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Big Boxes, Small Rivals To Duke lt Out Online
Add Home Depot and Lowe's Cos. to the growing number of businesses in search of online sales in the home improvement market.
"'We're going to begin testing products this year," asserted Depot's Jeffrey W. Cohen. "In the meantime, we're still developing our strategy." He added that the company's online Maintenance Warehouse unit has received some "early trial usage" since its December inception.
Lowe's N. Brian Peace claimed that by mid-year the North Wilkesboro,
N.C.-based company will be online selling a wide variety of merchandise, including tools, door hard*are, towel bars and gardening books.
While the two giants are getting their feet wet, several smaller online retailers are busy making sales. Craig Winn, chief executive officer, Value America Inc., Charlottesville, Va., said that his company has already received online orders for faucets, door hardware, barbecues and appliances.
Of his new rivals, Winn scoffs that they have "zero chance of success"
Manufacturers and Distributors of: against companies such .as his that "focus l00Vo of their energies on the Web."
Another online retaileq Superbuild. com Inc.. launched its site in October. According to v.p. of business development Nicholas G. Jenkins, the Seattlebased firm will provide "a better alternative than Sunday after Sunday of crowded parking lots, massive warehouses, know-nothing clerks and return trips to the store."
So far. reviews are mixed for the still infant industry. While sales of paint-, tool-, and hardware-related merchandise appear promising, larger items, such as lumber, will incur expensive transportation charges, perhaps negating them as an online product. In addition, many d-i-yers enjoy browsing their favorite stores and getting a "hands-on" feel for products, a feature obviously not available over the Internet. Lastly, most shoppers want their items today, not tomorrow or next week. After all, to paraphrase the old adage, it's no fun watching paint dry!
Producers Settle FTC Charges
Call the experts: r Randy Jengen r Jlm Duckworth r Gordon Watts I Tom Butterfield
Stanley Works and five other companies have settled Federal Trade Commission charges and agreed to meet the latest "Made in USA" labeling guidelines.
According to the FTC, the nation's largest tool manufacturer stamped "Made in USA" on many of its Husky and Proto tools, despite their foreign content.
The complaints against Torrance, Ca.-based companies American Honda Motor Co. and Kubota Tractor Corp. concerned allegedly false or misleading claims pertaining to lawn mower origins.
While not an admission of guilt, the settlements prohibit future misrepresentation and allow fines to be assessed should any company violate its agreements.
IHPA Studies Opportunities
Themed "2000 Trade Opportunities." the International Wood Products Association's 43rd annual convention is set for March 17-19 at the Saddlebrook Resort, Tampa, Fl.
Sessions will focus on new markets, new strategies and new opportunities, including forest products certification/verification, expected U.S. trade policy decisions, and other emerging market trends.
Wood Windows To Make A Gomeback?
In 1999, the window industry can expect advances in the remodeling market, increased interest in impact-resistant glass and renewed growth in wood window usage, forecasts one manufacturer. predicting that 1999 will again be a banner year for the window and door industry, however the business mix may fluctuate, and that's what builders, remodelers and dealers should be ready for," says Weather Shield v.p. Mark Schield. "It's our belief that new construction may soften due to global financial changes. After reaching record highs for the past few years, we believe new home sales will probably taper off a bit in 1999. However, all regions of the counory should see increased levels of remodeling business during the next few years."
DOMESTIC SALES: Jerry Long, Michael Parrella, Lynn Bethurum, Janet Pimentel, Pete Ulloa, Bruce Keith, George Parden.
I NTER NATIO l.lAL SALES : Nestor Pimentel. Oscar Portillo.
While vinyl products have taken a lead in the window replacement market and made strong in-roads in new construction business, he believes that the popularity of wood windows will rise again starting in 1999.
"I foresee that the big surprise in our industry will be the resurgence of wood windows," says Schield. *All indications are we'll see more custom homes moving towards wood in the coming years. And, I've spoken with several dealers who believe wood replacement windows are a hidden gem in our industry."
Last year, the company increased the sizes and shapes in its vinyl-clad exterior, wood interior window line. Initial strong builder acceptance suggests high growth in 1999.
Schield predicts dealers in coastal areas will see higher demand for impact resistant glass within high performance structural windows in 1999. "From the tip of Texas all the way up to the tip of Maine, impact-resistant glass will become a preferred product," says Schield. "Unpredictable weather that touches every state in the nation will drive homeowners toward the use of impact-resistant glass to enhance the security of their homes."
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