Paint & Decorating Retailer January 2022

Gaining Ground

Mallory Paint’s Growth Strategy Depends on Investing in People

Page 32

The Industry’s Annual Market Measure Report

Page 20

5 Questions to Ask About Outside Sales

Page 38

Easy Application | Superior Color Control

Old Masters Wiping Stain is a thick, robust stain with good open time and superior color control, making it ideal for those new to wood finishing.

•Best for interior wood such as pine, birch, maple, poplar, and cherry

•Can be intermixed or tinted to achieve custom colors

•Available in 24 trend forward colors

•Ideal for general woodworking and difficult to stain woods, veneers, and faux wood graining

•Excels on previously finished surfaces including fiberglass, metal, and composition surfaces, achieving a rich, uniform color in a single application

1025 E. 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

EDITORIAL, DESIGN & PRODUCTION

Melanie Moul Managing Editor mmoul@YourNHPA.org

Hans Cummings Products & Digital Editor hcummings@YourNHPA.org

Lindsey Thompson Associate Editor lthompson@YourNHPA.org

Carly Froderman Associate Editor cfroderman@YourNHPA.org

Aubrey Smith Senior Designer

Autumn Ricketts Graphic Designer

Austin Vance Production Manager

Freda Creech Sales & Production Assistant Kevin Trehan Digital Media Specialist

MARKETING & COMMUNICATIONS

Whitney Daulton

Executive Director, Marketing & Communications

Julie Leinwand Corporate Communications Manager & Editor

NHPA MEMBER SERVICES

800-772-4424 | nhpa@YourNHPA.org

LeAnn Day lday@YourNHPA.org Executive Director, Paint & Decorating Programs

Scott Wright swright@YourNHPA.org Executive Director, Advanced Retail Education Programs

Katie McHone-Jones kmchone-jones@YourNHPA.org Director, Member Services & Events

Jesse Carleton jcarleton@YourNHPA.org Training Manager & Editor

Renee Changnon rchangnon@YourNHPA.org Retail Engagement Specialist

Natalie Harris Data & Information Coordinator

NHPA SALES

Scott Gilcrest 317-508-7680 | sgilcrest@YourNHPA.org

Field Sales Manager & Southern Sales Director

David Brodowski 440-520-9551 | dbrodowski@YourNHPA.org

Midwest Sales Director

Jordan Rice 217-808-1641 | jrice@YourNHPA.org Northeast, Northwest & Canada Sales Director

COMING IN FEBRUARY

Hiring Strategies

Businesses are struggling to fill open positions and find exceptional workers, and the home improvement industry has not been immune to the difficulties of the current tight labor market. Learn how several independent home improvement retailers have utilized unique hiring strategies to find potential employees and learn best practices for navigating the hiring process no matter the current labor situation.

Percent of Small Businesses Reporting Unfilled Job Openings

50%

32 %

20202021

Source: National Federation of Independent Business

PAINT & DECORATING RETAILER

(ISSN 1096-6927): Published monthly except December by the North American Hardware and Paint Association, 1025 E. 54th St., Indianapolis, IN 46220. Phone: 800-737-0107. Subscription rates: January through November issues, $50 in U.S., payable in advance. Canada $75 per year. All other countries $100 per year. Single copy $7, except July issue, $25. Periodicals postage paid at Indianapolis, Indiana, and additional mailing offices. Postmaster: Send address changes to Paint & Decorating Retailer, P.O. Box 16709, St. Louis, MO 63105-1209. Returns (Canada): Return undeliverable magazines to P.O. Box 2600, Mississauga, Ontario L4T 0A8. PM# 41450540. Copyright © North American Hardware and Paint Association, 2022.

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA EXECUTIVE STAFF

Bob Cutter President & CEO

Dan Tratensek

Chief Operating Officer & Publisher

David Gowan

Chief Financial Officer & Executive Vice President, Business Services

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

EXECUTIVE VICE CHAIRMAN

Craig Bond, Tommy’s Paint Pot, Eugene, Oregon

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ned Green, Weiders Paint & Hardware, Rochester, New York

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

SECRETARY-TREASURER

Bob Cutter, NHPA President & CEO

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

NEWS, PRODUCTS & TRENDS

Get the Latest Updates

Access the following resources plus the latest industry news and exclusive content at PDRmag.com/january

Find More Online

RESEARCH

Expert Analysis

Paint & Decorating

Retailer talked to two analysts for their insights into how the housing market and consumer confidence will impact the home improvement industry in 2022.

OPERATIONS

Generating Leads

All employees should be involved in helping the outside sales staff find new customers. A new Trainer’s Toolbox, “A Sales Associate’s Guide to Generating Sales Leads,” shows them how.

OPERATIONS

Exceptional Assets

Developing your team into key decision-makers will be crucial this year. Use these resources and guides to help you take the next steps in building your bench.

What Makes a Good Job?

Listen to Episode 52 of the “Taking Care of Business” podcast for insights from Sarah Kalloch, executive director of the Good Jobs Institute, a nonprofit organization that helps companies redefine what it means to offer good jobs.

Invest in People

Whether you’re looking for entry-level, industry-specific courses or if you want to develop your staff into the next generation of leadership, the North American Hardware and Paint Association has a program to fit your needs.

Employees Are an Asset

Watch this presentation from Kevin Hancock, president and CEO of Hancock Lumber, to find out how he has led his company to be named one of the “Best Places to Work” in Maine for eight consecutive years.

CATEGORY

Beyond Painting

Painter’s tape has many uses when it comes to painting, and it also has uses beyond painting projects. Share these alternative applications for painter’s tape with your customers to encourage additional sales.

INDUSTRY EVENTS

Insights, Revisited

From keynotes on leadership and industry trends to panels on supply chain and diversity, watch all of the presentations from the 2021 NHPA All-Industry Conference on demand.

Think Paint. Think Corona.

For more than 60 years, our fourthgeneration family company has been committed to providing the finest paintbrushes and rollers in the industry. Each professional applicator is handmade in Tampa, Florida, USA, to meet the needs of the professional contractor as well as the DIY painter.

Corona’s professional tools are constructed to exacting standards. Using a combination of traditional and innovative techniques, we deliver the highest performance and durability, the finest finish, and ease of use and cleanup with today’s coatings.

For the next paint job, big or small, think Corona.

Looking to the Future

or those of you who have had the occasion to see me present on any number of topics throughout the last year, you might have picked up on some familiar themes that I like to touch on.

One of these themes involves the current state of business growth in our industry and the fact that we are entering into the age of acquisition and consolidation. Sure, we have seen consolidation at retail for quite some time, but over the last 18 months, the typical pace of acquisitions has kicked into overdrive.

There are a lot of reasons for this increase in acquisition and consolidation activity, including record sales in the industry; record profits for home improvement stores; an abundance of cash assets; difficulties involved with greenfield expansions; and an aging ownership base.

