Hardware Connection September/October 2017

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Publisher/Principal:

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

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

Associate Publisher: Craig Cope craig@thehardwareconnection.com 804-690-0666

By Chris Jensen

Saluting the Best of the Best

Hardware retailers do not brag by nature, although most are very proud of their stores and their involvement in their communities. They don’t work long hours with their own financial capital at risk because they like to be recognized for achievement. No, they do it because it’s a labor of love and they know they are making meaningful contributions to the communities they serve.

We at The Hardware Connection don’t mind doing the bragging when we see excellence at retail. We launched the Beacon Awards program five years ago as a formal way to recognize the “Best of the Best” hardware and home improvement retailers.

Normally we unveil the Beacon winners at The Hardware Conference in Marco Island, Fla., but Hurricane Irma had other plans this year. The Hardware Conference had to be postponed, but new dates should be announced soon so the Beacon Awards banquet can give our winners their moment in the spotlight.

Turn to page 24 to read profiles of this year’s Beacon Award honorees. These businesses all share a similar knack for meeting the unique needs of their communities with

well-merchandised sales floors loaded with strong niches.

Speaking of the “Best of the Best,” we don’t mind doing some bragging of our own. The Hardware Connection was named a finalist in the FOLIO Eddies Digital Awards program for Best B-to-B

Standalone Digital Magazine in the country. Thank you to our readers for supporting us on this journey to spread the magic of digital publishing. We’ll find out October 11 in New York City if The Hardware Connection is the overall winner, but honestly, being the hardware industry’s digital leader is rewarding enough.

Awards are nice, but it’s hard to get too worked up about such things when so many in the country and the industry are still reeling from Hurricanes Harvey and Irma. Turn to page 66 to read our special report on how the hardware industry has responded to aid in the recovery.

Finally, it was sad to see reports that Elwood Adams Hardware in Worcester, Mass., is closing next month after being in business for 235 years. The store was founded in 1782, which makes it older than the U.S. Constitution. Keeping a business going for 235 years is a remarkable achievement that is worth a salute. n

By Tom Chasteen

Thank You for a Job Well Done

As I write this column it has only been seven days since the largest, most powerful Category 5 Atlantic hurricane ever recorded made landfall in the middle of the Florida Keys, 45 miles from our family hardware business, The Hardware Connection’s main office and my home. The hurricane then made a second landfall on the southwest coast of Florida and proceeded up the middle of the state as a Category 1 and 2 all the way into Georgia as a tropical storm.

As you might imagine, the damage in the middle Keys was catastrophic and it will take several years to completely recover, just like it would with any other major catastrophe such as a flood, wild fire, tornado or earthquake. Personally, if I’m going to have to deal with a catastrophe I would prefer a hurricane any day of the week.

Floods are all-encompassing and the residual mud and slowly receding flood waters are a languishing event, not to mention there is very little anyone can do to prepare for a flood other than seek higher ground.

Wild fires are the worst, in my estimation, because there is little you can do to

prepare other than pack up your most precious items and your insurance policies. Rarely is there anything left after a fire including the trees and wildlife.

Earthquakes are right up there as well. The uncertainty of when one strikes with very little warning and then the anguish of the aftershocks along with the devastation makes them as dangerous as any natural disaster.

Hurricanes generally give you plenty of time to prepare and there are quite a few things people can do to mitigate the damage. Another unique characteristic about hurricanes is that from the time the hurricane makes landfall to the time it passes and the winds drop to gale force winds is usually between six and eight hours. Even with a significant tidal surge the water levels begin to recede by the next tide cycle in 12 hours.

Inland flooding takes much longer, but rarely does the flooding last for weeks except with some Midwest floods. Another unique thing about hurricanes is that after the hurricane passes the weather usually is pretty nice and the sun comes out, which helps to start drying things out.

THE WAY I SEE IT

However, the focus of this column is not natural disasters, because as almost all hardware store owners know firsthand, all natural disasters are bad when your community is hit. They not only disrupt business in the long run, but they disrupt the entire community and the marketplace. They also take a toll on the hardware store owners, their families and employees.

What most people fail to realize is that the independent hardware store is typically the first business to open and the last business to close before a natural disaster strikes. Then the independent hardware store is the first one to open after a natural disaster, if the store can open at all.

Is it good business? Yes it is, but it’s more than that. Hardware store owners and their employees are a part of the community. Their customers are their friends and neighbors, and I don’t know one hardware retailer who would turn his or her back on the community in times of crisis. There are endless stories of independent hardware store owners going to extraordinary lengths to help their neighbors in their communities in times of need. I could make a strong argument that a community is not a community without at least one hardware store in it.

I would like to thank each of you for being there for your communities, not just during times of crisis but all year long. For volunteering to sit on local school or hospital boards and coaching

sports teams. Then there are the times you make a home delivery and end up installing the faucet or toilet flapper because the customer, your neighbor and friend, is unable to do it. Those types of things never show up on the P & L or the balance sheet, but it’s as much a part of our business as anything we do because it is who we are.

I would like to personally thank the over 200 people (retailers, wholesalers and vendors) for reaching out to see if Dale and I were alright. I apologize that I have not been able to reply sooner, but I could not keep up with all of the text messages and emails. However, I promise I will personally respond to everyone and thank you from the bottom of my heart for your concern, support and prayers. It is impossible to express the depth of our gratitude and how fortunate we are to have people like you in our lives.

From one retailer to another, I’m proud to have been a part of this industry and to be associated with so many wonderful people over the past 40 years. I look forward to a few more years before I retire completely. To the next generation of independent hardware retailers, the business model and processes may change, but I have no doubt in my mind that your commitment to your communities will remain the same as my generation and the generations before me.

Feel free to contact me, from one retailer to another, at tom@thehardwarestore.com. n

HARDWARE HUMOR

n Compact case fits your hand for comfort and ease of use

n 10-foot standout blade for faster measuring

n 360° magnetic end hook grips securely in more situations

n Matte nylon blade coating for less glare and longer life

n Blade markings on both sides of tape

n Diamond coating provides 4X grip vs. uncoated tips; resists slipping and cam-out

n Thermoplastic rubber/acetate co-mold tri-lobe handles transmit 20% more torque

n Manganese phosphate coated shafts with laseretched markings

n Size markings on ends of handles

MHARDWARE STORIES Amazing but TRUE

Wy favorite in recent memory was the customer looking to have her tree replaced that she purchased the prior year. On select plants we used to offer a threeyear guarantee. It was hard to keep a straight face when I explained that the guarantee did not cover her neighbor chopping down the tree.

Matt Mazzone

Mazzone Ace Hardware Brooklyn, N.Y.

One time an older lady brought in a lockbox. She couldn’t get it open, and we have a lock- smith on staff. We were able to open it for her. Turns out, it was full of money. She was pretty happy about that.

Herb Velazquez

Ace Hardware Crabapple

Alpharetta, Ga.

e buy livestock at the county fair to support 4-H people. One time a young man sent me a thank you for buying a cow and included in the note “I think your daughter is cute.” So, I guess the guy was flirting with a cow purchase.

Dale Housh

Lockridge Do it Best Hardware & Lumber Promise City, Iowa

One time, an employee was on the floor and helping a customer with a mower. He brought out the mower in a box on a cart for the customer. Then the customer asked if he could get a bag for the mower. And the employee responded, “What do you want a bag for? It’s already in a box.”

Tom Veasey True Value of Wilmington Wilmington, Del.

Revitalize Consumer Experiences With a “Connected Retail” Focus

Hardware and home center retail chains have spent millions perfecting methods and technologies that allow them to attract new consumers, operate efficiently, and create a positive shopping experience. Because today’s retail operations are expected to center on the consumer experience, most retailers are leaning on technology, including mobile, to get the job done.

Technology is a driving force behind dramatic changes in the retailerconsumer relationship, but it is far from the only change. To the retailer, cultural shifts may expose a population of consumers with a high degree of price sensitivity and low degree of brand loyalty. This brings in the notion of connected retail—a concept universally embraced across the retail spectrum— but what is it exactly, and how does it apply to the independent hardware and home center retail space?

Today’s customers typically want a seamless shopping experience across all the places they visit—in the aisles, online, on their mobile devices, and on social media. Connected retail does just that—it links the consumer’s shopping experiences to real-time store information, whenever and wherever they shop. Increasingly, independent retailers are investing time and resources

toward connected retail. Here’s one example of how analytics is used to track customer buying behaviors:

At Little Hardware, access to information is a key to delivering exceptional customer service. To provide world-class customer service, a retailer must have detailed product, pricing, sales, inventory, and customer information. “As an independent retail business, understanding our customers is critical,” said Kyle Little, eCommerce and IT manager at Little Hardware. “With analytics embedded within the Epicor® Eagle N Series® solution and readily available at our fingertips, it’s easier to see our customers’ shopping habits, behaviors, and buying patterns.”“A combination of understanding customer information and business analytics creates the ultimate consumer experience and a better retail business.”

