Scotty's Converts Stores To Bargain Outlets

Less than a month after converting l0 of its Florida hardware stores into Bargain Outlets, Scotty's is switching nine more units to the format.

If the concept continues to be popular, it could be rolled out to dozens more stores within the next few months. Sales at the first 10 units were up over lOOVo during their first week. The stores were so busy, the company had to add more shopping carts, shopping baskets and cash registers.

The first Scotty's Bargain Outlets opened Jan. 15 in Seminole, Brandon, Orlando, Titusville and Key West, plus three in Tampa and two in Bradenton. On Feb. 12, remodeled stores open in Savannah, Ga.; Neptune Beach, Port Orange, Punta Gorda, Homestead, Sarasota, and three in Jacksonville, Fl.

The units are actually five stores in one: a Closeout Store, Dollar Store, Home Fashions Outlet. Floorstore Outlet and Hardware Store.

The 5,000-7,00O sq. ft. closeout area will offer a wide range of brand name discontinued goods, including housewares, electronics, sporting goods, luggage, books, food, tools, toys, cosmetics and seasonal items, at trp to TOEI off retail.

The 4,000-sq. ft. Dollar Store will sell over 100,000 items for $l or less, including books, picture frames, medicine, plastic storage, dishes, shampoo, paper towels, party supplies, canned foods, candy and kitchen gadgets.

The pre-existing home fashions and floorcovering areas were remerchandised to carry closeouts and special buys.

To make room for the new sections, the hardware store now carries fewer SKUs, eliminating items such as toilets and guttering.

Drywall Demand Wanes

A year after drywall demand reached an all-time high while supplies lagged far behind (see April, p. 25), manufacturers report their operations have slowed slightly from capacity levels of lNVo. Yet prices remain at record levels.

Indeed, with Sheetrock currently selling at roughly $160 a thousand sq. ft., a figure that galls most home builders, many are wondering why the shortage appears to have concluded.

For starters. new home construction is expected to decrease from the lofty levels of the past three years as demand is mollified and mortgage rates rise.

Leery of inflation, the average 30year fixed-rate mortgage is around 8.3l%o, up from 7Vo last summer, experts report.

November's housing starts slipped 3.3Vo to a seasonally adjusted annual rate of 1.6 million, contrasted to 1.65 million last year, the lowest since September 1998. The expected slowdown of overall economic growth could cause a 7Vo drop in housing starts, to 1.55 million, compared to 1.66 million in 1999, said David Seiders, chief economist of the National Association of Home Builders.

Despite this, the drywall industry is in the midst of its first major expansion in decades. and manufacturers are increasing capacity. Last year, USG Corp., the industry leader, opened its first new product plant in 30 years, and experts are predicting about l0 new plants to open within the next two years.

Manufacturers remain optimistic about the continued good health of the industry, all the while proceeding with the revamping of their operations, even as home builders report that while the product is easier to obtain, delays are still troublesome and costly.

-Ustings.are ofien submitted months in advarce. Alwoys verily dates and locations with sponsor before making plans to dttend,-'

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Lumberments Association of TexasFeb. 10-12, board & committee meetings, Austin, Tx.; (800) ?49-5862.

Texes Home & Garden ShowFeb. 11.13, Fort Worth Convention Center, Fort Worth, Tx.; (800) 65/t-l480.

Ilouston IIoo-Hoo ClubFeb. 12, a day at the rrces, Honston, Tx.; (2El) 485-1855.

VYindow & Door Msnufacturers AssoclationFeb. 12-16. annual meeting, Thcson, Az.; (80O) 223-2301.

lltood Moulding & Mlllwork Producers AssocladonFeb. lGl9, annual meeting, Tbcson, Az.; (8fi)) 550-7889.

Carolinas Woodworklng & Furnlture Supply ShowFeb. 18-19, Greensboro, N.C.; (828) 459-9894.

Mid.Amerlca Lumbermens AssodadonFeb. l&19, building products expo, Kansas City, Mo.; (8Nr747-6529.

Appalachian llardwood ManufscturersFeb. 2$tl, cnnvenrion, Chadeston Place, Charleston, S.C.; (336) 885-8315.

Texas Home & Garden ShowFeb.2S-tl, George R. Brown Convention Center, Houston, Tx.; (8m) 65+1480.

Western AssociatlonFeb. 25-27, annual convention, Ritz Carlton Hotel, Kansas City, Mo.; (816) 561-5323.

National Wooden Pallet & Contalner AssoclatlonFeb. 2.G 29, expo, Marriott Hotel, Marco Island, Fl.; (7O3> 527-76f7.

National Rooflng Contractors AssoclationFeb. 27-March 1, annual convention, Atlanta, Ga.; (847) 299-9mO,

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Kentucky Forest Industries AssociationMarch 1-2, annual meeting, Lexington, Ky.; (800) 203-9217.

National Sash & Door Jobbers AssoclatlonMarch 1.2, regional meeting, Arlington, Va.; (800) 786-7274.

Architectural Woodwork InstituteMarch 2.5, board meeting & conference, Phoenix, Az.; (703) 733-06m.

Canadian Fence IndustryMarch 3, Fencecraft 2000, Victoria, British Columbia, Canada; (ffi4) 7 36-2568.

Texas Home & Garden ShowMarch 3-5, Market Hall, Dallas, Tx.; (800) 654-1480.

Hardware Distribution WarehousesMarch 4-5, spring mart, Jackson Convention Center, Jackson, Ms.; (800) 2568527.

International Mass Retail AssociationMarch 7-10, loss prevention seminar, Houston, Tx.; (703) 841-2300.

Mid-Americo Lumbermens AssociationMarch 9-10, estimating seminar, Best Western Saddleback Inn, Oklahoma City, Ok.; (8oo) 747-6529.

North American Building Material Dlstribution AssociationMarch 9-11, executive management conference, Eden Roc Resort & Spa, Miami Beach, Fl.; (888) 747-7862.

Charlotte Woodworking ShowMarch 10-12, The Merchandise Mart, Chadotte, N.C.; (800) 826-8257.

International Hardware FairMarch l2-15. The Fairgrounds, Cologne, Germany; (212) 97 4-8835.

Southeastern Green Building ConferenceMarch 13-15, Grove Park Inn Resort, Asheville, S.C.; (919) 851-8444.

International Panel & Engineered Wood Technology Clinic & ShowMarch 15-17, Portland, Or.; (800) 227-4675.

Philippine World Building and Construction Exposition - March 15-19, WorldBex 200O, World Trade Cenrer, Manila, Philippines; (415) 883-271 l.

Center for Forest Products Marketing & Management - March 16-17, annual workshop, Virginia Tech University, Blacksburg, Va.; (540) 231-5876.