OUR FUTURE
IS BRIGHT
NRHA Honors its 2015
Young Retailers of the Year
By Jesse Carleton, [email protected],
Hilary Welter, [email protected]
“C
hallenges don’t scare us.”
That was the message
coming through loud and
clear from the stories of the
North American Retail Hardware Association’s
(NRHA) 2015 Young Retailers of the Year.
From the day these retailers stepped into their
roles as managers or owners of their respective
businesses, they pushed forward new ideas and
tackled major obstacles with determination and
enthusiasm. But what also stands out about the stories of these young retailers is how they make the
lives of everyone around them better, too.
“The combination of an entrepreneurial spirit
and a sense of responsibility toward their communities is what makes this year’s honorees an outstanding group of retailers,” says Bill Lee, NRHA
president and CEO. “They exemplify the true spirit
of the independent retailer and leave us confident
that the future of the industry lies in good hands.”
This past May, the industry recognized these
eight outstanding retailers in the annual Young
Retailer of the Year program at NRHA’s All-Industry
Conference in Las Vegas. The program, sponsored by
the American Hardware Manufacturers Association,
Apex Tool Group, Delta Faucet Company,
Fluidmaster, Intertape Polymer Group and Midwest
Fastener Corporation, recognizes winners in three
categories: stores with less than $2 million in annual
sales, more than $2 million in annual sales and
multiple-store operations.
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HARDWARE RETAILING | July 2015
Scholarship Honors
Another requirement for earning the Young
Retailer of the Year award is to show a commitment
to ongoing education in the industry. This year,
one of the honorees is committed to enhancing his
education through NRHA’s Retail Management
Certification Program.
During the Young Retailer of the Year awards ceremony, representatives from the National Hardware
Show® and NRHA awarded Jonathan Miller a
$5,000 scholarship to help cover his costs of attending the Fall 2015 session of the class. The certification program is a six-month, college-level course of
study designed to develop management and leadership skills for up and coming retail leaders.
“We are grateful that the National Hardware
Show is taking a leadership role in demonstrating
the importance of investing in the success of the
independent channel’s future, and we hope other
companies will follow that lead,” says Lee.
Visit hardwareretailing.com/2015-yroty to see
a video presentation of each of the 2015 Young
Retailers of the Year.
THANKS TO ALL OUR SPONSORS
July 2015 | HARDWARE RETAILING
53
UNDER $2 MILLION IN ANNUAL SALES
“We have been seeing a lot of female shoppers,
as well as those from the younger generation—
exactly what we were hoping for with the remodel.
”
SAM RANSDELL
Manager
Burney Hardware,
Aberdeen, North Carolina
W
hen Sam Ransdell returned to
work in the family business after
graduating from college and
finishing his training with the
National Guard, it didn’t take him long to make
an important observation. There weren’t a lot of
customers his age shopping the store every day.
If the business was to remain strong into the
next generation of ownership, it was time for
some major changes.
His parents had been planning for a store
remodel they hoped would broaden the store’s
customer base, but it was Ransdell’s enthusiasm
and fresh perspective that began moving the
project forward.
He began by looking for better ways to use the
space around the store. By converting 2,000 square
feet of warehouse space into a showroom for grills,
he doubled inventory in that category and is on
track to double sales there from the previous year.
Around the rest of the store, he added 300 feet of
new merchandise, just by making more efficient
use of space.
While he wanted to modernize the store, he
also wanted to retain its old-fashioned charm.
To do that, he used reclaimed lumber from a
nearby train depot to redesign the front counter
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HARDWARE RETAILING | July 2015
and give it an antique appearance, and then
hung hardware memorabilia around the walls
and ceiling.
Next, Ransdell updated the POS system and
purchased five additional computer terminals
so more staff would have access to the store’s
catalog. The security system also needed an
update, but the cost of hiring a security company
to install a new system was prohibitive. Instead,
Sam saved the store thousands of dollars by
purchasing cameras direct from the vendor
and installing them himself. Due to reduced
shrinkage and POS integration, the investment is
quickly paying for itself.
As an active member of the North Carolina Army
National Guard, Ransdell stands ready to assist
his country in a time of crisis. But since coming
to Burney Hardware, he has also emphasized the
importance of serving his community. He created
a partnership between the store, his church and
the local Habitat for Humanity office, where he
sponsors a nearby home under construction and
contributes labor, any requested materials and
fundraising opportunities.
