PRO:

• 72% of category users are likely to purchase it *

• Shoppers will buy it because it’s easy to use and control *

• Category users expect to find it at home improvement and hardware stores *

*Source: WD-40 Trigger Pro End-User Research, February 2013

bottom line

We realized staff was wasting a lot of time walking back and forth to the stockroom, and wasting a lot of space storing product that would sell in a short period of time and would need to be restocked to the sales floor in a matter of a few days.

The merchandising in the store was rather new, well laid out and otherwise not in need of a reset. We had 14” base decks and 12” shelves. Most of the peg hooks were 6” deep. The aisles were about 54” wide.

We analyzed the situation and came up with the following solution. We changed the base decks to 18” deep, reducing the aisle width down to 46” in some locations. This small change added 4” or 28 percent more actual stocking area on the gondola base.

We also changed the shelves to a tiered mix of 14” and 16” with some 18” shelves. We changed all the peg hooks to 10-12” in most areas. This mix of new shelves and longer peg hooks added from 25 to 50 percent more available physical stock space in the same existing lengths of gondola.

I then printed a computer report showing the min/max quantities of each item and we began to reset the department based on space required for an actual shelf or hook quantity equal to the min plus the order quantity, the actual maximum on hand quantity. Our plan was to make the bin size or number of peg hooks the exact

amount of space required for the product weekly sales needs.

It took a few days to do a department, but when we were done the vast majority of the items were set to the correct space. This worked simply because we greatly increased the display depth of our stock by increasing the depth of the shelves and the length of the peg hooks. In many instances we put an additional peg hook or small shelf at the top of the gondola for additional back-up stock.

The next time the warehouse order came in, the vast majority fit on the sales floor. The volume of back-up stock of small shelf and peg items in the stockroom lowered by a huge percentage.

We had some high-velocity items, high order-multiple items and large bulky items that still needed to have overfill quantities in the stockroom. However, we had reduced hundreds of items that previously were stored in the stockroom. We saved a lot of footwork. It took much less time to put the warehouse order away.

I challenge you to do this in your store. Your department heads will really appreciate it, especially in plumbing and electric. Some stores cannot decrease their aisle space without other issues. If your aisles are already narrow, increases in base deck width may not be an option. In this case, just increasing shelf depth where you can, increasing peg hook length and/or raising the height

bottom line

of the gondola will make some sizable improvements in available stock space.

let them see the liGht

My final key merchandising concept involves making it easy for a customer to see when they shop in your store. To see in your store, customers need proper lighting. This is incredibly important now. Why? Because 40 years ago we designed our stores to be great places for us to work rather than great places for customers to shop. We built our stores with dark paneling on the walls and drop ceilings with sparse lens-covered fluorescent lighting with diffuser panels. If you were lucky you got about 40 foot-candles of light at table height.

This type of store was a great place to work because it was like the den in your basement. If you were there for a few minutes, you got comfortable with the low light levels. It was terrible for convenience customers who came in from the outside at 500 foot-candle light off the pavement into your dim store. It took them two minutes just to be able to see in your store when they only wanted to spend one minute there.

It actually took decades to correct this mistake. Check out your nearest convenience shop and see the brightness of the display area. Convenience store light levels are designed for customers who come into their stores, make a purchase and leave in 90 seconds. If you are a convenience hardware store

you need to act like a convenience food store. Get your light levels up to at least 100 foot-candles at four feet off the floor. Only then will customers be able to really see the fine job you have done on the rest of your merchandising.

I have a simple validation check for store lighting. Take a camera with a flash and take some pictures of the aisles inside your store. If the photos look better than your actual store, you don’t have enough lighting. It is as simple as that. The camera flash fills in where your store lighting falls short. Check out your store. If you do not have a handheld light meter, use a flash camera and see if your lighting levels are high enough. If your store is too dark, then talk to your wholesaler about upgrading your lighting. Most have a program that works well for retailers. The bottom line is that merchandising is all of those things that you do to make your store more accessible, more visible and ultimately easier for customers to shop and employees to efficiently work in. Make sure you merchandise to the fullest and work to become the store of first choice in your town. n

John Franklin has more than 40 years of experience in hardware retailing, most recently as merchandise manager at Williams Lumber & Home Centers in upstate New York. Contact him with questions or feedback at john@thehardwareconnection.com.

The Hardware Conference the ChannelTwo-Step strengthens

Now in its 26th year, The Hardware Conference in Marco Island, Fla., keeps finding new ways to bring the industry together to keep the two-step channel strong. This year’s event took place September 5-7 at the Marco Island Marriott, with gorgeous white sandy beaches and stunning sunsets to help attendees get away from the stress of their everyday business lives.

Organizers Tom and Dale Chasteen know how to throw a party that is equal parts fun and informative. The Hardware Conference is the only industry event held exclusively for independent retailers regardless of wholesaler affiliation, and every year it lives up to its motto: “Where Relationships are Formed.”

The highlight of this year’s Conference was the Friday evening banquet, where five of the industry’s best retailers were honored during the Beacon Awards program. “We were delighted to be a part of such a first-class event,” commented Jim Holden of Epicor, one of the sponsors of the Beacon Awards.

However, the big news came when Tom and Dale Chasteen announced that they would be transitioning The Hardware Conference to Craig and Shanti Cope, who will ensure the event continues to grow into the future.

Craig and Shanti are co-owners of Island Décor, a premium retailer in the Florida Keys. Craig, who will also be joining the staff of The Hardware Connection magazine, was most recently executive director of the Key Largo Chamber of Commerce and spent 13 years with Altria Group (formerly Phillip Morris USA) in a variety of sales and marketing positions.

“Dale and I wanted to make sure that The Hardware Conference continued for many years in the future, and we could not be

happier that Craig and Shanti have agreed to come on board and help us take the event to another level,” Tom said. “We think the world of Craig and Shanti and have no doubt they have the right combination of skills and commitment to ensure The Hardware Conference grows and remains relevant. Dale and I will still be very involved during the next three years as we transition over to Craig and Shanti and we will continue to participate and help out wherever we can hopefully for another 20 years. Dale and I aren’t getting any younger and we would much rather be proactive in the transition to the next generation vs. waiting until later and possibly be forced into a reactive situation.”

education program

An all-day Technology Forum was again held on Thursday, the day before the Conference officially opened. Epicor, ECi RockSolid and J-3 POS all held indepth training sessions with their retail customers, helping them discover ways to operate more efficiently.

KRYLON® PROJECT OF THE WEEK:

Super-Looking Sales Numbers

Your customers want spray paint that provides great color and coverage.

NEW Krylon® ColorMaster™ Paint + Primer with durable Covermax® technology gives them exactly what they want.

Here’s how:

• The new formulation achieves better hide without the use of fillers or shading, so colors are clean, crisp and more brilliant than ever.

• Krylon’s proprietary EZ Touch® conical spray tip ensures control and even coverage without finger fatigue with no runs or drips.

• The expanded recoat window of 4 hours (instead of 1) allows for more time to work on a project instead of waiting until the next day.

Results:

Krylon ColorMaster Paint + Primer makes everything, including your sales, look great.

“This was the second year that ECi offered training and it was great. We all learned new tips and tricks,” said Rick Heuser of Handyman Do it Best Hardware in St. Cloud, Fla.

An enhanced dealer program featured a free two-part, five-hour training session on Outlook, Word and Facebook conducted by Fred Pryor and Associates. Those who attended the Fred Pryor training all agreed it was excellent and well worth their time.

During the dealer seminar Gary Pittsford of Castle Wealth Advisors, a certified financial advisor who specializes in succession planning, answered questions about the intricacies of buying and selling a business.

“To begin the process of selling your store you have to think in terms of what can I get out of the store assets? You have to make sure you’re making money,” noted Pittsford. He pointed out that owners of C Corps have to pay a lot more taxes when they sell, especially if they sell to a family member.

Instead of having a son buy 60 percent of the business and have to pay tax, he can be given stock and then pay slightly above rent over 10 to 15 years to the parents, Pittsford advised. “Uncle Sam just got eliminated from that transaction.”

Another trick is to add a non-compete clause. “Instead of selling a business for $500,000, sell it for $400,000 and add a $100,000 non-compete clause. You pay less in tax that way,” he said.

