From the Editor Shifting challenges

PLUS, A MODEST PROPOSAL TO SOLVE RETAIL’S ALLEGED CEO SHORTAGE.

Leaders in the hardware and building supply industry — and let me be clear: if you’re reading this, I consider you as such — face an impressive lineup of challenges, not counting those they or anyone else don’t see coming.

You might already know that The New York Times reported a problem: Retailers in general are struggling to find CEOs. There are a lot of interim titles, they report, as business complexity accelerates.

In keeping with the problem-solving theme of this March issue of HBSDealer, the first-ever with a Rubik’s cube on the cover, I am putting forth a time-and-money saving solution. They can hire me — and I’ll chiefly execute official business at half the going rate determined by any random compensation committee. (Seriously, call me.)

According to the NYT article , the “battered industry’s next generation of leaders needs a complex set of skills, yet scaled-down store training programs aren’t meeting demand.”

The article seems confused about the business model of Canadian Tire — (this publication would never refer to an executive at that venerable Canadian institution as someone “outside of retail,”) but the Gray Lady hits the nail on the head by describing leadership challenges in retail as at an all-time high.

HBSDealer turned to Tony Misura, a professional executive recruiter in our industry, for his thoughts on the CEO situation.

“Many companies are taking a blanket cost-cutting approach in the face of these high inflationary and high-interest conditions in our building products industry,” Misura said. “Some boards view cost-cutting as much more straightforward than a growth strategy, thus reducing the level of competency in CEO seats. Time will tell whether serving the short-term goals of the next quarterly report is a good business decision mid-to-long term.”

He added: “I am no CEO — but I would be more concerned about the dogged

3% unemployment number and retention of good people.”

Many in the industry agree with Misura. Staffing takes the top spot on the list of challenges facing the hardware and building supply industry, according to a recent survey of readers. And it’s growing.

In February of 2022 and February of 2023, HBSDealer asked readers to share the “number one challenge to your business.” Here’s what we saw: