It's time for creativity

By Rsy H. Cooney Vice Chairman Scotty's, Inc.

lN uosr cRowINc industries

I changes are more common than static conditions, and so it has been in the home center and building supply business. Product offerings change, new competition emerges, others are acquired, some fade away by default, population shifts spark new competitors heretofore not visible, and the economic cycle causes shifts in emphasis in the percentages of d-i-y and building contractor business.

These kinds of changes have taken place every year since the home center concept came into existence back in the early'70s.

As 1985 grows to a close, it is interesting to look back on recent developments in the home center industry and assess what has taken place. The warehouse retailing concept has gained momentum. In selected markets, namely, Florida, Texas, California and Virginia, competitors have popped up on every corner, making more and more difficult the opportunity to realize a satisfactory return on investment and decreasing the likelihood of survival.

I am apprehensive about the future of some very aggressive entries into the new warehouse retailing concept. I am concerned that well intentioned people have invested in a follow-theleader type program which could spell failure.

While I wish for them the best, but am fearful of their ultimate fate, I feel the same resources applied more selectively could have assured success. Success that may have occurred more slowly, built upon a firm foundation that would stand the stress ofthe peaks and valleys of the economic cycles.

I believe our urgent quest for immediate success measured in terms of quick profits often overshadows our expertise and persuades us into irrational decisions that cannot stand the stress of persistent competition in an over-stored environment.

There is plenty of room for well financed, good operators in almost every section of the country, but we must first come to grips with ourselves. We must stop being copiers and start employing the expertise that we have learned from our past experience. When we try to emulate others, we reduce our chances for success. We lose our innovativeness and in so doing we are no longer searching for the niche that makes us stand apart and have something special to offer our customers.

Consumers look for something special, something to identify a store with, whether it be service, product selection, friendly atmosphere, attractive pricing, or unusually high quality. If you are going to give them the same as is available to them already, why should they change from the buytng pattern they are already familiar and satisfied with?

There is so much opportunity out there without straining to be like the other fellow. This is still a young industry in terms of market share of the consumer's dollar. Therefore it affords ample opportunity for good operators using their own creativity to capture a share ofthe market that they can parlay into a successful venture.

Story at a Glance

Too many imitators in home cenler business...lollow.the. leader spells lailure..retailer must stand apart...customers looking lor stores wlth sPecial identities.