But it seems like now, more than at any other time in the past several decades, we are seeing younger, aggressive independent business owners finding ways to grow their operations. And at no other time has it been as important to recognize and celebrate the next generation of retailers who are expanding their businesses, driving growth and helping our industry evolve.

That’s why I wanted to take a moment and encourage anyone who reads this column to think about the young retailers you work with or know who are excelling in their professions and setting the standard for excellence among their peers.

“We are seeing younger, aggressive independent business owners finding ways to grow their operations.”

This year will mark the 26th year the North American Hardware and Paint Association has held its Young Retailer of the Year program. Throughout this quarter-century of recognizing the achievements of this industry’s young leaders, we can confidently say that this program has helped shape the arc of the independent retail channel. Not only do the awards represent a great way to recognize and encourage those young, passionate professionals who are starting their careers in the industry, but they have also served as a bit of a springboard to greater involvement.

Year after year, we hear feedback from our Young Retailer of the Year honorees about how winning the award introduced them to the industry in a broader sense and was a gateway to involvement beyond their own stores.

So, as we see the pathway for growth in the industry changing so rapidly and no sign of this age of consolidation and acquisition changing, what better way to secure a solid future for the independent channel than by getting more bright, young, enthusiastic leaders involved in this growth.

To learn how to nominate an individual for the Young Retailer of the Year award, go to YourNHPA.org/yroty. Don’t wait! Nominations are due Jan. 28.

Dan M. Tratensek Chief Operations Officer & Publisher

Recognizing young leaders who represent the future of independent home improvement retailing

Nominations are due soon for the 2022 Young Retailer of the Year awards. 2 6TH

Do you know an inspiring young retailer? Submit your nomination by January 28, 2022. Learn more at YourNHPA.org/yroty

Share Your Stories

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org

MARKETING

Getting the Goods

Sedona Paint Center Offers Free Local Delivery

Since the store opened its doors over 19 years ago, Sedona Paint Center has offered its customers free local delivery. In 2016, owners Michelle and Michael Lloyd upgraded the service, purchasing a new van and adding an eye-catching wrap that includes the company name and logo.

“I wanted our van to be different and adding that colorful wrap has made ours very noticeable,” Michelle says. “I also added a photo of the van to the website because it gets people’s attention and lets customers know about our free delivery.”

The company has a minimum quantity for delivery orders and delivers within a 30-mile radius of the store, sometimes farther for larger orders.

“When a professional painter or homeowner is in the middle of a job or a project and they can’t get to the store, they really appreciate the free delivery,” Michelle says. “The van is a great advertising tool for our store as well because it's different than any other delivery vans in the area. People are always commenting on how great it looks and how colorful it is driving around the area.”

“When a professional painter or homeowner is in the middle of a job or a project and they can’t get to the store, they really appreciate the free delivery. ”

Michelle Lloyd, Sedona Paint Center

with and share on social media.

MARKETING

Making a Magnificent Mural

When owner Stacey Keller wanted to familiarize customers with her operation’s newest location, she turned to paint and a local artist. Keller commissioned local artist Gregg Bugala to create a mural of angel wings on an empty wall right inside the front door of The Paint Centers’ Clarkston store, one of the company’s four locations in Michigan.

Keller says she wanted to create a fun space in the new store that people could interact with when they came in. She also wanted a way to boost the company’s presence on social media.

“Angel wings and butterfly wings have been big on social media, so I thought this would be a great way to reach people,” she says. “The mural is a very cool talking point and allows us to show customers some fun ideas you can do with the items in our store.”

Keller chose Bugala to paint the mural because he had experience painting murals locally and nationally and was a customer of The Paint Center stores.

“I wanted someone who I knew would do an amazing job with the space,” Keller says. “I gave him the original concept, and he ran with it and added his own spin.”

OPERATIONS

Meeting a Local Rental Need

At Northwood Paint & Supply, general manager

Kyle Rosinski saw a need in the community and met that need, offering paint sprayer rentals to professionals and DIYers. Several local companies discontinued paint sprayer rentals, so earlier this year, Rosinski added the service to his store in Traverse City, Michigan, to fill that void.

“We are starting out slow, offering one sprayer for now that is rented a few times a month,” Rosinski says. “We also have a power washer we rent at the beginning of the season and sell toward the end of the exterior season.”

The sprayer is rented by customers who need a backup when their sprayer breaks down, as well as handymen and DIY customers who would rather rent the sprayer rather than own, store and maintain their own paint sprayer.

“We have seen some new faces looking for a sprayer to rent, which has led to added paint and sundry sales,” he says. “And we are always more than happy to help customers who own paint sprayers find the parts they need and coach them on maintenance.”

Connect With Buyers and Sellers

Visit YourNHPA.org/marketplace to learn more about the NHPA Retail Marketplace.

Exploring NHPA Membership

Each year, the North American Hardware and Paint Association (NHPA) works to add new programs, services and partnerships to better serve independent retailers. Read how the association can help you with the resources below—and visit YourNHPA.org for more information and a full list of member services.

The Retail Marketplace

The NHPA Retail Marketplace is the industry’s marketplace for buying and selling independent home improvement stores, with public and private listings available.

Employee Training

The association has a library of online training with more than 280 five-minute modules, covering product knowledge, project sales, customer service, operations and more.

Manager Training

NHPA offers online training courses to help new and seasoned leaders with leadership, financial management and building and leading a team.

Advanced Store Operations Training

The Retail Management Certification Program teaches business owners and key employees profit-focused retail operations.

Compliance Training

NHPA offers HR compliance and workplace safety training courses in some of the most common topics affecting home improvement and paint and decorating stores.

Podcast

NHPA’s podcast features industry experts, leaders and retailers discussing trends, retail success stories and how-to management advice.

Two Magazines

NHPA publishes two monthly publications, Paint & Decorating Retailer and Hardware Retailing

Roundtables

NHPA moderates retailer roundtables on topics including finance, operations, technology and more.

Business Services

NHPA offers a wide range of business services, including health insurance and credit card processing, to help retailers save time and money.

Virtual and Live Events

The association hosts events throughout the year, including the NHPA All-Industry Conference, the Young Retailer of the Year Awards and free webinars.

Cost of Doing Business Study

NHPA conducts the study to help retailers compare their businesses to industry averages and make more informed decisions for their operations.

Explore Your Options

Learn more about the NHPA Health Insurance by visiting YourNHPA.org/health-insurance

Learn more about the NHPA Health Insurance Program

Follow the Magaz on Instagram

Follow the Paint & Decorating Retailer Instagram acc @pdrmagazine for industry news and exclusive updat

Are you browsing your social media feed in search of paint and home improvement trends, management advice and industry news? Be sure to follow @pdrmagazine on Instagram for news, best practices, trends and downloadable resources. You can also find us on Facebook and Twitter.

account updates.

Employee Training Magazine

Spotlight on Employe e Tra i ning

Visit YourNHPA.org/membership to learn more about our training programs.

