Home centers new direction

By Rry H. C.ooneY President Scotty's, Inc.

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mom and pop hardware store was bought out and became part of a hardware chain, and the corner lumber and building material dealer joinedaco-opbuying group to stay competitive and take advantage of the manY services not accesible to an independent operator.

Both expanded their product mix, ordered new signs, and overnight became home centers, offering a wider selection of products to the consumer.

The number of home center/ building supply businesses has decreased as larger chains have absorbed the mom and pop stores and found themselves vigorouslY competing with one another for market share.

This trend of the past 20 years, I refer to as "Image Building."

With the advent of the recent recession, beginning in 1979 and terminating roughly in Novernber 1982, a period of high inflation and high in-

Story at a Glance

New directions in Ftailing. . warehouse, price clubs, sPec' ialty storcs...no single an' swer is the conect marketing concept. .correct Position' ing vital.

ing oneself in the market properly to bsassured of adequate exposure and sufficient buyers to guarantee the success of an investment, both in good and in bad times, as the economic cYcle flexes up and down.

Neither is there a substitute for individualism-the firm that is innovative, that shows a creative spirit, that offers something new and differrent, that can catch the attention and create an atmosphere of confidence.

There are many ways to go to market, as evidenced by the past 20 years. The new warehouse retailing, price clubs and hardware specialty stores support this truth.

The heavily populated areas readily accept a marketing concept that fits comfortably into their buying habits, the large one-stop malls, big department stores and supermarkets designed for one-stop traffic conve- nience, but this concept is not conducive to rural areas or srnall towns. The selective process is a very vital one to insure success in home center retailing.

Is there a riSht way to market Your producs? Yes, but more than one way, just as there is more than one wrong way. The key is daermining what is right for you.

Ask yourself, what kind of a market am I competing in? What is the extent of my coverage? Who is mY competition, now and in the future? What do the dernographics tell me about market and growth? Will it m€an a frestr look at mY marketing strategy five years down the road? Is my approach price image or do I emphasize and excel in sewicc? Art I consumer oriented or contractor oriented? Do I assume a low profile and build on sheer confidence, or do I assume an aggressive posture and strive for market share dominance?

The answer to these questions is vital to your marketing zuccess. There is room for any and all good operators. Pick out your niche and apply sound business practices and success can be a part of your charted course.