Pittsford listed three mistakes retailers typically make when buying a new store: they don’t do enough due diligence such as properly evaluating the inventory, they don’t look at the maintenance of the equipment and they take on the existing receivables. The most common mistakes when selling is selling too cheap by not taking into account owner benefits such as travel expense, 401k and health insurance, he noted.

Also during the dealer seminar, Darrell Wabschall detailed how The Vendor Center can serve as an online resource center connecting retailers and vendors, providing everything from product catalogs, vendor announcements, training materials and embeddable circulars to special offers and drop-ship order forms. The newest addition is the Vendor Online Ordering Program, which is designed to streamline the order writing process.

industry coming together

Leading vendors participate with tabletop booths displaying their latest product

Sunnyside is a Proud Sponsor of the 2014 Beacon Awards

2014

marks Sunnyside Corporation’s 121st year of continuous operations. From its humble beginnings in 1893, to the present, Sunnyside remains family-owned and managed. Through four generations, Sunnyside’s core values have not changed: to offer its customers innovative, high-quality products coupled with unparalleled customer service.

Henry Lueders founded H. Lueders & Company in 1893 on the north side of Chicago distributing kerosene and other oils from a horse-drawn wagon. Sunnyside served a growing customer list with “route” trucks that filled instore bulk containers with basic chemicals, including kerosene, naphtha, linseed oil, syoleum spirits and others. By 1920, the company expanded to a new location on the northwest side of Chicago, and changed the company name to Sunnyside Corporation.

In 1928 Sunnyside pioneered the packaging of solvents and chemicals into consumer-oriented containers.

Those early containers reflected the yellow and black graphics theme that has evolved into the highly recognized Sunnyside packaging of today.

Now, under the leadership of Robert Lueders, the great-grandson of the company founder, Sunnyside continues to aggressively move into new markets, expand its customer base and introduce new products to keep up with everchanging environmental regulations.

Sunnyside continues to improve and expand its manufacturing capabilities, with significant on-going capital investment in automated equipment and high-speed filling lines.

Sunnyside Corporation’s main manufacturing facility is in Wheeling, Ill.

Sunnyside’s manufacturing and distribution facility is centrally located in Wheeling, Illinois. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the Western United States, Canada and Mexico. Quick turnaround, timely shipping, high levels of product quality, flexibility and urgency in addressing the needs of its customers are important to Sunnyside.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover. Sunnyside’s product lines, which are available for sale in every state, are positioned to meet or exceed environmental regulations across the country and customer needs.

“Innovative Products for Today and Tomorrow,” Sunnyside’s hallmark for over 120 years.

innovations. Since the Conference is not a buying show dealers can learn more about the suppliers and their products without enduring high-pressure sales tactics.

Saturday afternoon was left free so attendees could enjoy all outdoor fun. Wooster Brush again sponsored “A Day at the Beach” with free beach activities for Conference attendees. Minwax sponsored the shelling boat and Krylon hosted its 27th golf outing.

“This was a really fun and enjoyable event and we’re so glad we got a chance to attend this year,” said George Havlicek of Geneva Ace Hardware in Geneva, Ill.

“I can’t say enough about the Conference. I’ve been attending for 20-plus years. It was great to see some new faces this year, both in store owners and vendors,” said Heuser. “The interaction between owners and vendors is real and down to earth. It gives both sides the opportunity to discuss issues that, quite frankly, we don’t have time to address at our markets. It gives me, an owner, the ability to develop personal contacts with vendors

Upper Left: Carolyn and David Fichtner of University Ace Hardware in Auburn, Ala.

Upper Right: Rob Livingston (left) and George Havlicek (second from right) of Geneva Ace Hardware get a demonstration on Hyde Tools products from Denise and Bob Clemence.

Bottom Left: Retailers had a chance to talk one-on-one with vendors while the exhibits were open.

Bottom Right: June Nash and Ed Hayes of Krylon.

that I want to do business with. Relationships are formed,” he added.

open dialogue sessions

The open dialogue sessions on Saturday and Sunday mornings gave dealers and vendors an additional chance to exchange candid opinions about key issues affecting the supply channel.

Retailers let the vendors in attendance know that they won’t take on a new planogram unless at least 90 percent of the SKUs are in their wholesaler’s warehouse and there is easy reorder. Once they take it on, they will give the new assortment three to six months to see if it will pan out.

Many of the dealers use Red Laser or a similar app to price shop the competition, and most are using technology to do electronic ordering that is tied to a POS system.

“Technology is driving the industry more and more. If you’re not into online selling then Amazon is taking business away from you,” Chasteen said.

Vendors were asked how important the independent channel is to

their business.

“It’s huge.

There are a large group of us who have lived on business from independents,” said Jeff Crayton of Minwax.

Pat O’Reilly of Apex Tool Group noted they have a van program dedicated solely to independents, while J.P. Shields of Fixture-Fix said the first thing he did after buying the company is drop Home Depot. “Eighty percent of our business comes from independents,” commented Bob Clemence of Hyde Tools.

Several retailers commented that they go out of their way to support vendors who attend the Hardware Conference, because their participation signals a commitment to the independent channel.

“As a relative newbie to The Hardware Conference (this being our second year to attend), the benefits I get out of it far exceed the expense,” said Tim Pruitt of Avilla Hardware in Alexander, Ark. “Perhaps the most beneficial benefit for me is the discussion groups, where I glean valuable info and insights into how

others are dealing with issues that I may not be currently facing but could face as my business grows. The acquaintances made are certainly enjoyable as is the brief time away from the daily grind.”

thanKs to sponsors

Special thanks go to the marquee sponsors: Gilmour, The Hardware Connection magazine, The Hillman Group, Krylon, Miami Children’s Health Foundation and The Wooster Brush Company.

The wholesale community also lends important support to the Conference each year, with representatives from Ace Hardware, Orgill, True Value and Orgill in attendance and conducting meetings with their members.

“We couldn’t put on this Conference without the fantastic support we receive from these sponsors, and we are fortunate to have so many vendors who are willing to support the independent channel,” said Chasteen.

At the end of the Conference the vendors auction off their display merchandise and the money raised is donated to the Miami Children’s Health Foundation. This year’s auction raised about $18,000, bringing the total fundraising amount through the years to over $1 million. ■

Beacon Awards Program Honors

the Industry’s Best Retailers

The honorees and sponsors of the 2014 Beacon Awards.

Five retailers were honored with Beacon Awards during a special awards banquet held during The Hardware Conference in Marco Island, Fla., on Friday, September 5.

John Hammond was the master of ceremonies for the Beacon Awards program, along with Tom Delph, program director.

hardware conference

Upper: Tom Delph, George Havlicek and Rob Livingston of Geneva Ace Hardware; Dave Atkins of Ace Hardware Corp. and John Hammond.

Lower: Jamey Atkins of True Value, Tom Delph, Robbi Najarro and Andrea Ridout of Gecko True Value; and John Hammond.

THE BEACON AWARDS ARE A PREmier national industry awards program developed by The Hardware Connection magazine and The Hardware Conference to recognize the “best of the best” independent

Jamey Atkins of True Value; Tom Delph, and Danny, Jennifer and Sharon Meendering, True Value of Concord.

hardware/home improvement retailers while encouraging a new generation of retailers to make their mark.

“It’s important for the industry to have a first-class national awards program to honor outstanding retailers in the industry and to encourage others to step up their operations to attract customers to their stores in the face of increasing competition,” said Tom Delph, director of the Beacon Awards program. “There is no better place to conduct this award program than at The Hardware Conference, which is the industry’s largest gathering of independent retailers representing different wholesalers.”

The 2014 Beacon Awards were sponsored by Apex Tool Group, Epicor Software Corp., Sunnyside Corporation, 3M and Sherwin-Williams Diversified Brands Division, with wholesaler sponsorship support from

hardware conference

Left: Tom Delph, Cherie and Tom Bradley of Complete Home Center, Ellison Barham of Orgill and John Hammond.

Right: Tom Delph, Carolyn and David Fichtner of University Ace Hardware, Dave Atkins of Ace Hardware Corp. and John Hammond.

Ace Hardware Corp., Orgill Inc. and True Value Company.

The Beacon Awards honored the Retail Beacon Award winners for each of the three participating wholesalers, plus the Best New Stores in two

categories: under 20,000 square feet and over 20,000 square feet.

