Main Street's bis chance t- ^,D -,'-r..r.=

A CCORDING to a May 2008 con-la.sumer research study. 3OVo ot American consumers are experiencing severe anxiety about the economy and their personal financial situations.

It is no surprise, then, that consumer spending is expected to decline as a result. However, there is a silver lining in the data. Stacy Janiak, U.S. retail leader at Deloitte LLP. notes. "In the current economic envfuonment, consumers are looking for value. Heading into the holiday season, retailers will be well-positioned by emphasizing their unique value propositions, whether that means price, customer service ... or some other metric important to their customer base."

For specialty hardware retailers and lumberyards, consumers' economic concerns and evolving shopping preferences have created a once-in-a-lifetime opportunity to attract new customers to Main Street and win back those who were lured away by the promise of big box stores.

So how can LBM dealers capitalize on this opportunity? It is clear that today's consumers demand a level of convenience, service and quality that local, independent retailers are uniquely qualified to deliver. In fact, given current market conditions, there has never been a better time for independents in the building products industry to differentiate themselves in the marketplace by offering compelling value, which will boost their bottom lines.

Convenience & connection

What do customers really want?

The answer is not surprising: today's customers wish for more time-even during challenging economic times. In fact, an October 2008 trendwatching.com briefing says that "7OVo of Americans 16 years and older say they don't have enough time to do all the things they need to do. Half of U.S.

consumers now say that a lack of time is a bigger problem in their lives than a lack of money." This is why timeconstrained shoppers are drawn to the convenience of Main Street, a significant advantage for those doing business in this now-coveted location.

In addition to convenience, Main Street gives consumers a feeling of connection-to their neighborhoods and communities. As an integral part of the community themselves, specialty hardware retailers and lumberyards understand the importance of making a personal connection with their customers and how that directly impacts the success of their businesses. They are uniquely positioned to forge relationships with their customers, which is, in turn, reflected in the high level of service they can provide.

To understand a customer's needs, an independent retailer can ask-then listen-every time a customer walks through the door. While formalized market research may provide a retailer with valuable data, an informal conversation delivers immediate results. And, whether information is gathered through formal or informal methods, an independent retailer has the flexibility to implement changes immediately. This level of responsiveness equates to superior service.

Taken together, strong retailer-customer relationships, clear customer insight, and excellent service create a retail experience that is completely personalized- a key differentiator that distinguishes the specialty building products retailer from a big box store.

Quality & focus count

Today's customers expect value for their money, and real value means high-quality products. Without the pressure to offer the perceived lowest prices, specialty hardware dealers and lumberyards can maintain a strategic focus on delivering value to their customers. As a result, they can study the product lines available and then offer only the very best. Discerning customers, such as those who want professional-caliber products, will appreciate a local resource that is able to provide them.

A commitment to quality also means that independents can, and should, play to their strengths by focusing on what they do well: offering customized product assortments and exceptional service. Big box stores, however, are typically forced to offer lesser quality products and more cookie-cutter assortments in order to meet their margin goal and appeal to a more general consumer audience.

Specialty hardware dealers can give themselves a significant competitive advantage and lure customers away from general merchants by building a business around what they do best: understanding market trends and delivering the specialized, high-quality products customers expect. For example, energy-efficient products are more than a trend in today's market, and retailers that specialize in these offerings can cater to a market that is more concerned with value than price.

Thlented teams sell

Successful retailers understand that engaged, knowledgeable and highly trained staff form the vital front line of their businesses. Without a high-caliber staff to serve customers, convenience, service and quality mean little.

This makes attracting and retaining a talented team of employees essential-while posing a significant challenge. In all industries, there is a scramble to hire the best and brightest young workers as baby boomers retire. While these new employees are looking for competitive salaries and benefits, they also place value on meaning- ful work, a structured growth path, and the ability to make a difference. onlv from SFl-certified chain-ofcustody wood fiber. They're uniform, with consistent sizes and stronger than dimension lumber so only about half as many trees are cut. Boise, always a leader in renewable resources, also provides green, paperless design processes to make home plans more efficient and reduce material waste. For more information contact Norman Distribution todav

With a willingness to invest in workers and foster an environment that encourages employee involvement, growth and development, specialty hardware stores and lumberyards can provide such an opportunity-and win employees from big boxes. In tum, highly trained, knowledgeable employees can help independents better provide customers with information about innovative products and trends, which will result in winning and retaining new customers.

New economic realities and shifts in consumer attitudes have provided independent retailers with a unique opportunity-Main Street's big chance. To make the most of it, however, specialty retailers in the building products industry must have a compelling competitive advantage. Only by offering customers greater convenience, high-quality products, and superior service will they win. even in the most favorable environment.

- Steve Frawley is president and c.e.o. of Emery-Waterhouse, Portland, Me., which has been distributing hardlines for over 165 years. Reach him at sfrawley@ emeryonLine.com or (800) 283-0236.