Good tight displays, mixed inventory, spell profits !

A RECIPE OF shrewd merchandising sells easily and so do the lower priced ones' It's really a matter of merchandising," -"ays Clow.

A and just plain good luck seems to work at Ward & Harrington's Capistrano Beach retail building materials store and lumber yard, which celebrates its first anniversary this month.

Their good luck takes the form of a IB0 degree drawing market, or, in manager Norm Clow's terms, "everybody who lives in our area."

"We simply do as much as we can with our displays, and of course try to use every inch of space we can to sell our lines," says Clow. He goes on to assert that W&H thinks in terms of being in competition with o'almost everyone else around."

'oThe small retailer can compete easily with the big fellow," Clow explained. "W-e're bumping heads with a big fellow now. Naturally we hope we'll win."

We asked him to cite the advantages of belonging to a large chain' ooA chain situation is excellent because it allows us to handle all kinds o{ lines. You couldn't say this of a single store. We were originally a lumber company, and of course still are, and because we are we can quote o'We sell the expensive saw, {or instance, and the cheapest one. A high'priced saw prices of a large cross-section of lumber and plywood as well as on paints, plumbing, electrical-we have an advantage'"

"Capistrano's a small town, true; but the perimeter area is just Ioaded with home' owners, apartment owners, and people who need and want to buy do-it'yourself materials items in one spot."

One of a chain of stor:es, W&H's Capis' trano Beach yard employs time tested methods of floor merchandising and promotion that are not necessarily unique but which nevertheless conform to a limited amount of selling space.

Capistrano Beach, like other smaller communities in southern California, is in a state of flux. Building continues, though not at an acoelerated pace; but residents of the area like and believe in beautifying and modernizing. To meet the needs of the small wage earner as well as those who needn't count their pennies, they otspread out" their price tags.

Clow also praised the advantage of sameday service, noting that immediate service to a customer is sometimes very difficult in the small store.

To cover their growing market area, W&H's advertising program makes use of attractively designed mailers, sent out every three months. These reach an estimated

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230,000 persons and businesses. The operation at the beach places ads in a nearby San 'Clemente newspaper, but decisions as to what to use emanate from the office of an advertising manager and consumer sales chief.

Clow,explained his store's credit situation with reference to the contractor and customer trade. He suggested that credit is

Story sI d Glonce

Limited selling space needn't restrict sales . . . small-town retailer stocks lighting f ixtures, lumber, even dog food . colorful quarterly mailer reaches customer in wide market area . . Small staff thinks big in terms of reaching, selling consumer . . Varied price ranges sell contractor, handyman, housewives.

necessary for profits in his operation since the store plans no physical expansion in the near futur,e.

"What we have done here is consolidate our yard with our interior store. We've managed to eliminate wasted space, allowing more selling space to earn for us. Credit-wise, we have a revolving charge account card, issued to customers after credit is cleared, and a contractor's charqe account. Our business is about even wiih both."

Elaborating, he said that the consumer trade is the target for increased sales. Stock in the store is so complete that the company looks forward to greater volume as time goes on. The contractor sales' margin of profit remains about constant.

An efficient front office and check.out area dominates a rear portion of the store. W&H's operation has a stafi of ten, with a minimum of floor salesmen. Customers piefe; to browse at their leisur,e. often do not know what they really want to buy until they do browse, and then proceed to pur- chase items that they had not intended to buy when they came in to shop.

"That's why color and signs are important," Brioe Duncan, the assistant manager explained.

"We like to provide a little incentive for sticking around once a customer comes in. We even sell dog food and some canned peanuts. For mothers who bring in the kids, there are balloons and candy tieats."

Despite limited selling space, they look for growth in that area, just as they hinge their other hopes on building surging forward in the not too distant future. But, essentially, serving the individual customer gets high priority.

"You can't really argue this point," Norm Clow'says, relighting his pipe. "Any retailer in the world respects the power of the consumer."

In addition to its Capistrano store, W&H serves the communities of La Habra, Fullerton, Santa Ana. Carden Grove, Laguna Beach and Newport Beach.