Here are the five Beacon Award honorees for 2014:

Best New Store, over 20,000 square feet: Geneva Ace Hardware,

Geneva, Ill., owned by George and Lynn Havlicek

Best New Store, under 20,000 square feet: Gecko True Value Hardware, Dallas, Texas, owned by Andrea Ridout

hardware conference

Retail Beacon Award: University Ace Hardware, Auburn, Ala., owned by David and Carolyn Fichtner

Retail Beacon Award: Complete Home Center, Hernando, Miss., owned by Tom and Cherie Bradley

Retail Beacon Award: True Value of Concord, Concord, N.C., owned by Sharon

and Tom

and Danny Meendering

“What an outstanding group of Beacon Award winners we had this year,” said emcee John Hammond. “These retailers all took risks to buy, remodel, expand or open stores that would be embraced by their communities while positioning their family businesses for future success.” ■

Thank You to the Beacon Awards Sponsors

The Beacon Awards program is an annual event honoring the best retailers in the industry. They are made possible by the generous support of sponsors who recognize the importance of honoring those retailers who represent the future of the two-step channel.

This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Sunnyside Corporation, Sherwin-Williams Diversified Brands Division, 3M, The Hardware Conference and The Hardware Connection magazine. They were also co-sponsored by Ace Hardware Corp., Orgill Inc. and True Value Company.

TEpicor is a Proud Sponsor of the 2014 Beacon Awards

the Competition

o grow top-line revenue for your hardware business and succeed in today’s retail environment, you need a technology partner who places no limits on how you operate your business, what you can deliver to your customers, and how you can outservice your competition.

EPICOR DEVELOPS, IMPLEMENTS AND supports advanced business systems for independent retailers like you. Our systems make your business smarter and more agile, and help you deliver the service, selection and prices today’s customers want.

Offer a Better CustOmer experienCe

Epicor Eagle N Series is our industryleading business management software for retail. Eagle N Series gives you the ability to meet the expectations of today’s connected, cross-channel

shoppers for the right merchandise and the best service, helping you outservice the competition.

Get expert Help at every turn

Epicor provides the full range of consulting, implementation, training and on-site support services. Our systems are installed and maintained by experienced Epicor employees.

use a sinGle system fOr everytHinG Eagle software has the capabilities you need to improve your customer order

Eagle POS Touch enables faster checkouts for better customer service.

Eagle Pricing Planner lets you use desktop and mobile tools and analytics to set “smart” prices.

Eagle Mobile Manager gives you quick, anytime access to inventory, sales, customer information and more.

Eagle Performance Manager lets you quickly track key performance indicators with real-time scoreboards.

Eagle Inventory Forecasting lets you simplify demand forecasting.

management and point-of-sale operations, tighten your inventory management processes and streamline the vendor procurement side of your business.

IMPROVE INVENTORY PLANNING AND MANAGEMENT

The intelligent inventory tools in Eagle N Series anticipate customer demand and take the guesswork out of inventory planning, helps streamline ordering and makes it easier to buy smarter, avoid stock outs and overstocks, and cut excess.

ANALYZE YOUR BUSINESS

Eagle N Series software includes integrated financial management products, analytics and reporting

Built-in real-time analytics help to make faster, more informed decisions for better business results.

products that give you actionable insights to your business.

EAGLE PLANNER SERIES

Eagle Planner Series offers advanced capabilities to set smart pricing, simplify demand forecasting, and track key performance indicators.

ABOUT EPICOR

When you choose Epicor, you are partnering with a global leader in business software solutions with more than 40 years of experience. Our solutions help enable companies to improve efficiency and profitability, and we provide a single point of accountability.

For more information, visit us at www.epicor.com/eagle.

Best New Store Over

Click to Watch Geneva Ace Hardware’s Beacon Award Presentation Video

Geneva Ace Hardware Geneva, Ill. sq. ft.

Owner George Havlicek (right) and General Manager Rob Livingston have been able to continue raising the bar on the performance of Geneva Ace Hardware.

George Havlicek is a custom home builder and his wife Lynn runs a high-end custom cabinetry showroom in Geneva, and the couple had a long desire to own a hardware store in their community. With help from Ace, they opened Geneva Ace Hardware in January 2012 with an indoor sales floor of 17,800 square feet plus a 4,300-square-foot garden center.

“People would ask me ‘Why don’t you open a hardware store?’ because I’d had a successful builder business. My architect has heard me talk about opening a hardware store for over 20 years, and the right opportunity finally came about for us,” explains George.

Helping the Havliceks operate the store is General Manager Rob Livingston, who can draw on nearly two decades of experience running four Sears Hometown Hardware stores.

As George notes, “What makes our store truly unique is our service. It can’t be overstated about being the helpful place and that’s a compliment to our associates,”

Upper: The Culinary Corner features a unique mix of housewares items and is the perfect place to host cooking classes.

Lower: The 4,300-square-foot garden center helps attract female customers.

“Ace’s Helpful 101 training program helps us focus our employees on providing the best possible customer service,” says Rob. “We want to exceed every customer’s expectation from a service level. The only way we’re going to win is by building relationships with customers.”

The store is off to a great start. Geneva Ace exceeded its first-year pro forma with sales of $2.39 million and increased sales to $2.63 million in 2013. Sales are up nearly 15 percent in 2014. “Ace has been integral from day one,” points out George. “They were willing to work with us and incorporate some of the design ideas we had for the store.”

For example, the store incorporates soft touches like the “Culinary Corner,” which is a fully functioning kitchen

located in the housewares department. This commercial-grade kitchen is used to do cooking classes and perform demos on a variety of kitchen and gift items.

“The Culinary Corner features a unique mix of housewares products and that continues to grow for us, as people don’t initially expect a hardware store to carry items like that,” George says.

Geneva Ace has numerous displays that cater to different customer segments and add warmth and charm to the store including:

• TVs—Ceiling-mounted TVs feature news, sporting events and how-to shows. There is a seating area for customers to sit and relax while watching TV and eating free popcorn.

• Furniture—Antique tables and cabinets are used to display housewares and appliances.

Upper Right: The store was one of the first to adopt Ace’s Paint Studio.

Lower Right: The store carries a broad selection in core categories such as hand and power tools.

• Geneva Vikings—A custom-made, chainsaw-carved “mascot” is in place to connect with the local community.

• Specialty Displays—Custom-made displays for bag goods present a more enticing look to the customer. These displays were made in-house by an employee in the basement workshop. In addition to the garden center and housewares and gift items, Geneva Ace differentiates itself with strong niches

Ace Hardware Corp. Congratulates its Two Beacon Award Winners

Geneva Ace Hardware, Geneva, Ill.--Best New Store

Over 20,000 sq. ft.

Owners: George and Lynn Havlicek

University Ace Hardware, Auburn, Ala.—Retail Beacon Award

Owners: David and Carolyn Fichtner

Left to right: David Sweany of Ace Hardware Corp.; Rob Livingston and George Havlicek of Geneva Ace Hardware; Carolyn and David Fichtner of University Ace Hardware; and Dave Atkins of Ace Hardware Corp.

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

Top Left: Creative merchandising displays greet customers as soon as they enter the store.

Top Right: A niche in barbecue grills and accessories is complemented by a custom wood display that is used to display bird feed and feeders.

that include Stihl power equipment, grills, rental and pool supplies.

George and Rob understand that monitoring performance metrics regularly and making adjustments as needed is one of the keys to running a successful business. Margins for the first year were a solid 42.3 percent, and in 2013 they inched up to 42.5 percent. The store has reduced expenses by 12.3 percent so far this year versus last year and raised average transaction by $2.25 to a respectable $23.15.

Geneva Ace, which has earned a Pinnacle Performance Retailing Award from Ace, tests new retail concepts such as a Wi-Fi based customer traffic pattern tracking system and in-store pickup for online orders. “We will consider

Lower Left: Success out of the gate can largely be attributed to an unwavering emphasis on personalized service.

anything that helps us do a better job serving our customers,” Rob says. Community involvement is another important element of their success. The store is a proud supporter of the local Geneva High School all-sports boosters, the Geneva Vikings. The store sells spirit wear for the school and all proceeds go directly to the school boosters. George is active in the Geneva Chamber of Commerce and the store and its employees are active in many community events. “We’ve lived here for over 30 years and try to give back as much as we can,” says George.

Winning the Beacon Award for Best New Store is quite an honor, according to George. “It caps off a lot of work we’ve done and being recognized for that means a lot to us,” he says.

HARDWARE PROGRAM Ambassador

The Hardware Ambassador Program was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.

