Upscale hardwarerhome center merchandisinl

NE YEAR into operation, a ServiStar Hardware built in Longview, Tx., as a prototype of Operation Turnkey is considered successful by its creator, American Hardware Supply Co., its owner, Hardware Unlimited, Inc., and its customers.

Jim Reddick, president of Hardware Unlimited, Inc., had retired from the hardware business when he heard about the turnkey hardware store concept. He investigated and liked what he learned. The idea of a retail marketing and merchandising strategy designed to retain its competitiveness in the l9Os was intriguing. The package offering indepth market research, market and location analysis, trade area analysis, concept design, merchandising, advertising and employee training appealed to Reddick.

Reddick contacted American Hardware Supply in Butler, Pa.,for more information. His area eventually was selected for a prototype store after intensive market research and consideration of some 80 locations. Longview, about 150 miles from Dallas, was chosen from a final list of six markets. Some of its pluses were a strong economic base, a large population draw and long term gowth potential.

A decision was made to open two stores for Hardware Unlimited, Inc. A site at 1100 W. Loop 281 was selected for a 15,000 sq. ft. unit with a 12,000 sq. ft. sales floor. A downtown location, 918 West Marshall, was the choice for a smaller, 8,ffi sq. ft. traditional hardware store. The Loop store would be more home center oriented.

Reddick and his son-in-law Andre Lo, vice president of Hardware Unlimited, Inc., participated in all the decisions as the project got underway. The two stores became the first Operation Turnkey stores when they opened in August, 1984.

Located on a major belt highway with heavy traffic, the Loop store has a squat, rounded, futuristic appearance, unlike the usual Texas home center. Compared with the stark architecture of the warehouse type units, its exterior is invitingly attractive. A soft gray exterior hiefiiehted with red stripes and red and blue signing gives the free standing building an elegant app€arance.

The interior echoes the modern look with a loop layout designed to draw customers into the departments. A cornice of polished chrome grid encircles the store with department signing in neon script. Light gray is used for the floors, walls and fxtures with accents of black, blue, red. Chrome and glass repeated in the complete housewares and gift department give the area a special sparkle.

The entire store has a high style, uncluttered appearance, much like a fashionable department store. The National Retail Merchants Association recognized its appearance with a

Sfory at a Glance

Prototype store is exceptional in high style appearance, merchandising approach and prolit... individual sales almost double industry aYerage ...emphasis on &i-y.

store desigrr award early this year. Each corner of the store contains a large floor to ceiling light box with a blown-up, illuminated photograph of a family involved in a deit-yourself activity. The scene changes with the seasons. Eyecatching, the decorations attract customers to the merchandise in the corners of the store as well as serving as dramatic advertisements of items necessary for seasonal projects.

Using available research, the store has been tailored in appearance, traffrc flow, merchandise assortment, advertising and promotion to bring in more people, keep them longer and sell them more. The concept is working.

Four months into operation, the average sales ticket was $18, almost double the industry average of $9.59 for hardware stores. Now, a year later, sales are still high, averaging between $16 and $17 p'er customer. Sales for the past year were $2 million, according to Lo. The turnkey progam has a target of $2ffi a square foot in sales per month.

Special advertising developed by American Hardware Supply as part of the store package is designed to offset any high price image the customer might perceive from the appearance of the store. In addition special promotional events are held almost every week.