Hardware Connection September/October 2012

Big Boxes Battling

Smart. Fast. Mobile.

Experience The New Retail for Epicor ® Eagle®

Discover what today’s smart retailers are doing for their customers to stay competitive and protect profits

Learn how a new generation of business performance tracking, smart analysis, and guesswork-free inventory planning can help you drive up margins

See how mobile apps and critical, up-to-the-minute info can keep your customers coming back and boost your team’s efficiency.

These powerful new solutions from Epicor are designed specifically to help you take advantage of the new realities— and opportunities—in retail

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

Sales: Tom Ballard tballard@thehardwareconnection.com 317-938-9380

Sales: Paula Pasquale paula@thehardwareconnection.com 630-258-5666

Contributing Writer: John Franklin john@thehardwareconnection.com

Contributing Writer: John Fix III

without the prior

IEDITOR’S

By Chris Jensen

Taking Things to Another Level

recently returned from attending The Hardware Conference in Marco Island, which is always a fun time. For conference directors Tom and Dale Chasteen, it’s like putting on a party for 450 of your closest friends…who just happen to all be in the hardware industry.

Next year’s Hardware Conference, set for September 6-8, promises to be the best ever. The industry’s premier event for the independent retail hardware channel is taking its awards program to another level. A new recognition program is being developed for 2013—the Beacon Awards, which will be co-sponsored by The Hardware Conference and The Hardware Connection.

In addition to awards honoring community service and lifetime achievement, the highlight of the awards banquet will be honoring the industry’s best new stores. Whether it’s an existing retailer opening a branch store or a newcomer opening a ground-up business, these new stores represent the future of the industry.

We are delighted to have the experienced hand of Tom Delph on board to help steer the ship for the Beacon Awards. Tom, who retired as group publisher of Hardware Age after a long industry career, has spent the past 17

years directing NRHA’s Young Retailer of the Year program. He will make sure the Beacon Awards gala banquet at next year’s Conference is a first-class event.

The average age of current hardware store owners is in the mid-50s, according to wholesale execs, and only 20 percent have a succession plan. Many do not have children who are interested in taking over the business. This situation illustrates why discovering and encouraging the next generation of retailers is vitally important to the industry. We hope the Beacon Awards can be a push in the right direction. Look for more information on the Beacon Awards in future issues.

In this issue, check out the video of Michael Wynn of Sunshine Ace on page 29 talking about how he keeps his stores competitive with the big boxes by paying extra attention to the details of retail. Then on page 55 you will find a video interview of Orgill President and CEO Ron Beal from their Fall Dealer Market in Las Vegas.

Being able to click on a video or link directly to a website are just two of the many advantages of being a digital publication. The Digital Age is here now, and the way the industry communicates information continues to transform before our eyes. ■

By Tom Chasteen

Are You Ready for the Next Round of Retail Change?

Each year we come across new products that make older products obsolete. Technology has completely changed the way each of us does business. Notice I said “the way” we do business, not “how” we do business. Personal relationships are still very much at the core of how we do business.

During one of the open dialogue sessions at last month’s Hardware Conference we asked how many retailers currently own an iPad, Kindle, Nook or tablet of any kind. There were more than 250 retail hardware stores represented and virtually everyone raised their hand. You only need to walk the aisle of a wholesaler show to see the practical application and convenience of using an iPad or tablet to access store data before placing a show order. When we first started The Hardware Connection in 2009 we had fewer than 20,000 readers. Today, we are the most widely distributed and read magazine in the hardware industry with a database exceeding 54,000. We estimate that the publication is forwarded to an additional 15,000 people, many of whom decide to sign up to receive future issues of the industry’s leading digital magazine.

I have almost given up on printed books. I now pay 50 percent less to buy books and read them on my iPad. I won’t even get into the issue of all those books and magazines piling up around the office or house that I was going to get around to reading…someday.

How often do you mail something or hand something to a friend or colleague each week? Probably not very often. Now think how many times each week you email or forward something to a friend or colleague electronically. We live in a digital age now—it’s our primary method of communication—and digital is only going to get more intertwined with our lives. We’re excited to be at the forefront of those changes with the industry’s only magazine that is distributed solely in electronic format.

As retailers, we know all about change and have the battle scars to prove it. Everyone in the hardware industry has been exposed to the realignment of our industry as a result of the big-box invasion. I distinctly remember listening to a senior exec of one of the major wholesalers tell us that Home Depot would never be able to expand beyond a five- or six-store chain in a limited regional area. the way i see it

the way i see it

Most of us survived the onslaught of the big boxes and learned not only how to survive but actually prosper and grow our businesses. Did we have to make adjustments? You bet we did, but look around and see how many retailers did not make it. That dreaded word “change” was the only consistent thing we could depend on.

I feel there is another seismic change agent that could prove to have even larger impact than the big boxes— Amazon. I bet that most hardware retailers, or someone in their family, has bought something from Amazon.com. There is no doubt Amazon’s wide reach is impacting our retail price points on many items, which directly impacts our gross margins and, more importantly, our gross margin dollars.

The good news is that this market shift is apt to have a greater impact on the big boxes than it will on the local, family-owned hardware stores. The major reason is because we are a part of our communities and we have developed strong relationships with our customers. Our customers come to us for our convenience and because they know us and trust us. Amazon, with its flashy web pages and free freight promotions, cannot match our ability to develop relationships with our communities and customers.

When I hire a new employee I emphasize that a customer should not take two

steps off the door mat without someone saying hello. I call it the “Cheers” policy, since it ties into the TV series whose jingle was “where everyone knows your name.” Over our checkout counter hang signs thanking our customers for their business. On the back, where only the cashier can see, it says: “The worst thing we can do to a customer is to ignore them after they have thought enough of us to come to our store.”

Amazon is coming to every community and if we assume, like many of us did with the big boxes, that they will only affect the urban stores we aren’t being honest with ourselves. Amazon is planning to open dozens of new fulfillment centers around major U.S. cities so that it can offer same-day delivery on everything it sells. Not only is that a distinct threat to all retailers, it should make wholesalers pretty nervous, too. We must work together as an industry to keep the two-step channel efficient and profitable for all segments, because we all know what happens to a stool that loses one or two legs.

It is up to us as retailers to work with the change we know and the change that is still coming and leverage it to our advantage. The fact that you are reading this column in an electronic format, perhaps on your smartphone or tablet, serves to reinforce how we have continued to adapt to change both individually and as an industry. n

AHARDWARE STORIES Amazing but TRUE

guy comes in and asks for a 25-by-25-inch square piece of glass. We cut it, but he says it looks a little big, so we remeasure. Yep, we’re right at 25 by 25 inches. Guy takes it home and turns out he measured in centimeters instead of inches.

WDusty Lee Stormer’s True Value Knoxville, Tenn.

The police pulled some guy over a little bit down the street. Well, he mouthed off to the police and drove away. Then, he came here to shop. The police caught up with him and arrested him here at the store. I guess if you have to buy some hardware, you don’t think about getting away.

Jack Chambers C & R

Building Supply

Philadelphia, Pa.

e had an old farmer customer who asked me to order a rocking chair for him. It comes in the following week, then he asks if we have letters and if we could put his name on the back of it. We put his name on the back of the chair. The next time he comes in, I ask him if he wants me to load the chair in his truck. He says, “No, I want it to be here when I get here.” From then on, the old farmer would come to the store and bark out orders while sitting in his chair. Oh, and he’d get real mad if he showed up and someone was in his chair.

