RETAILERS AND SUPPLIERS HONORED AT GOLDEN HAMMER AWARDS
The 22nd annual Golden Hammer Awards, presented by Home Channel News to the top companies in a broad range of home channel categories, honored suppliers and retailers that have excelled in strategic partnerships. Home Depot earned the Innovative Retailer of the Year Award for its new convenience store format. The Specialty Retailer of the Year Award went to Pacific Coast Home & Garden. Do it Best was honored with the Retail Partner Award.

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WOMEN IN HARDWARE INDUSTRY MEETING DURING 2006 NATIONAL HARDWARE SHOW Natalie Hash, left, a buyer for the CISCO Companies and Joy Smith of PRO Group, Inc., center, speak to Diane Miller Hamilton of the New Mexico State House of Representatives at the National Hardware Show in Las Vegas. Miller Hamilton addressed the Women in the Hardware Industry Group and shared her thoughts regarding the art of persuasion.

 

HIRI STUDY TRACKS HOME IMPROVEMENT HABITS OF HOME BUYERS
The Home Improvement Research Institute (HIRI) released the findings of a proprietary study on America's housing industry at the 2006 National Hardware Show in Las Vegas. The HIRI study, which was conducted in March, surveyed 600 new-home buyers and 600 purchasers of existing homes. The research included the types of home improvement projects they are undertaking, what motivates them and how much they are spending. Researchers found that recent home buyers were motivated to move because they either wanted to own a home (22 percent 2006 versus 27 percent 2004), upgrade to a bigger one (16 percent in 2006 versus 19 percent 2004), or they were relocating for a new job in a different location (18 percent 2004 and 2006). Homeowners who have lived in their home for two years or less spend an average of $2,300 annually on their home, according to the study. Those who have been in their home three to five years spend an average of $2,000 annually and those living in their home more than a decade spend $1,700 annually. The study also revealed that 66 percent of new homeowners tackle at least one home improvement project, while 57 percent of respondents plan to do at least one project in the next year or two. Among those who bought new homes, landscaping was at the top of the list of projects, followed by deck and patio improvements. For buyers of existing homes, kitchen, bath and landscaping were key areas for improvement. When selling their homes, almost half of those surveyed said they complete home improvement projects before the sale. About 61 percent complete projects before listing the home and another 24 percent do the projects after listing the home but before they receive an offer. About 12 percent complete projects after an offer is made. The most popular projects are in the kitchen, bath and bedrooms, with a focus on painting and flooring. The study also found that buyers of new homes are more likely to use a professional to work on their current home. As for who initiates the projects, the shift is to couples making more joint decisions, although men were more likely to take the lead in projects for a home being sold, while women still have a lead in initiating projects for their current home. (Courtesy: Home Channel News)

(click to enlarge)		PRO HARDWARE DEALER SERVES ON RETAILER'S CHOICE COMMITTEE Wayne Livingston, general manager of Northern Lumber PRO Hardware in Suttons Bay, Michigan, attended the National Hardware Show in Las Vegas, where he served on the Retailer's Choice Committee for Do It Yourself Retailing magazine. The committee of six retailers shopped the show and selected products as retailer's choice winners. While Livingston said he has attended regional
trade shows, the May event was his first National Hardware Show. Products he singled out as "retailer's choice" picks included a wire basket accessory for painters and a multi-purpose saw that has the ability to cut wood and steel, among other products. "We are a small business located in a small town and attending an international show like the Hardware Show really expands our view and helps us keep our business fresh," Livingston said. "It is so important for independent retailers like ourselves to be progressive about adding new items because they keep people coming back into our store to shop." Livingston has been in the lumber business for 35 years working for the Beuerle family of Northern Lumber PRO Hardware. "I give a lot of credit to our store's owners for having the foresight to participate in events like the National Hardware Show," he said. "Not only did we have a great time in Las Vegas, but by participating on the committee and walking the show we brought back a lot of ideas that will help our business continue to grow."