The customer service that independent home improvement retailers can provide is one of their biggest differentiators from big-box merchants. With the Certified to Help designation from NHPA, retailers have a way to tell their customers about the training their employees have received and to reinforce the message that they are the best place to receive outstanding customer service and product knowledge. NHPA’s Certified to Help designation is a marketing campaign available to any retailer whose employees have completed a prescribed set of retail sales courses from NHPA’s training library, including product knowledge and selling skills. When a retailer and their staff successfully complete all of the requirements for a course, they will receive a package of marketing materials from NHPA with the message “Certified to Help” and “Help is on the way. Our trained employees can answer your questions.” Window clings, aisle signage and more will reinforce a positive customer service message. It’s also a great way to recognize the hard work employees have done to complete their training.

3 Easy Steps to Get Certified to Help

1. Have employees take the required courses.

2. Apply for the Certified to Help designation at YourNHPA.org/membership

3. Use the marketing materials to promote your outstanding customer service.

PRODUCT NEWS

Retailer Recommendations

Send a note to editorial@YourNHPA.org about products you can’t keep on the shelf. Include your name, your business name and reasons why you love them.

Fun & Functional Product Innovations

2021 RETAILERS’ CHOICE AWARDS

For the past 55 years, the Retailers’ Choice Awards have shared insights from independent retailers on the best products on display at the National Hardware Show.

The awards, presented by the North American Hardware and Paint Association (NHPA) during the show in Las Vegas, honor manufacturers for their innovation.

The Retailers’ Choice Awards differ from most award programs in that they rely on the opinions of actual retailers who know what their colleagues need in a product to attract customers. The judges were all independent home improvement retailers who walked the show floor and selected products they felt were unique and interesting.

This year’s panel included:

• Cody Goeppner, Bleyhl Co-Op, director of Retail Operations

• Roman Chavez, Bleyhl Co-Op, retail manager

• Robin Smith, Petersburg Hardware

• Dennis Bishop, Petersburg Hardware

• Sherry Bishop, Petersburg Hardware

• Brian Johnson, Sunpro Retail Manager

• Ian McNaughton, Owner, Gravenhurst Home Hardware

On the following pages, discover which products retailers felt had the most potential to excite customers and boost sales in their operation.

PAINT MARKERS

FARO TOOLS farotools.com

SaberPaint RT Capless Paint Markers feature a patented retractacle system that requires only one hand to operate. They are non-toxic, and Prop. 65

| p hy chloride-free, Xylene-free and Prop 65 compliant. The alcohol-based formula is permanent and resists fading. The markers are available in black, blue, green, red, yellow and white.

COLLAPSIBLE CRATE

US MERCHANTS | usmerchants.com

The Greenmade Instacrate Grande collapsible tote by US Merchants features 16 1⁄2 gallons of storage. They’re stackable and suitable for tailgating, picnicking and storage needs where flexibility is a plus.

learn. engage. explore.

When you’re browsing your feed in search of industry news, trends and operations tips, look no further than Paint & Decorating Retailer. Follow us on all your favorite platforms for daily deliveries of how-to management content, new products and downloadable resources.

MORTAR MIXER

TOMORROW’S TOOLS | mudnmoremixball.com

The MixBall is designed for mixing small batches of construction materials such as fast-setting drywall mud, plaster, mortars and grouts. The kit includes the 56-ounce, nonstick mixing ball, one 6-inch waterproof spatula mixing bit and two cups for easy measuring. After mixing, squeeze the sides of the MixBall to dispense the blended material. The flexible MixBall is easy to clean, both wet and dry. Leftover material that has fully set in the MixBall crumbles out with just a simple squeeze of the ball.

HOLSTER TOOL

BRANDED CLAPPER

FARO TOOLS | clapon.com

The Clapper from Joseph Enterprises operates an appliance with just two claps. Plug The Clapper into an outlet and connect to an appliance. Clap three times to turn on the night light and hear quotes from Disney Plus’ “The Mandalorian.” The night light features The Child from the show.

SPIDER GEAR LLC | spidertoolholster.com

Designed for efficiency and durability, the Spider BitGripper features a peel-and-stick 3M adhesive backing that securely attaches to any drill or impact driver and holds three to six driver bits so workers can switch bits on the go.

ROLLER CLEANER

MONKEY RUNG PRODUCTS | rollerready.com

Patented new Roller Ready® enables painters to clean and reuse dirty paint roller covers quickly and easily. Roller Ready attaches directly to existing cordless drills. It cleans and dries dirty paint roller covers in seconds from the inside out thanks to proprietary vent grooves and is compact to transport, storing easily in any toolbox. The plastic version cleans rollers up to 9 inches while the aluminum version (recommended for pros) cleans rollers up to 18 inches.

MULTIFUNCTION CARRIER

BOXTOWN PRODUCTS boxtownproducts.com

Boxtown Team XL Carrier is a multi-purpose hand tool for carrying A-frame ladders, paint cans, extension ladders, drywall, sheet metal, plywood and more. It removes extra strain and increases safety when having to hand transport these heavy objects.

GRIP-FREE PAINTBRUSH

FREEFORM | freeformbrush.com

The patented design of the FreeForm Grip-Free Paintbrush allows the fingers to relax, resulting in improved control, greatly reduced fatigue and a better painting experience. The striking colors and signature design stand out on the shelf and it is available in interior, exterior and all-purpose.

Discover more Products

For more information about the show and how you can find new opportunities to differentiate your business for the coming year, visit nationalhardwareshow.com

PAINT CUP DZ INNOVATION | touchupcup.com

The Touch Up Cup stores excess paint for over 10 years. The patented Touch Up Cup has extra threads, silicone seal and blending sphere making it easy to touch up paint. It solves the problem of rust and clumps in leftover paint.

SCENTED STRIP GEL DUMOND | dumondglobal.com

The Safe ‘n Easy line of nondrip paint removers provides DIY end users with easy to use water-based, non-toxic gel products in a variety of pleasant scents to strip paint around the home, office or business. It is a unique product that removes up to 15 layers of oil, latex and acrylic-based coatings, stains and varnishes in a single application without using any harsh or dangerous chemicals.

MAGNETIC WALL HOOKS

GATOR MAGNETICS | gatormagnetics.com

Gator Magnetics is a patented magnetic storage solution that holds exponentially more weight than ordinary magnets or glue strips and can easily be removed and relocated to any of the many steel surfaces commonly found in the garage, workshop, laundry room, pantry or office. It will not damage the surface or leave a gummy residue and can be used with the Gator Wall System.

HAND TRUCK

UPCART | upcart.com

UpCart® Lift NG is a new model with a 200-pound load capacity range and improved handling and load management. UpCart® Lift NG offers visual and tactile latching in folded and unfolded states, a taller handle, narrower wheel track, operation on two wheels, a more convenient handle mechanism for adjusting telescopic frame, more compact folding and decreased weight.