Charlie Hinson Charlie’s Hardware • Locust, N.C.

Some years ago an elderly woman brought in the elastic waist band she had cut off a pair of Jockey shorts, which she had used to measure for a new shade.

Susan Miller Bob’s True Value • Whiting, NJ

Howʼs Business?

MIDWEST

Sales and margins in most recent quarter? A little sluggish coming out of the summer. Overall, this year has been better than the last few. We’re about 5 percent better than previous years. Our margins have increased about 2 percent. The good weather and early spring contributes to the good sales, and the economy is improving slightly and people are loosening up a bit.

Impact of health-care legislation? Honestly, we’re not certain how it’s going to affect us. We have about 18 employees. I’ve heard there’s a tipping point where things are going to happen. I don’t see how it can be advantageous. Currently, we don’t offer health care. Any unique niches? About 50 percent of our sales are hardware, 30 percent sporting goods, including firearms, and we have a coffee shop and sell liquor. That’s been a real good niche for us.

Ken Thoreson

Solon Springs Mercantile • Solon Springs, Wis.

Solon Springs Mercantile is a Hardware Hank store purchased by Ken and Meg Thoreson in 2002.

Sales and margins in most recent quarter? Sales are down about 15 percent from last quarter. The drought in the area really took effect, but margins up 1 percent. It was the worst drought in 100 years, and when the temperature was 100 degrees, we might as well just shut down. Lawn and garden is a third of our business, and people around here went two and a half months without mowing.

Impact of health-care legislation? Pretty little. We don’t have that many employees. We have 14 employees and they’re all part time. For the past five years we’ve hired a lot of college students and retirees.

Strategy for competing against big boxes? Selection of merchandise. While people go to the big boxes to buy the stuff to build houses, customers look to us to be the place to go to

maintain and fix their homes. We have large plumbing, sweeper bag, and nuts and bolts selections. We also have a gift department and an upscale paint selection. In the summer, we buy from local greenhouses and find that the customers appreciate that.

Jack Stevenson

Stevenson’s Ace Hardware • Crawfordsville, Ind.

NORTHEAST

Sales

and margins in most recent quarter? We’re strong with sales up and margins flat. We opened a new location and liquidated another store. Certain parts of the business, such as our rental department, have been strong. We also refocused our electrical to cater more to contractors, and that’s seeing a bit of a rebound. Our plant and paint business continues to do well.

Impact

of

health-

care legislation? We’re in Massachusetts, so we’ve already gone through the pain. We felt the effects of the health-care legislation a few years ago. We have about 100 employees and provide 75 percent of health-care costs. We’ve found that it’s a great retention tool and a great way to find best-in-class employees.

Bart Raser

Carr True Value

North Adams, Mass.

HowʼsBusiness?

MID-ATLANTIC

Sales and margins in most recent quarter? It’s been kind of slow, mainly because of the economy. We’re in coal mining area and many coal miners have been laid off. That’s not good for business. Margins have been alright. But it’s too competitive here, and we can’t raise margins much.

Impact of health-care legislation? I don’t have a clue. We only have two employees.

Strategy for competing against big boxes? Have personal contact with customers. We offer a lot of services, such as mower and weed eater repair. We also do warranty work and continue to take care of customers on down the line.

Revelea Lemon

Harts PRO Hardware • Gassaway, W.Va.

Sales and margins in most recent quarter? About the same as last year. With the election coming, people are scared. About 80 percent of my business is from mines and people who have something to do with mining. People are tight with their money right now. And they’re shutting down mines right and left.

Impact of health-care legislation? Not sure.

Strategy for competing against big boxes? We’re primarily a lumberyard, and we promote our quality and service. I buy premium lumber. What was once a No. 2 grade is now a No. 3 grade, so I make sure to keep the quality of lumber high.

Any customer stories to share? An 80-year-old lady told me a dirty joke the other day. It was so bad, I don’t want to repeat it.

Dwight Postelwait Means PRO Lumber • Beckley, W.Va.

We’re in coal mining area and many coal miners have been laid off. That’s not good for business.

WEST

Sales and margins in most recent quarter? Very good in both regards. We’re on course for September to be a record month. August was a record month, and July was very close to being a record month. Margins have been steady. Sales are up 8 percent. We’ve had some weather issues, such as a wind storm and a lot of rain, and that may have boosted sales. We’re very weather driven and have a big lawn and garden store.

Impact of health-care legislation? Because I don’t have 50 employees, we won’t be directly affected. We average 22 employees, with more in the

summer, fewer in winter. However, in the past two years we’ve seen a significant increase in health-insurance rates. The deductible has been raised and the insurance company advised me that they may raise the rates by 40 percent next year.

Tim Craig

Anchorage True Value • Anchorage, Alaska

Howʼs Business?

SOUTHWEST

Sales and margins in most recent quarter? Net sales are up about 6 percent. Margins are down about 1 percent. Promotions seem to be driving both of those numbers. We also have a lumberyard and the margins there aren’t too high. The average ticket is up, but we don’t seem to have as much traffic. I attribute that average ticket increase to our good sales force. They’ve been better trained. Also, customers seem to be looking for quality and are willing to invest in better products instead of throwaways.

Impact of health-care legislation?

I don’t know. Honestly, we’re waiting to find out how that’s going to roll through. I don’t anticipate small business owners needing to do much. But small business owners like to do things for ourselves and not be dictated what to do.

Strategy for competing against big boxes? We’re somewhat removed from the nearest big box. Our closest is about a 45-minute drive. While we don’t

have direct competition in the neighborhood, we monitor what they’re doing price-wise online. For example, if we know that Lowe’s is offering waferboard for $3 less, we may offer contractor discounts.

Sean Walker

SOUTH

Sales and margins in most recent quarter? It’s been flat to slightly up; margins have been strong. For the first time in about five years we’ve seen an up-tick in customer count. We try to keep our margins up by better buying. We take advantage of direct-ship programs and we have a stronger margin on those items. Decatur has been fairly insulated against the housing collapse. It’s an established community, so there’s not really any new building, but remodeling. That remains fairly strong.

Impact of health-care legislation? So far we haven’t seen any. We pay quite a bit to provide health-care

insurance. We’ve seen a bit of an increase in premiums. But we’ve seen increases before the legislation hit, too. Strategy for competing against big boxes? Our strategy is to do what they don’t. Our approach seems simple, but it can be pretty complex. We took the general store format and brought it into the 21st century. We offer extensive clothing, grills, housewares and home goods placed in a setting that encourages customers to stay a while. For example, we have a retro oven that we use to display merchandise. We frequently move displays to freshen the store’s appearance.

Any unique niches? Five or six months ago, an employee found a vintage RC Cola machine on Craigslist and got in her truck with her dog and drove to Kansas to pick it up. Now it’s in the store and we use it to sell old-fashioned sodas. That’s good business for us. We sell hundreds of sodas a week.

Tony Powers Intown Ace Hardware • Decatur, Ga.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

New products are the stuff that really gets hardware retailers excited. Next time you are at a wholesaler’s show just watch how we dealers look over the new item areas that the wholesale buyers have added to their respective warehouse offerings. Selecting new products is not an exact science. Any buyer who has been a buyer for any length of time will tell you that they all have made

PRODUCT #1: ULTRA LITE HAMMER | ESTWING MFG.