Connected retail— getting started

The case study above presented a path to connected retail that uses customer buying behaviors from analytics to improve the customer experience. Each retailer begins a consumer experience improvement process with a goal in mind. Every strategy is built with measurable goals—not just in terms of increased sales. The following are ideas to keep in mind when developing your strategy to become a connected retailer:

Focus on customer shopping behaviors

Include mobile devices in your digital presence—where the vast majority of consumers live, work, and play

Establish an online presence through the social media sites most likely to be used by your customers—make it fun, mix up the content, and get people talking

Set measurable goals—in addition to sales, it’s important to track web traffic and conversion rates

Use a loyalty program to generate consumer engagement by pushing out coupons through Facebook or Twitter and tracking individual consumer behavior

Create buzz—use social, mobile, online, and in-store opportunities to drive more foot traffic

Continually evaluate what your consumers are doing online and how they want to be informed

Epicor is a technology and software solutions partner for more than 20,000 businesses in more than 150 countries.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

The independent hardware store continues to evolve exploring more niche categories of merchandise such as clothing, snacks/food and beekeeping just to name three. Other categories such as housewares, automotive, marine supplies and hunting have always been in some of our stores in varying degrees. In some ways, independent hardware stores are returning to their roots as general mercantile stores, stocking anything their customers might need from them.

In this issue I would like to explore some opportunities in the automotive category, specifically air compressor tools and accessories. The reason I have chosen the automotive category

PRODUCT #1: SUPER FAST MINI IMPACT RATCHET | SP AIR CORP.

SP Air Corp. has come up with a fantastic lineup of high-quality air tools that look and feel like quality tools. As soon as each tester took his sample out of the box the reaction was the same: “Wow, this feels like a quality tool.”

The 1/4” Super-Fast Mini Impact Ratchet (also comes in a 3/8” configuration) is definitely fast. It also has a patented “impact mechanism”

By Tom Chasteen

is that 99 percent of our customers come to shop at our hardware store by car or truck. Most American households have at least one vehicle, and all cars and trucks have wheels inflated by air.

Most hardware stores stock the convenience automotive items, but I believe air powered tools and accessories could be a real sleeper. If a customer has an air compressor, regardless of size or how often they use it, they are a potential buyer of air tools and accessories. Like most niche categories, air tools and accessories need to be promoted within the store by knowledgeable employees. If done correctly, you could develop a loyal following of customers.

that acts very much like an impact drive and unlike other air ratchets that feel like they will break your wrist when they bottom out a nut or bolt. All three of our testers who tested the Super-Fast Mini Impact Ratchet gave it five stars. One of our testers was even a body shop, where several workers took turns to see if they could break the ratchet. At the end of

the day, the score was 3-0 in favor of the SP Air Super-Fast Mini Impact Ratchet.

Click on this link and see for yourself.

PRODUCT #2: COMPOSITE IMPACT WRENCH

SP AIR CORP.

The other SP Air Tool we tested was the Composite Impact Wrench. Every tester commented on how compact and balanced this tool was and how it truly fits your hand perfectly. The impact wrench comes in both 1/4” and 3/8” configurations and both have a maximum of 94 ftlbs of torque. The impact wrench has a “double hammer clutch” and an SAS forward and reverse switch that makes one-hand operation very easy.

Another nice feature is the impact wrench has a built-in air regulator with four torque settings that allow the user to change the torque setting for the job. While the tool has the look and feel of a quality tool, it is only 1.5 lbs., so fatigue is really not an issue with the impact wrench. All of our testers rated both of these tools as excellent products.

Pro.

PRODUCT #3: FLEXZILLA® AIR HOSE LEGACY MFG. CO.

Legacy Mfg. Co. is another company that is making a push in the independent hardware store channel, and they are doing so with high-quality products. The two products our testers evaluated were the Flexzilla® Air Hose and the Flexzilla® Cordless Grease Gun Kit.

The Legacy Flexzilla line of products is made to last and will fit into any serious d-i-yer’s garage. The Flexzilla line of air hoses has several nice features: they won’t kink under pressure, they are not heavy and they are colored bright lime green yellow so they are easy to see. Another really nice feature all of our testers commented on is that they don’t retain hose memory, which makes coiling them back up a real

pleasure vs. fighting with the hose to twist it so it will coil properly.

The Flexzilla hose is also very tough and while none of our testers actually punctured the hose, the directions on each package make repairing a punctured hose an easy three-step process. The hose has a 300 PSI rating and its temperature resistant range is -40 to 140 degrees and comes standard with 1/4” NPT aluminum threaded fittings on the end. If you are going to stock air hoses you definitely need to look at putting in the Flexzilla line of air hoses. Check out the video.

PRODUCT #4: CORDLESS GREASE GUN KIT

LEGACY MFG. CO.

The 20-volt Cordless Grease Gun Kit is a really convenient tool for the professional mechanic and

serious d-i-yer. I don’t know anyone who gets excited about getting out a conventional grease gun. It seems engineers delight in putting grease fittings in the most awkward and hard-to-reach places, often requiring Houdini-like moves to even get at them. The Flexzilla cordless grease gun helps make a difficult task easy in most cases. The 20-volt motor has some serious power and the 42” Flexzilla hose makes it much easier to access those hard-to-reach places.

The patented rapid reload feature makes it a breeze to change out

grease cartridges and the LED work light in the end helps you find those hidden and hard-to-see grease fittings. As one of our testers said, “What’s not to like about the Flexzilla cordless grease gun?” The final verdict is all our testers gave it a five-star rating. Here is a video link.

Best New Store Over 20,000

Handiman Ace North Titusville, Fla.

In the spring of 2015, Bill and Yesenia Pastermack started discussing the opportunity of opening a second location. An opportunity arose six miles north of their current store, Ace Hardware Titusville in Titusville, Fla. They quickly reviewed the market and found a 23,000-square-foot building that might work. It had been built for Office Max and most recently was a flooring store.

They had Ace Hardware evaluate the market and establish a pro forma income statement, which showed it to be a viable market. In November 2015 they decided to go ahead with the deal.

“We closed on the deal January 19 and opened Handiman Ace North on April 7, 2016, after spending $350,000 on the remodel,” Bill says.

As Yesenia points out, “If it wasn’t for Ace we never would’ve gotten this done. They did a great job helping us plan the design and layout and then all we had to do was hand the plans to the contractor.”

They pulled up the old tile and replaced with polished concrete floors,

installed new LED lighting throughout and painted the building, which features 16,000 square feet of retail space, 3,000 square feet of shop space and 4,000 square feet of warehouse/office space.

Innovation is a mindset for a retailer, not an accident, according to Bill. “We feed paint cans through the back so it’s rotated. That’s an idea I got from the grocery industry,” he says. Bin tags are on the back of the shelves. All the paint stock is placed on the shelves from the back and rotated forward, so it’s easy to put up stock from the truck.

BEST BRANDS STRATEGY

The new store is highlighted by prominent displays of Ace’s “best brands,” which includes STIHL and Toro outdoor power equipment, Valspar paint, Weber, Big Green Egg and Traeger grills, Craftsman tools and YETI. They created an impressive power aisle down the middle of the store and an open space for outdoor living, grilling and power equipment as customers enter the store.

“Ace has been fantastic at partnering with name brands and STIHL is by far our best-selling category. We sold 273 units in our nine months last year, while

Left: Handiman Ace North features a 16,000-square-foot sales floor in a completely remodeled 23,000-square-foot building.

Right: The team at Handiman Ace North is trained to take care of clients, who are customers for life.

Valspar has really turned us into a serious Paint Studio,” Bill says. “Having all the best brands helps us be differentiated and brings in customers.”

They have also established strong business in the following niches: rural, pet, outdoor living, chip keys and bag goods. They even sell baby chicks and ducklings, which are a big hit with kids. “We looked around the community and realized it was more rural, so we’ve stocked horse items, baby chicks and ducks,” says Yesenia. “That has turned into an attraction for kids and people leave with a good feeling.”