MANUFACTURER RAISES MONEY FOR 'FUNK FUND'
Mark Bolt, director of sales for the Lancaster, Pennsylvania-based Novelty Manufacturing, used the National Hardware Show as an opportunity to raise money for Levi Funk, the son of Keith Funk of Gard'n-Wise Distributors, Inc., a PRO Group GardenMaster Distributor. Levi, age 25, has relapsed with leukemia and has undergone multiple bouts of chemotherapy. Funk will undergo a bone marrow transplant next month. Bolt and his team at Novelty promoted a "Funk Fund" at the National Hardware Show, collecting money for the family. Novelty Manufacturing manufactures quality planting containers for the home gardener. Bolt said he was amazed at the outpouring of support. "One man who doesn't even know the Funks contributed $100 without saying a word," Bolt said, adding that Marty Gottlieb of Gottlieb & Assoc. (a manufacturer's representative) is dedicating his "Team in Training" bike ride, benefiting the Leukemia/Lymphoma Society, to Levi Funk. The ride is June 4 in Lake Tahoe. "The Funks are a great family, and Keith is one of the really special people in the lawn and garden industry," Bolt added. Bolt, who has an impressive head of hair, had his head shaved in Novelty's booth during the Hardware Show to raise money for Levi Funk's medical bills. Industry insiders were asked to contribute money to the Funk medical fund and, for a larger donation, were even offered the opportunity to decorate Bolt's newly bald head with racing stripes. For those who didn't have a chance to drop by Novelty's booth during the show, a bank account has been set up to help the Funks pay for Levi's medical bills.

Those interested in donating may send a check to:
Levi Funk Benefit Account
Attn: Michele Estell or Lori Taggert
UMB Bank Downtown
1670 Broadway
Denver, CO 80202

Mark Bolt is pictured here at Novelty Manufacturing's booth at the National Hardware Show with a full head of hair; shortly prior to having his head shaved as part of a stunt to raise money for the medical bills of Levi Funk. (click to enlarge)

Hardware Show attendees were asked to contribute money to defray the Funk family's medical expenses. For a larger donation, they were even offered the opportunity to decorate the newly bald head of Mark Bolt with racing stripes. (click to enlarge)

NEW! PROVEN BRANDS™ PAINT APPLICATORS
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JAMESON LEAVES HANDY HARDWARE WHOLESALE
Don Jameson, who served as president and CEO of Handy Hardware Wholesale since January 2002, left the company March 31 to pursue other interests, according to the company. Handy Hardware's CFO Tina Kirbie, who has been with the company for 28 years, has been named interim principal executive officer. A company spokesperson said a search is underway for a permanent CEO, with no timetable set for a replacement. Jameson had succeeded James Tipton, who spent 21 years as company president. Jameson's career has spanned 35 years, with 27 of those in distribution. Houston-based Handy Hardware, which serves 1,148 dealers in 10 states, reported total revenue of $225 million for the 2005 fiscal year. Pre-tax earnings increased 27.9 percent over 2004 results. 1st Quarter 2006 results show revenue up 17 percent over 2005.

REMODELING JOBS SLOW DOWN FOR HOMEOWNERS
Remodeling activity may be in the process of slowing down to a more moderate pace, according to first quarter results for the Remodeling Activity Indicator (RAI) from Harvard's Joint Center for Housing Studies. Remodeling by homeowners on home improvements and repairs were increasing at an annual rate of about 4.5 percent during the first three months of this year, about the same as the closing quarter of last year, but significantly slower than the preceding quarters of 2005 when the growth rate was in the 18-20 percent range. Over the past four quarters, homeowners spent $155 billion on remodeling.

PLUMBING FIXTURE AND FITTING DEMAND TO REACH $10.9 BILLION BY 2010
According to The Freedonia Group, a Cleveland-based industry research firm, demand for plumbing fixtures and fittings in the US is expected to advance 2.4 percent per annum through 2010 to $10.9 billion, supported by increasing applications in repair and improvement markets in both residential and nonresidential construction and by an acceleration in new nonresidential construction expenditures. Gains will also be supported by ongoing trends toward larger bathrooms and kitchens in residential markets. These factors will help offset weak single-family housing completions.