• View Vendor Product Listings by Wholesaler

• Ability to Download Product Listings by Wholesaler Directly into Retailers’ Point-of-Sale Computer Systems

• Check Out Vendor Profiles, Informational Videos & Product Reviews

Click Here to Learn More and View Vendor Product Listings by Wholesaler

Andrea Ridout may be the creative force behind Gecko True Value Hardware in Dallas, but George the Rooster is the real star of the store.

Opened on Earth Day, April 22, 2013 by Andrea Ridout and a group of investors, Gecko True Value Hardware in Dallas is a new kind of DIY experience for consumers who are seeking to live a more eco-friendly lifestyle focused on sustainability.

Above: Gecko True Value is on track to do $1.8 million in sales in its second year with a 12,000-square-foot sales floor.

Right: Andrea Ridout (right) is the owner and managing partner of the business, while Robbi Najarro (left) is the finance manager and David Lea (center) is operations manager.

Lower Right: Kids love holding the baby chicks and seeing what George the Rooster is doing.

Combining a traditional True Value hardware store with an urban homesteading/garden center, Gecko offers hard-to-find parts, nifty gadgets and unconventional products like chicken coops, live chicks and hand-made mirrors. Kids stop by the store to say hi to mascot George the Rooster, who roams the store when not in his cage.

“We have tried to create something different. You’re not going to find this mix of products at the big-box

stores,” says Andrea, who previously operated HARDWARE+ Plus in Garland, Texas, which she sold to Elliott’s Hardware in 1997.

“I love green. I was always inspired by all those companies that were making green products but were having trouble finding retail stores to carry those products. So it came up in conversation: why don’t I open a hardware store? So I did,” she says.

Gecko True Value Hardware also places an emphasis on products “Made in the USA” or even better yet, made locally. “Made in America is very important to us. We look for products that are made in our own neighborhood and we have several,” Andrea points out. “Our best-selling product is Skeeter Screen, a patio egg for mosquitoes that is made just a few miles from our store. We love things that are made locally and then from Texas and then nationally.”

As she explains, “The less fuel you have to use and the more local resources you use, it’s a more green and sustainable way of doing business.”

Upper Right: Creative merchandising displays help make Gecko True Value a fun place to shop.

Lower Right: Grills and barbecue accessories comprise a strong niche along with pet products.

With a 12,000-square-foot sales floor, Gecko did over $1 million in sales in 2013 and should reach $1.8 million in sales in 2014.

Andrea is a veteran of radio and TV, hosting her national home improvement radio show, Ask Andrea, for over a decade. In recent years, she has concentrated on green initiatives, beginning with co-hosting The Energy Show in 2006 and culminating with writing,

producing and hosting Mother Earth News Radio, a national program that aired through spring 2011. Her other radio credits include hosting energizeGreen as well as numerous appearances on programs such as Martha Stewart Radio and Daybreak USA.

Andrea has been the field correspondent on Dig In, a North Texas gardening/cooking show. She was also the cast “Cool Tool” gal on DIY’s Tools and Techniques, part of the Scripps Network. Andrea’s articles, expertise and product critiques have been in magazines such as Reader’s Digest, Women’s Day, Country Home and Old House Interiors, as well as in her own book, “If I Had a Hammer,” published by Harper Collins.

While she is comfortable behind the camera or in front of a microphone, Andrea has a deft personal touch when dealing with customers. Gecko True Value stands out for its personalized service as employees know how to be helpful without being a nuisance to customers, who sometimes just like to stroll around and check out the eclectic product mix and admire the whimsical displays.

George the Rooster is the real star of the store. He was brought in by a little girl who didn’t want him to end up on the dinner table, and the staff and customers quickly fell in love with him. “Folks began to drop by every day to have their photo taken with him. He has become especially popular with young

The merchandise assortment features a mix of eclectic and eco-friendly items that cannot be found in the big boxes.

kids. They love to hold him and cannot believe how sweet he is,” says Andrea. “A customer recently told me, ‘Holding this rooster lets me connect to all of the memories of my grandparents and going to the country.’ It’s a sentiment that is shared by many,” she adds.

A fun link about George on the internet received more than 400,000 views, which dovetails with the success Gecko True Value has been having by embracing social media. The store already has 3,384 “likes” on Facebook and 160 followers on Twitter, as social media is being used smartly as an inexpensive way to build awareness of the new store.

Gecko True Value hosts classes and workshops nearly every week, which are promoted on social media to encourage community involvement.

Winning the Beacon Award for Best New Store is a huge honor, according to Andrea, who adds, “Not only is it affirming what we thought people would like but it lets us know there is a need for a green hardware store and a need for crazy, fresh and innovative.”

Sherwin-Williams Offers the Right Brands to Drive Sales

FSherwin-Williams is a Proud Sponsor of the 2014 Beacon Awards

ounded in 1866, The Sherwin-Williams Company® is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers. With global headquarters in Cleveland, Ohio, The Diversified Brands Divisions’ customers are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, and industrial distributors. Over the years, through acquisitions, The Sherwin-Williams® Diversified Brands Division has built a strong family of national brands; such as Krylon®, Dutch Boy®, Pratt & Lambert Paint®, Purdy®, White Lightning Caulk®, H&C Concrete Stain® and more.

In 1947, a Philadelphia businessman, Howard E. Kester, revolutionized the paint industry and founded Krylon, Inc., the first and still largest supplier of aerosol paints in the world. Today, Krylon® is known as an industry leader in product innovation, package design, project inspiration and color. Our range of products expands beyond the home and into your backyard with

multi-purpose, plastic, specialty, rust preventative, brush-on and craft products. Founded in 1907, Dutch Boy® continues to be an industry leader in delivering innovative and high-quality paint products and packaging solutions. Dutch Boy offers a full line of interior and exterior products to help

SHERWIN-WILLIAMS DIVERSIFIED BRANDS

you create the perfect room, or enhance the curb appeal of the home.

Pratt & Lambert

Paints® is known by designers nationwide for its dynamic and thoughtful color choices. Pratt & Lambert is the uncompromising paint choice for designers, architects, professional painters and discerning consumers who insist on a flawless finish, beautiful, trend-right colors and true color accuracy. Our company has a rich heritage, grounded in a history of quality and innovation that dates back to 1849.

beautifying and protecting concrete. Established in 1929, H&C is known for its high-quality, superior adhesion characteristics in its coatings. We are always looking for new and innovative ways to make concrete more appealing, more artistic and more colorful.

Purdy® had its beginning in a converted garage in Portland, Ore., with five employees in 1925. Founder S. Desmond Purdy believed that handcrafting the finest painting tools may take a little longer but was the only way to “build in” superior coverage and performance. It is this commitment to quality that is the foundation on which professionals rely on and is the driving force behind each Purdy brush, roller, and tool that has our name on it.

H&C® has all of your decorative concrete needs—with a wide product offering of stains, sealers, waterproofers, resurfacers and more. Add years of life to new concrete, or revitalize old concrete for much less than the cost of replacement. Our products can be used on almost every concrete surface around the home; pool decks, garage floors, stucco, basement walls and floors, patios and walkways.

For more than 80 years H&C®

Decorative Concrete Products has been

The White Lightning® line of caulks and sealants has been the choice of building industry professionals and serious do-ityourselfer for nearly a century. As one of the largest caulk and sealant manufacturers in the U.S., the White Lightning® brand is a market leader in lab-verified, premium performance. We offer a full line of Kitchen & Bath, Window and Door, All Purpose and we also provide products for the special jobs.

No matter what the need, Sherwin Williams’ Diverisified Brands Division can supply the right brands to ensure customer satisfaction and sales growth. ■

Retail Beacon Award

Complete Home Center Hernando, Miss.

Sherie Bradley, shown here, takes charge of social media postings at Complete Home Center in Hernando, Miss. Click to Watch Complete Home Center’s Beacon Award Presentation Video

Tom Bradley

started working in the retail hardware business when he joined the Central Hardware chain at the age of 16. After more than two decades spent helping run other retail businesses, he finally got the chance to operate his own store when he and his wife, Cherie, bought a distressed hardware store in Hernando, Miss., in June 2010.

“It was close to where we used to RV and I told my wife, ‘I’d love to have this store,’” recalls Tom.

