Hardware Retailing: Another Banner Year

bv Otto H. G rige Mlnaging Direcior Pacific Southwest I-lardware Association Anaheim. Ca.

HE advent of the 80s presents a challenge similar to that of the 70s for hardware/ home center retailers. The addition to the industry during the 70s of better merchandisins potential. products with bettei packaging, used with better display techniques, more sophisticated controls of ROII the additional sales areas constructedl improved train- ing procedures for personnel;

Story at a Glance

Like most business forecasters, a year ago we really expected that fiscal and monetary policy would subtly precipitate a mild recession early in 1979.

We were wrong. The combination of abundant credit and enlrenched inflation expectations was simply too strong. Now, tougher medicine is required. Frankly, it's almost a mystery that the necessary corrections will be taking place in a Presidential election vear.

We recommend that those associared with the western states build(Please turn to page lt2)

Story at a Glance

Housing starts won't top 1.5 million in 198O and witl total less than seven mil- lion in the next f our years. interest rates will move down...western construction activities should improve from depressed first half levels.

Another 23Yo - 260lo sales gain possible. .. hardware/ home centers will continue to prof it from d-i-y. increased professionalism means greater prof- itability... more services available to help dealers.

makes the 80s especially challenging - yet exciting.

The "controlled recession" has given light to expensive money - the need by hardware/home centers to control expenses and inventory production. Yet, in the same elements. it has given rise to energy conscious home owners. who migrate to our stores for items so related with spill-over purchases into paint, tools and the other sales add-on items that by good merchandising have made for a better total over-all profit potential.

Hardware/home center retailers can, expect another banner year with sales ahead of the inflaiion rate, and with easier manufacturer

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