HOME DEPOT PAYING $672,000 IN CREDIT CARD DISPUTE
Home Depot and its banking partner, GE Capital, have agreed to pay Connecticut and state consumers $672,000 for credit card payment practices that unfairly increased consumers' interest costs, according to a statement from the office of state Attorney General Richard Blumenthal. Connecticut is the first state to reach a settlement with Home Depot and GE Capital over the practice, which affected consumers nationwide. From 2000 to 2003, the world's largest home channel retailer did not inform consumers most of their payments would automatically be allocated toward the interest-free purchase. As a result, many consumers who carried Home Depot credit card balances and took advantage of "no interest/no payments" promotions paid more interest than necessary. In addition, the statement notes that Home Depot failed to fully disclose that consumers could change how their payment was allocated. Consumers will receive restitution ranging from pennies to $100, depending on the size of their balances and other factors.

BOSCH NAMES NEW PRESIDENT OF SKIL POWER TOOLS
Bosch has appointed John Surane as president of its subsidiary, Skil Power Tools. Surane had been senior vice president-sales for Bosch, where he spent three years overseeing North American sales for Bosch, Skil, Dremel and Rotozip branded tools and accessories. Skil specializes in portable electric power tools and accessories serving both the consumer and professional construction markets.

ACE HARDWARE APPOINTS NEW DIRECTOR OF ACE PAINT DIVISION
Ace Hardware has named Jack Wickham as the director who will oversee all operations at the Ace Paint manufacturing plants in Matteson and Chicago Heights, Illinois, as well as sales of Ace Paint and related sundries to retailers.

WAL-MART'S NEW PROPOSAL TO HELP LOCAL SHOPS STAY IN BUSINESS
After years of accusations that it caused the demise of thousands of smaller merchants, Wal-Mart is undertaking an unusual strategy--helping competing local establishments stay in business, The Associated Press reports. Wal-Mart is recasting itself as a friendly neighbor? It's the latest course change by the world's largest merchant as it tries to modify its corporate culture and the perception that it's a ruthless competitor obsessed with maintaining its dominance of the retail industry, reports AP writer Anne D'Innocenzio. However, many of the company's critics see the new proposal as nothing more than slick PR spin. Wal-Mart's proposal to help rival small businesses, from bakeries to hardware stores, focuses on blighted urban markets where the retailer plans to open 50 stores within the next two years. The efforts will range from giving those businesses financial grants to producing free radio ads that will be broadcast on its stores' radio network. The image makeover extends to Wal-Mart's selling floor as well. In recent months, for example, it has embraced organic products from baby clothes to fish caught in ecologically friendly ways. (Courtesy: BULLDOG REPORTER)

TRUE VALUE ANNOUNCES FIRST QUARTER RESULTS
True Value Company reported net margin for the quarter of $12.8 million, an increase of $10.2 million versus $2.6 million a year ago. Net margin included a one-time $5.6 million gain. True Value had set aside $18.2 million in anticipation of an arbitration settlement with Ernst & Young, but ended up having to pay $12.6 million to Ernst & Young and $400,000 to the American Arbitration Association, leaving $5.6 million in the reserve account. Net margin, excluding the gain, was $7.2 million, up 177 percent from a year ago. The co-op posted revenue of $496.6 million for the quarter ended April 1, 2006, a decrease of 1.4 percent or $7.0 million from $503.6 million for the same period a year ago.

BLACK & DECKER PROFITS FALL, SALES INCREASE SLIGHTLY
Black & Decker reported record first-quarter 2006 sales from continuing operations of $1.53 billion, a 1 percent increase over sales from continuing operations of $1.52 billion in the first quarter of 2005. The March acquisition of Vector Products contributed 1 percent to sales in the quarter, offsetting the affect of the March 2005 sale of the Flex business. The power tool manufacturer also reported first quarter net earnings from continuing operations for the first quarter of $113.1 million, down 22 percent from net earnings of $144 million during the same span last year. Sales in the hardware and home improvement segment increased 3 percent for the quarter.

STANLEY WORKS PROFITS FALL IN FIRST QUARTER
Stanley Works, reported first-quarter 2006 net sales of $969 million, a 22 percent increase over net sales of $796 million in the first quarter of 2005. Excluding the company's sales from recent acquisitions, including Facom Tools and National Hardware, sales were flat. The supplier also reported a first-quarter net income from continuing operations of $39 million, a 41 percent slide from a net income from continuing operations of $66 million during the same period a year ago. Overall earnings dropped 43 percent to $38 million from $67 million.