The previous owners had not pursued consumer business, especially female shoppers, and the store had only $60,000 of usable inventory, so it was almost as if the Bradleys were building a new store from scratch. On

top of that, Tom planned to retain his position as vice president of Hyman Builders Supply in Memphis.

Tom had spent three years doing remodels for Central Hardware, so he felt comfortable developing a new merchandise plan for the 15,000-square-foot sales floor. Complete Home Center reopened seven weeks after the Bradleys closed on the sale, although it took two years for Tom to get the assortments just right. They received extensive help from their supplier, Orgill, in getting the store up and running. “Orgill takes care of all my needs yet allows me to be an independent,” Tom says.

Since opening over four years ago the store has posted a sales increase every month but one. “We had our best month ever in June and we were up 365 transactions from the prior year,” points out Tom, who adds that transaction size was up $3 as well.

Tom likes to stress three things—customer service, customer service and more customer service—and that has been a big key to their success. “It is 100 percent of our focus. We don’t talk customer service, we do customer service,” he says. “It’s nice to have a neat store appearance, but when a customer comes into your store, that’s all that matters.”

Left: A strong emphasis on customer service has been one of the keys to Complete Home Center’s success.

The awards keep coming for Sherie and Tom Bradley, shown here with their daughter, Madison, who also works in the business.

The checkout area was changed so that cashiers are poised to greet customers as they come in, and employees are required to take customers directly to products. They only hire people with outgoing personalities, and Cherie’s father, who is a master electrician, is on hand to help with product training.

Tom wanted to make sure they were on the right track with their service, so he started participating in a Secret Shopper program. Out of 26 stores they were number two but they were number one in customer service and politeness. Small cash bonuses are given to employees who score 100 for service.

Eight-foot convenience lumber was brought in, which has sparked project sales. Tom hopes to take advantage of a large outdoor area in back by expanding to carry 12-foot lengths of lumber.

The fasteners department has emerged as a huge seller for Complete Home Center with $60,000 in inventory.

Big Green Egg grills were added recently as a niche opportunity and the category has exploded for them. “We’re not afraid to try new things,” says Tom.

The store has been able to attract local plumbing contractors with an extensive selection of plumbing including PVC fittings and bulk pipe.

Tom and Cherie’s daughter, Madison, also works in the business, making it a true family business. Sales were $1.22 million in 2013 and are projected to rise nearly 40 percent to $1.7 million this year. They are a member of the local Chamber of Commerce and sponsor the high school sports teams and the Palmer House women’s shelter, which helps create goodwill with the community. “The big boxes are only 20 miles away so our customers can shop elsewhere. It feels good when someone says ‘I always come here first,’” says Tom. “Our people make the difference.”

Upper Left: A large selection of fasteners is helping attract customers.

Lower Left: After buying a distressed hardware store that was lean on inventory, Tom Bradley significantly increased the investment in inventory and then worked to perfect his merchandise presentation.

Right: The checkout area was changed so that customers are greeted by a smiling cashier when they first walk into the store.

By beefing up assortments in categories such as paint, the store now attracts a healthy share of female customers.

After buying a store that was almost devoid of product and starting out undercapitalized, Tom proudly notes the shelves are now fully stocked with $350,000 in inventory. “As an independent retailer you can get comfortable with what you’re doing, but you have to be willing to change,” says Tom. “I don’t want to be just OK…I’m very upset if there’s a month we don’t grow.”

Winning the Retail Beacon Award is a validation that they are doing a good job at what they love and that others in the industry recognize it, according to Tom, who adds that it’s validation for their employees too. “It makes everyone feel good, but we know we can’t relax. We’re still attacking it like we’re new,” he says.

Orgill Inc. Congratulates its Beacon Award Winner

Complete Home Center, Hernando, Miss.—Retail Beacon Award Owners: Tom and Cherie Bradley

Orgill’s Ellison Barham (left) with Cherie and Tom Bradley

3MTM is on the Leading Edge of Global Innovation

3MTM is a global innovation company that never stops inventing. Over the years, our innovations have improved daily life for hundreds of millions of people all over the world. We have made driving at night easier, made buildings safer and made consumer electronics lighter, less energy-intensive and less harmful to the environment. We even helped put a man on the moon. Every day at 3M, one idea always leads to the next, igniting momentum to make progress possible around the world.

The 3M Construction & Home Improvement Markets Division offers products for painting, decorating and repair, safety and home environment for both do-it-yourselfers and professionals.

ScotchBlue™ Painter’s Tape MultiSurface with Advanced Edge-Lock™ Paint Line Protector 2093EL features a 3M proprietary treatment called EdgeLock™ Paint Line Protector. It provides extra insurance to achieve super sharp paint lines.

Since 1996, Command™ Brand Products have been available for damage-free decorating and organizing. New this year are contemporary styles that give consumers the high fashion, high function they want, and as always, no damage. The indoor line has modern metal products as well as decorative

plastic hooks, spring clips and key rails. New Command™ outdoor metal hooks, clear window hooks and clips are designed for those who want to decorate their outdoor space. Decorate and organize any home with style.

Wall repair products include 3M™ Patch plus primer, a spackling compound with primer in it. Repairs can be made three times faster compared to vinyl spackling that does not contain primer. This year 3M introduced the Patch plus primer kit to make it easy for consumers to purchase everything they need for a 3” drywall hole. It comes with an 8 oz. tub of Patch plus primer, a 3” putty knife, a screen and a sanding sponge.

The newest thing in sanding is 3M™ Sandblaster™ Pro Ultra Flexible Sanding Sheets. A combination of synthetic

minerals, strong resins and an innovative film backing allows you to fold, roll or shape the sheet into any form you need to get the job done. The ultraflexible sheets last 15 times longer than paper-backed sandpaper based on backing life during hand sanding when compared to 3M conventional sandpaper of comparable grit. The tough backing resists puncture, tear and creases, helping the sheet keep its original shape.

3M offers a variety of safety products for the professional and the DIYer, and recently added the new 3M™

SecureFit™ Safety Eyewear to the product line. 3M SecureFit Safety Eyewear is a game-changer in comfort and security of fit. This new eyewear features 3M™ Pressure Diffusion Temple Technology—a scientific advancement that helps diffuse pressure over the ear, enhancing comfort while ensuring a secure fit. As soon as you put on these lightweight glasses, you’ll feel the difference as they automatically self-adjust for customizable fit each time. The naturallyadjusting feature allows for a secure fit on an array of head sizes, reducing

the need to stock multiple frame sizes. With anti-fog, high impact-resistant lenses that absorb up to 99.9% UV, 3M

SecureFit Safety eyewear is the clear choice for a stylish, confident fit.

3M has launched a number of air cleaning filters to meet increasing demand from consumers who are seeking ways to improve their home’s indoor air quality. The Filtrete™ Clean Living odor reduction electrostatic air cleaning filter is 65 times more effective at removing odors than other national odor-reducing positioned retail furnace filter brands based on a comparison of organic vapor capacity. In addition to reducing allergens, the technology behind this innovative filter allows it to effectively remove odors made by pets, cooking, mildew and smoke for up to three months. It starts working in minutes and lasts up to three months. ■

3M is a Proud Sponsor of the 2014 Beacon Awards

IBeacon Award

True Value of Concord Concord N.C. Retail

Click to Watch True Value of Concord’s Beacon Award Presentation Video

n 1988 Marvin and Sharon

Meendering migrated from Michigan to North Carolina with their two-yearold son Danny to take on the new adventure of being hardware store owners. They opened True Value of Concord (N.C.) as a branch store of Hickory Grove True Value in Charlotte, which was operated by Marvin’s brother.

The business grew steadily over time and the family decided to build a new building in 2000, going from 6,000 square feet to 15,000 square feet, which enabled them to expand further into niches such as outdoor power equipment.

True Value of Concord was opened in 1988 but moved to a new, larger building in 2000.

True Value of Concord was doing well until tragedy struck in 2004, when Marvin passed away suddenly. Eighteen-yearold Danny stepped into the void to help his mother Sharon run the business. “I’d been involved in the business since I was a little kid and decided it was the path I wanted to take,” says Danny.

Although the store continued to grow and even thrive during the recession, by 2012 Sharon and Danny felt it was time for a remodel, with the store’s assortments and design in need of updating. True Value of Concord underwent a full

remodel, adopting the Destination True Value format.

With the remodel they added 300 lineal feet and over $100,000 of new product with their updated assortments. All new fixtures were installed. The remodel made the store better organized while improving their ability to do inventory management.

