PRO Group Inc., PROflash January 29, 2010

PRO DISTRIBUTORS MEET WITH MANUFACTURERS IN FLORIDA

The PRO Hardware Merchandise Committee met January 24-26 in Naples, Florida. Brendan Sullivan, PRO Group director of merchandising said key highlights of the meeting included distributor discussions about the successes and challenges faced in 2009, optimism for retail and wholesale growth in 2010 and developing stronger partnerships with manufacturers that support PRO Group and two-step distribution in these challenging times. Sullivan added, “PRO members reviewed several PRO target vendor presentations from manufacturers focused on increasing overall sales and profitability for PRO Group distributors and PRO Hardware retailers in 2010.” According to Shari Kalbach, PRO Group managing director, PRO Group distributors attended the 2010 Val-Test Show on Monday morning prior to the PRO Merchandise Committee Meeting. Distributor attendees met with manufacturers and reviewed 2010 programs and new products.

DECEMBER AHMA CONFIDENCE INDEX SHOWS CONTINUED IMPROVEMENT

The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved significantly to 112.5 in December from 54.1 in November (October 2008 = 100), while the Future Expectations Index moved down slightly to 225.9 from 241.4 in November. In comparing current sales levels to year-ago levels, 27 percent of respondents said sales were higher in December versus year-ago levels, up from 13 percent in November. For December, 21 percent reported sales were even, and 52 percent said sales were below year-ago levels, down from 57 percent in November. Looking forward six months, 60 percent of December respondents said they expect sales to be above current levels, up from 57 percent in November. In December, 31 percent of respondents said they expect sales to be even in six months and 10 percent expect sales to be below current levels. Looking forward one year, 71 percent of respondents project sales will be higher, down from 83 percent who felt that way in November. Twenty-five percent of December respondents project sales will be even one year from now and just four percent project sales will be below current levels. See the full report here

NRHA LAUNCHES THE 2010 PMA AWARDS

The North American Retail Hardware Association (NRHA) recently enlisted a panel of experts to serve as judges for the 2010 NRHA Packaging and Merchandising Awards Program. Nicknamed the “PMA Awards,” the program will recognize the most innovative packaging and merchandising produced by industry manufacturers for the hardware/home improvement channel. “We are honored to have such a distinguished group serving as judges for the 2010 NRHA Packaging and Merchandising Awards Program,” says NRHA Managing Director Bill Lee. The panel will convene at NRHA’s Indianapolis headquarters in March to conduct the judging of entries. Read more about the PMA Awards here.

CALL FOR NOMINATIONS: YOUNG RETAILER OF THE YEAR

Each year, the North American Retail Hardware Association hosts the Young Retailer of the Year Program in conjunction with the NRHA Convention. The program highlights young, aspiring hardware retailers and honors them for outstanding achievement as owners and managers of independently owned hardware and building supply stores in the United States and Canada. The purpose of the program, now in its 14th year, 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 100 young retailers. The entry closing date is March 30, 2010. Learn more or make a nomination here.

HOME DEPOT TO LAY OFF 1,000

Atlanta-based Home Depot is laying off about 1,000 employees, including 150 headquarters employees. According to a report in the Atlanta Journal-Constitution , the company announced the layoffs January 26. Part of the cuts come as the retailer closes a clearance center in Austell, a hurricane recovery store in Waveland, Mississippi; and a store in Wilson, North Carolina. Read the full story here.

BUILDING PERMITS

Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 653,000. Read the full story here.

Privately-owned housing starts in December were at a seasonally adjusted annual rate of 557,000. Read the full story here.

Privately-owned housing completions in December were at a seasonally adjusted annual rate of 768,000. Read the full story here.

THE HARDWARE CONNECTION LAUNCHES
The industry's first digital-only magazine, The Hardware Connection, is designed to help independent hardware/home improvement retailers improve and grow their businesses, to help manufacturers better understand the needs of retailers and to help strengthen the two-step channel of distribution. The quarterly magazine's editorial focus offers a fresh perspective to the industry from an independent retailer's viewpoint. Each issue includes articles and columns that address ways retailers can improve their businesses, with the ability to click on links to learn more about the topic. Another feature is "The Hardware Life" cartoon, which depicts the humorous things that happen in a fictional store called Digby's Hardware. Retailers, wholesalers and manufacturers can sign up to receive The Hardware Connection for free by going to http://www.thehardwareconnection.com , where they can also access the first issue of the magazine.

Richard Paige is celebrating 20 years of service with PRO Group. The chairman of the board joined the company in 1989 as senior vice president of marketing and operations, then progressed to president, CEO and, finally to his current position. He was honored with a roast during the annual year-end luncheon.

When asked what he found meaningful about working with PRO Group for 20 years, Paige responded, “The key things for me are the strong company culture of integrity, creativity, and mutual respect, and the strong desire by all employees to positively impact the success of member distributors and key suppliers.” Paige has seen many changes in his two decades with PRO Group. “The Group’s membership has become much more diversified and PRO Headquarters has become more technologically advanced, which has enhanced communication with both distributor members and vendors.” Paige added, “We have continued to refine and strengthen the company culture over the last 20 years and, as a result, we have been able to attract and retain a high caliber team.” During Paige’s tenure, PRO Group has grown to represent more than $3 billion in annual buying power through PRO Hardware, GardenMaster, and FARM MART.

In addition to the positive changes, Paige is quick to point out some areas where things have not changed, “Two things that have not changed over the 20 years are a group of loyal distributor members who work very well together, and a board of directors who make decisions based upon the greater good of all PRO Group members,” he said. “We can never take those things for granted because those things are key to the Group’s success.”

Paige also serves as managing member/CEO of PRO-affiliated companies including PRO Group Distribution, operating in the grocery industry, and PGM Integrated, a full-service advertising agency.

WORK
“You cannot be really first-rate at your work if your work is all you are.”