Estwing is one of our oldest manufacturers in the hardware industry. They have a long and interesting history of making tools going back to 1923 and are most easily recognized by their trademark steel hammers with blue handles. You would probably think they would just keep making the same successful hammers they have been all of these years, but you would be wrong. I mean, what can you do to improve a hammer? Well, ask

By Tom Chasteen

some bad buying decisions. That’s no different than the retailers who are buying “puppies” that will eventually turn into “dogs” in our merchandise mix.

Being a good buyer is much more of an art than a science; the trick, in my opinion, is to keep honing your craft by using POS data, using your “gut” instinct and knowing your market.

anyone who swings one for a living and they will tell you balance is key and weight is critical.

Estwing has combined but they are forged in one extended instinct and knowing your market.

Estwing has combined both in their completely new line of Ultra Lite Series of hammers. They are still an all-steel hammer but they are forged in one piece, completely eliminating welds that often break or crack with extended use. However, the they will tell you balance

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

feature I like the most is that they are lighter, noticeably lighter. As with all Estwing hammers the Ultra Lite model is very well balanced, which relieves forearm fatigue (at least for me).

There are several other noticeable features—the most obvious is that they are all black, even the patented shock-reduction grip handle. They also have an extra side nail puller built into the side of the hammer head for close quarters and they have a magnetic nail

starter built into the top of the hammer head.

If you think all steel hammers are alike you will obviously see and feel the difference when you pick up one of the Ultra Lite Series hammers from Estwing. The Ultra Lite Series, which will be available in November, comes in three different weights—10 oz., 13 oz. and 17oz.—and is available in both a smooth face and milled face.

To learn more about Estwing’s products go to www.estwing.com.

PRODUCT #2:

THE GARDENER’S HOLLOW LEG® THE GARDENER’S HOLLOW LEG

The Gardener’s Hollow Leg is one of those ideas that I wish I had thought of. It’s simple, very functional and is extremely well-packaged. The concept is very simple—it’s a recycled polyester (very durable) bag that comes with a nylon belt and quick release buckle that allows the user to put their garden clippings in the bag vs. making multiple piles on the ground or carrying around a bulky five-gallon bucket.

There are two other very unique features of the Gardener’s Hollow Leg products. One is a patented ring at the top of the bag that keeps the bag opening open, making it easy to drop clipping or fruits into the bag. They have also sewn in a separate pouch on the outside of the bag that is perfect for a phone or iPod.

The Gardener’s Hollow Leg can hold as much as a five-gallon bucket can and it also comes in a “Jr” size for smaller jobs. Either model allows the user to have complete use of their hands while working or climbing a ladder.

The product is also perfect for many tasks other than gardening, like

changing light bulbs on a ladder, cleaning windows, working on rigging of a sailboat or anything else that requires you to have tools or parts available to complete the task but also requires the use of both hands. This is a great product.

If you have a serious garden department, then the Gardener’s Hollow Leg will make a great addition to your product offering. To learn how to buy this product for your store, go to www.thegardenershollowleg.com.

PRODUCT #3: PROSENSOR 710

PROFESSIONAL STUD DETECTOR

FRANKLIN SENSORS

Franklin Sensors has come out with a new professional stud detector. The ProSensor 710 professional stud detector is 7” long (very similar to the size of a sanding block for drywall). It has 13 LED light sensors across the horizontal leading edge that light up when the stud detector detects a wood or steel stud. If the stud (wood or metal) is 1.5” wide, then three light sensors will light up showing the user where the outside edges of the stud are located. If there is a double stud, five of the light sensors

will illuminate showing the outside edges of the two studs.

This professional stud detector is definitely not like the cheaper magnet-variety stud finders that only tell the user where there is a nail or drywall screw. Franklin’s professional stud detector actually gives the user a very definitive indication of where the stud is located as well as the size of the stud. It will even penetrate as much as 1.5” deep.

When you really need to know, this is the right product for the job. To learn more about the ProSensor 710 go to www.franklinsensors.com.

Over 2000 Lumber & Hardlines

www.pacsoft.com

“Pacsoft has helped us along the way. The emailing of our PDF statements is fantastic, and the contractors love it ”

Landon Garner, Owner Garner Building Supply

“Pacsoft’s Optemizer Scibuy has improved store profit and put money in the bank.”

Dan French, Manager Baken Park Hardware

“At Pacsoft we take pride in providing our customers with the necessary tools and skills required to make the best decisions for their businesses.”

“By partnering with Woodware, Pacsoft has created a seamless millworking solution that has saved our staff a significant amount of time, and our customers love it.”

Lowell Stutzman, Owner Farmer’s Building Supplies

Michael Wynn is constantly seeking ways to improve Sunshine Ace Hardware.

“Everything is done on purpose with strategic intent,” he says.

IBattling

PRICE, LOCATION, SERVICE and convenience have been redefined in today’s onlinedriven world, stated John Hammond in his dealer presentation at last month’s Hardware Conference. “This changed market favors nimble, cost-efficient retailers,” he said.

BIG the BOXES

ndependent retailers have been competing with the big boxes for three decades, but competitive strategies that worked in the past might not get the job done in the “New Age of Retail.”

Price and location still dominate with consumers, but smaller formats will be increasingly in favor with an aging consumer base, Hammond noted. He cited research by Retail Net Group, which predicts big boxes will only grow 2.9 percent from 2011 to 2015,

By Chris Jensen chris@thehardwareconnection.com

which trails the 5.1 percent growth predicted for smallbox retailers.

Big-box growth has slowed because the boxes need new markets, growing population and increased spending by existing customers, and trends are working against them in those areas.

Today’s customers are price-aware and price-sensitive, Hammond pointed out, but time-starved consumers facing high gas prices are increasingly turning to local shopping choices.

LEVERAGING LOCAL OWNERSHIP

Michael Wynn, president of six-store Sunshine Ace Hardware, based in

Bonita Springs, Fla., directly competes with three Lowe’s and three Home Depot stores. He combats the boxes by focusing on four key areas:

• Leveraging local

• Service

• Convenience

• Product selection

“Every one of these four areas is under assault, so we need to redefine our key deliverables. Everything is done on purpose with strategic intent,” he says.

Sunshine Ace decided to focus on one of its greatest assets—its family culture, according to Wynn, a third-generation retailer whose family entered the hardware business in 1958.

Cover Story

When their downtown Naples store was remodeled two years ago, the design incorporated 24 photo panels around the perimeter along with more than 70 photos that feature the Wynn family or old-time shots of Naples. Three large murals were hand-painted by local artists to depict old-time Naples scenes. A photo tribute to company founder Don Wynn is placed prominently near the front entrance.

“We’re doing more to leverage local, since people want to do business with local companies. Customers are more aware than ever how money is being recirculated in the community,” Wynn says.

Local retailers return an average of 52 percent of their revenue to the local economy, compared to just 14 percent for chain retailers, according to a study by research firm Civic Economics.

Despite Sunshine Ace’s long history there are a lot of new homeowners that aren’t familiar with the business, Wynn admits. “We do traditional radio and TV, but we’ve moved more money into community events. It gives us more visibility and contact and impressions are higher,” he says, adding that they plan to play up the Sunshine brand more in addition to their national Ace brand identity.

Sunshine Ace has fostered a culture of service that is noticeable to customers.

Creating a ServiCe Culture

As soon as you set foot in a Sunshine Ace store you are met by a greeter, whose job is to make sure you are directed to the right place for your project. You can’t walk down two aisles without being stopped by a friendly associate who offers assistance.

