Main Street hardware stores are largely proving as tough as the zinc-coated nails they sell, sometimes just a dozen at a time, outfoxing the box stores with convenience and service. But for a Southport institution of more than a century, the pressure from the big boys proved too much.
Chris Jensen, executive editor of the North American Retail Hardware Association, said there were 20,050 hardware stores in 2008, essentially flat from 20,100 reported in 2007.
“We project the number of stores to drop slightly to 20,000 in 2009,” said Jensen. “There has not been a drastic shift in this figure in all the years we”™ve been tracking it. In 1980, there were 23,900 hardware stores in the U.S., so I believe that means the compound annual growth rate for store count since then is about -0.6 percent. I would call that flat more than a decline.”
Jensen said, hardware stores were only generating $8.1 billion in annual sales in 1980 and that figure has risen to $37.5 billion in 2008.
“Hardly the sign of a declining segment,” said Jensen. “Hardware stores have been holding their own despite competing with the big boxes for 30 years.”
Glenn Oesterle”™s Village Hardware in Southport closed its doors after being in existence for 112 years.
Oesterle said the mega-store competition is one of the main reasons he was forced to close.
“I can”™t blame people for shopping at The Home Depot or stores like that,” said Oesterle, who cited as competitors not only Home Depot and Lowes hardware stores, but other large operations like Target and Walmart that now stock everything and are open until late hours.
“The sluggish economy, stalled housing market and tightened credit market have undoubtedly placed additional pressure on independent hardware stores,” said Jensen. “Some long-time stores also have trouble identifying family members who are interested in taking over the business, or are resistant to change the look and assortment of the store to keep up with a changing market.”
Ten years ago, Andre”™s Hardware in Bronxville, New York was under siege. The endgame where the box store crushes the little guy seemed ready to play itself out again.
“The first Home Depot opened in Yonkers about 10 years ago and we thought we would feel the crunch,” Andre”™s senior salesman James Baxter said. “Then a couple of years ago, another Home Depot opened in New Rochelle. They were in our front yard and in our back yard.”
But Andre”™s at 94 Kraft Ave. is still there, busy with midweek traffic looking for nuts, bolts, work jackets, hammers, paint, even fan belts among 5,000 square feet of merchandise.
And it could get busier. In two months, Andre”™s will install a full-service hardware kiosk in the center of the store. With a click, patrons will be able to access what Baxter calls “a virtual, full-service warehouse ”“ you can order through us and pick it up here or we can ship it directly to your house.” The advantage to going to Andre”™s will be the expertise offered by its staff of four on, say, the butterfly qualities of the molly bolt, or the certain joy that comes from the right tool for the right job. “This is the most exciting thing to happen to date,” he said.
Baxter ”“ who identifies himself as “Andre”™s original employee” ”“ has been with owner Michael Okun”™s store since it opened a hundred yards across the railroad tracks on Parkway Road 19 years ago. The store moved to Kraft Avenue near the movie theater six years ago. Andre”™s croaking frog ”“ something of a village icon ”“ is the other 19-year store original. “Nineteen years and it hasn”™t croaked yet,” Baxter said as the frog obliged with a “ribbit.”
“Individual attention is winning hardware,” Baxter said. “My philosophy is: I don”™t think small, but I come to the table with a big heart willing to help you with whatever dilemma you”™re in. I know my world.”
After the kiosk arrives, Andre”™s will continue to carry hardware, plus its Emtek and Baldwin decorative hardware lines and more than 3,600 colors of Martin-Senour brand paint.
Baxter has witnessed a 5 percent dropoff in business with the downturn, “but an influx of people wanting to do more home improvements themselves has helped. We meet wants, needs and desires. When you satisfy all three, you have a customer for life.”
According to the owners of Glenville Hardware in Greenwich, brothers Allan and Salvatore Scalisi, the business is all about how you can compete against the big box stores.
“Business has been steady,” said Allan. “There”™s not much construction going on, that”™s the problem. This is a homeowner type store.”
According to new employment and business forecast figures released by the Associated General Contractors of America, an estimated two-thirds of the nation”™s nonresidential construction companies are planning to cut their payrolls. Those layoffs are forecast to result in a 30 percent decline in the number of people working on construction projects.
“Neighborhood hardware stores offer the service and convenience that consumers are not able to find at the big boxes, and it is that personalized service and the ability to sell hard-to-find products that sets most independents apart,” said Jensen.
The Scalisis said that staying active in seasonal items, like providing snow shovels and other quick-purchase items, is an easy-but-important way to remain relevant with their customers.
“You sell a ton of salt when it snows,” said Allan. “It”™s the in-and-out pickup items that get people in the store.”