At the grand re-opening event last summer, the
crowds told the story of how successful Ransdell’s
efforts so far had been. “We have been seeing a lot of
female shoppers, as well as those from the younger
generation—exactly what we were hoping for with
the remodel,” Ransdell says. “Sales on those two
days were incredible.” And the trend has continued.
Overall store sales increased 10 percent in 2014, and
the store is on track to break $2 million in annual
sales for the first time.
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UNDER $2 MILLION IN ANNUAL SALES
“
By giving products to the ReUse Center, we see
it as an investment back to those who haven’t had
the opportunities we have been blessed with.
”
MATT WOODS
Business Manager
Woods Hardware, Cincinnati, Ohio
W
here other hardware stores were
looking for new markets away from
the limited spaces and often challenging environment of an urban
area, Matt Woods found his golden opportunity.
Woods joined his father in the family business in
2011 after working as a financial broker and advisor
for three and a half years. The business included
three segments: a locksmith service, a convenience
hardware store and a door and frame distribution
center. He quickly noticed much untapped
potential in the 2,500-square-foot hardware store,
and decided it was time to make it the No. 1 choice
for downtown shoppers.
After developing a relationship with a new
hardware supplier, Woods put together a set of
basic assortments he felt would thrive in his
market. Then he cleared out outdated inventory
and donated it to a local non-profit organization.
Simply by eliminating redundancies, creating
a more organized merchandising plan and
maximizing every square inch of shelf space,
he increased inventory by 40 percent.
Next, Woods began a marketing campaign
that included radio advertising and Google ads,
intending to draw in more consumer shoppers
while strengthening his presence in the contractor
community. To learn how to maximize his web
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HARDWARE RETAILING | July 2015
presence and save the expense of hiring someone to
do it for him, he took a class on best practices in web
design and SEO.
Woods also revived paint sales by switching
paint vendors and offering mixed paint. Now, paint
is one of his strongest departments. Throughout the
store, Woods has been resetting planograms and
diversifying his product mix to appeal to a wider
range of customers.
Since 2011, sales have steadily increased,
with a 23-percent increase in 2014, and he
shares that success with the community. When
he identifies underperforming products, he
takes them off the shelf and makes monthly
donations to the ReUse Center, a non-profit
organization that resells donated slightly
damaged, discontinued and reclaimed building
materials at a steep discount. Its employees
are ex-offenders who might have a difficult
time finding employment elsewhere. Through
the door and frame wholesale portion of the
business, Woods makes donations to area nonprofits, including the local Lord’s Gym. He has
also served with the National Guard.
“Being in the urban core for 82 years, we’ve seen
the best of humanituy and the worst. By giving products to the ReUse Center, we see it as an investment
back to those who haven’t had the opportunities we
have been blessed with,” says Woods.
It’s likely that downtown Cincinnati will not be
the only place to benefit from Woods Hardware.
Woods is currently pursuing plans to take the
model he’s developed and open locations in other
urban markets.
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OVER $2 MILLION IN ANNUAL SALES
“After the flood, I knew we had to move
forward and that the most important thing
would be customer service.
”
HEATHER KREFFER
Dealer-Owner
High River Home Hardware Building
Centre, High River, Alberta
A
new executive position, a grand opening, a massive flood and a grand reopening—Heather Kreffer’s short time
as a key leader at High River Home
Hardware Building Centre has been full of challenges. In two short years, Heather has overcome
obstacles with poise, skill and determination, leading her company to success along the way.
Kreffer joined the High River Home Hardware
team in 2008, taking every opportunity available to
learn about the industry. She worked her way up
through the company and in 2013 took over ownership with her husband, Dave Linthorne, and longtime store employee Dan Dubeau.
Soon after, a devastating flood hit High River,
Alberta, and the town was evacuated for 10 days.
The store was destroyed and most of the inventory swept away, taking the store back to bare
walls. For several months, Kreffer and her team
worked tirelessly to plan a brand-new High River
Home Hardware store. In the meantime, she
opened a temporary store inside of a shed on the
company’s property, stocking it with as many
supplies as possible.
Less than five months after the flood, Kreffer
lead the opening of a new 10,000 square-foot store.
It became an inspiration to the entire town, being
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HARDWARE RETAILING | July 2015
applauded by the town’s mayor for symbolizing the
town’s post-flood motto, “better than normal.”
And better it was. Kreffer implemented new practices and procedures that placed a strong emphasis on the customer experience, resulting in sales
increases of more than $2 million from 2013 to 2014.
“Losing all of my notes and procedures in the
flood was a setback,” says Kreffer. “However,
after the flood, I knew we had to move forward
and that the most important thing would be
customer service.”
