The Top 300 ride again
No matter how you slice them, the numbers of the HCN Top 300 Industry Scoreboard reflect the rising housing market, increased spending on the home and an easy comparison with the previous year’s performance.
Of the leading 300 home channel retailers, 277 show positive sales in the most recently completed finished fiscal year, and 12 show declines. Eleven others are listed as flat.
To download the full list of Top 300 retailers, sponsored by the National Hardware Show, click here.
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Key findings from the research:
• The 300 companies on the Top 300 Scoreboard generated home improvement sales of $214.2 billion in 2012, an increase of 4.6% compared with the same companies’ total from 2011.
• Gainers beat decliners by more than 23 to 1.
• Excluding the national home center chains and Walmart, which rank 1 through 4, sales of companies ranked 5 through 300 totaled $58.85 billion — up 10.6%.
The Top 300 list was dominated by LBM dealers, with 171 representatives; Paint stores, 17; Lawn & garden, 12; Home decor, 16; Home center, 50; Hardware store, 16; and Farm & ranch, 18.
Here are the top five revenue leaders from each sector and the sales growth of each sectors’ combined representatives on the HCN Top 300:
LBM(sector: up 13.5%)
• ProBuild (No. 8) • 84 Lumber (No. 11)
• Builders FirstSource (No. 13)
• Stock Building Supply (No. 15) • BMC (No. 17)
Skinny: The LBM field dominated the Top 300, with 171 representatives. The big are getting better: Both Builders FirstSource and BMC showed year-over-year gains of more than 30%.
Farm & Ranch(sector: up 9.3%)
• Tractor Supply (No. 7) • Rural King Supply (No. 21)
• Orscheln Farm and Home (No. 25) • Atwood (No. 26)
• Bomgaars Supply (No. 34)
Skinny: It was another growing year for the farm and ranch sector, where Tractor Supply continues to pace the field — up 10.2% to $4.66 billion in sales.
Hardware Store(sector: up 5.7%)
• Sears Hometown and Outlet Stores (No. 9)
• Harbor Freight Tools (No. 10)
• Northern Tool + Equipment (No. 14)
• Orchard Supply (No. 20)
• Westlake Ace Hardware (No. 32)
Skinny: For the first time, Sears Hometown and Outlet Stores makes its appearance on the Top 300. Harbor Freight, purveyor of low price-point, private-label brands online and in store, continues to ramp up its presence — now at 440 stores.
Home Centers(sector: up 2.8%)
• Home Depot (No. 1) • Lowe’s (No. 2)
• Sears Holdings (No. 3)
• Walmart (No. 4) • Menards (No. 5)
Skinny: The top five home centers rank 1 through 5 on the Top 300. Their combined sales of $165 billion is more than three times the total sales of companies ranked 6 through 300.
Home Décor & flooring(sector: up 11.6%)
• Lumber Liquidators (No. 18) • Great Floors (No. 87)
• Avalon Carpet Tile & Flooring (No. 97)
• Airbase Carpet Mart (No. 132)
• Western Wholesale Flooring (No. 161)
Skinny: There’s a long distance between first and second in the flooring category, where Lumber Liquidators showed the largest sales volume ($813.3 million) and the largest sales increase (up 19.3%) by a long shot.
Lawn & Garden(sector: up 9.6%)
• Armstrong Garden Centers (No. 92)
• Bachman’s (No. 104) • Stein Garden & Gifts (No. 110)
• Star Nursery (No. 140) • Meadows Farms (No. 148)
Skinny: Conditions were ripe for sales gain in the lawn and garden category in 2012, with an early and extended spring. Companies faced no such good fortune in 2013, which could make next year’s scoreboard comparisons somewhat painful.
Paint Stores(sector up 17.2%)
• Sherwin-Williams (No. 6) • PPG (No. 22)
• Kelly-Moore Paint (No. 37) • Frazee Paint (No. 41)
• Dunn-Edwards Corp. (No. 51)
Skinny: Sherwin-Williams’ Paint Store group was up double digits, crossing the $5 billion barrier.
Fastest-growing Top 300
The following companies showed the biggest percentage gain over prior-year sales:
- Kodiak Building Partners (No. 113), up 300%
- CNRG (No. 84), up 222%
- PPG (No. 22), up 175%
- Building Solutions (No. 281), up 82.1%
- Matheus Lumber (No. 56), up 45.3%
- 1. Home Depot: Company reports for total company sales.
- 2. Lowe’s: Company reports for total company sales.
- 3. Sears Holdings: Reported combined sales of “Hardlines” merchandise for Kmart and Sears Domestic. Employee count is pro-rated with sales.