WEBINAR Register Today

Join NHPA’s Dan Tratensek and The Farnsworth Group’s Grant Farnsworth for an exploration of the data in a Market Measure webinar on Jan. 19. Register at YourNHPA.org/webinars

Market Measure

THE INDUSTRY’S ANNUAL REPORT

The primary tenet of the mission of the North American Hardware and Paint Association (NHPA) is to help independent home improvement retailers become better, more profitable operators. One way the organization achieves its mission is through industry resources, and the debut of this Market Measure report in Paint & Decorating Retailer magazine is one such resource. NHPA analyzes government data and industry surveys to highlight the growth trajectory of the prior fiscal year and make projections for the future and compiles the results into this report.

The annual Cost of Doing Business Study is one survey we use to analyze growth patterns.

The study is an aggregate of financial and operational data provided by retailers, and it is segmented by store type, including paint and decorating outlets. The data from this year’s study, which compiled 2020 metrics, showed that while sales at paint stores were up 10.8 percent over 2019, it wasn’t the same level of increase seen by other industry sectors.

On the following pages, read more about the home improvement industry’s growth over the last two years, and get insights into NHPA’s predictions for the future. Additionally, see the performance of big boxes and national chains, and see how your business compares against your peers with highlights from the 2021 Cost of Doing Business Study

Get additional recaps and forecasts from two analysts at PDRmag.com/2022-insights

The Consumer Impact

In 2020, the unprecedented growth was so unusual that the models we typically use couldn’t accommodate the rapid increase, causing us to restate our size of the industry prediction for 2020. When the dust settled, we saw the industry grow by 22.3 percent and final total sales tallied $497 billion.

Consumers were eager to spend their money at independent retailers in 2020, which led to an increase in market share by about 40 basis points.

Despite demonstrable growth, retailers still had concerns, including the still-broken supply chain, labor challenges and the question of how long home improvement spending would continue.

Toward the end of 2020, most retailers were cautious in budgeting for more growth in 2021. We knew the first few months of the year would comp strong because they were measuring against a pre-pandemic Q1 2020. However, most retailers were just hoping they could carry any additional profits from the start of 2021 through the balance of the year.

In fact, when NHPA surveyed independent retailers toward the end of 2020, 80 percent of survey respondents indicated they would be budgeting sales flat or down for 2021.

Our projections for Q1 were accurate, as 2021 started with strong comps. By midyear, most retailers had seen a bit of a summer swoon in sales, but comps were still holding relatively strong. When we polled retailers again in early Q3, 60 percent of respondents said sales were up over the same period in 2020, with the average increase sitting at 14.9 percent.

While some of this increase was the result of inflation, retailers were still

outpacing 2020 sales and performing considerably better than their conservative budgets. In fact, nearly 56 percent of retailers surveyed said they were performing better than their expectations.

As we headed into the back half of 2021, we continued to hear a similar refrain from retailers: “We would be happy if we could just comp flat against the last six months of 2020.”

In Spite of It All, Growth

Barring the persistent challenges of supply chain and product and labor shortages, along with pandemic restrictions being lifted for consumers, we saw most retailers hold the line against the previous year.

So, after two years of unprecented growth, how do we make projections about 2022 and beyond?

As this report goes to press, we anticipate the final quarter of 2021 to finish flat against 2020 and leave sales for the industry up 8.2 percent over 2020. No small feat coming off the largest single-year increase we have seen for the industry.

Moving forward, we see 2021 as a reset point for the industry. In the past, industry sales have bumped along with 3.5 to 4.5 percent increases, and we anticipate a return to this normalcy for the next three to five years.

Based on a more measured several years of increases for the industry, we put the overall five year compound annual growth rate for the industry (2020-2025) at 4.7 percent.

Of course, with all the continued ripples from COVID still creating uncertainty for just about every industry, we make these predictions with a bit of a cautious eye toward future potential disruptions.

U.S. Home Improvement Industry Sales

How Retailers Are Preparing for 2022

Improvement

Home Improvement Retail Sales

2022 Market Measure

5 Future-Focused Industry Insights

See the latest data on how independent retailers are performing and market projections for 2022.

Wednesday, Jan. 19

2 p.m. ET

The results are in.

You’ve seen firsthand the unprecedented growth in the industry for the last two years. Now, get the numbers and find out what it means for 2022.

Join NHPA’s Dan Tratensek and The Farnsworth Group’s Grant Farnsworth for this exclusive webinar. YourNHPA.org/webinars

Top Chains: Individual Performance

These chains represent home improvement retail operations that carry at least two core categories and have sales of approximately $1 billion or more; adjustments to the included chains were made to the 2021 data.

Sources: Company reports, NHPA surveys and NHPA estimates ªStore counts include operations in the U.S., Canada, Mexico and all other locations

Market Share Profile

Top Chains: Combined Performance

RESEARCH

Benchmark Your Business

To get your copy of the 2021 Cost of Doing Business Study to analyze your operation, visit YourNHPA.org/codb

COST OF DOING BUSINESS STUDY

A Real-World Look at Retailers’ Financials

The 2021 Cost of Doing Business Study presents the North American Hardware and Paint Association’s (NHPA) annual financial and operational profile of independent hardware stores, home centers, lumber and building materials outlets and paint and decorating outlets. (Data for hardware stores, home centers and lumber and building material outlets is not included here. To see those metrics, visit PDRmag.com/codb-data.)

This study assesses the financial performance of home improvement retailers who graciously submitted confidential financial reports for fiscal year 2020 to NHPA. The study presents composite income statements and balance sheets plus averages for key financial performance ratios.

Retailers can use this data to measure their own performance against industry averages and establish financial plans to improve profitability.

Methodology

The annual Cost of Doing Business Study is made possible through the cooperation of hardware store, home center, LBM outlet and paint and decorating outlet operators who provide detailed financial and operational information on their individual companies. The analysis in the report is the result of extensive review by NHPA. All individual company responses are completely confidential.

Most of the figures in this report are medians. The median for a particular calculation is the middle number of all values reported when arranged from lowest to highest. The median represents the typical company’s results and is not influenced by extremely high or low reports.

To determine high-profit stores, all participating companies were ranked based on net profit before taxes. The high-profit companies in each segment are those that make up the top 25 percent. The figures reported for each of the high-profit segments represent the median for that group.

Each year, the report contains figures from a different sample group of stores, which means overall figures have the potential to vary widely from year to year based on the respondent group of stores participating each year.

In this year’s study, 1,115 independent home improvement stores participated, a 6.1 percent increase from the prior year.

Of the total number of respondents, 16 paint companies representing 76 store units participated in this year’s survey. Paint and decorating outlet data has been collected for the past three years, so the historical data is not as robust as other sectors.

Paint and Decorating Outlet Overview

Comparable paint store sales were up 10.8 percent over 2019, which lagged far behind the rest of the home improvement industry. While customer count rose to the highest level in the three years the study has tracked paint performance, sales per customer stood at $106, dropping to the lowest level in the three years of analysis. Notably, consumer/retail sales dropped to 10 percent in 2020, indicating paint stores may be losing business to other industry segments.