Kreffer redesigned the flow of the store to create the most welcoming and convenient shopping
experience. She relocated the customer service and
contractor sales desks to a central location in the
store and strategically moved the home decorating
department near the entrance to appeal to female
buyers. She also added an impressive new paint
department, which has become a high-profit center
with increased department sales of 82 percent.
As contractor customers make up more than
half of the company’s customer base, Kreffer and
her team introduced a quicker and easier ordering
process for them.
Kreffer continues to improve her store’s “wow factor” by meeting the needs of customers through the
confidence and knowledge delivered by her staff.
She requires intensive training, both in the store and
through NRHA’s online programs.
Equally important to Kreffer is High River
Home Hardware’s community involvement. The
store supports many community events and
organizations and makes countless donations for
charities and fundraisers.
July 2015 | HARDWARE RETAILING
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OVER $2 MILLION IN ANNUAL SALES
“
I believe in continuous improvement.
Each day I look for ways to make business better
by improving products, people and processes.
”
DALLIN REDD
Owner
Redd’s Ace Hardware,
Blanding, Utah
A
s a teenager, Dallin Redd had two
simple goals; be his own boss and
develop his own company. He didn’t
waste any time fulfilling them. By the
time he graduated from college, he was franchising two Subway restaurants in his hometown of
Blanding, Utah. Soon after, he founded a market
research company called Vision Research, which
rapidly grew to more than 100 employees in two
cities within six short years. But while he was
indeed living out his dream, he found an even
greater opportunity to apply his sharp entrepreneurial skills and passion for business back home
in the family operation.
In 2010, Redd took over full ownership of Redd’s
Ace Hardware from his father, Bryce. The younger
Redd had worked in the family hardware store
throughout high school and learned firsthand the
essentials of owning a small business in a competitive
retail environment. He took his knowledge and
immediately began making improvements to almost
every aspect of the business.
Redd’s initial focus was to develop the
store’s culture and establish a foundation of
expectations and accountability among his staff.
As morale improved among his employees,
customer satisfaction rates improved, and Redd
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HARDWARE RETAILING | July 2015
has seen a 14-percent increase in customer
counts. Further increasing customer service
levels and ensuring customer needs are met,
Redd refined the store’s product mix and
increased inventory in its core departments.
Redd’s hard work paid off, as his initiatives
resulted in strong growth. From 2010 to 2014,
store sales increased 44 percent.
Still, Redd refused to be complacent, knowing
there was potential to develop the business even
further. In January 2015, he broke ground on an
ambitious store expansion project. As part of the
project, he will add 8,000 square feet of retail
space, bringing his store to a total of 23,000 square
feet. The expansion will combine his Subway
restaurant with the hardware store, allowing him to
expose new customers to both sides of the business.
“I believe in a philosophy of continuous
improvement,” says Redd. “Each day I look
for ways to make business better by improving
products, people and processes.”
Redd also makes furthering his retail
education a priority. He has completed several
of NRHA’s online retail training courses and is
currently enrolled in NRHA’s college-level Retail
Management Certification Program.
Redd’s shining enthusiasm and hard work also
show through his dedication to his community.
He is a member of the Blue Mountain Hospital
Foundation, San Juan County Chamber of
Commerce and Blanding Business Rotary club. He
teams up with local schools to create programs that
introduce elementary through high school students
to the hardware store and D-I-Y projects.
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MULTIPLE-STORE OPERATIONS
“In everything I do, I consider holistically how
that decision or program could impact everyone
and everything involved.
”
DAVID CRIPE
Co-Owner & General Manager
Whitmore Ace Hardware,
Wilmington, Illinois
H
aving a career in his family’s hardware
business was always a goal for David
Cripe. After spending much of his childhood and high school days at the store
and holding different managerial positions after college, Cripe took his next career step with Whitmore
Ace Hardware in January 2013, joining his father,
Mike, and brother, Michael, in partial ownership of
the four-store company. In two short years, Cripe
has put multiple high-impact improvements and
enhancements into motion, resulting in an outstanding sales increase of more than 25 percent, along
with a 9-percent increase in customer counts.
“In everything I do, I consider holistically how
that decision or program could impact everyone
and everything involved. That way, we can move
swiftly forward once a plan is set,” he says. “If you
are not moving forward, you are losing ground.”
He began by leading a complete overhaul of the
hardware, tool, electrical and paint departments
in each of the four stores, increasing tool and
electrical sales by more than 30 percent each. He
made Whitmore Ace Hardware stores one of the
first to implement a new paint program offered
by his co-op during the summer of 2013, making
his company’s paint departments shopping
destinations while increasing national brand paint
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HARDWARE RETAILING | July 2015
sales by more than 80 percent. He also called for a
major inventory enhancement to ensure customer
needs were being met.