- 4. Walmart:HCN sales estimate is based on assumption that home improvement sales make up 5% of total Walmart U.S. Stores sales. Employee count is pro-rated with sales.
- 6. Sherwin Williams: Company report for paint store division only.
- 9. Sears Hometown and Outlet Stores: Company reports. Formerly a division of Sears Holdings.
- 12. Amazon.com:HCN sales estimate is based on assumption that home improvement sales make up 2% of total Amazon.com sales.
- 22. PPG Architectural Finishes: Acquired 300 U.S. stores from AkzoNobel, including Glidden brand stores. Acquisition was completed April 2013.
- 24. US LBM Holdings: Brands include Bellevue Builders Supply, Edward Hines Lumber, East Have Builders Supply, H&H Lumber, Myers & Son, Millwood Lumber, The Kitchen Factor, Universal Supply Co., Wisconsin Building Supply, Lyman Companies, Carpentry Contractors Co., Automated Building Components and Shelly’s.
- 32. Westlake Ace Hardware: Acquired by Oak Brook, III.-based Ace Hardware Corp. in December 2012 for $88 million. Previously owned by private equity firm Goldner Hawn Johnson & Morrison.
- 76. ACO: Closed 14 underperforming stores in 2013.
- 84. CNRG: Central Network Retail Group brands include Lumber Center, Elliott’s Hardware, Home Hardware Center, Harvey Home & Hardware NFL Home Center, Town & Country Hardware, Habersham Hardware & Home Center and Town & Country Farm & Hardware.
The Home Channel News Industry Scoreboard research project combines Web surveys, phone surveys and industry estimates to create the HCN Top 300 rankings of retailers that sell to homeowners and home builders. The Scoreboard Series includes the HCN Top 200, ranking pro dealers; and the HCN Top 100, ranking two-step hardlines and LBM distributors. For more information, visit hbsdealer.com.
Protect your workers from heat stress
The National Institute for Occupational Safety and Health (NIOSH) recommends that employers establish a heat-related-illness prevention program that includes advising workers to drink plenty of water and acclimatize to weather conditions and providing them with schedules that alternate between work and rest breaks.
NIOSH specifically extends this guidance to outdoor workers in agriculture, construction and other industries that expose workers to heat stress caused by great exertion and environmental heat, which can lead to severe illness or death.
Heat stress defined
Heat stress can be brought on by internal body heat generated by exertion (hard physical labor) and environmental heat arising from working conditions.
Contributing factors to heat stress include:
• Moderate to high air temperature, particularly with high humidity.
• Direct sun exposure.
• Heavy clothing.
• Lack of adequate water, rest periods and cooling-off conditions.
“Workers who are new to a worksite or returning from an absence of four or more days should gradually increase their workload and heat exposure over a week,” NIOSH recommends. “When a spike in temperature or a heat wave occurs, workers lose their acclimatization to the environment, and the risk of heat stress increases.”
The agency studied heat-related fatalities of workers in the United States from 1992 through 2006. During this period 423 worker deaths from environmental-heat exposure were reported. Of those who died, 102 were employed in the agriculture, forestry, fishing and hunting industries. Sixty-eight crop workers died from heat stroke, representing a rate nearly 20 times greater than for all U.S. civilian workers, NIOSH said. In 2011 the Department of Labor reported that 2 of every 1,000 workers are at risk for heat stress and that individuals in certain occupations — such as logging, firefighting, agriculture and construction — are at a greater-than-average risk.
According to the institute, in 2008 a 56-year-old male worker died of heat stroke after spending three days hand-harvesting tobacco leaves on a North Carolina farm. On the third day the man started working at 6 a.m. He took a short midmorning break and a 90-minute lunch break. In midafternoon a supervisor observed the man working slowly and instructed him to rest, but the worker continued. An hour later, the man appeared confused, and co-workers carried him to the shade and tried to get him to drink water. He was taken by ambulance to a hospital, where his core temperature was recorded as 108 degrees, and, despite treatment, he died. On the day of the incident, the local temperature was approximately 93 degrees, with relative humidity of 44%. The heat index (a measurement of how hot it feels when both actual temperature and relative humidity are considered) was in the range of 86-112 degrees.
In another case, a 30-year-old lawn landscaper collapsed and died of heat stroke in 2002. Two hours before his death he had complained of feeling light-headed and short of breath, but he refused his partner’s offer of assistance. The worker was on medication that had a warning about exposure to extreme heat, and this could have interfered with body-temperature regulation. The landscaper was pronounced dead at the hospital, with an internal temperature of 107.6 degrees. On the day of the incident, the maximum air temperature was 81 degrees.
What you can do
Prevention is the best way to avoid heat-related illness, according to NIOSH. The agency recommends that employers establish a heat-related-illness prevention program that includes the following measures:
• Training for supervisors and workers to prevent, recognize and treat heat-related illness.