Niches are a very important way to differentiate the store against the competition, which includes Home Depot, Lowe’s and Super Walmart. “We analyze what is needed in the community and whether we can do a better job than our competitors,” Bill says. “You have to

Universal Automotive Remotes Smart Vehicle Remotes

give a niche at least a year to see if it will work in your market. We look for items that are MAP priced so we can compete.”

In their shop space in back they repair outdoor power equipment, cut glass, repair screens, house special orders and cut keys. Future sales growth will come when they start tapping into the potential B2B market.

Handiman Ace North came out of the box strong, with sales of $70,000 for their two-day grand opening. The Pastermacks exceeded the 12-month pro forma by 37 percent with first-year sales of $1.85 million. Average transaction size has been $19.50.

TAKING CARE OF CLIENTS

The Pastermacks have a different attitude about the people who come into the store to shop. “We don’t call them customers, we call them clients. Customers are here to buy something today, while clients are for life,” Bill explains. “When employees hear that message they look at our business as more of a long-term career and it changes their outlook.”

He adds, “We use radios to communicate and someone will hear us say we’ve got a client in plumbing who needs help

Upper Left: Children love coming into the store to see the baby chicks and ducklings.

Upper Right: The Pastermacks designed the paint department so they can backload their one-gallon paint cans from the back storage room, which makes it easy to rotate stock.

Lower Right: When customers first enter the store they see prominent displays of grills, outdoor living and STIHL outdoor power equipment.

and it gives them a good feeling about shopping our store. We tell our employees ‘Don’t give customers the finger’— take them to the product and explain what to do with it. I tell employees our goal is that when a client walks out they were glad they came in, because that means they’ll be back.”

Customer service starts when customers pull into the lot, Bill explains. Is it clean and easy to get into parking spots? Are they greeted? Is the building well-lit and cool on hot days? Is the store priced

Left: Craftsman tools are presented as the focus of the tool department.

Middle: The store is clean, bright and wellmerchandised, making it easy for customers to shop.

Right: Wild bird has been a good niche to expand into.

right and in stock? Can they find what they need and do they have to wait to check out? Do they need help carrying stuff to their car? “Always under-promise and over-deliver,” he adds.

When they bring in a new product everyone has to pick it up and find out what it’s for and how to use it, Yesenia explains. “Get informed and talk to your peers so you’re knowledgeable when clients ask about it,” she tells their 18 employees.

CARRYING ON THE TRADITION

Bill’s dad, Roland Pastermack, started the business in 1964 with a 900-squarefoot hardware store in Titusville. Roland was a member of Ace’s board of directors, and after he passed away in 1996, Bill took over a business that was producing annual sales of $800,000. Bill later moved this store into a

28,000-square-foot building that generated sales of $5.3 million in 2016.

That store sold $600,000 of fishing and marine products last year and other major niches include kayaks and Oakley sunglasses. “We need to remodel that store next,” says Bill, whose sister, Joann Nichols, operates Ace stores in Cocoa Beach and Cape Canaveral, Fla. Bill and Yesenia also own a beach clothing store in Titusville called Go Native and hope to eventually expand to a third hardware store.

Bill and Yesenia get involved in the community by sponsoring golf tournaments, Little League baseball and soccer teams, the SPCA and local Boy and Girl Scout troops. They also support Children’s Miracle Network Hospitals, participate in the local Christmas parade and Chamber of Commerce events, host kayak demonstrations and put on fishing seminars throughout the year.

“We are honored to receive the Beacon Award for Best New Store, as I know there are many deserving stores,” says Bill. “Our goal has always been to be a world-class retailer. This lets our team realize that hard work pays off.” n

SUNNYSIDE CORPORATION IS A PROUD SPONSOR OF THE 2017 BEACON AWARDS

INNOVATIVE PRODUCTS FOR TODAY AND TOMORROW

From its humble beginnings in 1893, to the present, Sunnyside remains family-owned and operated for 124 years. Through four generations, Sunnyside’s core values have not changed. Always offer customers innovative, high-quality products coupled with unparalleled customer service.

Henry Lueders founded H. Lueders & Company in 1893 on the north side of Chicago distributing kerosene and other oils from a horse-drawn wagon.

By 1920, the company expanded to a new location on the northwest side of Chicago, and changed the company name to Sunnyside Corporation.

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

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

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

Sunnyside products are available for sale in every state, and are formulated

As the fourth generation to run his family business, Hugh Durham believes exemplary service and superior products have always been the key advantages that set his business apart from the competition. “Offering quality STIHL products, sold and serviced by our professional staff, is a winning combination the big box stores just can’t match,” says Durham. “And through training programs like STIHL iCademy® my staff is equipped to sell solutions — not just products — keeping our customers coming

Town & Country Hardware, which operates eight stores in North Carolina, is part of the Central Network Retail Group. CNRG is a multi-format, multibrand company founded in 2011 that operates more than 90 hardware stores, home centers and lumberyards across the United States.

Retail Beacon Award

Town & Country Hardware

Phillip Helms is area vice president for Town & Country Hardware, which operates eight stores supplied by Orgill in North Carolina.

CNRG acquired Town & Country in March 2012. In November of that year they also bought Phillip Helms’ hardware store in Wake Forest, N.C., and converted it to the Town & Country brand. Helms has helped lead the development and growth of the Town & Country Hardware brand since then.

As Helms explains, “The core foundation of our business is our people. We offer convenient locations, wide selection and have clean, well-stocked stores that are a source for hard-to-find items.”

Town & Country’s largest store is 27,000 square feet and the average size of its retail space is 13,500 square feet. The eight stores, which all operate in affluent, suburban markets, are able to operate independently while still reaping the benefits of being part of a larger company.

As Helms points out, “The core belief of CNRG is in the power of the local brands. Being part of a larger group helps us be competitive, but I can make key decisions with their support. It’s a very open and collaborative environment, but we’re also able to be nimble and flexible.”

The top-selling category is outdoor power equipment. Another top-selling category is paint, followed by core hardware. Grills and birding products are two of the main niche categories. Helms points out that they have been able to expand the fasteners category to turn it into a destination for customers.

Town & Country’s knowledge and expertise is played up in all marketing, a function that is handled by Helms in coordination with Andrea Spencer of Elliott’s Hardware. Elliott’s is another CNRG retail brand with four stores in Texas that is part of Helms’ responsibilities as area vice president.

Town & Country opened a new store in Benson, N.C., in 2013. A marginal

Left: Town & Country Hardware is part of Central Network Retail Group, which allows each of its retail brands to operate with flexibility while working in a collaborative environment with shared ideas.

Right: Paint is one of the top-selling categories and helps attract female customers.

store was closed in 2016 and one of the Chapel Hill stores was moved to a new location last fall, which has led to sales growth over 20 percent year to date. Helms is constantly in search of new sites or existing stores that can be acquired to strengthen their market presence.

Comparable-store sales growth has been steady over the past few years. Sales rose 5.9 percent in 2015, 5.7 percent in 2016 and are up 2.6 percent so far this year.

Orgill has been a very supportive partner from the beginning, according to Helms. “They have helped us finetune our product selection and the local resources they offer from our sales reps to the support we get from Memphis has all contributed to our success,” he says.

Central Network Retail Group operates 15 distinct retail brands, and they grow

TAIWAN HARDWARE SHOW 2017

29,903 4,109 17,571

and learn from each other, according to Helms. They share best practices and a current focus is on data integrity, working to consolidate all the retail brands with a main system and common platform.

Their robust rewards program generates an extensive email list of customers, and their email marketing campaign aims to provide helpful DIY tips and not just promote product and price. Special events are regularly held in stores and center on outdoor power equipment or grills. Local charities are encouraged to set up in front of the stores to promote community support.

Customer counts and average transaction size are holding steady, and

Birding has developed into a destination category that builds traffic and serves as a point of differentiation against the big boxes.

Helms says that is reassuring despite the challenging retail environment. “It’s fundamentally harder to bring in customers today and we face a new generation of

“Epicor solutions are really the core of our business. The Eagle system helps automate processes from point of sale (POS) to inventory management. The rich analytics have helped us solve problems and make decisions from day one.” Nathaniel Polky, Information Technology Manager | McLendon Hardware

12x

SPRAY.

Retail Beacon Award

Willis Qualheim owns and operates Qualheim’s True Value in Shawano, Wis., carrying on the family tradition. His parents had bought a small Coast to Coast store on Main Street in 1979 and Willis joined the business two years later.

In 1982 a larger building became available a couple of doors down, so they moved into 5,000 square feet of retail space. A few years later they leased another property down the street and operated out of both buildings. In 1995 a much larger store space became

Qualheim’s True Value Hardware

available, so they gave up the other two properties and moved to their current location on the east side of town. The 50,000-square-foot building features a 35,000-square-foot sales floor on a seven-acre site.

