Commitment to quality in '90

By Roger E. Peterson President Ace Hardware Corp.

lA OMMITMENT to Quality is a V phrase Ace has used to describe its goals over the past few years. Those words will be used more and more by everyone in the hardware, building materials industry as they identify and attempt to meet the challenges which lie ahead.

Those challenges relate to consumers who are becoming more and more aware and demanding of quality, value and service. If they do not find those ingredients in one retail store, they'll simply go down the street as competition continues to intensify. The "good old days" of across the board high margins, low-cost operations and a somewhat indifferent attitude toward the consumer are gone forever. They have been replaced by lower margins, higher costs of operation and intense competition for the do-it-yourself consumer.

To complicate matters, business has another concern as mergers, restructuring and reorganizations continue. These put pressure on the small and medium-sized wholesale firms. We have seen more aggressive retailing in all areas of the country.

However, our industry is in excellent shape as we look ahead to the '90s. The demographics for growth are favorable. Manufacturing is strong and quality conscious. Distribution is efficient and retailers are more innovative and aware of what is necessary to be more successful.

Wholesalers-distributors, in general, are healthier financially, growing stronger and more responsive to the needs of those they serve. They've increased their buying power and have more clout. They're making more effective use of their staffs with centralized computer fiunctions and reduced operating costs.

Successful retailers will have stronger support from wholesalersdistributors in operating their businesses. Their consumer base will grow as they adapt to the needs in their market. Through their attitudes, policies, and image they will make the shopping experience better for consumers. Improved use of signage, display and layout will offer convenience. Quality products and competitive prices will appeal to the astute shopper. Most importantly, retailers will listen to consumers and respond.

Story at a Glance

Attention to quality and service will help retailers, wholesalerdistributors meet expectataons and demands of customers in the'90s.

Consumers of the '90s will be opting for a simpler life as they balance work, family obligations and leisure. The key for many of them is a quality home life. They are building their homes as refuges away from the pressures of modern life with home improvements, more interest in home entertainment products and upgrading of housing and home durables. This trend is reflected in a growing do-it-yourself market, which is expected to grow at an average annual rate ofbetter than 9% for the next 5 years.

Consumers are looking for quality products that are easy to use and durable. They want to know manufacturers stand behind everything they make with "a satisfaction guaranteed." That goes for retailers, as well, with their returns policy.