FLASHBACK

FLASHBACK: 1982 HOME CENTER MANIA

FORTY YEARS AGO, home improvement-style marketing was becoming all the craze. Our magazines had recently begun featuring a “Home Center Merchant column” written by industry consultant William Fishman. Bill had formerly worked in marketing for numerous industry companies and served as director of education for the National Home Center Show and The Buildings Show. (He passed away in 2010 at age 83.)

Among the observations in his column of October 1982:

Store pollution: I’ve visited a few home centers recently that could greatly improve their operation if they removed the pollution of manufacturers’ signs, pennants and oversized headers. The visual glut completely destroyed what could be neat, well-displayed stores. Manufacturer’s signing and displays hid complete departments and their conflicting color and graphics destroyed the concepts originally conceived by the store’s designer. Top management must dictate the parameters for allowing manufacturer’s promotional material on the sales floor. Store managers and department managers must then exercise the discipline at the store level.

Buzzwords: “Value” is being used more frequently than “price’’ in the consumer’s vocabulary. They’ll pay a little more if they get a little more.

Millwork is hot: Replacement windows are selling well—especially insulated glass replacement units.

BILL FISHMAN

Retailers report good results with a replacement window and door promotion.

Panels are up—ceilings are down: Our clients tell us that high-end paneling is selling again, but it’s the low end of the ceiling tile that’s moving.

Skylights and microwaves for remodelers: Remodeling companies are reporting a boom in the installation of skylights and microwave ovens. French doors are again popular with installed remodeling. So is the continental look in kitchen cabinets.

Surveys and market studies: Many retailers are getting a handle on where they are positioned in their marketplace by surveying their customers in store and by phoning or mailing questionnaires to homes in their market area. Researchers suggest that the retailers survey their own employees, too—and be prepared for some surprises. 2% for cash: Taking the lead from the major gasoline companies who

The cover of the October 1982 issue of The Merchant Magazine spotlighted West Coast wholesaler Burns Lumber Co. and its ad series featuring real woodcut figures.

are now offering a three-price option to drivers (full service, self serve credit card, and self-serve cash), one Midwest building material chain is installing new cash registers that are programmed to deduct 2% for cash. They’ll be promoting heavily in ads.

Biggest in the business: Stores Magazine just listed the top volume specialty stores which carried one or just a few lines of merchandise traditionally found in department stores. They excluded such operations as supermarkets, drug stores, discount stores, catalog stores, paint stores and “lumber-oriented” home centers. Those home centers that were included fared very well, however. Lowe’s was third behind the leader Radio Shack (with a volume of $1.186 billion). Other home centers who made their list were: Payless Cashways (#14), Scotty’s (#27), Handy Dan (#31), Ernst (#34), Peavey (#39), Channel (#43), Hechinger (#47), Handyman and Rickel (tied at #55), Builders Emporium (#59), Pay ‘n Pak (#60), Central Hardware (#69), Ole’s (#80), Handy City and Busy Beaver (tied for #98).