Aligning product assortment with the needs of the
community around each store is a high priority for
Cripe. When he realized that the Manteno, Illinois,
market did not have a strong grill presence, he
increased grill sales by adding significantly more
inventory to that category. He also added additional
inventory such as clothing, propane, pool supplies
and more in other store locations.
Making store improvement a priority, Cripe
created a plan to refresh all stores every five years on
a rotating basis. In 2013, he initiated the company’s
first full remodel, a redesign and reset of the Manteno
store that added floor space and new inventory. After
the remodels, sales and customer counts in each
store increased by more than 20 percent.
Cripe also takes pride in customer service. He
requires daily store team huddles, monthly associate
committee meetings and quarterly training for
all employees. To further increase productivity
and customer service, Cripe implemented new
technology systems across all stores last year.
The community also benefits from Cripe’s
leadership. Under his direction, Whitmore Ace
Hardware donated more than $12,000 in product and
money to local organizations and events last year.
As one of many fundraising events hosted by
Whitmore Ace Hardware, Cripe also created the
popular Annual Prom Dress Drive that invites less
fortunate individuals to shop for donated dresses and
accessories for a $5 donation, which is then given
away as a scholarship.
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MULTIPLE-STORE OPERATIONS
“
Spending time with all our employees
creates engagement and a feeling of ownership
throughout the company.
”
JASON FUJIMOTO
Chief Operating Officer
HPM Building Supply,
Keaau, Hawaii
W
hile he’s proud of his family’s
accomplishments at HPM Building
Supply, Jason Fujimoto never
intended to stay in retailing.
Instead, with a degree from the prestigious
Wharton School of Business at the University of
Pennsylvania, he took a job at JPMorgan’s mergers
and acquisitions group in New York City.
Everything changed when Fujimoto’s father,
Mike, offered him and a few of his Wall Street
co-workers a temporary consulting job at HPM.
Fujimoto realized that what he truly wanted in a
career was back at home. In 2005, he joined HPM
as its corporate project manager and quickly
distinguished himself as one of the company’s
bright, new leaders.
HPM is a massive operation, with seven
facilities across 35 acres and three islands with
products and services for the pro market. In the
past 10 years, Fujimoto has refined business
processes as well as guided the company through
difficult economic times. When HPM hit one of
the most difficult periods in its history with a
severe building recession, Fujimoto compensated
for slowing lumber sales with strategic cost
reductions and a greater focus on retail. He was
instrumental in opening new facilities on the
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HARDWARE RETAILING | July 2015
islands of Oahu and Kauai and expanding into
new product lines.
One of his biggest projects was to replace and
update the central computer system that controls all of the daily transactions throughout the
diverse company with a more modern ERP system.
Because of the new system, customers now have
access to a mobile app that allows them to track
their orders, quotes and account information.
Thanks to better tracking abilities, on-time, in-full
deliveries improved by 60 percent in one year.
Fujimoto’s work has resounded across the
company. Since 2010, the average ticket has jumped
91 percent, and total sales have increased 50 percent.
Today he’s in line to be the fifth-generation CEO of
the company after his father, Michael.
Fujimoto doesn’t neglect the communities his
stores serve, either. He’s involved in a long list
of community activities, sharing his time and
talents with organizations, both at home and
abroad. In 2013, he was selected to participate
in a prestigious fellowship program, where he
traveled to Vietnam and participated in two
humanitarian programs.
But while he spends a lot of time in the office
crunching numbers, he also walks the salesfloor and
connects with as many of HPM’s 250 employees
as he can.
“Our people make us who we are,” he says. “I can
get the numbers to see how each branch performs,
but spending time with all our employees creates
engagement and a feeling of ownership throughout
the company. That connection is the glue that keeps
all of our moving pieces together.”
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65
MULTIPLE-STORE OPERATIONS
“
As generations continue to roll over, I’m very
confident the ability to provide customers a way
to transact online will become a necessity.
”
JONATHAN MILLER
Director of E-commerce
Miller Hardware Company,
Valdosta, Georgia
T
echnology has been a top priority for
Jonathan Miller since he returned to
the family business after finishing
an MBA program in 2011. And it’s
just one of the tools he’s used to boost revenue,
expand his customer base and ensure this fifthgeneration company thrives long into the future.