How to Use This Study

To get the most out of these selected results from the 2021 Cost of Doing Business Study, follow these tips.

• Compare numbers. Determine your operating expenses as a percentage of sales and calculate your balance sheet as a percentage of total assets. Compare those numbers to the study results for typical and high-profit stores.

• Look beyond the percentages. Compare your real-dollar expenditures as well.

• Consider the results. If you find your store’s individual data veers sharply from what’s contained within the study, explore the cause behind the discrepancy and develop a plan to bring your numbers on par with high-profit stores.

• Participation counts. Overall figures can vary from year to year based on the group of participating operations. Year-to-year comparisons are helpful for illustrating general trends over time.

Sales Per Customer

Profit Margin

Total Operating Expense

8.0%

This metric is the highest level ever recorded since data has been collected for the paint and decorating segment.

34.5%

This metric has been steadily declining by a few points since data was first collected from this segment.

$755

This year was the first time this metric for typical stores was higher than high-profit, which came in at $620.

Store Results Key Business Indicators

Gross Margin Per Employee

Sales Per Square Foot Inventory as a Percent of Assets

$101,496

This metric for typical stores was up 58.7% over 2019 even though the total number of full-time employees was the same.

49.4%

This metric is the lowest over the three years data has been collected, down from 52.1% for the 2018 fiscal year.

Source: 2021 Cost of Doing Business Study, NHPA

MARKET MEASURE

2020 Financial Profiles of Leading Publicly Held Chains

Profile of Top 6 Buying Groups and Distributors

Register Today

Join NHPA’s Dan Tratensek and The Farnsworth Group’s Grant Farnsworth for an exploration of the data in a Market Measure webinar on Jan. 19. Register at YourNHPA.org/webinars

THE HOME IMPROVEMENT INDUSTRY

Year in Review

PROVIDED BY THE HOME IMPROVEMENT RESEARCH INSTITUTE

Entering 2021, many within the home improvement industry proceeded with caution. Even though 2020 was rife with heartache, turmoil and disruption at a global level, home improvement was one of the few shining stars. Homeowners took their forced time at home and decided to make it productive by tackling home projects and tasks they had been intending to do but had yet to find the time. They also took on unplanned projects in response to their new way of life, health concerns and changing uses of the home. This increased time at home, long project lists and a shift in disposable income led to a surge in DIY home improvement activity and record sales for many within the industry. Led by the surge in consumer spending, the Home Improvement Research Institute (HIRI) noted a 13.3 percent growth in home improvement product sales for 2020, an astounding number considering GDP dropped by nearly 3.5 percent. With the success of 2020 behind us, many asked not if the other shoe will drop, but how heavy will it drop? Most expected relatively strong continued interest in home improvement and building, but compared to 2020, a modest uptick at best. Looking back at the past year, now we saw 2020 was just the start. In preliminary estimates for 2021, HIRI expects another 13 percent growth for all of 2021. To put that into perspective, the home improvement products market will have increased by 28 percent over a two-year span, a feat nearly unheard of in an industry this large and established.

While 2020 growth was driven very much by consumers, 2021 was the year of the pro. With part of 2020 stymied from the pro perspective due to the lockdowns throughout much of the country, demand for a pro’s time was strong in 2021. With a glut of demand from first-time homeowners, homebuyers moving to new markets and existing homeowners wanting changes to their home, pros’ books filled up quickly and timelines were extended as many contractors didn’t have enough time or workers to keep up with the number of projects coming in. This led to a constant source of product sales, leading to an estimated 18.2 percent increase in pro building material sales in 2021.

HIRI noted a 13.3 percent growth in home improvement product sales for 2020, an astounding number considering GDP dropped by nearly 3.5 percent.

Strong demand for particular goods and services is never a bad thing, but it can cause some headaches along the way. The headaches in 2021 were felt by nearly all with a stake in home remodeling. Supply constraints have plagued many within the industry as manufacturers

struggle to keep up with demand. While some categories have begun to subside, like lumber, others continue as a thorn in the side of pros and DIYers alike. Although the root causes of constraints are varied (component shortages, shipping delays, lack of labor, etc.), the outcome is the same: project delays, product shifts and inflation. When taking inflation into account, the “real” growth is closer to the 5 percent range compared to the 13 percent nominal growth we see overall.

When taking inflation into account, the “real” growth is closer to the 5 percent range compared to the 13 percent nominal growth we see overall.

Now in 2022, we approach with cautious optimism. Demand is still strong for home improvement among DIYers and pros and doesn’t seem to be slowing down. We don’t expect to see a third consecutive year of double-digit growth but instead settling into the 3 to 4 percent range we saw pre-pandemic. Indicators tell us that unless something significant happens, any retraction is unlikely. Throughout all of 2021, we’ve seen strong demand unlike what we’ve seen before of homeowners who are still planning on undertaking home improvement projects.

The housing market, while slowing from the peak, is still quite strong. Even with increased home prices, we have yet to see existing home inventory go up, indicating there is still room to grow. Home sales often lead to flurries of project activity as new purchasers rush to make a house their home. Alongside this, there is a contingent of homeowners who previously would have made a step-up home purchase, but have been priced out of the market and are instead reinvesting in their homes with the equity they amassed in the past 24 months.

HIRI projects flat to modest growth of DIY products sales in 2022 and 6 to 8 percent growth in pro home improvement product sales. Solid supply and demand, and lingering tailwinds, indicate we will continue seeing modest growth at this new market level for the year ahead.

About HIRI

The Home Improvement Research Institute (HIRI) is the only nonprofit organization dedicated to home improvement research. The organization empowers its members with exclusive, ongoing home improvement data and information for making better business decisions. Members are the home improvement industry’s leading manufacturers, retailers and allied organizations. Learn more at hiri.org

Industry Sales By the Numbers

2020

Home improvement product sales for DIYers and pros increased

13.3 %

2021

Building material sales for pros increased

18.2 %

2022

Home improvement product sales for DIYers are projected to slightly increase

0.2 %

Building material sales for pros are projected to increase

7.1 %

Source: Home Improvement Research Institute

YourBuildingBench

LEADING YOUR BUSINESS THROUGH DELEGATION AND EMPOWERMENT

By Melanie Moul

No industry is immune to the lack of qualified workers right now. In a recent report from the Society for Human Resource Management (SHRM), 90 percent of employers who responded to the survey say they struggled to fill open positions over the summer, and 73 percent reported a decline in applications.

Independent home improvement retailers haven’t been left out of this struggle. In a recent retailer survey from the North American Hardware and Paint Association (NHPA), 61 percent of respondents say they had trouble finding qualified workers in the first half of 2021, a challenge they ranked second only to supply chain challenges. And 59 percent of retailers say they anticipate the challenges to continue this year.

However, despite anticipating their challenges of finding new staff to continue, retailers ranked investing in employees as the No. 1 focus for their businesses in 2022, at 61 percent of respondents to the NHPA survey.

