Fix it, even if it ain't broke!

By Joe Samulln Retail Advisory Scrvicee lnc.

l,,;|EADLINES in the latest industry E magazines surprise me and bring back many memories.

"Oee Yields To Recession" After 10'6 years they are going out of business.

"Stone Readies Leeds For Sale If Efforts To Reorganize Fail" They had 28 stores at the end of l99l and $145 million in sales. That is $5 million a store. I do not understand how you can fail to make a profit at that sales level.

"Builders Express Finishes Liquidation", "Pay 'N Pak Will Close Nine Stores" They're also reorganizing their corporate staff.

"Pergament Struggles To Stay Out of Banlauptcy" Closing six of their Room 'n Light specialty stores.

oNew stability and safety systems

Light-weight, better weight distribution (some models weighing only 3500 lbs.)

.3000-5000 lb. lift capacity rExtend-A-Fork reaches across truck

.New counterweight-system allows picking up longer, wider loads

.Engine and wheel motor options

.2-Wheel and 4-Wheel drive models available

1.-800-23L-5916

"Busy Beaver Plans To Emerge From Bankruptcy" They filed December 1990.

From what I hear in the trade there are others that may have to take the Chapter 1l bankruptcy route. A good part of these problems can be blamed on the recession. Another portion on the warehouse units that have captured the imagination of the buying public.

On the other hand, how can so many others survive and go on? Put the blame or bouquets squarely where they belong: Management in some cases made good things happen with forward thinking and aggressive action while others said, "If it ain't broke don't fix it" and buried their heads in the sand.

I have consulted with some of the largest in the industry as well as with single unit independent home centers and yards. I was part of the team that worked on the Kmart "store within a store," a 10,(XX)-12,000 sq. ft. home center as part of the unit. Kmart management could not understand the need for knowledgeable service to take "the fear out ofthe project." They kept their self service and the project went down the tubes.

On the other hand, I consulted with

Lowe's for a six month period after they relaid their units. They admitted they needed a better merchandise mix to get more d-i-y sales. They charged me with enlarging some of their 12,500 sq. ft. units to 24,0fl) sq. ft., bringing di-y lumberand building material inside. They admitted their shortcomings, were willing to listen and succeeded. Kmart ego knew it all and failed.

S:Wyat aGlarre

Noted consultanton etcps to suoocss. whyyou need to change. thc rolc of rcntal programs, installed salcg and commercial accounts.

I have consulted with well over 1(X) clients in the past 15 yean. Maybe five had made a fairly good market surveythe starting point for success. Just about every store needed a better traffic pattern. Over the years they had become cluttered and disjointed. Almost every store needed a face lift. Vendor signs of every color and description had grown like weeds. End caps had lost their impulse attraction. Adjacencies were poor. Since a new layout and traffic pattern were part of my fee, they went along with it.

Because I don't do graphics and design work, I'd suggest that they have it done. Since many had gone into "sticker shock" when they had contacted the co-ops and buying groups about their programs, the answer usually was, "Too expensive" and "We're doing well, making money, why bother?" A design and graphics program would cost l0 to 2O% of a co-op

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