Strong assortments of core categories are complemented by a long list of dominant niches. Qualheim’s True Value features farm, clothing, sporting goods, pet food and supplies, picture framing, outdoor power equipment and rental, with a total SKU count of about 65,000.

The lawn and garden department is the top-selling category. It includes 8,000

square feet of greenhouses as well as several acres of outdoor displays. Customers can get everything from trees and shrubs to perennials and statuary.

Not only was Qualheim’s True Value named one of True Value Company’s “Best Hardware Stores in Town for 2016,” it was honored as the overall winner. Willis was recognized on stage by True Value CEO John Hartmann during the February Reunion in Anaheim.

Willis says that True Value is a trusted partner that provides the services and support for retail programs, advertising and learning resources, as well as many people at corporate to use as a sounding board.

As a second-generation store owner, Willis is pleased to see his two daughters working in the business. Karissa is 26, while Casey is 22 and works while also attending college. As Willis explains, “I had a conversation with them several years ago, telling them that I’d love to have them join me, but with a couple of stipulations. They had to get at least an associate’s degree and work somewhere else for a couple of years.

Above: Qualheim’s True Value features a 35,000-square-foot sales floor that displays 65,000 SKUs.

Right: Outdoor power equipment is the number two department.

I’ve told them that they have to enjoy what they are doing and should not feel obligated to be here, or else it won’t work in the long run.”

This summer they did a facelift on the front of the building to freshen it up. They also did a refresh inside with department resizing and remerchandising within departments. This year sales are up 3.5 percent so far and margins are up slightly. The average transaction is at $28, up about 75 cents from last year.

The store employs 25 full-time and 20 part-time employees. Turnover is low

Qualheim’s two daughters, Karissa (left) and Casey (right) both work in the business, representing the third generation of the family.

The pet department is the best niche department due to the frequency that customers come back for food and treats.

and the level of experience is high, as more than half of the full-time associates have been there for more than 15 years.

Willis explains that the core mission of Qualheim’s True Value is about creating an experience for customers where they can visit the store and feel like a valued customer. “The customer should experience someone who smiles at them, respects them, listens to them, inspires them with ideas, and offers suggestions and expertise while creating excitement in the project the

www.midwestcan.com

From Our Family Business to Yours

1960s

1950s

1936

Our story begins… The Colorado Steel Sash Co. is officially registered with the City and County of Denver.

Airborne Sales & Inventions — Salesmen took to the air to visit distributors efficiently and Don Burch invented a Navigational Plotter and Slide Rule, plus weather strips for casement windows.

1940s

Innovation through Foresight — ingenious products invented and perfected by founder, Don Burch, propel the company to the front of the market. The perfect window putty that won’t separate, window installers everywhere rejoice.

Innovation is Revived — Alice, takes over management and restores the company’s role as an industry leader. Alice’s innovations included pink putty pails and acrylic sealant, the company’s first water-based sealant.

1954

Innovation Stood Still Don Burch dies in an airplane accident while visiting Sashco’s Seattle branch.

From Our Family Business to Yours

1980s

Innovation Continued —

The Alyster stop-flow plunger was designed to stop caulking from flowing after pressure had been released from the caulking gun. And, Lexel ® , the first clear sealant in a clear tube, a co-polymer rubber that outperforms silicone in adhesion, clarity, and paintability.

1970s

New President & CEO

Les Burch is named president one year after the company’s name is changed to Sashco®

2000s

Sashco® Thrives — continuing to introduce high-performance products such as Through the Roof!®, Mor-Flexx®, and eXact color®: a tintable caulk that users can mix themselves.

1990s

Innovation Defined by Opportunity — Big Stretch® introduced to the market, and Sashco® eliminates “me too” retail products, concentrating on high-performance.

Zettler Do it Best Hardware & Garden

John Zettler is the third-generation owner of Zettler Hardware & Garden. He has been the guiding force for over 40 years as the Do it Best retailer has grown to five locations in the Columbus, Ohio, area.

John’s great grandfather, Louis Zettler, got started in 1844 with a grocery and meatpacking business. In 1886 four of Louis’ sons started a hardware store. One of the sons was John’s grandfather, who kept the store going until John’s father took over in 1937. John grew up in the business and took over with his brother when their father died in 1985. In 2008, John’s brother went off on his own with two stores, which is when his son Michael started

Retail Beacon Award

John Zettler is the third generation of his family to operate Zettler Hardware & Garden, with five Do it Best stores in the Columbus, Ohio, area.

taking on more responsibility with the business as a fourth-generation operator.

Their newest store opened in Pickerington, Ohio, in January 2017. The 20,000-square-foot store embraces Zettler’s history and stresses old-fashioned service while also providing customers with a fresh, modern shopping experience.

Zettler’s 30,000-square-foot store in Powell, Ohio, which opened in December 2009, embraces state-ofthe-art technology and design to create an environmentally responsible and sustainable building. It features a white roof with high-tech magnifyingtype glass tubes that reflect the sun

and save energy throughout the store. Automatic eyes can brighten and dim the lights by section of the store depending on the amount of sunlight coming in.

“We built that new store in 2008 and 2009 when contractors were willing to work almost at cost during the recession,” John explains. “I had sold two stores to my brother and took the retained earnings and spent it on green features for the new store. It seemed like a smart investment at the time and it has paid off for us,” he adds.

John follows a simple retail philosophy: have exceptional service with competitive prices, and offer a broad assortment that includes hardto-find items that you can’t buy at the big boxes. He proudly notes that Zettler Hardware has been named Best Hardware Store in central Ohio for two of the past three years.

The most important retail lesson John learned from his father is to own your building rather than rent. As he explains, “Today if you sign a five-year lease, you lose money the first two years, break even the next two and when you finally start making money it’s time to sign a new lease, but at

Left: The 20,000-square-foot store in Pickerington is well-merchandised and brightly lit, making for a customer-friendly environment.

Right: Zettler’s store in Powell was built to be a green friendly and sustainable building.

a much higher rent. If you own your building and business gets bad, you don’t have to pay rent. My father grew up in the Depression and he emphasized the importance of being frugal, and I’ve tried to teach my son the same approach.”

Outdoor living is one of their biggest niches, with wicker and aluminum furniture selling well. Wild bird is strong in three stores, while two of the stores have developed a unique niche selling bedbug products.

All five stores offer some rental.

Zettler’s also offers a complete handyman service, whether it’s a small painting job or doing a major bath remodel.

John started working on a succession plan in 2007 and has modified it some over the years. All four of his kids grew up working in the business, but only Michael is involved these days. He oversees three of the stores. One daughter is a lawyer who represents the business in lease negotiations,

Right: Michael Zettler shows off the rental equipment on display, highlighting a key niche in each of the five stores.

Left: The newest Zettler Hardware store in Pickerington was designed to cater to female shoppers.

Middle: John Zettler started working on a succession plan a decade ago to get his son, Michael, more involved in the business. Michael now runs three of the stores, including this newest store in Pickerington.

while two other daughters are teachers. John is hopeful that some of his grandchildren will get involved in the business as the fifth generation of the family.

The two newest stores were designed to cater to women and John says the Do it Best Rewards program helps them build a stronger connection with customers.

The number one priority at Zettler Hardware is taking care of the customer. John continually stresses the importance of

DIY in a whole new way!

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making sure customers don’t have to wait long at the checkout.

John appreciates the support they receive from Do it Best, who has been their supplier since 2007. As he puts it, “We have inner-city stores and suburban stores in high-income areas. Do it Best lets you adapt the approach to different markets. They have been very helpful whether it’s opening a new store or taking care of our everyday business.”

Zettler Hardware has about 40 fulltime and 50 part-time employees, who are all trained and encouraged to provide exceptional service.

Business continues to grow each year, with all stores running in the black the past five years despite the presence of three Menards, five Lowe’s and 12 Home Depot stores in their market, plus dollar stores and other independents.

John Zettler’s ongoing legacy is the remarkable success he has had guiding and growing his family business from one generation to the next. He has positioned the company for continued growth and prosperity for years to come. He is honored and grateful to be nominated and selected as a Beacon Award winner, saying, “This award belongs to all the current and past employees and managers who have done the heavy lifting of taking care of the needs of our customers through the years.” n

FALL SHOW & TELL

Looking for hot new products in key hardware categories? Visit the Hyde Group for new product demonstrations in

drywall

dust-free sanding

paint application

utility knives

surface preparation

water wands and more. See you there!