A strong group of knowledgeable employees is crucial to business growth, and with more than half of survey respondents anticipating sales to stay flat or grow over 2021 this year, developing the team you have is key.

On the following pages, learn how Mallory Paint has created comprehensive strategies to build its bench of employees. The company has empowered its staff to be decision-makers at all levels so company leaders can work on the business and their teams can carry the business to greater heights.

INVESTING IN PEOPLE

3 Tips for New Managers

SO YOU DON’T HAVE TO LEARN THE HARD WAY

When Juan Rios started working at Mallory Paint, he didn’t have any industry experience. Over the last decade, he has had many learning opportunities that he passes on to his new managers so they can be more successful in their leadership roles.

1 2 3

Never assume the color is right, that the job is done, that you have enough.

“I learned this one the hard way: I once assumed the color was right for a job, and I sent out 200 gallons, and it was wrong. Always double check your work.”

Get to know your employees and understand how they communicate.

“Everybody learns and accepts information differently. It’s important to know how to communicate with people so everyone is on the same page. That’s the only way you can gauge if they are progressing.”

Give people the opportunity to train on the job and learn by doing.

“When we’re training new hires, we usually have them shadow an assistant manager or an experienced employee to learn day-to-day operations. Typically we want people mixing paint within the first few days.”

“We always want the manager involved because we want them to have ownership.”

Juan Rios Mallory Paint Store

Fit Finder

Juan Rios, general manager for Mallory Paint, says building your bench is about encouraging people to think for themselves, giving employees the power and acknowledging that mistakes are going to happen.

He manages 21 locations in the Seattle area, Spokane and Idaho. He started as a service associate 10 years ago. After just a year with the company, he was offered an opportunity to manage a new location in Kirkland, Washington.

“Our philosophy with management is to always promote from within. We don’t typically hire management from outside the company,” he says. “That opportunity is what catapulted my career.”

In addition to promoting from within, Mallory Paint owner Jim Mallory puts a lot of stock in his managers’ opinions. Mallory included Rios in location scouting and planning for the Kirkland location, so he was a key decision-maker long before the store he was going to manage was even developed.

“We always want the manager involved because we want them to have ownership,” Rios says. “From the shelving to the flooring to the paint on the walls, and everything in between, I was involved in those decisions for the Kirkland store, and it helped me make a connection.”

After four years managing the Kirkland store and another year serving as a regional manager, Mallory gave Rios another significant opportunity: general manager.

“Jim saw I had that eagerness to grow the business, so he developed a leadership role for me,” Rios says. “I’m a people person, and the success of our company has been based on relationships. Jim and I share that vision for the business.”

Offer Good Jobs

Listen to Episode 52 of "Taking Care of Business" featuring Sarah Kalloch, executive director of The Good Jobs Institute, to find out how you can develop your culture to retain great employees at YourNHPA.org/tcb-pod

“I’m looking for honesty, good communicators, great listeners and people who are open-minded and flexible.”

Juan Rios Mallory Paint Store

Growth Path

Mallory Paint is on an upward trajectory; the company’s goal is to operate 36 locations by the year 2026. With that kind of aggressive growth on the horizon, Rios and Mallory agree that identifying leaders who are already in the organization and are familiar with company policies and procedures is paramount.

“We are always looking to identify ‘young lions,’” Rios says. “I let people know that they can be in management, in sales, they can go up to corporate.

We’re a fast-growing company, and the best way to find leaders is to promote from within. I’m looking for honesty, good communicators, great listeners and people who are open-minded and flexible.”

Rios says you can get started by identifying those traits in the interview process. He says treating interviews like conversations will help find people who exhibit the personality traits you are looking for and who are eager to participate in the company’s future.

“Typically, with interviews, it’s about having a conversation, listening and observing the candidate’s communication style,” he says. “I also talk about the company’s history, its growth and the opportunities here. You can get a good sense of someone’s personality during that conversation.”

When a new hire is brought on board, training starts on Day 1. Typically, new employees will shadow the store manager or another experienced employee to learn operations. They also use online training. Rios says observing how they react to training is critical to knowing if they are a good fit.

DETAIL ORIENTED

“The most important thing we tell our staff is that we’re a customer service business that happens to sell paint.”

Juan Rios Mallory Paint Store

“The paint industry isn’t for everyone, so we’re looking to make sure they can learn the language,” he says. “They’re getting exposure to both pros and DIYers when they do a little bit of everything.”

One thing Rios says they don’t let new hires do is answer the phone.

“We give them a few weeks before they start answering phones to make sure they know what they’re talking about,” he says.

Demonstrate Trust

When it comes to developing managers, Rios says the key is delegation, which for some people is easier said than done.

“It’s something you just have to do,” he says. “One thing I’ve learned is that when a manager tries to do everything, it’s a disservice to employees and to customers. I’ve seen a manager be promoted and leave a store, and none of the remaining employees know what to do. Managers should always be creating ‘mini me’s’ so the stores can operate in their absence.”

Rios is optimistic about the future of the Mallory Paint because he’s seen the growth of the organization over the last decade first hand. He says although the company has a unique position as a first-generation business in an industry with many family operations, he still sees Mallory Paint as a family business.

“Everybody has a part in the business. It’s all hands on deck,” he says. “The most important thing we tell our staff is that we’re a customer service business that happens to sell paint. We’ve been good about hitting our goals, and with Jim and upper management at the helm, we can definitely execute.”

Outside Sales Smarts

Get more expert advice from retail leaders who have years of experience building successful outside sales teams at PDRmag.com/outside-sales.

Are You Ready for

Outside Sales?

SBy Jesse Carleton

Regardless of the size of your operation, you can use these basic principles to set up your own outside sales force. 5 QUESTIONS TO ASK YOURSELF BEFORE YOU START

etting up an outside sales program can open up a whole new stream of revenue for your business. There’s a set of customers out there who will reward you with long-term, consistent sales if you can cater to their unique needs with personalized attention. But for many retailers, outside sales is on the list of initiatives they’ve tried once but had a hard time getting to work. While it may sound like a good idea on paper, it’s often difficult to create an effective and sustainable program.

Paint & Decorating Retailing spoke with outside sales team leaders who have established a track record of managing successful outside sales programs. They discuss how to decide if outside sales is the right fit for your business and offer answers to some of the questions you’re most likely to ask as you get started.

SALES PARTNERS

ON THE ROAD

Is outside sales right for my business?

If you’re not already in outside sales, the first question to consider is, can you afford not to be? Even if you only sell to the retail customer, you may be missing out on a lot of business if you are waiting for customers to come to you, says Don Duttine, vice president of sales at JC Licht, which has 49 locations in the Chicago area.

“Think about how much you are selling to a contractor who just walks into the store. Then, imagine how much more you could be doing if you started to make a strategic investment in that customer,” he says. “Now, instead of just a vendor, you become an adviser they trust.”

As you’re considering an outside sales strategy, you’ll also want to determine your target customer segment. Start by specializing with a certain type of customer so your sales representative can become an expert at understanding their needs. You can grow from there.