The Miller Hardware Company includes
three divisions: a hardware store, a lawn and
garden center and an industrial supply house.
Believing online transactions are critical to the
future of business-to-business purchasing, Miller
established an e-commerce presence for the
store’s industrial division.
In the two years that followed, sales grew
steadily upward, and Internet sales have grown
to be 4 percent of overall company revenue, with
continued growth on the horizon. Staff has already
shipped orders to all 50 U.S. states and nine
countries, as well as the Caribbean.
“Our e-commerce arm will be critical in the
future of the company,” Miller says. “As generations continue to roll over, I’m very confident the
ability to provide customers a way to transact
online will become a necessity.”
Updated technology was also missing in the
back office. When Miller realized they were losing
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HARDWARE RETAILING | July 2015
money due to inefficiencies in payroll processing,
he formed a partnership with a new payroll
provider, with the immediate benefit of better
reporting tools for management.
He also installed a biometric time clock to replace
the old punch-card system. As a result, he reduced
labor costs by 16 percent over the past year, thanks
to lower overtime costs, decreased clerical errors and
increased employee accountability.
Miller also initiated a new marketing plan that
included updated logos for all three divisions of the
company. One project was a billboard campaign
that included renovating a historic brick billboard
in downtown Valdosta.
With sales growing in other areas of the company,
Miller turned his attention to Seasons, the
company’s garden and outdoor living division. With
sales in a deep decline, he gave the store a complete
overhaul, and today it is fast becoming a destination
for residential gardening enthusiasts.
Miller also stays active in the local community
through leadership roles and outreach events.
Last year, as a member of the committee for the
Children’s Advocacy Center, he helped create a
celebrity waiters fundraising event, where local
celebrities waited tables at a local restaurant. Tips
and proceeds from the dinner went to the local
charity and totaled more than $18,000.
“I believe very strongly that local community
support directly correlates with a healthy local
economy,” he says. “Whether it be to a non-profit
or local chamber event, the resources you place
back into the community influence growth for
both parties.”
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MULTIPLE-STORE OPERATIONS
“
We made it through the recession and are on
the large growth curve now because, as owners,
we invested in our staff.
”
RYAN RINGER
General Manager
Gold Beach Lumber,
Gold Beach, Oregon
I
t was a week Ryan Ringer will never forget.
Just a few months after opening a second
location in Brookings, Oregon, in 2008, the
local housing market fell into a deep recession.
Overnight, sales dropped by half, and 80 percent of
the active housing projects disappeared.
While he knew the path ahead would be
tough, he was no stranger to challenges.
Ringer started working for his father at Gold
Beach Lumber in 2001. After working to expand
the salesfloor and increase consumer-friendly
departments, sales increased 186 percent over
the following four years.
During the same time, Ringer started
delivering lumber beyond the store’s traditional
market. When a vacant commercial property
went up for sale in nearby Brookings, Oregon,
Ringer saw an opportunity for a second location.
With an aggressive timetable driving him forward,
he transformed a vacant building to a premier
destination for hardware and lumber in four months.
After the grand opening in June of 2008, it appeared
the new location was off to a successful start.
Then, the recession struck. Gathering his
determination and enthusiasm, Ringer kept as much
staff on the payroll as he could, then invested in
a major marketing campaign that included TV,
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HARDWARE RETAILING | July 2015
radio and circular advertising. In addition to
finding new markets for his lumber business,
the campaign delivered strong sales increases in
consumer categories.
And he believes becoming a smarter, more
diverse business has made the company stronger,
instead of resorting to the easier expense reduction
tactic of cutting staff. Since 2008, transaction sizes
have increased by nearly 15 percent annually.
“We made it though the recession and are on
the large growth curve now because, as owners,
we invested in our staff,” he says. “I took the
position that Gold Beach Lumber would forfeit
profits in order to keep as many employees as
possible through the downturn.”
By 2014, Ringer was ready for a third location
when he purchased a struggling lumberyard in Port
Orford, Oregon. He remodeled the entire store and
brought in niche categories such as work clothing
and farm and ranch products. Sales have already
increased 40 percent compared to the previous year.
His enthusiasm for his community matches the
enthusiasm he pours into his business. Youth
sports is one of his favorite ways to give back.
“I really strive to never say no to an organization
that helps kids,” he says. “We believe it is
important that kids in all three of our communities
have opportunities to better themselves.”
Ringer also serves on the board of directors for
the Curry Health Network, where he is working
on a construction project for a new hospital.
With his parents ready for retirement, today
Ringer is preparing to become the fourthgeneration owner of Gold Beach Lumber.
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