It Takes Mote Than Quattty Products and AttractTve Prlces

(To

ALABAMA

Sequoia Supply-Birmingham. Mobile, Decatur. Montgomery

ARKANSAS

Internatronal Paper Co.-Ft. Smjth

FLORlDA

Dixie Plywood-Miami

Sequoia Supply-Orlando

United Plywoods Corp.-Pensacola

GEORGIA

Sequoia Supply-Atlanta

KENTUCKY

Sequora Supply-Crescent Springs

Wimsatt Bros., Inc.-Loursvtlle

LOUIS!ANA

Allen Millwork-Monroe, Shreveport

Oavidson Louisiana-Houma. Lake Charles. Lafayette. Baton Rouge. Alexandria. Monroe. New Orleans

Sequoia Supply-New Orleans

MrssrsslPPl

Sequoia Supply-Jackson

United Plywoods Corp.-Meridran

NORTH CAROLINA

Diamond Hill Plywood Co.-Greensboro, Raletgh, Charlotte

Norlh State Building Material Co.-Asheville

Sequora Supply, lnc.-Greensboro

OKLAHOMA

Hounds & Porter-Altus, Oklahoma Citv, Tulsa

Cedar Creek Wholesale-Tulsa

TENNESSEE

Diamond Hill Plywood Co.-Knoxville. Nashville

Holston Builders Supply-Kingsport

Sequoia Supply-Memphis. Ktngsport, Nashville

Tennessee Ply & DootrChattanooga

TEXAS

Davidson Texas. Inc -Austtn

Edward Hlnes Lumber Co.-Fort Worth

Sequoia Supply, Inc.-Houston, San Anlonio

Vaughan & Sons. Inc -San Anlonro

VIRGINIA

Diamond Hill Plywood Co -Rrchmond, Chesapeake

Publishcr David Cutler

Editor Juanita Lowet

Contributiry Editon

Dwight Curran. Gage McKinney

Art Dirtc'tor Martha Emery

Strff Ardst Carole Shinn

Clirculrtlon Kelly Kendziorski

Building Products Digest is publishd monthly at 45m Campus Dr., Suite 480, Newport Beach, Ca. 92ffi, phone (714) 549-E393 by Cutler Publishing, lnc. Advertising rates upon request.

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DAVID CUTLER publisher

It sounds great, but .

lT HAS been years since such a dynamic retailIing development as the warehouse style home center has appeared. Its amazing growth and immediate buyer acceptance have been nothing short of remarkable.

Warehouse retailing, as presently constituted, with a relatively limited number of SKUs, minimum decor and over-all bare bones concept has produced some amazing dollar sales volumes. A House Works store in New Orleans, La., reportedly did $500,000 in three days. That's enough to get anyone's attention.

This allure and sudden success makes us want to stop and say: Let's pause and look at this new phenomenon calmly. Let's remember that the history of retailing includes a succession of fads and fancies that failed. Counted with failures are the long gone corporations that jumped in too quickly, wihout adequate thought and preparation. Their experience should have warned them that there is no quick and easy path to retail profits.

We do not oppose warehouse retailing. Far from it. The concept has already been a big success for some and future practitioners will no doubt equal or exceed their impressive early achievements. But conversely, it is not for everyone. Despite undenied clout in certain markets, the warehouse type retail store still cannot be all things to all people. Their successful operation also requires new skills, flexibility and inventiveness not widely possessed.

A similar volume/price concept, the hypermarches of a few years back were widely touted as the future of retailing. Some advocates loftily implied that those who failed to convert would end up in the trash can of business. Although a brilliant concept, it didn't survive its transfer here from Europe. When the public didn't buy the idea, it died. Some operators lost heavily.

It is too early to tell if warehouse retailing is a replay. While it doesn't appear so at this stage, caution and careful study seem in order for anyone considering converting existing stores or jumping in with new units.

lndustry Told "Get With lt"

If companies that supply products to the housing industry are to succeed in the future, they must keep abreast of the changing demographic, sociological and technological patterns occurring in the country today and the implications of those changes.

So stated Gary H. London, vice president of The Goodkin Group, a real estate research firm, at the 2lst annual meeting of the Wood Moulding and Millwork Producers Association (WMMPA) held recently in San Diego, Ca.

As a result of movements at work in the nation today, London recommended four courses of action for suppliers to the housing industry:

(l) Increase product and marketing emphasis to the rehabilitation and remodeling market, based on such factors as the return movement to older homes and the tendency of families to remain in the same house longer.

(2) Emphasize high end products. "The taste for quality products will increase in both new and remodeled homes," he stated. "Relatively affluent, small families will not want a large house with minimal amenities. Rather, they will want a small house with lots of amenities."

(3) Begin thinking about changing the design emphasis of some products. "With the advent of instant communications and elec- tronic technology, the home of the future will be the office of the future," he said. "And, as people spend more time at home, they will want amenities to enliven the environment in which they will be spending a major portion of their day."

(4) Emphasize a commitment to improving the distribution and marketing of products. The reason, according to London, is that consumers will be placing more emphasis on the ease and convenience with which they can procure products.

October

Hardwood Special lssue

Treoted lumber, coll

CURT B€RN IUMB€R CO., P.O. Box 9, Flmitv, Flr. 71921 o (501) 342-5275

Tltn B€RN . BIIT HRRDII{O

[Ue con fill oll vour treoted lumber needs. . londscop@ timbers, plyuood, oll dimensionol lumber, 4r4 through l2rl2. On 6x6 ond forger w@ hove lengths ronging up to 45 feet. Plus, ur@ noul corrv in stock .60 FDN. UJo olso hove our ourn fleet of trucks to ossist Vou in ony deliv@rv probloms Vou mov hove. llll our mot@riol is TPI grod@ mork@d. lue feotur@ th@ RIUPB quolitv mork on oll our tr@oted moteriol.