It’s hard to imagine a store offering better service, but Wynn believes there’s room for improvement. “We had good customer service, but we want to offer great service,” he says.

The big boxes are good at leveraging technology, so that’s another goal at Sunshine Ace. One new initiative is to use shelf talkers embedded with QR codes that enable customers to view helpful how-to videos.

To beat the boxes you have to think outside the box. Wynn is taking his whole management team to Zappos, the fast-growing online clothing and shoe retailer. “They do a culture of service

Smart. Fast. Mobile.

Experience The New Retail for Epicor ® Eagle®

Discover what today’s smart retailers are doing for their customers to stay competitive and protect profits

Learn how a new generation of business performance tracking, smart analysis, and guesswork-free inventory planning can help you drive up margins

See how mobile apps and critical, up-to-the-minute info can keep your customers coming back and boost your team’s efficiency.

These powerful new solutions from Epicor are designed specifically to help you take advantage of the new realities— and opportunities—in retail

Sunshine Ace’s remodeled store in downtown Naples, Fla., incorporates historical photo panels featuring old-time Naples scenes and the Wynn family. The store also features 10 flat-screen TVs on endcaps throughout the main traffic areas of the store. In addition to promoting a particular product and price, they feature slides on continuous rotation that highlight the store’s historical theme.

Cover Story

One of the disadvantages of having lots of long-tenured employees is that many are nearing the end of their retail careers. Sunshine Ace has to be ready to mentor new ones, whether it’s investing in Dale Carnegie courses for associates or management training with Zappos. “It’s an upfront investment but it pays off. When associates see us investing in training, they’re willing to repay that with our customers,” Wynn says.

better than anyone,” says Wynn. “We will tour their facility, hear firsthand how they do it and then come back and implement it in our business.”

Wynn has redefined expectations for leaders in his stores, which has helped minimize turnover expense. “We benchmark the behavior of our best leaders and then compare using Hogan online assessments. We get extensive feedback predicting job performance,” he says. “With associates, it’s more cost-effective to use a disk profile and determine what is their dominant personality.”

Defining the company’s values and culture clearly and communicating that information to prospective hires is the final screening feature. “Once you put that out it weeds out some people,” Wynn says.

Carefully planning payroll hours, integrating technology with kiosks and mobile phones—these are all ideas gleaned from the big boxes. “We need to better leverage technology, because that’s something the big boxes do well,” says Wynn, who plans to take a closer look at how they capture information from customers and then put into their systems.

They are currently doing customer surveys after purchases and comparing market reach between their different stores, which will enable them to apply marketing resources more efficiently.

redefining ConvenienCe

Sunshine Ace’s cluster of six stores means their locations are convenient to customers. The recently remodeled store in downtown Naples features six checkout stations to ensure customers don’t waste time waiting in line—that’s another form of convenience.

In-stock condition is a critical factor in convenience, because otherwise the customer’s local trip has been wasted.

WHAT’S YOUR STRATEGY FOR COMPETING AGAINST BIG BOXES?

“We have a culture of service. We eat it, drink it and sleep it. We are excessive trainers. We send people to classes and bring factory reps and consultants here all the time. We take our training very seriously. We do what our competition can’t, or won’t, do. We offer a lot of services, such as locksmith, power tool repair, small engine repair, and window and screen repair.”

Bart Raser Carr True Value North Adams, Mass.

“We’ve built our reputation on two things: offering product that you just can’t find everywhere and having

knowledgeable employees who can help customers purchase the right product. We became the place to go for power tools. We repair all the tools we sell and our tool selection is second to none. We know our market so we can react quicker to niches.”

Howard Miller

Hartville Hardware Hartville, Ohio

Hartville Hardware, which operates the largest independent store in America, is the first store to have a touchscreen display and navigation tool from Hillman that enables customers to find the exact location of any fastener.

Cole’s Home Solutions in Millington, Tenn., stands out with distinctive merchandising.

“Most independents think their service is better than the boxes, which is not always the case. We have to make sure our service level is so high they can’t touch us.”

Charles Cole Cole’s Home Solutions Millington, Tenn.

“Amazon is shipping in one to two days. If Amazon can deliver what we don’t have, why would customers come back to us?” Wynn asks.

Amazon is aggressively opening fulfillment centers around the country with plans to soon offer same-day shipping in large metro areas. “Amazon is a threat to everyone, including the big boxes,” he says.

Hammond’s presentation noted that online sales are projected to rise 13.5 percent from 2011 to 2015, further proof that online selling is the new and future king of convenience. If independent retailers want to stay in the game, they will need more than a bricks-and-mortar location to win the hearts, minds and wallets of the next generation of consumers. Offering online ordering with store pickup will increasingly become a critical component of retail success.

UniqUe ProdUct Selection

Sunshine Ace’s Naples store stocks

45,000 SKUs in 14,000 square feet including 1,430 fishing rods and 226 rod/ reel combos. Not a single one of those fishing items can be found at the boxes. Although they carry some sports clothing that is sold by Walmart, Wynn says they have discovered they can be 10 percent over Walmart’s price and still be competitive in that category. As a general rule, they aim to be even on price-sensitive items and 10-20 percent higher on blind items.

the inStitUte for local Selfreliance comPileS StUdieS oUtlining the imPact big boxeS have on local bUSineSSeS and commUnitieS. click here

In addition to doing a better job planning and executing endcaps, Wynn wants to do better data segmentation, cleaning up the data they compile on assortments. “Whether we offer a convenience or super assortment also determines our pricing strategy,” he points out. “A lot of categories we need to do on our own, because we know what’s right for our markets.”

The retailer competes in six markets, but they are close together and not broad enough to vary assortments by store. “We are fortunate with our cluster of stores to keep a consistent SKU mix,” says Wynn.

Sunshine Ace Hardware emerged from the recession with the largest bottom-line profit in its 54-year history and sales are on track to rise 7 percent this year, the third straight year of strong sales growth. “We’re doing well because we weeded out weak processes,” explains Wynn.

“We need to be more strategic about everything. We have to do things right 99 percent of the time if we want to keep up with the boxes,” he adds. “Being consistently in-stock and having knowledgeable, friendly employees— that’s what it will take.” n

FINDING WAYS TO OPERATE MORE

HARDLINES DIGEST Efficiently

By John Fix III

Several retailers have adopted sliding merchandising racks to get more sales productivity out of their salesfloor.

Fall is here, so time to start the ramp-up to the busy holiday season. Here are some topics posted to Hardlines Digest during the waning days of summer.

MORE EFFICIENT?

Preston Bullock of Jay’s Hardware in Wrens, Ga., posed a question about efficiency. “Anyone care to share how they have made their store and operations more efficient in 2012? Always looking for ways and would like to hear some more.”

Glenn Dion of Rand’s Do it Best in Plymouth, N.H., is getting creative

hardlines digest

with his fixtures. “We added sliders to some of our 4’ gondola sections. Saw them at the DIB Market from Lozier. I purchased 15 units to start and will be buying some more at the upcoming market. This is great for adding up to 30-40% more stocking space to a 4’ section. We use them in areas where the inventory is not deep. Great for drill bits, router bits, rivets, hand tools, faucet stems, specialty light bulbs and other like areas. We currently use them in the paint, electrical, plumbing, hand tool and housewares departments.

