Greater hardware management skills needed

By Otto Grigg Managing Director Pacific Southwest Hardware Association

-I-Y Those three letters become a big three on the asset side o f hardware stores and home centers projecting the 1982 sales year. Market researchers will note that the "expendable consumer income" for the first time in several years is entering the hardware/home center field.

of available systems that improve accounting, stock control and purchase control. Better use of available sales area by increased display and merchandising area. Better consideration again by use of business systems by product mix and the application of product to demographic make-up.

This last item is a big factor in continued success of the retail hardware./home center operation. Too often in the past few years inventories have been maintained by owner preference without consideration for the change in community patterns. Adopting purchase and area surveys to promotion and advertising will mean better overall volume performance.

D-i-y

(Do-It-Yourself)

though becomes an overshadowing denominator as homeowners continue to apply their hidden talents to more areas of home improvement. For the next five to seven years this will be a big deciding factor as to the climate for these stores.

Over and beyond the consumer demand will come the "extras" for the retailer. Extras such as better trained employees. Better use of visual aids available to the industry. Better use

Story at a Glance

Hardware prof its in the $Vz-121/z 7" level cash flow not a problem . . . fewer new stores opening older stores remodeling more store taeins with manufacturers.

Advertising and promotion will have to be carefully honed to qualify for budget participation. No longer can traditional patterns be continued with the "merchandising hope" for results. Results will be the bottom line of an applied promotional program. In this we will see the demand to participate in distributor and manufacturer tie-ins. National programs utilizing national tv as a medium will offer a great "circus" benefit to participating stores that by their tie-in will see "consumer admiration" delivered in add-on sales.

Getting and maintaining traffic (no matter what improvement key the retailer might use) will be upper-

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