sHRtNr,*.the store

f ETTING the grocery industrY l/ prove a new theory, then adoPting it is not new for lumber and building products retailers.

After allowing grocers to Pioneer bar codes and scanning at point of sale before accepting the practice, they are now copying the concePt of convenience stores competing with supermarkets. Buying co-ops are forging the way with interior and exterior concepts designed to make the most of the least space

Hardware Wholesalers Inc.'s Do-it Express stores are scheduled to open in Cape Coral, Fl., and Columbus, Ne., on the heels of Shapard Lumber Do-it Express, the first of the new series, appearing last October in Mount Pleasant, Tn. Utilizing 4,000 to 6,000 sq. ft., the Do-it Express concept incorporates in-depth hardware departments with quick service and customer convenience. Introduced as a concept in 1993, the design was shown for the first time at HWI's l994May Market.

Story at a Glance

Lumber and building material retailers adopt convenience store f ormats buYing groups introduce smaller concept.

Mike McClelland, HWI President, characterizes the smaller store as a way for a retailer to differentiate himself from the competition, create excitement and give customers a reason to shop his location. He adds, "Do-it Express allows retailers to do all this with a unique level of service and products within a convenient, friendly retail environment."

In addition. HWI views the smaller store as a way for a retailer to expand market coverage by locating a satellite to his main store in neighborhoods where a large secondary operation is not appropriate.

David McClain, owner of ShaPard

Lumber Do-it Center in Columbia, Tn., followed the latter theory. His new Express in Mount Pleasant, serving a population of 7,500, is approximately a 30-minute drive from his main store. The location allows McClain to tap a market which previously had to drive to Columbia, population 35,000, to find a lumberyard and be tempted by five other lumber vards before they came to Shapard's.

Business was slow after the Oct. 3 opening, McClain says, but by the grand opening the first Saturday in November (The store is closed on Sunday), approximately 500 to 600 people stopped by to check out the new store. McClain is content with trade settled down to an average of 50 to 100 tickets written each weekday.

Stocking approximately 4,500 SKUs, the smaller location takes advantage of services at the main Columbia location, maintaining a delivery schedule between the two stores. Using the layout designed by HWI, the store operates from a power aisle, 10 aisles equipped with 6-ft. gondolas, nine single item endcaps and three dump bins. One computerized checkout at the front of the store and a customer service counter at the end of the power aisle can be adequately staffed by manager JoeY Dungy and his helpers.

ServiStar has dubbed its convenience format Hardware ExPress. Although the 3,000 to 5,000 sq. ft. store inventorying about 8-10,000 SKUs with four to five emploYees is only a prototype, Jay Agosta, general manager of retail marketing strategy, expects to open as many as 30 in the next two to three years. He is looking to either remodel smaller stores in urban markets or open satellite stores with the ideal location serving a dual population base. "We are looking to use this concept to compete with the big box stores," he comments.

Inventory at the stores will be "high cubed," Agosta says, to compensate for the smaller square footage' No lumber will be sold. Lower costs are the benefit of the smaller store, he adds. Fixtures can do double duty to allow additional inventory. Assortments will be heavy in hardware, paint and paint sundries, plumbing, electrical, hand tools and power tool accessories.

Although profit potential is still an unknown, Agosta anticiPates gross profit will average 36-37Vo with sales running $125 to $200 per square foot.

Ace Hardware Corp. includes a convenience hardware, 3-6,000 sq. ft., and a 4-8,000 sq. ft. contractor oriented lumberyard among its five established store formats. Phil Beezhold, corporate retail development manager, explained the company is researching an optimal format combining the best of each of its specific categories.

Although this model store has not yet been conceptualized, he anticipates that stores competing with the "Big Box" home centers will begin to utilize smaller units catering to the pro, treating the contractor like a king' Where there is no competition, he expects the home center format to remain strong.

The Ace concept for a contractororiented LBM (lumber & building material) yard centers around a service counter. Heavy duty tools and building hardware will be conveniently adjacent to the service hub with lumber outside.

With many buying groups Presenting a smaller version of the home center or lumberyard, shrinking the store could be a strengthening trend.