K#ffi

Gordon

Malonev.

Bob

Hal version from a lumber and building materials business to a home center runs the risk of making an operation into exactly what the competition has and may be taking the operator away from his real area of competance.

Lowes feels it maximizes profits by their dual system of separate sales forces for consumer and contractor customers; adjusting their unit size to market size, thus limiting investment needed and in turn increasing return on investment; strong employee incentives; use of computers ("I can't over-emphasize their value") to systematize management control; and a belief that they can continue to grow. They project $l billion annual sales by 1978.

The first of four panels dealing with home centers followed, leading off with Hal Anawalt, Anawalt Lumber and Materials. who said they haven't regretted their conversion from being a tract and volume yard. Noting that their three stores are all different, Anawalt saido "no way is best."

Panelist Tim Knox, Coopers' merchandise manager, L.A., said they use demographics extensively to survey their market and adjust what they do in all phases of the operation for maximum impact on their specific agelincome groups. Jim Barr, Barr Lurnber Co., told of some of the problems they encounter with having to do most of their business in 3-4 summer months due to their desert location on the Mexican border.

Converting to a home center operation was dealt with by the second panel, led off by Gene Norman, Fallbrook Lumber, who opted to keep contractor customers at their old location and convert an old market across the street into their home center. Results so far have been good.

Bob Rodecker said they remodeled Williams Lumber Co., despite a S0-year-old building and poor

Story at a Glance

Another record breaker for LASC. Frank Purcell elected new president, Seth Potter v.p. possible conversion to and selling of home centers dominated program.

consumer-type locationo made it work and now enjoy an attractive ROI. His solution was prompted by realization that building an entirely new store would have resulted in an unsatisfactory return. John Sullivan of Boise Cascade said they favor f2-f5M sq. ft. size (for their 5 Westys operation in the San Diego area) and agree with Kulynych that larger stores are not as profitable.

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