• Implementing a heat-acclimatization program for workers.
• Providing for and encouraging proper hydration.
• Establishing work-rest schedules that are appropriate for heat-stress conditions.
• Ensuring access to shade or cool areas.
• Monitoring workers during hot conditions.
• Providing prompt medical attention to workers who show signs of heat-related illness.
• Evaluating work practices continually to reduce exertion and environmental heat stress.
• Monitoring weather reports daily and rescheduling jobs that require high heat exposure to cooler times of the day.
Workers are advised to:
• Stay hydrated. Hydration is the most important tool in preventing heat-related illness, and workers should be well hydrated before arriving at the job site, NIOSH said.
• Eat during lunch and other rest breaks. Food helps replace lost electrolytes.
• Wear light-colored, loose-fitting, breathable clothing made of materials such as cotton.
• Wear a wide-brimmed hat when possible.
• Take breaks in the shade or a cool area when possible.
• Be aware that protective clothing or personal protective equipment may increase the risk of heat stress.
• Monitor their physical condition and that of co-workers.
• Tell their supervisor if they have symptoms of heat-related illness.
• Talk with their doctor about medications they are taking and how those may affect their heat tolerance.
Roy Maurer is an online editor/manager for SHRM. Follow him on Twitter @SHRMRoy.
Have HR-related questions and concerns? Get access to essential forms, policies and guides, plus a live call center, at ToolkitHR.com, powered by HCN and the Society for Human Resource Management (SHRM).
The top 10 cities for organized retail crime
Organized retail crime may have decreased very slightly last year, according to a new National Retail Federation study, but it remains a massive problem and the nation’s largest cities are especially prone to organized activities.
NRF’s ninth annual Organized Retail Crime (ORC) Survey found that 93.5% of retailers said they had been a victimized by organized retail crime during the past year, down slightly from 96% the prior year. For the past three years, more than 90% of the retailers surveyed said they were victims of ORC. Eight in 10 of those surveyed believe that ORC activity in general in the United States has increased over the past three years.
"We are extremely concerned by the organized patterns that are taking place in the retail industry right now as these crime gangs continue to find ways to maneuver the system," said NRF vp of loss prevention Rich Mellor. "Though retailers continue to make great strides in their fight against organized retail crime, savvy, unconscionable criminals are selling stolen merchandise for a profit that doesn’t belong to them."
According to the study, which included participation from 77 loss prevention executives representing all retail channels, the 10 cities with the worst organized retail crime are, in alphabetical order:
- Los Angeles
- New York
- Northern New Jersey
- San Francisco/Oakland
The list basically mirrors the nation’s 10 largest urban areas which is not surprising considering high concentrations of people and convenient store locations equal increased opportunity for thieves and more outlets for stolen goods.
In other findings, the survey noted troubling developments on the store merchandise credit and gift card front. Nearly 80% of those surveyed said they had experienced a situation where thieves returned stolen merchandise without a receipt for the sole purpose of receiving store credit via a gift card to sell for cash to secondary markets that include kiosks, pawn shops and check cashing stores.
"This is an important crime to keep an eye on, as this could easily turn from being an organized tactic to one that amateurs could adopt," Mellor said. "In conversations with retailers and law enforcement, we’ve learned that there are already defrauding processes being put in place, but retailers continue to lose millions of dollars to this enterprise scheme."
One of the most distressing trends in organized crime activity, according to NRF, is the propensity for thieves to resort to violence to avoid being apprehended, putting store personnel, law enforcement and customers at risk. According to the survey, retailers said on average two in 10 (18.3%) apprehensions lead to some level of violence, up from 15.2% last year and 13% the prior year.
Individuals connected to "gateway crimes," or crimes that are known to lead to bigger crimes, such as the use of or sale of drugs and weapons, are often found to be associated with organized crime gangs. According to the survey, retailers say on average 44.8% of those apprehended for ORC are involved in gateway crimes.
Retailers and law enforcement officials are working more closely together than ever before to derail ORC activity, according to the retail trade group, but winning the battle will require change at the federal level.
For example, the survey showed that nearly half of those surveyed believe law enforcement understands the complexity and severity of ORC, up from 40% last year and the highest percent reported in the five years since NRF began asking the question. And, nearly 60% said they believe top management at their organizations understands the severity of ORC, also an all time high.
However, increased awareness by law enforcement and senior management and close working relationships with industry peers only go so far because ORC crosses multiple jurisdictions. NRF contends ORC must be addressed through federal legislation by amending the Federal Criminal Code to more effectively deal with the organized and serious nature of the issue and implement appropriate sentencing guidelines for those convicted.