HOMEOWNERS FOCUS ON CREATURE COMFORTS
During a slowdown for remodeling in general, homeowners are turning to projects that are focused on "remodeling for me," with plush gathering places full of creature comforts for themselves and their families. There's "a desire to have something no one else has, to customize, to make the home their own," says Vince Butler, chairman of the NAHB Remodelors™ Council. For example, although there are still a lot of bathroom makeovers under way, overall spending has bogged down. At the same time, spending on outdoor projects has soared, rising by 47% in 2004 to $21 billion, according to the Census Bureau. Home Depot saw double-digit earnings and revenue growth last year and the year before, and some of its biggest sales surges are in high-end product lines that help homeowners pamper themselves. Elaborate barbecue grills and restaurant-quality kitchen appliances are claiming more and more shelf space. Last fall, the home-improvement chain launched 10 Crescent Lane, a spin-off retailer that sells plush furnishings like wicker armchairs and $1,500 outdoor loveseats. (Courtesy: Smart Money Magazine - www.smartmoney.com)

FORECLOSURES SOAR 63 PERCENT OVER LAST YEAR
RealtyTrac reported that 101,597 properties across the country entered some state of foreclosure in March, a 13 percent decrease from February but a 63 percent increase from the same month a year earlier. "After a 20 percent rise during each of the first two months of the year, foreclosure numbers experienced a fairly sharp correction in March," said James Saccacio, chief executive officer of RealtyTrac. "We saw a similar drop in March of 2005 followed by four consecutive months of increases. Many buyers and investors typically start looking for properties in the spring, and that could have provided distressed homeowners a better chance of selling their properties to avoid default or foreclosure. Colorado had the highest foreclosure rate last month, followed by Georgia, Indiana, Utah and Michigan. Texas had the most new foreclosures of any state for the fourth month in a row even though foreclosures there were on the decline for the second consecutive month. (Courtesy: www.rismedia.com)

HOUSING PRICES PUT AMERICANS ON THE MOVE
Housing prices are driving a continuing trend of the movement of the American population from the North to the South, with a net out-migration of residents from high-priced Northeastern and West Coast cities to more affordable housing markets in the Sun Belt, according to Marc Perry, a demographer for the Census Bureau. On the losing side are metro areas like New York, Los Angeles and Chicago, with big gains coming to Dallas, Atlanta and Phoenix. Of the nation's 25 largest metro areas, the New York region, with a median house price in 2005 of $427,600, twice the national median, lost the most people, with an average annual outflow of 211,014 residents from 2000 to 2004; this was an average loss of 11.4 people per 1,000 per year. In California, San Francisco, with an average house price of $718,700, had a net domestic outflow of 60,984 over the five-year period, averaging 14.7 per 1,000 per year; and Los Angeles, averaging $568,400, lost 117,780 of its population, or 9.3 per 1,000 annually. "Florida has been a sponge for migrants," says Perry. It has attracted more residents than any other state, a net gain of 190,894, including many retiring or relocating New Yorkers, but Nevada had the highest average annual increase per 1,000, of 23.3. (Courtesy: www.cnnmoney.com)

UPCOMING DISTRIBUTOR SHOW DATES
 

H. B. Davis Seed Company, Inc.  Fall/Winter Show  06/13/2006 - 06/14/2006  Lake George, NY  tebp3@aol.com   Blackstone Supply Company  Summer Show  07/19/2006  Johnson & Wales Inn  Seekonk, MA  sales@blackstonesupply.com

Cooperative Feed Dealers, Inc.  Trade Show 2006  07/25/2006 - 07/26/2006  Broome Community College Ice Center  Binghamton, NY  tacrooks@co-opfeed.com

 

Farida Djaelani (click to enlarge)		PROfiles: FARIDA DJAELANI Farida has been with PGM Integrated, an affiliate of PRO Group, Inc. since August 2005. Farida brings PGM Integrated extensive customer experience in a variety of industries including retail, tourism, title work and advertising. Through her versatile background, Farida has displayed impeccable customer service skills and a thorough approach to problem solving and organization for PGM and its clients. As PGM's advertising coordinator, Farida acts as a liaison between clients and vendors to ensure that products are ordered correctly and delivered on time. Her attention to detail ensures that client and vendor change requests and issues are handled quickly and efficiently. Farida is a graduate of San Bernardino Valley College in California.

GOALS
"I like thinking big. If you're going to be thinking anything, you might as well think big."

-Donald Trump