Dion added, “We usually only use one slider in any one 4’ section. When you start using two in a 4’ area, and we do have a couple like that, it can be too congested looking. This has allowed us to merchandise more in less. We have also started to do a little more waterfalling on some of the inventory.

I am currently working to waterfall 12’ of vacuum bags into only 8’ of space. Generating more space without increasing the overhead.”

Jason Kemp of May Hardware in McCall, Idaho, has also had success with the sliders. “We’ve used some of these, especially in letters, numbers and signs. My only warning is to be careful with them, because (at least in my experience) customers don’t always know to move the panels on their own. Any product behind the panels must be resilient enough to withstand being out of sight 50% of the time.”

Brandon Buckalew has pursued a number of strategies at East Grand Forks Hardware Hank to improve store efficiency.

Brandon Buckalew of East Grand Forks Hardware Hank outlined five things he has done to operate more efficiently:

1. I made the full-time shop position into two part-time spots. This created more communication. Since they were communicating between themselves, they communicated with upper management and other part-time staff far better.

2. My delivery driver only does deliveries for 15-20 hours a week, but he now works the floor for the rest of the 40 hours. Rather than having one full-time freight clerk, I made my delivery driver a freight clerk and my night manager a freight clerk from 12-5. After 5 p.m. he manages the night crew. This opened up communications big time with the rest of the staff. Plus, it made our deliveries more efficient since the driver knows what he’s waiting for, when it comes in and where it gets put after it’s checked in.

3. I changed my ordering from a Minimum on hand method to a Min/

Max method. I know for a fact that sales on certain items have at least tripled. Less time is spent putting stuff away each week. And we don’t lose sales to empty peg hooks or only having three of something when someone needs four. The only downfall is that my Inventory on Hand is up a little, but I think I needed it to go up some anyway.

4. I set SKUs for wire, chain and other cut items so that it’s much easier for staff to ring them up. Using MSU on cut items with the new SKUs is making inventory/reordering much more efficient. Now they ring up “Chain1” or “Wire1” instead of one clerk ringing

up “Hardware” and another ringing up “chain” and another using “Misc.”

5. I implemented some training programs for staff to do on their own time, but they receive a bonus after completion. I took a two-day course on Excel. It cost me about $200. It was the best money and time spent this entire year. Would have paid double and still been happy with it.”

CUSTOMER SHORTED CASH?

Susan Miller of Bob’s True Value in Whiting, N.J., faced a scenario that many store owners have likely encountered. “I would like to know how the rest of you handle situations where a customer

ree Steps

Economical

■ Use it on stainless steel , aluminum, chrome, enamel, fiberglass, plastic and wood panels

■ Removes dirt, grease & finger print marks with no residue ■ Repels water & prevents liquid penetration

HARDLINES DIGEST

claims to have been shortchanged by the cashier. We are in a retirement community and it is common for customers to take their change, walk outside and come back in and claim they were shortchanged.”

Miller added, “They always expect me to hand over the money immediately. My firm policy is to count the drawer at the end of the day and then call them to tell them if we found extra money or not. I just had to call someone and tell them there was no extra in the drawer. I was the cashier for the transaction and knew the lady had given me a five not a twenty, but she can’t find her twenty so therefore she firmly believes I am a thief.”

David Sem of Sebo’s Do it Center in Clinton, Wash., uses his TV system to check up on these situations. “We have cameras pointing down on each cash drawer so we can review the transaction in cases like this. It has saved us when that happens or if customers claim something wasn’t placed in their bag.”

Kenneth McRae of McRae’s Paint and Hardware in Dallas had this suggestion. “Teach the cashier to not put money in the correct currency slot immediately. By making sure the customer sees the currency being turned sideways or some other precaution also helps prevent a two-person setup scam where the second person just happens to know the serial number on the bill that the first

customer gave and then force the increase (undue amount) of change to be given to them for the twenty or fifty that the first person gave for their purchase.”

Jim Ertzman of South Hills True Value in Pittsburgh shared his thoughts. “I agree that you really have to take care of it immediately. Waiting till the end-of-day only allows the customer to get suspicious while they wait for your phone call. This is especially true if they really perceive they were shortchanged. Remember the saying perception is reality. Waiting also increases the possibility they will bash you on social media. Waiting also creates the possibility of the cashier making a second mistake that may make it impossible to determine who is shorted and for how much. An otherwise accurate cashier may be having a bad day because of other things going on in his/her life.”

Jim Ertzman of South Hills True Value shared how his store deals with customers who think they’ve been shortchanged.

belongings around the checkout such as keys, umbrellas, canes, merchandise from other stores, etc., and we were often able to ID them with our POS transaction video capture and our rewards database. We can view the video on the salesfloor and will gladly share it with the customer if necessary.”

He added, “As for giving change back the cashier is supposed to hand the customer the coins first, giving them time to put them in their pocket/purse. The cashier then verbally counts out the paper money either into the hand of the customer or in their own hands in front of the customer while they watch. There are some customers you just don’t want to touch.”

Ertzman uses a Countex coin counter tray. “The cashier loads up the tray while a manager counts the paper money. We can usually have an answer in less than five minutes. We have cameras on each register, which comes in handy in these situations and when someone claims something wasn’t put in their bag. Customers have left personal

Several Hardliners suggested that counting back the change is an important step. Dick Beal put it bluntly. “Counting back change to a customer rather than to yourself is one of the basics of being a cashier. I believe it is insulting to a customer to be handed a wad of money.” ■

John Fix started the Hardlines Digest in 1996 and continues to run the servers out of his hardware store in Eastchester, N.Y. There are currently over 2,700 subscribers to Hardlines Digest. To read more or subscribe go to www.hardlinesdigest.com.

The Industry

Marco

The dinners are always uplifting and entertaining.

Attendees get to mingle at three industry cocktail receptions.

The Hardware Conference is truly where lasting industry relationships are formed.

Conference Director Tom Chasteen makes sure everyone has fond and lasting memories of the event.

Clemence of Hyde Tools chats with Rick Heuser of Handyman Hardware.

How often do you attend an industry event where everyone gets to say what’s on their mind? Long-time attendees of The Hardware Conference in Marco Island know if there’s an issue that’s bugging them, then the Conference is the perfect forum to get honest feedback. They might not always like what they hear, but everyone appreciates the frank dialogue.

The penthouse terrace of the hospitality suite was the perfect spot to catch up with old industry friends while taking in the beautiful beach setting.

Richard and Sandy Schauer of Schauer’s Do it Best Hardware and Dick and Cheryl Schroeder of Schroeder’s Ace all attended from Illinois.

Dan Hitchcock, who operates four Ace stores in Miami, started the Open Dialogue session by saying he wished his co-op would be more aggressive in getting new items. “I hate seeing the big boxes always get them first,” he said.

“Buyers want to see a sales history before they’ll take on an item,” pointed out Casey Mathews of Wooster Brush.

And so it went for three days of formal and informal meetings, exhibit hours and cocktail receptions, with plenty of opportunity to share ideas with fellow dealers and get to know vendors on a more personal level. The 24th edition of The Hardware Conference, which is organized by Tom and Dale Chasteen, was blessed with perfect weather at the picture-perfect

hardware conference

Shawn White (left) of True Value presents Beacon Award to Bob Silverman of Kli True Value.

Toole, with wife Patti,

Marco Island Marriott, but it’s the relationships that are forged that leave the lasting impression.