“The Destination True Value format definitely creates a standard format to help brand awareness and it provides a consistent look while still allowing you to maintain your individual identity,” explains Danny. “The remodel brought the store up to date and made it easier to shop.”

Since the remodel the store has been growing at least 10 percent each year as they have been able to attract more customers than ever before.

Hardware represents only 50 percent of their business, with the rest coming from their strong traffic-building niches in outdoor power equipment, commercial landscape supply and rental.

Left: Sharon and Danny Meendering are shown in the middle here cutting the ribbon for the grand reopening in 2012.

Undergoing a remodel to the Destination True Value format gave the store a fresh look and updated assortments with more than $100,000 in new products added.

Relying on the Benjamin Moore brand to attract customers, the paint department is second in sales behind only outdoor power equipment. Carrying prograde fertilizers and seeds for their commercial landscape customers has also created appeal to homeowners.

One of the keys to their success has been hiring the right people. Says Danny, “We’ve got a great group of employees that come with experienced backgrounds, but we also find many young people to train on the job to deliver exceptional service.”

Danny’s wife Jennifer has been active in the business through the years and now works part-time in the business. At her urging the store is hosting its first Ladies Night event this fall.

The store has always maintained a high level of community involvement. They support True Value’s “Painting a Brighter Future” program by donating

40 gallons of paint to a local school, and donated paint to a large area church as part of the “I love my city” program.

True Value of Concord participates in two Christmas parades to stay in front of the community and will be hosting a Chamber of Commerce “Business After Hours” event this fall to showcase local businesses. Every spring the store hosts a North Carolina pesticide update workshop for landscapers so they can maintain their certification. “We do everything we can to stay in front of the community,” Danny says.

True Value of Concord posted sales of $2.9 million in 2013, and sales are up 8 percent so far this year. “We’re in an area where there’s every brand of chain competition, but we still continue to grow every year,” Danny proudly notes.

Uper Left: Outdoor power equipment has developed into a huge niche that fosters repeat customers.

Right: Careful attention is paid to hiring the right service-oriented employees, a mixture of experienced people from hardware and ag backgrounds along with young people who can be trained on necessary trade skills.

Lower Left: The Meenderings are active in the community, supporting True Value’s “Painting a Brighter Future” program by donating 40 gallons of paint to a local school.

With the remodel behind them, Danny and Sharon are working with a commercial real estate developer to evaluate potential sites for a branch store.

Danny, who was thrust into a career in hardware retailing at an early age, is active in a young retailer group started by True Value. He is only 28 years old, so he takes advantage of every opportunity to learn from his peers in the retail hardware industry.

Being recognized with the Retail Beacon Award is a very meaningful honor, according to Danny, who adds, “It means we’re doing the right things in the right places to take care of our customers and keep growing the business.”

Gecko True Value Hardware, Dallas, TX--Best New Store Under 20,000 sq. ft.

Owner: Andre Ridout

True Value’s Jamey Atkins (left) with Andrea Ridout and Robbi Najarro of Gecko True Value; and Sharon, Jennifer and Danny Meendering of True Value of Concord

True Value of Concord, Concord, N.C.—Retail Beacon Award

Owners: Danny and Sharon Meendering

BEACON AWARDS: The Industry’s Awards Program

Award Retail Beacon

University Ace Hardware Auburn, Ala.

Click to Watch University Ace Hardware’s Beacon Award Presentation Video

When David Fichtner sold the technology business he had run in Atlanta for 25 years back in 2009, it took him a few years to figure out what he would do for the next stage of his life. He and his family moved to Auburn, Ala., and they knew they wanted to do something local. David had always loved going to Ace stores, especially since his dad was a contractor, so he started evaluating the business opportunities of opening an Ace Hardware store.

David sure did his homework. He attended an Ace show and asked hard questions of the co-op’s CEO. He personally visited about 50 Ace stores and talked to 20 Ace owners in the Southeast. He traveled to

University Ace Hardware opened in February 2013 and sales have been growing every month since.

Chattanooga, Tenn., and spent a week and a half discussing the hardware business with multi-store owner Tom Glenn, even working a day in the store. He checked out the competition too. David didn’t leave any stone unturned with his research.

Another deciding factor was that the whole family could work in the retail hardware business together. David and his wife Carolyn have six kids—the oldest is 27 and no longer involved—but 19-yearold twins and 17-year-old triplets became involved in the business.

The Fichtners bought an old building in Auburn from the 1970s that had sat

empty for five years and transformed it into University Ace Hardware, which had a soft opening in February 2013. The store, which was honored with the Auburn Beautification Award, has been an instant hit with the community.

University Ace features a sales floor of 11,700 square feet plus two outdoor spaces. Sales for the first full year of business were $1.37 million, with margins of 39 percent. “Very few businesses make money in their first year,” David notes, “but we did. We met or exceeded our goals because we were good at the important things.”

The garden center covers 2,220 square feet and has been a huge draw for customers. “We’re trying to be a year-round garden center,” David says. Three thousand square feet of covered outdoor space is devoted to outdoor power equipment. The store has had great success with zero-turn radius mowers.

David strives to provide value to customers, which is a combination of service, convenience, neat and orderly merchandising and competitive prices. “If we don’t provide great customer service then nothing else matters,” he points out.

Other strong niches include grills and accessories, birding, pool supplies and

Right: With the successful launch of their first store behind them, the Fichtners are finalizing plans to open a second store next year.

Left: Opening up a hardware store makes it easy for the Fichtner family to spend more time together. Shown here with David and Carolyn are their kids (from left to right) Jonathan, Ina, Anne, Ilga and Michael.

pool testing, outdoor clothing and outdoor power equipment. Carolyn takes charge of the gifts and accessories section.

David and Carolyn are committed to the cause of community involvement. They sponsor a ministry that builds and renovates homes for lower-income families, sponsor Teacher Appreciation Days at local schools and three pet adoption fairs at the store, donate products for Habitat for Humanity and Breast Cancer Awareness events and sponsor a program that mentors and tutors atrisk youth at the local middle and high schools. “Community involvement is critical and we always stress the importance of buying local,” David says.

David and his team use the Mango reporting system, an innovative way to manage inventory accuracy. Mango reporting enables the store to control inventory value, monitor accuracy, test

for theft, reduce x-item clutter and recover frozen SKUs.

University Ace features the new Paint Studio from Valspar, making the store a destination for paint and decorating projects.

David notes how critical it has been to partner with a reliable supplier in Ace. From helping find a building and the design, layout and stocking of the store to the back-office support and Epicor POS training, Ace has met all of their needs, he says.

David and Carolyn have developed a comprehensive training program for their seven full-time and 10 part-time employees that includes Ace’s in-store and Helpful 101 training, quarterly training sessions and the online Learning Place courses. David sits down with each employee every three months to talk about their performance and what’s going on in their life. He also posts detailed financial metrics, from Ace Rewards conversions and daily transactions to sales per labor hour and total store sales.

Customer counts continue to grow as the store’s marketing and promotion efforts take hold, with increasing efforts

Left: The year-round garden center helps the store become a favored destination for female customers.

Right: A comprehensive training program has been implemented to ensure the store’s employees are delivering exceptional customer service.

on social media and special events such as outdoor power equipment demo day. David and Carolyn are also aggressively going after commercial business, which is paying off for them.

The Fichtners are planning to open a second 6,000-square-foot store next year in nearby Montgomery, Ala. Their long-term goal is to open a new store every two years until they have five open. “We feel expansion is a way to keep our kids involved in the business,” explains David.

David says it is humbling and gratifying to earn the recognition of the Beacon Award, but says it makes all their hard work worthwhile. He says, “I’m proud that we’ve become a vital part of the community in such a short time. You have to genuinely enjoy helping and servicing people, but it’s such a rewarding way to earn a living, especially when you can do it with your family.”

WOMEN IN HARDWARE

Women in Hardware Group Launched for Industry

The Hardware Conference was founded 26 years ago as a way for independent retailers and vendors to form closer relationships, while The Hardware Connection magazine was launched six years ago to strengthen the two-step channel using emerging digital technology. So it made perfect sense for The Hardware Connection to launch a new Women in Hardware™ group at The Hardware Conference in Marco Island, Fla.

During The Hardware Conference in Marco Island, Traci Johnson (center), senior vice president of ECi Software Solutions, was recognized by Tom Chasteen and Diane Allen as a founding marquee sponsor of Women in Hardware™.

