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Friday, April 25, 2008

SEVEN TO BE HONORED AS YOUNG RETAILERS OF THE YEAR

Seven young hardware retailers are being honored for outstanding achievement as owners and managers of independently owned hardware and building supply stores in the United States and Canada. They are honorees in the 2008 Young Retailer of the Year program, now in its 12th year.

The purpose of the program, which is coordinated by the North American Retail Hardware Association (NRHA), is to recognize outstanding performance and encourage talented young people to pursue a career in the retail hardware business. To date, the program has honored 85 young retailers.

This year’s honorees include:

Under $2 Million in Sales:

Todd Kirschner, general manager of Trio Hardware, Plainview, N.Y.

When a fire leveled the store he was working, Kirschner, though carrying a full load at college, became the driving force behind helping the store quickly reopen in a temporary location. Soon, he was promoted to store manager. In the next three years, he tripled store sales without expanding the store beyond its 3,400 square feet. In addition, through inventory management skills, he’s achieved a very high margin for his store and a wide selection of items. Since being a store manager, he’s made numerous other changes to the store, including updating the POS system and adding energy efficient, brighter, lighting.

Terry Byers, co-owner of Town Center Hardware in Harrisburg, N.C.

Byers got into the hardware business with her husband, Brent, when they decided to build a 15,000-square-foot store in Harrisburg, N.C. In the four years the store has been open, she has remerchandised the entire store more than once as she continually finds better ways to display merchandise and improve signage. After noticing that more than 60 percent of the store’s shoppers were women, Byers added seasonal holiday items, as well as garden-themed items and some home decor products. In 2007, she took 1,000 square feet of space at the front of the store and used it for gift items. That year, the gift area accounted for 11 percent of total store sales and helped increase total store sales 7 percent for the entire year. Another addition Byers helped orchestrate was a kitchen display to highlight major appliance and cabinet sales, which has become a profitable addition to total store sales.

John Bettendorf, owner and general manager of Bettendorf Hardware, Isanti, Minn.

Bettendorf may have bought a store well-established in the community. But with no previous experience in the industry, he had to build his own career in hardware retailing from the ground up. Not long after purchasing a store, however, he began making his mark on the store and his new hometown. Bettendorf introduced new products, directed a store-wide merchandise reset, implemented a new marketing strategy and found cost-efficient ways to improve the appearance of the store. He upgraded the store’s point-of-sale system so he could better manage inventory. He also began to identify areas of the store that could increase growth. In the lawn and garden area, he increased sales 49 percent between 2004 and 2005. He added water softener salt as a traffic-building niche product, and dramatically increased sales to make the category a major seller in the store. He is part of the Isanti City Partnership, a group that works with the city to encourage economic growth in the area, and is actively involved in the Young Retailer Group of the Minnesota Dakotas Retail Hardware Association.

Over $2 Million in Sales:

Maurice Chevalier, owner of Morinville Home Hardware, Morinville, Alberta, Canada

Chevalier started his retailing career as owner of an auto parts franchise his father had owned. But as he began to look around for more retail opportunities, a hardware store seemed to be his ticket to growing his retail presence in the local market. Looking for a way to draw in more female shoppers, Chevalier created a strong niche in home decor products and added a lawn and garden department, which posted a 50 percent sales growth in its second year. Overall, in 2006, Chevalier’s store posted a 38 percent increase in sales over the previous year, which was a 110 percent sales increase from his first full year in business. Aware that his employees are the key to the store’s success, Chevalier continually works toward open communication among staff and gives them a number of perks, including cash bonuses for completing training programs, a staff discount on merchandise and a full benefit program that includes a retirement savings plan with matching fund opportunities. Chevalier is also active in the community and has won several awards from the local Chamber of Commerce.

Jeff Johnson, owner of Del’s True Value Building Supply, Myrtle Creek, Ore.

After taking ownership of Del’s True Value in 2001, Johnson and his wife, Kelli, set to work right away improving store efficiency and sales. In the first five years, sales in the store increased 240 percent and inventory levels more than doubled. After updating equipment in the paint department, sales there have increased 60 percent. Johnson also updated the store fixtures so he could have better displays and merchandising. Improving the store’s computer system meant he had more information to help improve the store’s efficiency. Another big move for Johnson was the opening of an industrial supply business that sells to manufacturing facilities in the area. In three years, the division is posting sales of $1.1 million annually and employs four people. In addition to participating in local events, he is chairman of the local school board and sits on the South Umpqua Schools Foundation, an organization that raises money for capital improvements. In 2004, the Myrtle Creek Chamber of Commerce named Johnson “Man of the Year” for his contributions to the community.

Multiple Store Operations:

Shawn Roehr, vice president of Arrow Lumber and Hardware in Buckley, Wash.

For Roehr, the business plan for his multi-store lumber and hardware business began in high school as a class project. Three years later, he and two others opened the first Arrow store in Eatonville, Wash. Today, the company, which buys from Horizon Distribution, operates five stores with a sixth coming in 2009. One of Roehr’s first major tasks was to design the retail layout and product assortments at Arrow’s store in Buckley. As the company acquired other stores, he was integral to remodeling them and increasing sales. When Roehr and his staff remodeled the store in Randle, sales increase 300 percent the following year. Later the same year, he completed a remodel of the store in Port Orchard and sales, excluding lumber, increased 100 percent. By January of 2008, total company sales were more than nine times greater than their first year of business a decade earlier. Another major project that Roehr tackled in 2005 was to update the company’s computer system so all of the stores were compatible. In the community, Roehr uses each store as a collection site for local food banks.

Eric Hassett, president of operations at Palo Alto Hardware in Half Moon Bay, Calif.

As general manager of the family hardware store, Hassett set to work improving the merchandise mix and customer service and following strict inventory management practices. As a result, sales posted double-digit increases and sales volume doubled in less than four years. He is currently opening a new store in San Jose, Calif. Hasssett has been busy making a difference in the community as well. One popular program is his “wooden nickel” program, where customers help donate money to the school of their choice. He also participates in the Rebuilding Together program, which works to repair schools, low-income housing and recreation centers. A strong advocate of environmentally friendly business practices, Hassett has installed solar panels at the Palo Alto store and participates in the Our Water, Our World program, which identifies less toxic alternatives for pest management. Hassett currently serves as vice president of the Progressive Ace Leaders, a group comprised of young, forward-thinking Ace retailers aimed at building relationships and sharing information with the next generation of hardware retailers.

Nominees for the Young Retailer award must be 35 years of age or younger and are judged for their career advancement, professional accomplishments, goals for the future, education and community involvement. Honorees will be special guests at NRHA’s 2008 National Convention July 28-30 in Monterey, Calif., where they will be recognized at a banquet in their honor.

Sponsors of the program are 3M Co., The Scotts Co., Cooper Hand Tools and the American Hardware Manufacturers Association.