Embrace the Momentum of the Industry
In his state of the industry address, Dan Tratensek, chief operating officer and publisher for the North American Hardware and Paint Association (NHPA), shared key ways the independent channel can not just survive but thrive.
Being successful starts with putting in the hard work, being willing to step outside your operation to connect and learn from fellow retailers and put in the effort to stretch and grow.
“There is no easy formula. If it were easy everyone would do it,” Tratensek says. “It’s about focusing on what can I do tomorrow and taking any incremental steps I can to improve.”
The single biggest challenge for the independent channel right now is empathy or inability or unwillingness to adapt, Tratensek says. Traditionally, home improvement independent retailers have met the current challenges by adapting and be willing to evolve; today’s retailers need to do the same.
“Today, independent retailers are in the midst of a major shift in retail. Perhaps unlike anything we have seen. The shift is being propelled by the rapid expansion of digital commerce,” Tratensek says. “I am not concerned by independent retailers’ ability to overcome this challenge. I’m concerned by the pervasive attitude of ‘how do we compete and how do we survive.’ We need to be more focused on ‘how can we win?'”
5 Challenges Facing Independents
Tratensek shared five concrete challenges facing independent retailers today: the economy, employee engagement, inventory, business transition and growth and technology. But despite the challenges, now is a critical time for independents.
“There are a lot of factors right now that make today’s market rife with opportunities for independent retailers,” Tratensek says. “From the opportunity to use technology as a leveler to to customers’ need for tailored assortments and a continued desire to shop local, independents can step up.”
Independent retailers still matter and are still making a difference, with 49% of home improvement sales flowing through independent retailers for a total of $283 billion in sales. Independents outnumber big-box stores 10 to 1 and gained market share during the pandemic.
“Independents are set apart because of their ability to make independent buying decisions, customize assortments to suit their market’s trends and be agile to serve customers,” Tratensek says.
The independent retailers need to embrace opportunities that they have typically shied away from in the past.
“We are stronger together,” Tratensek says. “The channel needs to come together to address the challenges facing independents and help them overcome obstacles.”
Key Takeaways
- Put in the hard work.
- Shy away from apathy.
- We’re stronger together.
The longer your view of history, the more you realize the threats might change, but the way the industry reacts to those threats is what ultimately determines the outcome.
- Dan Tratensek
COO and Publisher, NHPA
