HDW builds momentum at Big Show
Remember the old Smith Barney commercials, with the upper-crust New England financier explaining how they make money the old fashioned way: they earn it?
That’s how Kenny Beauvais feels about business at Hardware Distribution Warehouses of Shreveport, Louisiana.
The hardware and building products distributor with distribution centers in Louisiana and Mississippi covering nine states in the mid South recently held its Retail Advisory Council meetings at the National Hardware Show in Las Vegas.
The 10 independent retailers on the council engaged in product scouting and information sharing.
“It was very educational, very enlightening to them,” said Beauvais. “They all have enjoyed a good year, with pretty strong sales. And they are just looking for new ways to sell, and new products that they can bring to the market place.”
While the show floor included envelope-pushing ideas in smart home, 3D printing, and other whiz-bang niches, Beauvais says his buyers lean toward the traditional “bread and butter” segments of the hardware and home improvement industry.
“We’re aware of a lot of new technologies, but they’re not a high priority yet,” he said. He echoed the actor John Houseman from the old Smith Barney commercials: “We make money the old-fashioned way. We earn it.”
Beauvais had high praise for the Las Vegas event, which concluded May 6.
"The National Hardware Show continues to be our industry's best venue to do business,” he said. “From simply walking the floor to participating in Buying Days, there is no better way for buyers & sellers to meet, network & exchange ideas on growing our businesses together.”
So much of the success of the independent dealers' business rides on the tide of the local economy. And for HDW, many local economies are affected by a deflated energy industry.
The Houston economy, for instance, has suffered from its reliance on oil and gas “it’s affected everything from Jack in the Box to the local day care business. But that’s going to affect some pockets of our region more than others.”
Among HDW’s oil and gas customers, purchases are down 48%, he said. “Fortunately, that group makes up less than 3% of our business.”
HDW doesn’t release its sales figures publicly, but Beauvais described them as “well ahead of last year.” Goals for 2016 are continued growth following an aggressive sales forecast. “We’re on track right now with a great first quarter.”
On the list of challenges at HDW, Beauvais included retail competition – We never know what they’re going to do next, so we’re always working to remain steps ahead.”
Also challenging is the task of education for retailers and buyers. “Training and educating our people and making sure we have enough people to fill our positions – it’s an ongoing challenge,” he said. “And that’s one great aspect of the hardware show. Getting our folks out there to see what’s new and get the exposure to the breadth of the industry is a positive.”