RUST-OLEUM — A PROUD SPONSOR OF THE

2017 BEACON AWARDS

Solving challenges is the very foundation of who we are.

After all, in the beginning, our founder, sea captain Robert Fergusson, didn’t particularly care about paint. He just wanted to keep his ship intact. That’s why, when he noticed that an accidental splash of fish oil had stopped the relentless spread of corrosion on his rusty metal deck, he immediately recognized it for what it was: A valuable solution.

The same passion that drove the captain to spend his next few years creating the world’s first rust-Preventative paint still drives us today. When we see a problem, we work diligently until we’ve perfected a solution-which has led to some of the most cutting-edge, durable and innovative products in the industry.

If you’ve got a surface you need to protect or a look you want to transform, you’ve come to the right place. We have a coating for every challenge.

Welcome to Rust-Oleum, home of trusted quality and powerful solutions since 1921.

INNOVATIONS BY RUST-OLEUM

IF YOU THINK WE’RE JUST PAINT, THINK AGAIN.

Krud Kutter has earned the trust of millions of homeowners through 30 years of consistently providing eco-friendly solutions for tough tasks. The brand has a continuous commitment toward providing effective cleaning solutions that are safe for the environment and families.

Wipe New is proud to provide the world’s longest lasting appearance products. Our revolutionary nano-polymer formula is unique and proprietary–and fundamentally different from any of the silicon based dressings offered from competing brands. Launched in 2012 to tremendous success, Wipe New’s original formula provided consumers with the first true solution to restoring old faded vehicle surfaces and protecting them for years.

Fine-furniture makers, professional contractors and DIYers alike trust Varathane® for premium wood-finishing products that are specially formulated to make every step of the process simple and successful.

Moldex® Brand is empowering consumers and encouraging people to solve mold problems the right way. Find out why millions of homeowners & DIY'ers trust the Moldex® Brand.

Founded in 1849 on the principles of quality and innovation, the Zinsser® brand is known for professional-quality, problem-solving products that make the job easy and get it done right. From Mold Killing Primer to odor killing solutions, Zinsser is trusted by professionals and DIYers.

Harleysville Ace Hardware Retail Beacon Award

Harleysville Ace Hardware dates back to 1970 and features an 18,000-square-foot sales floor.

year

bought

Harleysville Ace Hardware has been a staple in the town of Harleysville, Pa., since Don Hoff Sr. opened his doors for the first time in 1970. Primarily a lawnmower repair shop at first, it quickly evolved into a full-service hardware store. Over the years, the store has offered ice skate rentals, a car wash, shotgun shells, live bait and go karts—whatever the community needed at the time.

As a young boy, Don Jr. would get off the school bus in front of the store and head right to work. Years later, that entrepreneurial spirit still burns. In 2006, Don Jr. bought the business from his father. Growth has been steady ever since.

In 2008, a Lowe’s opened within five miles while Don was planning to remodel the 18,000-squarefoot store, just as the economy took a nosedive. The

remodel project was completed anyway, and it helped spark another period of strong growth. “We want to be the competition by setting the bar in our marketplace with our brands, our selection and our service,” Don says.

Harleysville Ace has adopted several “store within a store” concepts. This approach allows them to prominently highlight niche departments that grow the average ticket such as grills, outdoor living, home decor and the Ace Backyard Bird Place. The everchanging gift department helps attract female customers and offers products that cannot be found at the big boxes.

A wide selection of bird hobby products is offered, from food to houses and accessories, and four annual seminars on birding help the store establish itself as a destination in this traffic-building category. Harleysville Ace is the number one Ace store in the wild bird category, according to Don.

Lawn and garden and the nursery comprise the number one category. The nursery will be expanded soon to add a climate-controlled greenhouse for year-round shopping, he points out.

Being locally owned and operated has been an important element of success, but Don also focuses on ensuring the store remains relevant with product brands that resonate with customers and that his staff is passionate about like YETI, Big Green Egg, STIHL, Oakley, Weber and

Top: Don Hoff Jr. (right) has learned the importance of a strong work ethic from his father, seeking to be a daily leadership presence for customers and employees.

Middle: This paint display helped the store raise $15,000 to support the Children’s Miracle Network Hospitals, one of their main charities.

Bottom: The team at Harleysville Ace is trained to exceed the expectations of customers.

Sponsors:

Co-Sponsors:

Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry.

The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and is Cosponsored by The Hardware Conference and The Hardware Connection magazine.

Due to Hurricane Irma, The Hardware Conference was postponed and will still be held in 2017, although new dates and location are still to be finalized. For more information about attending this event along with all other educational seminars, open floor discussions and social activities at the 2017 Hardware Conference, visit www.TheHardwareConference.com

Traeger. YETI sales grew 230 percent last year, while Big Green Egg sales rose 312 percent.

Don believes in giving back to the community and families in need by supporting local sports, the hospital, businesses and civic organizations. Last year he provided gift cards to the local police department to thank them for their dedication.

The team at Harleysville Ace is trained to exceed the expectations of customers, recognizing that personalized service is what sets the store apart from the competition. The store was recently named one of Ace’s “Coolest Hardware Stores” for 2017.

They hold two Ladies Night events each year that attract over 300 customers and are geared to show off their departments for the upcoming season.

The B2B division, launched five years ago, offers paper, cleaning and LED products for local businesses. Adding a dedicated person to the Ace Supply Place division two years ago has fueled strong sales growth in core departments.

2016 was a milestone year for Don and the team at Harleysville Ace, as retail sales rose 8.3 percent from the prior year. Sales increased 31 percent from 2012 to 2016, and the store posted sales per square foot of $444 in 2016, up from $392 in 2014.

Ace has played a key role in the store’s success. As Don puts it, “Ace has shown a willingness to provide the tools to allow us to grow the business and

Ace Backyard Bird Place is one of the many “stores within a store” that drive footsteps to Harleysville Ace.

be successful, the brands that help us stand out and the buying power of the co-op to help us compete against the big boxes and Amazon. They have been a great partner.”

The number one lesson Don has learned from his father is the importance of being in stock and that inventory is an investment that needs to be managed. Another is respect for people, especially the customers that sign their paychecks. A third is a strong work ethic, being a daily leadership presence for customers and employees.

Don credits the support of his wife Ruth with helping him build a successful business. He says winning the Retail Beacon Award is flattering but is an honor earned by his team of employees who all took ownership of their roles in the store. “Winning this award inspires me to continue to improve,” Don says. “We celebrate the wins, but move forward by trying not to be complacent and working every day to stay relevant.” n

COMPANY PROFILE APEX TOOL GROUP IS A PROUD SPONSOR OF THE 2017 BEACON AWARDS

Apex Tool Group (ATG) is one of the largest manufacturers of professional hand and power tools in the world, serving the industrial, vehicle service and assembly, aerospace, electronics, construction, and serious DIY markets. Our portfolio of over 30 innovative brands includes many category leaders, such as Crescent®, Lufkin®, and Weller®. ATG also manufactures select, premier private label mechanics tools. Across the board, our tools embody quality, innovation, and value. Known for solving seemingly impossible problems, they are intuitive and simple to use, yet indispensable. ATG works collaboratively with independent hardware/home improvement retailers in the two-step channel to make sure end users have the tools they need to solve real-world problems.

Current examples of ATG new product innovation include its Lufkin® Black Widow™ Tape Measure, improved Crescent® Mechanics Tool Sets, awardwinning Crescent® Locking Pliers, Crescent® Flex Head Hammer, and Weller® 9400PKS Soldering Gun.

The Lufkin® Black Widow™ Tape Measure features a matte black blade with high contrast green markings for improved legibility in varied light conditions. The two sided blade has vertical marks on the back for faster, more convenient measuring. The tape provides ten feet of standout for greater versatility and is housed in an extremely compact case that makes it easier to hold and carry.

Five new Crescent® Mechanics Tool Sets feature a number of improvements for better performance and extra durability. Available in 30, 70, 128, 148, and

170-piece versions, the new Crescent® Mechanics Tool Sets feature acetate screwdrivers and have longer wrenches with narrower heads for better leverage and access. Ratchets also deliver improved access and leverage with smaller teardrop heads and 10% longer beams.

The newly redesigned line of Crescent® Locking Pliers features a cushioned release lever for optimal comfort and two improvements to the jaw adjuster knob: A deep-rib knurl pattern makes it easier to grip and turn by hand and a hex key recess in the end of the knob allows a hex key to be used to tighten or loosen the jaw. The Crescent® Locking Pliers were named the 2017 Gold Award Winner in the Locking Pliers Category by Home Improvement Executive.

