HOW THE INDEPENDENTS WILL SURVIVE:

Support in a Changing Marketplace

SLOW GROWTH = MORE CHALLENGES

WHO ARE THE INDEPENDENTS?

DO THEY MATTER???

Mass merchants* 4,6% Canadian Tire* 12,4% Club stores* 4,4% International** 0,4% Hardware stores 10,3% Big boxes 20,2% Building centres 47,7%

MARKET SHARE: THE TOP 10

RONA inc.

13,6% Rest of the industry 20,5% TORBSA 1,8% BMR 3,3% Sexton Group 3,5% Castle 3,8% ILDC * 5,7% TIM-BR MART 8.4% Canadian Tire 12.5% Home Depot Canada 13,6% Home Hardware Stores 13,3%

THE INDEPENDENTS’ EDGE  Consumers identify which store types provide the best service. * 5% 40% 55% Locally Owned Retailer Big-Box Store Mass Merchant

* Source: NRHA Survey of Shopper Preferences

BUT: THE “SERVICE GAP” IS NARROWING!

 NRHA research from 10 years earlier showed that 64% of consumers felt locally owned stores provided the best service.

CRITICAL CRITERIA…

Shoppers are looking for:

 Products I Need In Stock  Carries Top Quality Products  Has Everyday Low Prices  The Store is Well Organized  Employees Can Answer My Questions  It is Easy to Return Merchandise  It is Easy to Checkout  The Store Has Friendly Employees  The Store Carries Name Brand Products

REFINING RETAIL AS “EXPERIENCE”

INVESTING IN TRAINING  Only 25% of hardware stores have formal training programs.

 Only 50% of these stores actually budget for training.

 Average amount is about .02% of sales.

 That’s less than $250 per year.

SUPPORT

IN A CHANGING MARKETPLACE

 Retail Distributors  Retail Building Supply Buying Groups  Retail Industry Trade Associations

THESE GROUPS PLAY A KEY ROLE  Training  Bench Marking  Coaching / Field Support  Loyalty Programs  Financing Plans  Private Label Programs  Installed Sales Programs  Rental Programs  New Products & Services  Marketing  Advertising  Consumer Brand Identity  Store Look  Best practices and standards of operation for its dealers  On-Line Programs  Merchandising Planograms  Consistent Inventory Supply

VENDOR SUPPORT  Getting listed does not guarantee sell-through!

 Think pull-through, not just sell-in

VENDORS MUST CONNECT!

 Trade shows  Advertising  Online marketing  Training for vendor teams

NEW IDEAS, NEW LEADS  Domestic trade shows: Calgary, Whistler, Moncton  Overseas shows and markets – Las Vegas, Ferroforma, Cologne International Hardware Fair  The Hardlines Conference 

HHIQ!

 Industry research

THE HARDLINES INFORMATION GROUP

WHO’S ON FIRST?

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NRHA SERVES INDEPENDENTS

BENEFITS OF NRHA TRAINING  Trained employees sell more stuff!

 Increase customer service levels  Increase sales  Increase transaction size  Decrease employee turnover  Build employee confidence, job satisfaction and salesmanship  Helps to improve retailer profitability

NEWLY UPDATED: BASIC TRAINING IN HARDWARE  On-line training  Interactive  Covers 8 core departments  Covers selling skills  Add-on sales  Updated to Canadian needs

BASIC TRAINING IN HARDWARE RETAIL  Show video and voice for 1 min

PLANITDIY.COM: FOR DIY CUSTOMERS  Helping retailers help their customers!

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CUSTOMER SERVICE IS KEY Are you doing your part in this changing market place to help the Independent stand out?

THANK YOU!