“When our reps focus on a specific customer type, they learn their lingo and the products they use,” Duttine says. “That allows the customer to get a bigger ROI from our sales rep because they’re able to work as partners.”

At A&E Paint, having an outside sales staff has been critical to growth. The business, based in central Florida, has four retail locations with some retail traffic, but has found the most profit in contractor sales. With a competitor on nearly every corner, owner Nikki Young says an outside sales staff has been instrumental in gaining new customers.

“Especially if you are a new retailer, contractors may not know who you are,” she says. “They have one place where they usually shop and they’re unlikely to drive out of their way just to pick up paint. Contractors get very set in their ways. To get their business, you can’t rely on advertising or expect them to find you. Instead, you have to go out and meet them. Tell them what you can offer. Show how you will offer personalized service.”

How will I support an outside sales staff?

As you’re considering whether outside sales is right for your business, consider if you’re willing to fully support that team from the inside. An effective outside sales team will rely heavily on store staff to support their sales efforts.

“Retail stores are unbelievable lead generators,” says Duttine. “People are coming in to get paint and tools, so sales associates need to have conversations about each customer’s project to understand if they represent a lead for our sales team.”

Duttine recently introduced a lead generating tool in the company’s POS system that makes it easy for sales associates to collect and share customer information with the outside sales team.

Young says that it’s also important to offer the services that will set her business apart from the competitors and sales associates who care about quality. Every point of differentiation gives the outside salesperson more points to talk about when they’re prospecting new customers.

“Color matching, for example, has to be spot on. I can sell paint all day, but I can’t have salespeople in the store messing it up,” she says. “All sales associates have to show they care more about quality than our competitors do.”

As an added benefit for her customers, Young keeps an extensive file of drawdown cards with samples of the colors her customers have purchased so they can get an exact match any time they need to touch up paint. She also has multiple delivery vans to quickly get product out to customers when they need it.

RESOURCE

What’s in a

Job?

An important step in hiring is know what that person will be responsible for. Head to YourNHPA.org/job-template for a job description for a paint sales representative.

HIRE RIGHT

“Make sure the right people are coming on board because they are the face of your company and are driving business into your organization every day.”

Don Duttine, JC Licht

Who do I hire?

Don’t rush the hiring process. It’s better to wait until you get the right person than get someone to fill a spot only to find out they aren’t going to work out. If you keep changing up the sales rep you’re sending to your customers, they could get frustrated and wonder about the stability of your business.

The ideal candidate is someone who has knowledge in the paint industry but is also able to fit into the culture of your organization. You may find it’s easier to get a less experienced salesperson and give them training than hire a veteran salesperson.

“I need someone who is coachable and

understands our business,” says Duttine. He oversees 35 salespeople, so he’s looking for a cohesive culture and consistency in the way people approach the sales process.

“You can try to find the sales superstars, but they don’t always mingle well with the rest of the team. Make sure the right people are coming on board because they are the face of your company and are driving business into your organization every day.”

In addition to accepting applications from outside the company, Duttine looks for employees within the ranks who want to move up to a sales position. They have

5 Tips for the Hiring Process

Promote from within. Existing employees already know your systems and many of your customers. You can also feel more confident in your hire because you likely already know if they’re qualified.

Use a panel format. Bring a few key players from your company to the interview. A sales hire is often based on a gut feeling, so get several opinions.

Superstars need not apply. You don’t have to blow the budget to hire a seasoned veteran salesperson. A rookie may be easier to teach and will easily mold into your company culture.

Shop your competitors. If you see an employee at a competitor who has the personality you want on your team, offer them an interview. A good candidate for your company may be working elsewhere.

Talk up your company. Show the prospective employee why working for you is better than working for the competition. You’ll need to have a benefits package, a supportive work culture and growth opportunities.

Get the Sales Lead

A new Trainer’s Toolbox, “Generating Leads: How Sales Associates Can Help Their Outside Sales Staff,” shows all employees how to help the outside sales team. Find it at YourNHPA.org/trainers-toolbox.

New hires from outside the company spend about a week in the store at JC Licht, learning how the business operates. After that, they spend three weeks traveling with an experienced sales representative. When they’re finally ready to go out on their own, Duttine schedules frequent check-ins, where the new hire talks about the challenges and growing pains of their first month.

Young emphasizes industry knowledge as she is looking for her next outside salesperson. Some of her best sources are salespeople working for her competitor. Not all of them have sales experience; one hire was a former paint contractor with practical product knowledge.

“Over the years, we’ve had a few salespeople with zero paint experience and those didn’t work out,” she says. “We won’t hire anyone who hasn’t been in the paint business. If they have a good base of paint knowledge, we can teach them how we do business.”

What should I pay them?

There are many different variations in the way retailers pay their outside sales staff, but it’s usually a combination of a base pay plus incentives. Both Young and Duttine offer their outside salespeople a combination of base salary plus a commission.

Young pays a tiered commission structure based on gross profits. The more someone sells, the greater percentage of the profits they take home.

Duttine says his pay structure is fairly nuanced, with the percentage of commission depending on several variables. He says it’s also important to understand what other retailers are paying so you stay competitive.

“Commission might depend on category and customer segment as well as sales,” he says. “There’s no one-size-fits-all answer to what to pay your outside sales reps. Our goal is to pay an outside sales rep a fair salary while they learn and develop the territory.”

Essentially, creating a pay structure that shifts the focus off making the sale allows outside salespeople to focus on what matters most: creating customer relationships. While it may be tempting to look for the biggest sale, that approach is often done at the expense of creating a long-term customer. A better approach is cultivating relationships that will pay consistent dividends over time.

How do I build a customer base?

If you want to build a solid base of customers, resist the urge to sell strictly on price.

“As you’re prospecting for new customers, the easiest thing to do is to sell on price,” says Duttine. “But if we sell a customer on price, we will eventually lose them on price. Your relationship with the customer becomes a commodity.”

Instead, he directs his sales team to talk more about the customer and their business, understanding their challenges, goals and the services they offer.

By understanding the challenges his customers are facing and presenting them with solutions, he moves up the ladder from being merely a salesperson who sells a product to a trusted adviser who can be a partner in their business.

Building a customer base will take time, especially for new hires who may be carving out a new sales territory. In the first two or three months of a new hire, measure success by activity rather than only quantity of sales. You may also need to spend more time with them, coaching and mentoring.

“Looking at call sheets is important in the first couple of months of a new sales rep,” says Young. “They need to be trending upward, even if it’s just in the number of new accounts they open. By the third month, their sales need to start coming in and we need to be confident we can quickly get them to the break-even point where their sales are at least covering the cost of having them.”

To support an outside sales staff effectively, it’s important to have sales associates who can deliver quality customer service from the inside.

“For new hires, the number of quality calls made in a day and the number of new accounts opened in a period of time are great indicators of their progress.”

Don Duttine, JC Licht

them to the break-even point where their sales are at least covering the cost of having them.”