The Crescent® 18 oz. Steel Indexing Claw Hammer with Cushion Grip Handle has a 4 position claw that adjusts so users

can always get the best angle for maximum access and leverage when prying boards or pulling nails. Its extra-large smooth striking face provides solid contact when driving nails and a magnetic nail starter holds nails securely under the hammer head for quick and easy onehand nail starting.

Solder. Cut. Smooth. Weller’s new 9400PKS soldering gun features 3 cool LEDs that illuminate work without tip shadow and an ergonomically designed, contoured grip with balanced housing to reduce hand fatigue. A pivoting ball cord guard prevents twisting and extends the life of the cord. The 9400PKS features a two position trigger with dual power levels – high (140 watt) and medium (100 watt) – and heats up in 6 seconds. The gun comes with a 7 year warranty. n

CATEGORY REPORT

PLUMBING TRENDS

Sales of Drain-Septic Products (Independent Hardware Channel)

12 Months % Change vs. Year Ago Drain-Septic Products:

Unit Sales Breakdown for Drain-Septic Products

of 270 Items with Sales

PLUMBING BUYING UPDATE

Matt Muenster, host of DIY Network’s Bath Crashers and Bathtastic!, lists the following 10 bath remodeling trends:

1

. Mediterranean-inspired design— This style combines the charm of hand-painted terra cotta with a modern metallic look, as new meshes with old .

2 . Smart storage—Open shelving remains popular and vertical storage maximizes space .

3 . Classic whites—Classic white subway tile never goes out of style .

4 . Ease of use—No-threshold showers, comfort-height toilets, sidemount faucets and curbless showers are all in vogue these days .

5 . Three-dimensional tile—Fun, monochromatic patterns make a bold statement .

Left: Orchard Supply Hardware makes the department stand apart as the Plumbing Place.

Right: Bulk display of PVC and CPVC at Family Hardware in Cape Coral, Fla.

6 . Media and music—Vanities, mirrors and showerheads increasingly incorporate docking stations, wireless speakers and Bluetooth devices .

7 . In-floor heat and towel warmers— Radiant floor heat is viewed as an energy-efficient luxury that is not just for high-end baths anymore .

8 . Deluxe showers—High-tech, spalike showers are taking the space of soaking tubs .

9 . A bold mix of lighting—Pendants, sconces, chandeliers and table lamps are being used to add an artistic touch to the bath .

10 . Fire features—Ventless fireplaces are an easy way to add warmth to the bathroom .

By Chris Jensen

Hardware Industry Lends a Hand to Aid in Recovery from Hurricanes

Hurricane Harvey hit Houston, Rockport and other areas of the Texas coast on August 25 as a Category 4 hurricane with 130 mph winds and over 50 inches of rain in a week. More than 100,000 homes were affected by severe flooding, with nearly 40,000 completely destroyed, while 45 people were killed. Hurricane Irma will go down in history as the strongest Atlantic basin hurricane ever recorded after causing catastrophic damage in the Florida Keys, many other Florida communities and into Georgia and the Carolinas. The eye of the Category 4 hurricane made landfall in the Lower Florida Keys on September 10 and hit Marco Island later that day as a Cat 3 hurricane.

Total damage from Hurricane Irma is estimated to exceed $65 billion, while Hurricane Harvey damage could approach $180 billion, which would make it costlier than Hurricane Katrina. Hurricane Maria has followed by causing massive destruction in Puerto Rico. Hardware and building material retailers in these areas were swamped with customers before the hurricanes hit and those that were able to remain open were swamped immediately after the storms moved out.

When natural disasters of this magnitude occur the ramifications spread

across the country. Wholesalers and vendors spring into action, trying to get needed supplies to the affected areas. The massive short-term increase in demand can cause shortage of products like gas cans, generators, plywood, flashlights and cleaning supplies, so the supply chain gets out of whack.

For hardware retailers on the front lines of storm damage, the effects can be overwhelming. You are worried about damage to your home and store as well as concerned for the safety of employees and customers. Your customers are in grave and immediate need of supplies that you may not have enough of, while you scramble to stay open without power or phone service. When you look around your community you see devastation and despair, daily reminders that things will never be the same and that recovery will be long and difficult.

What keeps hardware retailers going in times of crisis like this are the many small acts of kindness by customers, suppliers and other retailers. They realize they are not alone, and that the hardware industry has their back.

Upper Middle: This is a road close to Cypress Ace Hardware in Houston.

Upper Right: Supplies arrive at Cypress Ace Hardware after Harvey hit.

Lower Right: News reports from Cypress Ace told residents where to go for supplies.

Houston-area retailers can proudly proclaim they are “Texas Strong,” but it’s more than that. When millions of people unite toward a common cause, making donations of money and supplies or pitching in to help tear down and rebuild damaged properties, it’s a groundswell of activity that catches steam.

Through an incredible collaboration between southeast Texas Ace retailers

Middle: Cypress Ace raised $6,000 for hurricane relief by selling Texas Strong t-shirts.

Right: Umber’s Do it Best Hardware in Fort Wayne, Ind., encouraged customers to donate to relief efforts.

and Ace corporate staffers, three large truckloads of storm-related goods were pre-selected and delivered into Houston on Saturday, August 26 for distribution to area stores a day after Harvey hit. Bill Murff, owner of Cypress Ace Hardware in Houston, commented to the Ace team, “What you’re doing is amazing. In 32 years, I’ve never seen anything like it.”

On Sunday night, August 27, Cypress Ace posted the following to its Facebook page: “We will be open tomorrow…Whether you need supplies or just a dry place to take a minute, we are here. We are not leaving.” The store had previously shared that an emergency shipment of pumps, tarps, sandbags, generators, gas cans, batteries and other storm-related goods had arrived at the height of what was then a Category 4 storm.

Evan Bedford, owner of Tavernier Ace Hardware in the Florida Keys, kept his customers updated about the availability of supplies on the store’s Facebook page. Bedford did not evacuate and he kept his store open as long as he could before Hurricane Irma made landfall, getting much-needed supplies to residents.

Two days before Irma hit, Bedford’s customers helped him unload 10 pallets of merchandise in less than an hour, ensuring products such as gas cans and batteries were available to residents after the storm.

Tavernier Ace reopened by operating with a generator before power was restored two days after Irma hit, with Bedford letting customers know on Facebook that they could use his store’s Wi-Fi hot spot to check emails or text loved ones.

In advance of Harvey making landfall, and to support the increasing demands for emergency supplies in advance of a storm that was still uncertain, Do it Best Corp. sent emergency trucks to members’ stores that were either in the path of the storm or

were in a position to provide helpful backup to their communities and local businesses.

In the storm’s wake, the co-op worked closely with members and staff—both at its Fort Wayne headquarters and its Waco, Texas, distribution center—to stage and supply needed products and resources for recovery and rebuilding efforts.

Do it Best Corp. presented a donation of $10,000 to the American Red Cross of Northeast Indiana in support of the charitable organization’s ongoing Hurricane Harvey relief efforts.

“We are glad to be able to make these donations on behalf of our members, and I am incredibly proud of the work our entire team has put into supporting our members and their communities,” said Do it Best President and CEO Dan Starr.

Kenny Beauvais, president and CEO of Hardware Distribution Warehouses, announced that their Houston distribution center received no major damage from Hurricane Harvey. “We are also extremely happy to report that all Houston employees and their families are safe. However, several have lost

Left: Sunshine Ace Hardware in Naples, Fla., gets a shipment of generators.

Middle: Batteries and other supplies are displayed near the entrance to Sunshine Ace Hardware.

Right: A semi-truck load of water is ready to be distributed to Sunshine Ace’s seven stores.

their homes and suffered property loss,” he said.

For those who would like to help, Beauvais suggested The Greater Houston Community Foundation at https://ghcf.org/, a local organization that will make sure contributions are distributed in areas of need.

Crowder Ace Hardware in Lakeland, Fla. sent associates into their neighborhood to go door-to-door asking if anyone needed anything. Whatever the item, if they had it, someone from the store would deliver it to their home.

Here is how Mike Bruns of Kingsford Hardware in Kingsford, Mich., responded on Hardlines Digest after hearing what Crowder Ace was doing: “Here is a time when the store is probably struggling to keep up with normal demands from Irma, yet they go out

into the community door to door making sure residents have what they need. This goes way beyond making a sale, it just speaks volumes about how people in the hardware business feel about the customers we serve.”

