Home Center Merchant

Bill Fishman

Bill Fishman & Affiliates

11650 lberia Place lN 1985 the home center industry will Icontinue to accelerate change as it did in 1984. Competition in the form of warehouse stores and the national chains locating units in the more rural areas will force even the most dominant independent retailer to reevaluate his operation. Here's where I see the most radical innovations continuing at home center and building material stores.

San Diego, Ca.92128 with, and succeed in, merchandising home exercise equipment.

Merchandising

o Lumber and remodeling packages will be emphasized.

. "RTA" - ready-to-assemble furniture will become a major department in those stores large enough to display and stock on the floor.

. Some home centers will experiment o More merchandise lines will be sold installed. o Plumbing and electrical departments will show more depth - more selection.

PROMOTION AND PRICING o Volume will increase. Margins will be tighter. o The price sensitive "shopping basket" lists of items will be at give-away prices all year. r Compensatory pricing will be a prime objective at many stores.

. Special promotions wil be directed toward the small contractor.

ADVERTISING o Advertising styles will copy the "distressed sale" format. r Multipage tabloids and booklets will be the most productive media.