The inaugural meeting of Women in Hardware™ was held at The Hardware Conference in Marco Island, Fla.

Women in Hardware™ is designed for professional women (and men) within the two-step hardware channel to exchange ideas, network and provide support to help advance careers and keep the independent channel healthy. Led by Diane Allen, it is part of The Hardware Connection’s Hardware Ambassador Program™.

Traci Johnson, senior vice president of ECi Software Solutions, thought it was such a great idea that she came on board as a founding marquee sponsor. “I’m involved in a women leadership group in the office products industry, and I think we can develop something similar in the hardware industry that can make a difference,” she said.

The inaugural meeting of Women in Hardware™ was a chance to discuss the group’s structure and kick around ideas for future activities. Up to six networking events will be held each year with a business focus. Those industry events would include major wholesaler shows, The National Hardware Show and The Hardware Conference.

“We want to provide take-home information and not just be about networking,” Allen explained, who added that another goal would be to identify and share information about female shoppers.

Membership is open to retailers, vendors, wholesalers, service companies and other hardware industry professionals. For more information on the membership benefits and structure of Women in Hardware™, contact Diane Allen at 317-432-9177.

Be Part of the Hardware Industry’s Exclusive and Professional Women in Hardware Program!

Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.

Who’s Eligible to Join?

• Independent Hardware Store Owners and Managers

• Vendors Involved in the Two Step Hardware Industry

• Service Providers Involved in the Two Step Hardware Industry

• Wholesalers/Distributors

• Industry Professionals

Activities

• Membership benefits include up to six networking events per year held in conjunction with other industry events.

• Each event will have a business focus offering direct and immediate benefits.

• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.

• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.

PLUMBING TRENDS

Sales of Pipe Tubing Supply (Independent Hardware Channel) 12 Months % Change vs. Year Ago

Toilet Repair: Units

Toilet Repair: Dollars

Source:

Unit Sales Breakdown for Pipe Tubing Supply Total of 2,055 Items with Sales

and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to

plumbing buying upDAte

• According to research released at the 2014 Kitchen and Bath Industry Show (KBIS), traditional bathrooms are now trailing contemporary (68 percent), while still representing 62 percent of the bathroom projects completed by NKBA bathroom designers in 2013.

• Beige and bone color schemes, with white fixtures and polished chrome faucets were popular designs in 2013. Gray, the third most popular color scheme in 2013, will be by far the fastest growing in 2014, according to 58 percent of designer respondents.

• Fully 64 percent of NKBA designers specified a soaking tub in a master bath, with 42 percent expecting that trend to accelerate in 2014. Preferences lean towards free-standing non-jetted tubs.

• Electric radiant floor heating was specified by 55 percent of respondents and half see it increasing in 2014.

• Steam showers gained steam, with twice as many respondents specifying steam showers as whirlpools for master baths in 2013. Forty-four percent of respondents see the demand for steam showers increasing in 2014.

Keim Lumber in Charm, Ohio, merchandises bath fixtures so customers can visualize how they will look in their homes.

Park Supply in Huntsville, Ala., is a showroom for the latest in bath fashion.

• Approximately half of NKBA respondents specified no-threshold showers, and seven out of 10 expect to do more in 2014.

• Eighty-four percent specified comfort height toilets and 81 percent, comfort height vanities in 2013. Almost twothirds see them increasing in 2014.

• Bathroom features in demand include wall-hung floating vanities, undermount sinks and quartz for vanity tops.

plumbing proDuctS

Shower Arm Diverter

• Installing a shower arm diverter, with optional hand shower cradle, enables homeowners to have the functionality of a hand shower and showerhead at an affordable price. It’s an easy way to upgrade your shower to have both components.

• A transitionally styled lever lets users divert water between the hand shower and showerhead. Its compact design eliminates clutter or accessories, making it ideal for smaller showers.

• Diverters are made of a durable metal construction for quality that lasts. Plus, it’s easy to install as the diverter threads on to the existing shower arm.

• The shower arm diverter with hand shower cradle is available in three on-trend finishes: chrome, LifeShine brushed nickel and oil rubbed bronze. Moen

www.moen.com 800-289-6636

Aero Shower SyStem

• TOTO’s AeroJet+ uses patented airinjection technology to increase the volume of water in each droplet by innovatively drawing air in through the showerhead and pumping it into the water droplet, enlarging and increasing their volume.

• Generates a balanced spray for optimum water distribution and full body coverage. Bathers feel as if they are being encased in far more warm water than they are actually using, making their experience extremely pleasurable while reducing water consumption.

• To further enhance their showering experience, at intervals, AeroJet+ generates invigorating short bursts of pulsating water.

• Flowing at a planet-friendly 2.5 gallons per minute (gpm), they are available in Classic and Modern designs. They offer 8-inch and 12-inch diameter spray faces and may be mounted from the ceiling or wall.

TOTO USA

www.totousa.com 888-295-8134

“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”

John Fix Owner, Cornell’s

Hardware Eastchester, NY

logAn SquAre DuAl FluSh toilet

• The Dual Flush high-efficiency, two-piece toilet features two buttons on the top of the tank to dictate flush rate: one flushing 1.1 gallons per flush (gpf) for liquid and one flushing 1.6 gpf for solid.

• High-efficiency toilet is WaterSense certified and has an elongated rim for comfort and a fully glazed trapway to ensure high performance.

• The new Dual Flush toilet is part of the Logan Square Collection and is available in white and biscuit.

• In addition to the standard model, Gerber offers an ErgoHeight™ bowl that is ADA compliant. Both options are installed with a 12” rough-in.

Plumbing Fixtures

SmArt Sink Stopper

• Universal design fits most existing drain assemblies and easily replaces problem-causing, single-piece stoppers.

• From the basin, it looks similar to the old stopper. The differences lie in the patent-pending hidden parts below the cap.

• Simply disconnect the existing stopper from under the basin, clean the drain and reinstall the pivot rod and you are now able to lower Smart Sink Stopper down the drain assembly from the top of the sink. Half twist and that’s it.

• The answer to no more waiting, no more time-consuming mess, no more looking for tools, no hazardous chemicals, no more accidental lost items down the drain and no more need to call a plumber. Drain Fixt LLC www.drainfixt.com 586-817-8906

IN THE NEWS

NEW STORES:

· Bruce Barany opened Argonne Ace Hardware and Sporting Goods in Spokane Valley, Wash.

· Carter Lumber opened its 144th store in Charlotte, N.C.

· Bob’s Building Center opened in Worthington, Minn.

· McCoy’s Building Supply opened a new store in Dayton, Texas.

· Eldorado True Value Hardware has opened in Santa Fe, N.M.

· Tague Lumber opened a new location in Kennett Square, Pa.

· Giovanni and Erika Grasso are opening Brunswick Ace Hardware in Troy, N.Y.

· Michael Colaiacovo and Todd Sawyer are the new owners of Park Union Lumber in Randolph, N.J.

· Dreyer’s Lumber is opening a second location in Ocean Township, N.J.

· CNRG is opening a new Elliott’s Hardware store in Dallas in December.

· Ag Supply Co. is opening its 6th Ace Hardware store in Bremerton, Wash.

· John Grady, Dr. G.W. Sorrells and Wesley Bricker opened The Home Center and Lumber Co., a

True Value store in West Memphis, Ark.

The Home Center

KUDOS TO:

· Cherokee PRO Home Center in Cherokee, N.C., was honored by PRO Group with the Paul L. Cosgrave Memorial and PRO Hardware Retailer of the Year awards.

· Applegate’s PRO Hardware in Georgetown, Ohio, was recognized as a Cosgrave Award finalist by PRO Group, which also honored Searing Electric and Plumbing in Longview, Wash., and Tide Marine Supply Co. in Bayou La Batre, Ala., as 2013 PRO Retailers of the Year.

· Frattallone’s Ace Hardware of Minnesota was honored by Ace Hardware Corp. as the co-op’s All-Star Retailer of the Year for the 20-store chain’s contributions to the Children’s Miracle Network.

· Don and Mildred Praeuner, along with Jane and Arvid Warneke, are celebrating the 50th

anniversary of Red Bud Hardware in Battle Creek, Neb.

· Darlene Scott is marking 90 years in business for Carr’s Hardware in Marysville, Wash.