Bruns added, “It’s not about sales or profits, it’s about taking care of our neighbors in their time of need, and in a way big-box stores and online retailers can never match. Makes me feel very positive about our place in the world of retail. The best part is I'm sure there are many stories just like this coming out of Florida and Houston from our fellow store owners. A big thank you to every Ace, True Value, Do it Best or independent hardware store that is doing their part to make a difference. I know your community is thanking you as well.”

What follows is a round-up of just some of the activity the hardware industry has been doing to help communities recover from the destruction caused by Hurricanes Harvey and Irma. • The manager of JEDS Do it Best Hardware in Houston slept in

Employees at Cypress Ace in Houston appreciated the pizzas sent by the Washington, D.C. Ace retailer group

the store for days after Harvey hit because he wasn’t sure he could make it back to the store. Two JEDS employees waded through waisthigh water in their neighborhoods to get to work.

• Ambridge Do it Best Home Center, T & M Hardware and Rental and Craigs Hardware in western Pennsylvania joined forces to collect and donate cleaning supplies, while providing the packing materials, pallet jacks and rental trucks needed to ship two trucks bound for Houston.

• Niece Do it Best Lumber in New Jersey took up a collection for needed items to deliver to Houston.

• All American Do it Center in Wisconsin teamed up with a local rescue shelter to collect and donate items for the thousands of pets displaced by flooding.

• Do it Best’s distribution center team in Waco, Texas, worked throughout the Labor Day weekend to process incoming stock and fill member orders for emergency supplies.

• Spahn & Rose Lumber Company, based in Dubuque, Iowa, announced that their Spahn & Rose Charitable Foundation will match twice the amount of donations they receive for The Salvation Army–Hurricane Harvey Relief up to $10,000 through

September 16. Each of Spahn & Rose’s 24 locations accepted donations through cash or check.

• Circle Hardware Supply, a Do it Best member in Waco, Texas, is selling “Circle Care Bucket” components, a broad grouping of critical items for flooding victims that will be packaged into buckets and sent to affected areas.

• Cypress Ace Hardware in Houston raised $6,000 to send to the JJ Watt Foundation by selling Texas Strong t-shirts and donating all the profits.

• The U.S. Army handed out free school supplies at Cypress Ace Hardware for those who lost theirs in the flooding.

• Weakley-Watson Ace Hardware of Brownwood, Texas, teamed up with Howard Payne University’s baseball team to hold a donation drive for hurricane relief. The store gave a 25% discount for purchases listed as hurricane relief items and served as a drop-off location.

• Ace Hardware in Wexford, Pa., was selling buckets filled with cleaning supplies that would be sent to help flooding victims.

• Several Westlake Ace Hardware stores in Texas are accepting donations to the American Red Cross. "The devastation brought by Hurricane Harvey to the Gulf Coast of Texas and Louisiana has shocked and saddened us all," said Tom Knox,

Do it Best retailers in western Pennsylvania joined forced to collect and donate cleaning supplies

Westlake Ace Hardware CEO. "In addition to the donation Westlake made to the American Red Cross for the relief effort, we wanted to set up a system so customers and non-customers could easily donate to help those in need."

Here are links to stories detailing hurricane-related coverage:

• Here’s what it’s like to be a home improvement retailer in the midst of a hurricane. Click here.

• Carr Hardware coordinates disaster relief from Berkshire region. Click here.

• How Home Depot braced for Harvey’s impact. Click here.

In Florida and Houston, Red Cross workers are providing food, shelter, relief supplies, health services and emotional support in the hardest hit areas. Red Cross vehicles are fanning out in affected neighborhoods, delivering meals and relief supplies to people cleaning up their homes. For those interested in donating to those affected by Hurricanes Harvey and Irma, support the American Red Cross by going to: https://www.redcross.org. n

IN THE NEWS

NEW STORES:

• Kevin Fluharty has opened Ace Hardware in Salem, W. Va.

• Gary and Seth Johnson, owners of Home Ace Hardware, have opened a second Ace Hardware store in Columbus, Ga.

• Graylend and Krystal Horn have opened their third store, Horn’s Middlesex Ace Hardware in Saluda, Va.

• Mike Patel and Rushi Shah have opened Hoffman Estates Ace Hardware in Hoffman Estates, Ill.

• Scott Dobson is opening Castleton Diner and Hardware Store in Castleton-on-Hudson, N.Y.

• Niemann Foods has opened its 10th Ace Hardware store in Quincy, Ill.

• Clark Porter has opened Small Town Supply Ace Hardware in Gouverneur, N.Y.

• George Sheffer has sold Murdale True Value Hardware in Carbondale, Ill., to Cotton Hardware.

• B&B Do it Best Hardware has moved to a new, larger location in Napoleon, Mich.

• The Gil family is opening its third Harry’s Ace Hardware in Germantown, Wis.

KUDOS TO:

• Garrett Ace Hardware in Healdsburg, Calif., and

Harleysville Ace Hardware in Harleysville, Pa., were recognized by Ace Hardware Corp. with its “Coolest Hardware Store” award for 2017.

• New Market Hardware in St. Louis is celebrating its 100th anniversary this year. Steve Schneider is fourth-generation owner.

• Hyytinen Hardware in Aitken, MN is celebrating its 50th anniversary this year. Owners are Joel and Teresa Hyytinen.

• Sunshine Ace Hardware, based in Naples, Fla., has received recognition as “Best Large Company” by Gulfshore Business, “Best Hardware Store” by Naples Daily News and “Bonita’s Best Hardware Store” by Bonita Banner.

• The third generation of the Scott family is celebrating the 100th anniversary of Scott & Sons Hardware in Renfrew, Ontario.

• Marathon Lumber and Building Supply in Marathon, Fla., owned by Dale Baker, is celebrating 40 years in business.

• PRO Group recognized Yates Home PRO in Tellico Plains, Tenn., as the Paul L. Cosgrave Memorial Award Winner.

Rick Heuser (center) receives award for “Outstanding Florida Main Street Business of the Year.”

• Handyman Do it Best Hardware in St. Cloud, Fla., owned by Rick Heuser, was named merit winner for “Outstanding Florida Main Street Business of the Year” by the Florida Secretary of State.

PEOPLE ON THE MOVE:

• Member Insurance Agency has hired Jay Brown as account ambassador.

• Murray Bishop has been promoted to director of branch operations at Pacific STIHL. David Collyer

• David Collyer has joined ECi Software Solutions as senior vice president of global customer experience.

• Apex Tool Group has hired Jeff Campbell as vice president-sales and channel marketing.

• Fourth-generation owner Charlie Meek has been named CEO of Meek’s Lumber.

• Rich Allaire has joined Safety Works as key account manager.

WHOLESALERS IN THE NEWS:

• True Value Company reported revenue declined 1.9% for the second

quarter to $430.4 million. Net margin increased 28.1% to $16.7 million and Truevalue.com sales rose 19%.

OTHER NEWS:

• Funds advised by Apax Partners have reached an agreement to acquire ECi Software Solutions. Exact Software’s Macola, JobBOSS and MAX businesses will be combined with ECi and current majority owner The Carlyle Group will continue as minority invester. The current ECi senior management team, including CEO Ron Books, will continue to lead the combined company, which will be known as ECi Software Solutions and headquartered in Fort Worth, Texas.

• Hangzhou GreatStar Industrial Co. Ltd. has completed its acquisition of Arrow Fastener Co.

• Nominations are being accepted for the annual Indie Award with a $50,000 grand prize package from Independent We Stand, cofounded and sponsored by STIHL Inc. Supporting sponsors include Do it Best Corp., PPG Pittsburgh Paints, SnapRetail and National Federation of Independent Business. Go to www.indiebizaward.com for more information or to vote.

IN MEMORY:

• Joe Page, owner of Maycrest Do it Best Hardware in Savannah, Ga., passed away July 15 at the

age of 82. He served in the Air National Guard and worked at Georgia-Pacific and Builderama before opening and operating Maycrest Hardware for more than 30 years. He is survived by his wife Setona, son Joseph Jr. and three grandchildren.

• Al Resnick, owner of Resnick’s Hardware in Bayonne, N.J., died September 19 a month shy of his 100th birthday. He retired from the business, started by his parents in 1918, at the age of 98. He is survived by four sons, 10 grandchildren and nine great-grandchildren.

ACE HARDWARE LOOKS TO THE FUTURE WITH MOMENTUM

When Ace Hardware Corp. held its Fall Convention August 17-19 in Chicago, Ace executives shared lots of positive news about past financial performance while warning its retail members needed to stay focused so the company does not lose ground to Amazon and other competitors.

