Worcester Business Journal

wbjournal.com | January 22, 2018 | Worcester Business Journal 9 W D&S Realty LLP needed funds to renovate a building it planned to lease to Curtis Industries, a motor vehicle parts manufacturer. MassDevelopment issued an $8 million tax-exempt bond, purchased by Middlesex Savings Bank, allowing D&S to make numerous upgrades. With our low-cost financing solution, a growing business was able to expand, increase production, and bring jobs to the region. Visit MassDevelopment.com today or call 800.445.8030 and ask to speak with one of our economic development professionals. MassDevelopment's local team (left to right): Roy Angel, Claire O'Neill, Kelly Arvidson, Bob Seega, and Shyla Matthews Giving a Building a New Lease on Life STIMULATING GROWTH C E L E B R A T I N G 2 0 Y E A R S Curtis Industries, West Boylston KHJ24100_MAS-258_6.625x5.5_MECH_r2.indd 1 1/14/18 8:47 PM Modeling, then scaling Capacity at the former distribution warehouse in Westminster was about 15,000 items, Aubuchon said. By com- parison, independent distributors locat- ed throughout the U.S. stock, on aver- age, 70,000 items in a facility. In order to avoid offering a cookie- cutter assortment of products, Aubuchon said the company needs to draw from the greater capacity of the independent distributors. The Westminster facility didn't have that capacity, creating the bottleneck. Aubuchon is now working with several distribu- tors in New York, West Virginia and elsewhere, and plans to do busi- ness with more. The idea is create a large portfolio of distributors to draw from, Aubuchon said, adding all mom-and-pop retail hardware stores are already doing this. "We don't want to do it in just one store. We want to scale it," Aubuchon said. The model was piloted in three stores, including Cohasset in Massachusetts, as well as in Easton, N.Y. and Moultonborough, N.H., last year, and will be rolled out slowly across stores over the next three to four years, so that eventually, a sizeable portion of invento- ry will be specific to the market, Aubuchon said. For example, the Easton market has a particular need for auto- motive products, perhaps because other retailers in the area don't compete in that category, Aubuchon said. Finding success in your niche Hard as it may be to keep the cus- tomer base when big box and online stores dominant, Aubuchon Hardware isn't Worcester County's only hardware success story. Koopman Lumber and Hardware, serving towns in the Blackstone Valley as well as a the I-495 belt, has grown in recent years as it has successfully protected its niche. While lumber sales represent about 80 percent of the business, Darrell Baker, vice president of retail opera- tions for the nearly 80-year-old Koopman, said the retail side of the business is important because its weath- ers recessions better than the lumber side, which is patronized by contrac- tors. And like Aubuchon Hardware – a company Baker is very familiar with through professional dealings – Koopman is focused on the in-store experience, offering a wider assortment of products than big-box stores based on local needs. Customers "know the company; they know what we stand for. We've been in the community for generations, and that means something to people," Baker said. Koopman expanded six years ago, opening stores catering to contractors in Hudson, Andover and Sharon, drawing a circle around the Greater Boston area. Aubuchon's much smaller competitor may have more opportunities to grow, Baker said, but nothing is imminent. Aubuchon expansion plans Meanwhile, Aubuchon isn't just plan- ning to rework inventory at existing stores. He has plans for large-scale growth in the coming several years, largely through acquisitions. Aubuchon said Baby Boomers nearing retirement largely own the 30,000 independent hardware stores in the U.S., creating a large amount of turnover. While he's still in the planning phase, Aubuchon said he's thinking big, potentially add- ing hundreds of locations to his chain. Meanwhile, the company is investing in its online retail site, adding a live inventory check feature. This year, the company will add a store pickup option to the website and making online and instore rewards discounts interchangeable. Keeping up on the digital side is a challenge, when big-box competitors, like Home Depot, invest billions in their digital business, Aubuchon said. But, as is the case in all aspects of the business, doing nothing isn't an option. "We're not here to survive and cling to our survival. We really want to thrive and grow," Aubuchon said. Acquisitions ...............................................15 Vermont .........................................................5 New Hampshire .............................................4 Massachusetts ..............................................3 New York .......................................................2 Maine ............................................................1 New stores ...................................................6 Massachusetts ..............................................3 New Hampshire .............................................3 Expansions ...................................................4 Massachusetts ..............................................2 Maine ............................................................1 New York .......................................................1 Aubuchon Hardware could add hundreds of stores if CEO William Aubuchon, IV's vision is realized in the coming years. But the Westminster-based retail hardware chain, now with 105 stores throughout New England and upstate New York, has already increased its store count, and added square-footage to existing stores, in the last three years. Aubuchon Hardware acquisitions, new stores and expansions, 2015-2017 Source: Aubuchon Hardware Jon Hurst, president, Retailers Association of Massachusetts P H O T O / E D D C O T E Aubuchon consults with employee Nick LaRosse on the inventory at the chain's Clinton store.

• Cover