2008 Young Retailer of the Year Honoree
ERIC HASSETT
Green Business Philosophy
There’s
nothing sluggish about the way Eric Hassett and his father, Larry,
run their three hardware stores.
Since stepping into the family business full time more than eight
years ago, Eric has developed competent employees and an aggressive
inventory control system that has each store running like a well-oiled
machine. He’s also saved a lot of overhead costs and developed a lot
of goodwill in the community by taking on a green initiative.
Eric’s family had owned a store in Palo Alto, Calif., since 1993.
There, Eric began building his skills as a manager, but it wasn’t until
2004, when the family purchased Ocean Shore Hardware in Half Moon Bay,
Calif., that his true talent began to shine.
“There are three core elements to our business: customer service,
aggressive inventory controls and a green business philosophy,” says
Hassett,
At Ocean Shore, he started by redesigning the store layout from a
jumbled maze of gondolas to organized, easy-to-navigate aisles with
defined departments. Simply by eliminating unnecessary storage, Hassett
added about 5,000 square feet to the store’s salesfloor.
He also added inventory so all departments were well-rounded. In
the paint department, for example, he brought in paint from a new vendor,
remerchandised so the department was easier to shop and hired knowledgeable
staff to work the counter. Sales in that department now top $1 million.
Hassett also does well in niche categories, such as clothing and
small appliances, which work well since he’s one of the town’s largest
retailers. He also discovered that many customers were drawn to the
store because of its unique array of eclectic gift items. So instead
of ditching the category, as was his first impulse, he’s given it a
few feet of store space and finds it provides that added draw for shoppers
who aren’t always looking for hardware items.
In the four years since taking control of operations at Ocean Shore
Hardware, Hassett has doubled the store’s sales volume. This past spring,
he and his father opened up a third store in San Jose, Calif.
But one big reason why he’s become such a progressive retailer lies
in the efficiency of his operations. Hassett wants as much of the store’s
interior and exterior given to displaying product, so he minimizes
backstock. A product sitting in a backroom doesn’t sell as well as
one sitting on the shelf, he reasons.
Similarly, an employee sitting in an office reordering inventory
isn’t as valuable as one on the salesfloor interacting with employees.
Using available technology, Hassett has streamlined the cycle count
and inventory reorder system so employees can do their work on the
floor. He gets three orders a week and spends very little time himself
reviewing orders before they go in.
“Most of what I focus on is streamlining systems in the store so
that employees have more time to be with customers,” he says.
He also looks for way to be more energy efficient, something his
father started in the Palo Alto store. There, they installed solar
panels that still generate 95 percent of the store’s energy needs.
In the office, Hassett has been able to reduce paper consumption by
90 percent by using electronic records.
“We evaluate our carbon footprint in everything we do,” he says.
That green philosophy touches every department. In the lawn and garden
department, for example, shoppers can find organic pest control and
fertilizer options. Buyers buy locally, when possible, and look for
product with minimal packaging.
To get the community involved, he keeps a bin for recycling cell
phones, batteries, ink cartridges and CDs. The “Wooden Nickel” program
rewards customers who think green and gives back to the community.
Anytime a customer chooses not to use a shopping bag, they are given
a wooden nickel to donate to the school of their choice. Hassett exchanges
the wooden nickels for real ones and thus far has donates several thousand
dollars to local schools.
Fortunately, Hassett isn’t keeping all of his ideas about running
a more efficient business to himself. He currently serves as vice president
of the Progressive Ace Leaders, a group of Ace retailers who share
their insights and enthusiasm with the next generation of hardware
retailers.