“It’s forward or lights out,” said President John Venhuizen. “We have two overriding goals: superior results in stores and distinctive impacts in communities.”

Venhuizen noted that Ace is in the fifth year of a seven-year initiative for Pinnacle Performance Retailing. “Our 12 initiatives are rooted in three main things: service, convenience and quality. Corner shops must answer to the need for immediacy,” he said, adding that

Ace is working on a pilot test to redefine convenience with delivery.

Brian Wiborg, vice president-retail development & supply, pointed out that Ace is famous for four categories it must continue to win: paint, home preservation, holiday gifts/lights and backyard barbecue. He encouraged Ace members to transform their stores to turn mission shoppers into browsers and to find ways to engage and wow customers.

John Surane, executive vice president for merchandising, marketing and sales, noted that about 100 prospects were in attendance at the market. “Retailers today face a different threat compared to 25 years ago. We’re not in a retail revolution, we’re in a logistics revolution. We need to determine how we give consumers more access through traditional shopping and delivery,” he said.

Surane said the co-op is in transition with its distribution system as it needs to be more nimble, shipping smaller orders more often. “Our new DCs in Virginia and Pennsylvania are being built that way, so we have the capacity to serve customers in a different way,” he said.

Regarding a possible sale of True Value Company, Surane said, “If we would be asked to the party we’d be interested, but we weren’t so we don’t have leisure to worry about that.”

Ace reported second quarter revenues rose 4.6% to a record $1.5 billion, while net income decreased slightly to $51.1 million and samestore sales increased 3.2% for the quarter. n

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UPCOMING EVENTS

OCTOBER

Do it Best Fall Market

October 13-16, Indiana Convention Center, Indianapolis

House-Hasson Hardware Fall Dealer Market

October 26-28, Sevierville Events Center, Sevierville, Tenn.

Taiwan Hardware Show

October 11-13, Great Taichung International Expo Center, Taichung, Taiwan

The Green Industry and Equipment (GIE) Expo

October 19-20, Kentucky Exposition Center, Louisville, Ky.

Wallace Hardware Fall Dealer Market

October 11-13, LeConte Center, Pigeon Forge, Tenn.

NOVEMBER

Distribution America/PRO Group Executive Planning Conference

November 14-16, JW Marriott Resort, Marco Island, Fla.

North American Wholesale Lumber Association Traders Market

November 8-10, Hyatt Regency, Chicago

STAFDA Annual Convention & Trade Show

November 12-14, Austin Convention Center, Austin, Texas

West Coast Lumber & Building Material Association Annual Convention

November 8-9, Westin Mission Hills Golf Resort, Rancho Mirage, Calif.

Western Building Material Association Annual Convention

November 7-9, Tulalip Resort, Marysville, Wash.

JANUARY 2018

Do it Best Corp. Winter Conference

January 18-19, Hilton La Jolla Torrey Pines, La Jolla, Calif.

International Builders’ Show

January 9-11, Orange County Convention Center, Orlando, Fla.

Northwestern Building Products Expo

January 22-23, Rivers Edge Convention Center, St. Cloud, Minn.

United Hardware Spring & Summer Buying Market

January 5-7, Minneapolis Convention Center, Minneapolis

FEBRUARY 2018

House-Hasson Hardware Dealer Market

February 1-3, Opryland Convention Center, Nashville, Tenn.

Iowa Lumber Convention

February 20, Prairie Meadows Event Center, Altoona, Iowa

LBM Advantage Annual Meeting & Trade Show

February 19-21, Gaylord Palms Resort & Convention Center, Kissimmee, Fla.

Northeastern Retail Lumber Association LBM Expo ’18

February 14-16, Rhode Island Convention Center, Providence, R.I.

Orgill Spring Market

February 22-24, Orange County Convention Center, Orlando, Fla.

True Value Spring Reunion

February 10-12, Walter E. Washington Convention Center, Washington, D.C.

HARTVILLE HARDWARE

UNVEILS A NEW IDEA HOUSE

Beyond its sheer size, there were many amazing features about Hartville Hardware’s new 305,000-square-foot store when it opened in 2012. Perhaps no feature was more unique than the Made in the USA Idea House.

This 1,800-square-foot house built inside the Do it Best store was constructed almost exclusively of products made in the U.S. and designed as a way to showcase the latest ideas and trends in exterior and interior home design.

As the Idea House approached its fifth anniversary this year, the team at Hartville decided it needed a little updating. So they did a complete overhaul of both its interior and exterior to reflect more recent trends and ideas.

“It is still primarily made in USA products, but we didn’t want to be restricted to that. This was all about design and inspiration. We wanted to

Top: The 1,800-square-foot Idea House was built on the sales floor at Hartville Hardware.

Middle: The Idea House helps position Hartville Hardware as a destination for home design and remodeling projects, as it spurs customers to copy certain elements.

Bottom: The modern farmhouse design is seen with the use of six barn doors throughout the Idea House.

model on a modern farmhouse theme,” says Scott Sommers, merchandise position manager.

The remodel project started in early January and the Idea House reopened six weeks later. “We left all the exterior walls but gave the exterior front a facelift, changed columns and changed the flooring,” says Sommers.

He adds, “We were very excited about the feedback we got this time— customers love the look of it. The first house was one you’d want to live in, but this was more about inspiration.”

VERMONT HARDWARE STORE

OPENS BAR ON SALES FLOOR

Harry’s Hardware in Cabot, Vt., is giving new meaning to serving customers. The business, which was established in 1896, opened a full bar called The Den in late July.

Most of the products used in the Idea House are stocked in the store, while some are available through special order. During Hartville Hardware’s annual Home & Garden Expo in the spring they did seminars about modern farmhouse design to spur interest in the new Idea House.

Left: Harry’s Hardware in Cabot, Vt., opened The Den in late July as a neighborhood bar within the store.

Right: The Den at Harry’s Hardware is quickly turning into a gathering place for locals, especially on the weekends when there is live music.

Bobby Seales bought Harry’s five years ago and then brought on Rory and Johanna Thibault as partners about a year ago. “My partners and I were thinking about how to make the store better and more of a gathering

Top: A grand opening celebration for The Den was held on August 19, and the whole town came out.

Upper Middle: The owners of Harry’s Hardware are left to right: Stephany and Bobby Searles, Rory and Johanna Thibault.

Lower Middle: The Den starts serving beer an hour after the hardware store opens each morning, as customers find it hard to resist sitting down at the 12-foot-long granite bar top.

place. We thought a bar might be something good to attract customers,” explains Seales.

It was time-consuming but not difficult to get the necessary permits and liquor license to sell beer and wine, he points out. They have the distinction of being the first hardware store in Vermont to have a liquor license and possibly the only one east of the Rocky Mountains.

The hardware store opens at 7 a.m. (8 a.m. on Sunday) and The Den opens an hour later and stays open later on the weekends when there is live music.

The bar is designed to serve as a destination for locals and tourists who flock to visit the Cabot Creamery in town. The 12-footlong granite bar top is hard to resist once you set foot inside.

“The third shift from the Creamery comes in after work at 9 a.m.,” Searles says. “We get locals to come in for a beer and then they’ll realize they need something from the hardware side, so it has been good for business.”

The Den at Harry’s Hardware features seven beers and one hard cider on tap, all craft beers made in Vermont. For those customers who work up an appetite, all they

The bar features seven beer taps, all craft beers made in Vermont.

have to do is wander to the back of the store, where they can get breakfast or lunch at Sarah’s Country Diner. Harry’s Hardware is truly a one-stop gathering place for the community. n

BEHIND THE NUMBERS

235

Number of years Elwood Adams Hardware has been in business in Worcester, Mass., making it the oldest hardware store in America. Open since 1782, the store announced it would be closing next month.

78%

Percentage of home improvement trade professionals who expect their business revenue to grow over the next 12 months, according to the Q2 2017 HomeAdvisor Farnsworth Index.

$3.4 Billion

Size of merchandise inventory at Sears as of July 29, down from $4.7 billion a year earlier.

571,000

Seasonally adjusted annual sales of newly built, single-family homes in July, down 9.4% from June, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represents the lowest level since December 2016.

$66,000

Amount raised for Texas Children’s Hospital in 2016 by Bill and Susan Murff, owners of Cypress Ace Hardware in Houston, making them the highest fundraising team across all Ace stores and leading to the Murffs being named the 2017 Ace Hardware’s All-Star Retailers.

$10.16

Median hourly pay for retail sales associates in the United States, according to PayScale Inc.