An effective salesperson also needs an organized plan for how they will grow their territory and maintain existing relationships. Duttine suggests putting customers into four buckets.

“We divide customers into each territory’s top account (key customers); customers in the territory who offer the largest opportunity for growth, (opportunity customers); core customers who are not in the first two buckets (existing core customers); and finally customers who represent the future lifeblood of a territory (new customers),” he says.

“Make sure that each customer falls into one of those areas and set goals for where you want to move them next. You should be addressing customers in each area every day to maintain a healthy territory.”

“For new hires, the number of quality calls made in a day and the number of new accounts opened in a period of time are great indicators of their progress,” says Duttine. “You need to make sure they are also focusing on their existing customers. Show them the correlation between sales and customer contact, even

CATEGORY FOCUS

PURPOSEFUL

PREP

4 SPECIALTY TAPES TO STOCK

BY LINDSEY THOMPSON

Before your customers break out the paintbrushes and paint, they should take steps to properly prep the space, including using painter’s tape to protect edges and create clean lines. Painter’s tape is not one-size-fits all, however; several specialty types exist for particular projects. Use the following information to educate your customers on which tapes to use for different projects to boost add-on sales and position yourself as a project expert.

CATEGORY Prep to Paint

Discover best practices for training employees on how to sell prep products like painter’s tape at PDRmag.com/prep-products

STICK THE SALE

Both are made of crepe paper with adhesive backing and are easy to tear by hand, but painter’s tape and masking tape serve different purposes. Help your customers understand the differences with the information below.

MASKING TAPEPAINTER’S TAPE

Inexpensive

Can be used on a variety of surfaces

Long-term adhesive Doesn’t leave residue

Sticks to any surface

Provides tighter seal for cleaner lines

SPECIALTY TAPES

MULTI / TEXTURED SURFACE

This variety of painter’s tape sticks well to eggshell and high-gloss painted surfaces, as well as masonry, fabric, sealed concrete and other textured surfaces. It can be left on for long periods without damage

SHAPED TAPE

If customers want to create designs on their walls, furniture and other surfaces, shaped tape comes in pre-cut patterns, such as chevron, scallop and wave. They adhere to the wall like regular painter’s tape.

DELICATE SURFACE

When painting delicate surfaces, such as wallpaper, ceiling tiles or freshly painted areas, a delicate surface tape provides a clean line and can be left on for longer periods without damaging the surface.

VARIOUS WIDTHS

Painter’s tape comes in different widths, with the 1-inch and 2-inch varieties as the most common. Painter’s tape also has varying thicknesses, with ultra thin varieties better suited for extra fine lines.

PROJECT POINT

TOOLS & GUIDES

Let Us Do It for You

Welcome to a new resource for your operation, Project Point. This one-stop department offers project ideas you can share on your social platforms.

Not Your Ordinary

Organizer

This DIY mason jar organizer project fulfills both function and form, giving homeowners a beautiful storage option that works in any room in the house or garage. The organizer is made from materials most home improvement stores carry, making it an easy project to share with your customers. Display all the supplies on an endcap to make it easy for shoppers to find everything they need, or put together project packs with all the supplies so customers can make one purchase to get everything they need.

Project Picks

Discover more DIY projects your customers can make to get their homes organized at PDRmag.com/diy-organized 8 inches by 20 inches and between 3⁄4 inch and 1 inch thick

What’s in Your Project Point Package

Visit YourNHPA.org/project-point to download your Project Point Package for this DIY today.

01

Do-It-Yourself Instructional Guide

This downloadable and printable PDF makes it easy to share this project with your customers. The guide includes step-by-step instructions, a supply list, necessary tools and color photos of each step. There is also a editable version to include your company’s logo and information.

02

Merchandise Planogram

The merchandise planogram lists all of the supplies and tools a customer would need to complete the project. It offers suggestions on how to display and merchandise the supplies and tools so you can easily promote and sell the project to your customers.

03

Social Media Posting Guide

The social media posting guide provides everything you need to share this project on your own social media channels. The guide includes suggested copy for Facebook and Instagram, project photos and customizable posts to fit your company’s branding and needs.

FRESH COAT

Get Ready to Mix

Learn best practices for maintaining your mixing and tinting machines to keep paint in customers’ hands at PDRmag.com/mixers-and-tinters

COMFORTABLE COLORS

WHAT’S TRENDING IN PAINT COLOR FOR 2022

Homeowners continued to update their spaces throughout 2021, and heading into a new year, painting projects show no signs of slowing down. According to Statista, production of paints and coatings in the U.S. is expected to top 1.42 million gallons in 2022.

Benjamin Moore October Mist

Gray-green shades will dominate color schemes this year, with several gray-green colors named as colors of the year in this year’s crop from major paint manufacturers.

York Wallcoverings At First Blush

Subtle pinks and blues also made the list, as homeowners look to transform their rooms into soothing and pretty spaces where they can rest and relax from everyday life.

Several bold shades were named colors of the year. These deep blue and rich berry tones are ideal for accent walls, furniture and rooms where homeowners want to make a statement.

For the full list of Colors of the Year for 2022, visit YourNHPA.org/product-knowledge

Source: Statista, Production of the Paints and Coatings Industry in the United States from 2015 to 2022

NHPA offers three online courses to help managers learn effective leadership, communication, problem-solving and financial management skills.

Intro to Leadership

In this 9-week introductory course, managers will learn about their unique leadership style and strengths that will provide a framework for their ongoing leadership growth and career development needs.

Leading Your Team

This 9-week course teaches managers the critical components of building and leading a team, including communication skills, conflict management, talent development and ongoing performance management.

Financial Management

This 9-week course focuses on the key financial management skills that developing leaders need to manage the financial side of the business, including the basics of expense control, budgeting and benchmarking.

Join one of our interactive group sessions or start a self-paced option today. Enroll at YourNHPA.org/fol.

WEBINAR

Measuring the Market

Register for the webinar with NHPA’s Dan Tratensek and Grant Farnsworth from The Farnsworth Group for insights into trends and industry projections for 2022 at YourNHPA.org/webinars

The State of Retail in 2022

WHAT EXPERTS EXPECT FROM THE RETAIL SECTOR THIS YEAR

Despite supply chain challenges and labor shortages, retailers are coming off another strong holiday shopping season. Analysts predict 2022 will be another solid year for retailers, even with an expected decline in growth. For more insights into 2022, read our conversation with economic expert Katie Thomas at PDRmag.com/economy-2022

Global retail industry growth for 2022 is predicted to be down

Total 2022 retail sales worldwide are expected to top 6.6% from the forecasted growth in 2021, which was 7.2 percent

$26.7 trillion

3 Trends That Will Shape Retail in 2022

Sale of more secondhand goods

Return policies will differentiate retailers Using tech to enhance in-store experiences

Sources: Forecast for Retail Sales Growth Worldwide from 2018 to 2022, Statista; Forrester, Predictions 2022; Publicis Sapient, 2022 Guide to Next