· Ace Hardware Corp. recognized six stores with its 2014 “Coolest Hardware Store” award: Braly Builders Supply in Palestine, Texas; Nutter Hardware in Upper Arlington, Ohio; Mary’s Ace Hardware in New Orleans; Steve’s Ace Home & Garden in Dubuque, Iowa; Rylee’s Ace Hardware in Grand Rapids, Mich., and Steamboat Ace Hardware in Steamboat Springs, Colo.

· The Glenn family has rebranded their 18 Ace stores in Chattanooga, Tenn., as Elder’s Hardware in honor of the company’s patriarch, Elder Glenn, who passed away in April. Elder’s Hardware is celebrating 45 years in business.

· Gambles Do it Best Hardware in New Richland, Minn., is celebrating 60 years in business.

· Jack and Danny Moore marked the 115th anniversary of D.E. Turner & Co. Hardware in Mooresville, N.C.

· Kenneth and Alta Saine are celebrating the 50th anniversary of Saine Ace Hardware in Lincolnton, N.C.

· Thomes Bros. Do it Best Hardware in Arlington, Minn., is marking 125 years in business.

· Snodderly Lumber in Clearmont, Mo., is marking 50 years in business.

John Hall True Value

· John Hall True Value Hardware in Goshen, Ind., was honored with the 2014 Agri-Business Award of Excellence by the Elkhart County Agricultural Society.

· Shelly’s True Value Hardware in Sparks, Nev., is marking 70 years in business.

• SABRE Security Equipment Corp. has surpassed the $1 million mark in their donations to the National Breast Cancer Foundation.

PEOPLE ON THE MOVE:

· Pacsoft has appointed Andrew Sayer as CEO.

· Craig Cowart was named president of Handy Hardware.

· Klein Tools hired James Pultorak as vice president of manufacturing.

· Andrew Bardsley has joined Wastequip as vice president of the Toter® Retail Business Unit.

· Russ Kathrein was hired as CEO

of Alexander Lumber, Aurora, Ill.

· Nick Talarico has been named divisional manager at Do it Best Corp., overseeing hand tools, plumbing, cleaning, housewares and InCom departments.

· Channellock Inc. has named Jonathan “Jon” DeArment as its president and COO, succeeding his father, William DeArment , who continues as chairman and CEO. Jon DeArment becomes the fifth generation of his family to lead the 128-year-old company. “It is an honor to be appointed president of our family’s business,” Jon DeArment said. “I have always believed that great companies are made from great people and our workforce is our greatest asset. Without all of our 375 associates, we wouldn’t be where we are today.”

WHOLESALERS IN THE NEWS:

· Ace Hardware Corp. reported second quarter revenues of $1.33 billion, up 13.4% from last year, while net income rose 57.2% to $66.5 million. The co-op reported 3,300 stores have been remodeled as part of the new Paint Studio initiative. Also, Ace is implementing uStudio’s video platform with interactive content to drive its retail training program.

· True Value Co. reported gross billings rose 4.6% to $568.0 million for the second quarter ending June 28, 2014, with net margin declining 2.5% to $23.2 million. For the first six months of the year revenue rose 5.1% to $761.0 million.

OTHER NEWS:

· Do it Best Corp. announced the retirement of Quent Ondricek , vice president of LBM. He will be replaced by Gary Nackers , formerly director of program development for LBM.

· The Vendor Center has announced an alliance with PRO Group . PRO vendors will be able to use the secure B2B site to allow qualified independent retailers to access a wide range of vendor information including pricing, catalogs, demo videos and even order products. “We are thrilled to be affiliated with the PRO Group and look forward to working with all their distributor members and vendors,” said Darrell Wabschall, president of

IN THE NEWS

The Vendor Center. “The Vendor Center represents a powerful tool leveraging today’s technology to effectively connect all stakeholders in the supply chain,” said Shari Kalbach, managing director of PRO Group.

· Great Lakes Ace Hardware celebrated the grand reopening of 46 stores in Michigan formerly known as ACO.

· Hilltop Lumber has acquired Ottertail Home Center in Ottertail, Minn.

· Curtis Lumber opened a Sears Hometown Store within its Norwich, N.Y., location.

· Epicor Software Corp . has unveiled Epicor ® Eagle N Series™, its next-generation retail management software for independent retailers. The release extends Epicor Eagle by marrying the platform’s rich feature set and advanced business intelligence tools with a completely redesigned and simplifi ed user interface. Epicor Eagle N Series is designed to give independent retailers the advanced technology used by bigbox retailers at an affordable price point.

• Organized by the Central Florida International Trade Office, a delegation of Brazilian business owners recently toured Millers Do it Best Hardware in Winter

Park, Fla., to see how a successful independently owned hardware store survives in a world of big-box stores.

IN MEMORY:

· Joe Weeks, third-generation owner of Weeks Hardware in Brooksville, Fla., died Aug. 21 at the age of 87. Weeks Hardware, established in 1916, is the oldest retail store in Hernando County.

FOR THE FULL STORY:

· Home Depot credit card breach affects 56 million cards. Click here.

· Customer dies after being hit by falling flooring tile in Menards store in Michigan. Click here.

· How Amazon might take over brick-and-mortar retail. Click here.

· Office manager alleged to have stolen $23,500 from Smith Farm Store. Click here.

· The Great American Hardware Store: An Appreciation. Click here.

UPCOMING EVENTS

OCTOBER

Do it Best Corp. October Market

October 17-20, Indiana Convention Center, Indianapolis, Ind.

House-Hasson Hardware Fall Dealer Market

October 9-11, Sevierville Convention Center, Sevierville, Tenn.

Northeastern Retail Lumber Association/Vermont Retail Lumber Dealers Association Annual Meeting

October 24-25, The Equinox, Manchester Village, Vt.

The Green Industry and Equipment Expo, co-located with Hardscape North America

October 22-24, Kentucky Exposition Center, Louisville, Ky.

True Value Fall Reunion

October 10-12, Colorado Convention Center, Denver

NOVEMBER

DA/PRO Executive Planning Conference

November 18-20, JW Marriott Desert Springs Resort & Spa, Palm Desert, Calif.

Mid-American Lumbermens Association Fall Fling

November 6-7, Hilton Promenade at Branson Landing, Branson, Mo.

North American Wholesale Lumber Association Traders Market

November 12-14, Hyatt Regency Chicago, Chicago

STAFDA Annual Convention

November 9-11, Charlotte Convention Center, Charlotte, N.C.

DECEMBER

Wallace Hardware Fall Dealer Market

December 2-4, Le Conte Center, Pigeon Forge, Tenn.

JANUARY 2015

Do it Best Winter Conference

January 22-24, Walt Disney World Swan Resort, Orlando, Fla.

Handy Hardware Spring Market

January 8-10, George R. Brown Convention Center, Houston

HDW Spring Market

January 23-25, Jackson Convention Center, Jackson, Miss.

House-Hasson Hardware Spring Dealer Market

January 8-10, Opryland Resort Hotel, Nashville, Tenn.

International Buildersʼ Show

January 20-22, Las Vegas Convention Center, Las Vegas

Kitchen & Bath Industry Show

January 20-22, Las Vegas Convention Center, Las Vegas

Monroe Hardware

January 24-25, Raleigh Convention Center, Raleigh, N.C.

United Hardware Spring & Summer Buying Market

January 9-11, Minneapolis Convention Center, Minneapolis

Send calendar dates to chris@thehardwareconnection.com

Behind the Numbers

66%

Percentage of consumers who switched brands or business due to poor customer service last year, according to Accenture. Some 82% of those who switched said the brand could have done something to stop them.

$35.8 Billion

Projected revenue for equipment rental industry in the United States, according to the American Rental Association, which projects revenue growing to $51.2 billion by 2018.

31%

Percentage of new homes that used vinyl (including vinyl-covered aluminum), making it the most common exterior wall material, according to the Census Bureau’s Survey

of Construction. Brick or brick veneer (24%), stucco (22%) and fiber cement siding (17%) followed in order.

7%

Percentage of builders who reported shortages of plywood in July 2014, down from 18% in May 2013, according to the National Association of Home Builders. The share of builders reporting a shortage of framing lumber went from 18% to 8% during this period.

30%

Average increase retailers are seeing annually in online sales, according to Shop.org’s The State of Retailing Online 2014 report.

38%

Increase in online sales by The Home Depot in the second quarter, with the $1 billion figure representing 4.2% of total sales.