Don Hoff Jr. of Harleysville (Pa.) Ace returned for a second time because he finds the event to be valuable and informative. “It’s not only uniquely different and fun, but you learn so much being able to talk to the other dealers and vendors,” he said.

The Hardware Conference, which took place September 7-9 at the Marco Island Marriott, is now well-established as the premier event for the independent retail hardware channel. It’s the only industry event held exclusively for independent retailers regardless of wholesaler affiliation.

Industry AwArds

Three retailers were honored with Beacon Awards to recognize their efforts within the industry and their respective communities:

• Walter Toole, Toole’s Ace Hardware, Winter Garden, Fla.

• Aaron Taylor, Taylor Do it Best Building Supply, Tallahassee, Fla.

• Bob Silverman, Kli True Value Supply, Key Largo, Fla.

• Tom Delph was given a Lifetime Achievement Award in recognition of his 50-plus years of industry contributions. It was also announced that Delph would be spearheading an enhanced, first-class Beacon Awards program for next year’s Conference. In addition to awards honoring

Epicor again conducted a two-day training seminar for dealers before the Conference. “The Epicor training session on Inventory Planner and John Hammond presented a Lifetime Achievement Award to Tom Delph.

community service and lifetime achievement, the Beacon Awards will honor the industry’s best new stores at a gala banquet.

For the third straight year a gathering was held for those who participate on Hardlines Digest. “There are now about 2,700 people signed up for Hardlines, and it is valuable simply because of the number of industry people involved,” said founder John Fix III of Cornell’s True Value. Ideas for improving Hardlines were kicked around, such as using Google Groups for a nicer interface and better search function.

a growing community of thousands of independent

tips from fellow retailers delivered fresh daily to your email inbox

“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

harDware cOnference

Performance Manager was a great hands-on session with laptops available to work on the example tasks,” said Fix. “Those of us that had remote access to our store systems were able to build IP plans while at the session, which really helped us learn the intricacies of the program.”

An enhanced dealer program was introduced featuring a free twopart, five-hour training session on Excel, conducted by Fred Pryor and Associates. Excel is such a vital tool for many retailers, so it was a good program for stores that wanted to brush up on using Excel to export, modify and import data. Those who attended the Excel training all agreed it was excellent and well worth their time.

“We wanted to try something different with the Excel training this year,” said Tom Chasteen. “We’ll use Fred Pryor and Associates again next year for a different topic that will be of interest to dealers such as Facebook marketing or how to deliver exceptional customer service.”

Open DialOgue SeSSiOnS

Leading vendors such as 3M, Bosch, Krylon, Minwax, Duracell, Hyde Tools, Hillman and Apex Tool participate in The Hardware Conference with tabletop booths displaying their latest product innovations. Since the Conference is not a buying show dealers can learn

The Open Dialogue sessions give dealers and vendors a chance to get their concerns addressed.

more about the suppliers and their products without enduring high-pressure sales tactics.

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.

Dealers said they would use a vendor website to order merchandise directly that was then billed through their wholesaler. There was mixed response to the idea of vendors conducting regional product demo sessions.

When asked how vendors can help them sell more in a flat market, dealers said that new products, product training and reducing quantities in case packs would all help. “We’re reducing case packs. Four seems to be the

Perry and Barb Hahn, Hahn’s Ace , Hartford, Wis.

Dale and Tom Chasteen will be celebrating the 25th anniversary of The Hardware Conference next year.

optimal number,” said Jeff Crayton of Minwax.

Retailers also stated that it’s important to be listed in a vendor’s product locator but they get annoyed when a vendor’s website says a product is available at a store or co-op and it’s not available through the warehouse. “Put the warehouse SKU in the ad or on the website,” urged one dealer. Another discussion topic was what is driving line reviews at the wholesale

Greg Galen of Fluidmaster makes a remark during the Open Dialogue session.

level? “It doesn’t seem logical sometimes, but we don’t know all the details,” said Chasteen.

“Any new item that doesn’t get 75 to 80 percent in focus groups won’t be produced by us,” said Bob Clemence of Hyde Tools. “Then the issue is getting the item into distribution. It took me from June to September to get my first meeting with a co-op about our new Pivot Jet. They usually give you an hour to make your pitch and they will want $50 off for shows. We won’t get our first order until November or December.”

Clemence added, “Buyers are too busy with show work to talk about new products. The big boxes will do a 200 to 400-store test before rolling it out.”

Most dealers in attendance said they would agree to be a test store for a new item if they received free goods or guaranteed sale.

Thanks To sponsors

Special thanks go to the marquee sponsors: Epicor Software Corp., Gilmour, The Hardware Connection magazine, The Hillman Group, Krylon, Miami Children’s Hospital Foundation, Skil, div. Robert

Dealers get to know vendors on a more personal level when the exhibit areas are open.

Bosch Tool Corp. and The Wooster Brush Company.

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

At the end of the Conference the vendors auction off their display merchandise and the money raised is donated to the Miami Children’s Hospital Foundation. This year’s auction raised about $29,500, bringing the total fundraising amount over the years to nearly $800,000.

Start making plans to attend next year’s Hardware Conference, scheduled for September 6-8, 2013, at the Marco Island Marriott. For more information, call Tom or Dale Chasteen at (305) 853-0049 or go to www.thehardwareconference.com. n

hardware conference

CATEGORY REPORT

PLUMBING/BATH TRENDS

Sales of Toilet Repair Parts (Independent Hardware Channel) 12 Months % Change vs. Year Ago

Toilet Repair: Units

Toilet Repair: Dollars

Source: Vista Information Services, div. of Epicor Software Corp.

Unit Sales Breakdown for Toilet Repair Parts Total of 910 Items with Sales

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

Keim Do it Best Lumber in Charm, Ohio, features a functional shower selection center that lets customers see 35 bath and shower displays in action.

PLUMBING/BATH BUYING UPDATE

■ Global demand for plumbing fixtures and fittings is projected to rise 6.2 percent annually through 2016, according to research by The Freedonia Group.

■ WaterSense is an EPA program designed to encourage water conservation. Products that carry the WaterSense label are 20% more water efficient than average products in the category. The typical household could save more than 2,300 gallons of water a year by using WaterSense labeled showerheads, according to the EPA.

■ The industry is moving rapidly toward lead-free faucets, following the lead of legislation passed in Vermont and California. The Reduction of Lead in Drinking Water Act, which was signed into law in January 2011 and requires manufacturers to comply within three years, reduces the amount of lead in plumbing fixtures from 8% to 0.2%.

Southaven Supply in Southaven, Miss., stocks more than 100 different sinks and vanities, with customers traveling up to 150 miles for a unique copper bar sink or a decorative glass vessel.

■ Medicine cabinets are now available with refrigerated sections for skincare aids or medicines that need to be kept cool.

■ Bathtubs with underwater speakers and WiFi capability are in demand in the luxury market.

■ Most toilet manufacturers now offer dual-flush toilets to capitalize on the water conservation trend. Also available are dual-flush conversion systems to retrofit older toilets.

■ Low-flow aerators can reduce water usage in faucets by 30%. Motionactivated hands-free faucets are another conservation option that offers additional functionality.

■ The graying of America means increased demand for walk-in tubs, shower seats, grab bars, hand grips, toilets with chair height seating and other products that improve accessibility and safety for older consumers. ■

PLUMBING PRODUCTS

DUO FLUSH™ CONVERSION VALVE

• The Dual Flush System retrofits into any 2” toilet tank, and is proven to use up to 45% less water than the original tank parts. It also has been shown to improve flushing power on the full flush, so you will actually see better performance than before. A dual flush tank lever is included with this system.

