Payless To Try Another Stock Offering

Payless Cashways is offering 28 million shares of common stock at $11 to $13 per share to raise money to reduce its debts and fund expansion.

Filed last month, the offering comes almost a year after a similar offer was aborted. Reduced senior debt and recent bond maturation plus a more favorable economic climate should make the offering more acceptable, securities analysts said.

In its prospectus, the company outlined nultiple store openings in new or existing markets beginning next year and growing to about six store openings a yexr in 1995 and beyond. Market share will be increased by entering underserved markes with three stand-alone retail concepts.

The format includes contractor sales offices located in remote areas at least 75 miles from a full line Payless, home decor showrooms, and specialty tool stores with an inventory of 6,500 tools and related products in about 15,000 sq. ft. A Home and Room Design unit will open in Denver, Co., in April with about five locations opening each year after 1993. Two Tool Sites will open this year followed by l0 more each year.

These innovations are intended to shift focus to the professional customer. Since 1988, customer mix has moved from 75Vo d-i-yl25Vo professional to 55Vo d-i-yl457o professional.

Payless will add automated blueprint estimating services to all stores this spring. Computer aided design has been added to stores with kirchen design centers with a deck and garage building package design system to be added later. The company will continue to target businesses witl major facilities or multiple locations for commercial maintenance products. Federal Express and McDonald's are among current national accounts customers.

N.C. Dealers Battle Chains

Independent dealers in Gastonia, N.C., are keeping busy with strategies for competing with a recently opened Home Quarters Warehouse and two Lowe's stores.

Once considered a giant among Gaston County home improvement retrilers, Ranlo's A&P Hardware and Building Supply Co. finds that Saurdays are no longer bvzng with activity. "They've certainly cut into our business," said co-owner Sidney Lanier. "They take away a good bit of walk-in traffic. We've tried to combat that by specializing in services they don't provide and providing materials they don't carr5/."

The store now stocks hard-to-find plumbing items and building materials and cuts keys, glass and wood. Lanier claims the changes have attracted nore industrial and commercial customers, helping to soften the loss of walk-in business.

City Lumber Co. also has turned to commercial and industrial customers with an emphasis on specialty items such as milling. Their planner mill is able to manufacture as much as 40,000 feet of specialty lumber a day.

"We're willing to do what they don't do," commented owner Thomas E. Forbes, "and it's working for now."

New Hope Building Center is stressing diversification and installation. Anticipating competition, they opened a decorating departrrent four years ago offering wallpaper, vinyl flooring and carpeting, which they also install. Deck installation is another service offered.

"With this approach," said general manager Dan Pope, "fts initial impact is slowing and we're staying in competitive range."