• Durable silicone seal lasts for years and product features 10-year warranty.

• Fully adjustable full and half flush.

FLUIDMASTER

www.fluidmaster.com • 949-728-2000

SECUREMOUNT™ GRAB BAR

• Available in a wide array of styles including several designed to match Moen faucets.

• The concealed-screw design and sleek 1-¼” bar diameter provide homeowners with safe and stylish options to coordinate with the rest of the bath. Designer grab bars also include a curl grip feature or grip pads, which provide added security.

QUARTZ BY ACO SHOWER DRAIN

• Available in various lengths, ranging from 12” to 48”, and are featured in the most popular finishes, including: chrome, brushed nickel, stainless steel, polished stainless steel, old world bronze, oil rubbed bronze, polished brass and white.

MOEN INC.

www.moen.com/homecare • 800-289-6636

• Features distinctive water-activated LED light that sits below the grate and automatically illuminates in the presence of water.

• Light shut off within seconds of when the water stops flowing through drain.

• Available in red, green, blue or white.

www.quartzbyaco.com • 440-285-7000

LIQUILOCK™

• Solidifies water for easy toilet removal, preventing water spills.

• Gel formed in 4 minutes.

ADDISON KITCHEN FAUCET

• Non-toxic and low-VOC. Use 1 package for 1.6 gallon toilet.

OATEY

www.oatey.com • 800-321-9532

• Touch2O Technology makes it easier to turn on the water flow when hands are messy or turn off the water when it is not needed between tasks, saving water. A simple tap on the handle or spout stops and starts the flow of water.

• The Multi-Flow pull-down wand enables consumers to toggle easily between spray and stream functionality.

• Touch-Clean soft, rubber nubbins allow you to easily wipe away calcium and lime build-up from the spray face with the touch of a finger. The InnoFlex waterways eliminate potential leak points and are easier to install.

DELTA FAUCET

www.deltafaucet.com • 800-345-3358

WATER CONNECTORS

• Microban® antimicrobial product protection is infused into the outside of the hose to inhibit the growth of bacteria that can cause stains, odors and product deterioration.

• Patented, high-quality swivel nuts are specially designed to discourage the use of tools for installation that can damage the integrity of the product. Installs quickly and securely.

• Lead Free construction ensures compliance with all state and national plumbing regulations.

IN THE NEWS

NEW STORES:

■ DG Hardware Stores, based in Sarasota, Fla., has acquired three Flagler Ace Hardware stores in Palm Coast and Bunnell, Fla.

■ PlymouthShenandoah True Value opened in Plymouth, Calif., in August.

■ Matt Matthews has purchased Mill Valley Lumber in Mill Valley, Calif.

■ Mike Johnson opened St. Johns Ace Hardware in Portland, Ore.

■ Chad and Amy Leibbrandt have acquired Adams Lumber Co. units in Imperial and Grant, Neb.

■ Baillie Lumber has acquired Wagner Lumber in Owego, N.Y.

■ Taylor’s Do it Center held a grand opening for its 11th store and fifth in Virginia Beach, Va., on September 15.

■ East Cobb Ace Hardware, owned by Steve Ragsdale and Grover Dobbins, will open in Marietta, Ga., in November.

KUDOS TO:

■ Schroeder’s Ace Hardware in Lombard, Ill., celebrated its 50th anniversary with a weekend of special activities Sept. 28-30.

Ron and John Gavin

■ Gavin’s Ace Hardware in Ft. Myers, Fla., is marking its 25th anniversary. Founded by Larry Gavin and family after he retired as Ace president in 1986, the store is now run by his sons Ron and John Gavin.

■ Juniata PRO Lumber & Supply in Miffl intown, Pa., was named the 2012 Paul

L. Cosgrave Memorial Award winner by PRO Group .

■ L&M PRO Lumber of Emporium, Pa., owned by Mike and Linda Songer, was a finalist for the 2012 Paul L. Cosgrave Memorial Award and is the 2011 PRO Hardware Retailer of the Year for The Bostwick-Braun Co.

L&M PRO Lumber

■ Kellogg Lumber Co., owned by Steve Bristow and based in Kellogg, Idaho, is the 2011 PRO Hardware Retailer of the Year for Horizon Distribution.

Tide Marine Supply

■ Tide Marine Supply Co., a PRO Hardware store owned by Carl

CLICK TO PLAY

ORGILL NEWS

Crenshaw in Bayou La Batre, Ala., is the 2011 PRO Hardware Retailer of the Year for LongLewis Hardware.

■ Leonard’s Hardware in Russellville, Ark., is celebrating its 110th anniversary.

■ Hamilton Hardware in Boston, owned by brothers Paul and Mark O’Brien, is celebrating its 90th anniversary.

■ Steve Columbare is celebrating 20 years of ownership

of Everyday’s True Value in Jamestown, N.Y.

■ Hometown Ace Hardware, Farm and Garden in Amite, La., is marking 40 years in business.

■ Haggerty Ace Hardware, owned

Orgill President and CEO Ron Beal shares the highlights of the company’s Fall Dealer Market in Las Vegas. Click here to view video.

Hometown Ace

Founder J.A. Girgenti and his nephew, current owner Craig Tassin.

by Jeff and Wanda Haggerty

, is celebrating its 20th anniversary in Cooperstown, N.Y.

Haggerty Ace

PEOPLE ON THE MOVE:

■ Ace Hardware Corp. announced that President and CEO Ray Griffith will retire on March 31, 2013. COO John Venhuizen assumed the position of president on September 1 and will succeed Griffith as CEO next March.

supply chain, category management and information technology.

“John has already achieved tremendous success as a leader of this organization,” said Griffith. “He has played a significant role in placing a renewed emphasis on the Ace consumer, always keeping the needs of Ace’s independent retailers in mind.”

Harmeyer

■ Do it Best Corp. promoted Amanda Harmeyer to merchandise manager for cleaning supplies and storage.

Import Redistribution Center in Suffolk, Va. The co-op reported revenues up 4.8% to $1.07 billion in the second quarter. Net income dropped $19.7 million to $14.9 million due to debt refinancing.

■ True Value reported revenue of $536 million for the quarter ending June 30, 2012, up 1.2% from the prior year. Net margin rose 1.8% to $22.2 million. Revenue is up 0.7% to $984.2 million for the first six months of the year.

Venhuizen Venhuizen, 42, has spent 20 years at Ace, serving as COO and VP of business development, retail development, retail training and international. He has led many of the major business units throughout the organization, including

■ Kathleen Guion, who retired as president for store operations at Dollar General, was appointed to True Value’s board as outside director.

WHOLESALERS IN THE NEWS:

■ Ace Hardware Corp. opened a new 336,000-square-foot

■ The Bostwick-Braun Company has purchased Blackstone Supply, a hardware and paint distributor based in Rhode Island that was also a member of PRO Group.

■ Home Hardware introduced its new Simon Chang Oh Canada! Trend Colour paint collection at its Fall Market in September.

■ More than 100 Do it Best Corp. staff,

members, vendors and family were involved in a corporatesponsored, fully funded new home for Habitat for Humanity in Fort Wayne, Ind., a project that kicked off in late July and will be completed in October.

Habitat for Humanity build

■ Hardware Distribution Warehouses Inc. unveiled an expansion into sporting goods at its Fall Market in Shreveport, La., September 7-9.

OTHER NEWS:

■ Central Network Retail Group has acquired an Ace Hardware store in Monticello, Miss., and rebranded it as a Home Hardware Center. CNRG now operates 38 stores in six states.

■ Industry veteran Bob Vereen has introduced PICKandCLICK, an email marketing program for retailers. Go to www. PICKandCLICKcontent.com for more details.

IDELPH TO SPEARHEAD NEW AWARDS PROGRAM

ndustry veteran Tom Delph has been named a senior account executive in charge of developing and promoting the new Beacon Awards program, which is jointly sponsored by The Hardware Conference and The Hardware Connection. Tom has spent the past 17 years as program director of NRHA’s Young Retailer of the Year program after retiring as group publisher of Chilton’s Home & Yard Care group of magazines including Hardware Age. He also spent 26 years at NRHA and served as executive secretary of the Worldwide DIY Council for 11 years, all part of his 50-plus years of industry experience.

“We are thrilled to have someone with Tom’s vast industry knowledge, skills and experience,” commented Publisher Tom Chasteen, who also directs The Hardware Conference. “Tom will play a pivotal role in helping us develop the Beacon Awards into the premier awards program in the industry.”

upcoming events

OCTOBER

Do it Best Fall Market

October 13-15, Indiana Convention Center, Indianapolis

ENAP Forest Products Conference

October 21-23, Marriott Inner Harbor at Camden Yards, Baltimore

House-Hasson Hardware Fall Dealer Market

October 25-27, Sevierville Events Center, Sevierville, Tenn.

Northeastern Retail Lumber Association Annual Meeting

October 12-13, Saratoga Hilton, Saratoga Springs, N.Y.

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

October 24-26, Kentucky Exposition Center, Louisville, Ky.

West Coast Lumber & Building Material Association Annual Convention

October 18-19, Monterey Marriott, Monterey, Calif.

NOVEMBER

Distribution America/PRO Group Executive Planning Conference

November 12-14, Starr Pass Resort, Tucson, Ariz.

LMC Forest Products & Building Materials Expo

November 13-14, Philadelphia Marriott, Philadelphia

Mid-American Lumbermens Association Fall Fling

November 8-9, Marriott Country Club Plaza, Kansas City, Mo.

North American Wholesale Lumber Association Traders Market

November 7-9. Hyatt Regency, Chicago

STAFDA Annual Convention

November 4-6, Orange County Convention Center, Orlando, Fla.

Wallace Hardware Fall Market

November 27-29, Gatlinburg Convention Center, Gatlinburg, Tenn.

JANUARY 2013

House-Hasson Hardware Spring Dealer Market

January 17-19, Gaylord Opryland Resort, Nashville, Tenn.

United Hardware Spring/Summer Dealer Market

January 4-6, Minneapolis Convention Center, Minneapolis

retail ideas

Juniata PrO lumber OvercOmes adversity tO win award

Just two years ago, the board of Juniata PRO Lumber & Supply in Mifflin, Pa., was unsure of the store’s future. In 2010 the store, then located in a flood plain, was forced to close when the Pennsylvania Department of Transportation replaced a bridge across a nearby river. Company executives were faced with the decision to close or relocate.

Today, as the winner of the 2012 Paul L. Cosgrave Memorial Award and recipient of the 2011 PRO Hardware Retailer of the Year for Wallace Hardware, the store’s relocation is a story of determination and resilience.

The new store, which opened in 2011, is a complete home center offering all the core categories. It also features customer-friendly bright lighting

and wide aisles. Since space is limited to merchandise building supply products, Juniata PRO constructed a display area across the rear of the store to promote roofing, ceiling tile, doors, windows and related products.

Joe Rhine, general manager, began working with Juniata as a counter salesperson in 1991, so he was excited when he heard about the award. “The Paul L. Cosgrave award is quite an honor, not only for the owners of this business, but the employees as well. Our mission is to grow the company, provide excellent service to the local community and plan for future expansion.”

Thanks to its adaptability, Juniata PRO is performing well in its latest location. “It’s a new store and much more appealing,” said Rhine. “There are not many options in a rural community, and we try to meet our customers’ needs. We are seeing customers we never saw in the former location, so that is definitely a sign we are attracting new business.”

The staff at Juniata PRO Lumber & Supply in Mifflin, Pa., which was named the 2012 Paul L. Cosgrave Memorial Award winner.

retail ideas

Most of the company’s employees have been there for at least 10 years, some for more than 20. According to Rhine, the staff knows the industry and they know the clientele. “Our employees have been here for a long time and the customers trust their experience and knowledge.”

Providing Customers with digital memories

People of all ages like snapping digital pictures and sharing them with family and friends, so it’s not surprising that a few hardware retailers have found creative ways to capitalize on this trend.

Family Center Farm & Home in Harrisonville, Mo., has carved out space in its Tack & Vet department for a cute

photo op for aspiring little cowboys and cowgirls. Designed to look like the inside of a horse stall (without the smell), the set features a place to sit with a saddle, lasso rope, blanket and cowboy and cowgirl hats. Rodeo artwork serves as a backdrop.

It’s a fun way to get the next generation of customers excited about the store, which sells tack, vet, feed, clothing, farm and ag products in addition to hardware.

The idea came from Helen Budinger, the company’s human resources administrator, who thought it would be a neat thing to try. “We’ve gotten pretty good response to it,” says Manager Kimberly Lightfoot.

Future cowboys and cowgirls have the perfect photo op at Family Center Farm & Home.

The MerCantina side of the business at Solon Springs Mercantile sells coffee, tea, beer, wine, snacks and much more.

“We’ve even had some teenagers come in and have their pictures taken sitting in the saddle.”

Carr True Value Hardware in Pittsfield and North Adams, Mass., rents a digital photo booth that is ideal for weddings, reunions, corporate events and other special occasions. It allows people to capture unique, candid, fun moments with professional photo strips. It uses the latest digital technology to develop photos in 15 seconds, providing instant memories for participants.

The store sends a professional event attendant with each rental of the photo booth to make sure everything goes smoothly. The deluxe package provides customers with a digital photo album set to music of all the people who passed through the booth as well as a hard-copy photo

album in which everyone can write special messages.

Creating the Ultimate Destination store

Solon Springs Mercantile, a Hardware Hank store in Solon Springs, Wis., has no shortage of niches from hunting, fishing, firearms, housewares, giftware, marine, pet supplies and rental.

Owners Ken and Meg Thoresen have created the ultimate destination store— having what customers want, where they need it. The MerCantina side of the business features colorful décor and free WiFi, offering specialty coffee, tea, fruit smoothies, bottle beer, wine by the glass, gourmet food and snacks. The Merc Perk Coffee House is a place to kick back, hang out and have fun. n

Behind the

7

Number of big-box stores Home Depot is closing in China, leaving it with just two small specialty stores in that market.

53%

Hourly payroll devoted to customer service at Home Depot, up from 40% four years ago.

70%

Percentage of Home Depot goods that flowed through its own distribution centers in 2011, up from 25% in 2007.

34.3%

Gross margin reported by Lowe’s for 6-month period ending August 3, down from 34.9% the prior year.

$62.66

Average ticket reported by Lowe’s for three months ending August 3.

4,268

Number of big-box stores currently operated by Lowe’s (1,748), Home Depot (2,249) and Menard’s (271).