Successful convenience store concept

On the west coast, where the group took over Orchard Supply Hardware several years ago, it numbers 70 outlets in both northern and southern California.
Elsewhere the Sears strategy is designed to establish their stores in big cities and suburbs whose inhabitants have high disposable incomes. The area of the stores seems to have found its level at around 3 700 m2, although some of the smaller original stores (of around 2 300 m2) are still in operation. The product assortment reflects the group’s leadership role in the area of hand and power tools, paint and power garden equipment. “Craftsman”, its own brand of tools and machines, is said to be the best-selling brand in this category. The group’s “Weatherbreaker” paint range is also wellknown.
The exterior view of a typical Sears Hardware.
Building on the tradition of the Orchard Supply sales strategy, the Sears Hardware stores offer a limited number of housewares and a strong selection of outdoor living products and barbecues. The stores are no “warehouses”, so more attractive to women customers. Both their size and location mean they are positioned as useful alternatives to the large-format stores.
The group is aiming at the market for relatively small repair and renovation jobs with its broad range of products in the electrical and sanitaryware categories, as well as paint, decorators’ supplies and hardware. Its assortment is more comprehensive than that carried by most independent hardware dealers and smaller DIY stores.
Nevertheless, the Sears stores are not on the whole in a position to compete with Home Depot, Lowe’s or Menards if they are located in the vicinity, for these DIY chains pursue more aggressive promotional campaigns with advertising folders several pages long that are produced weekly. Sears Hardware restricts itself to a minimal advertising policy and, like the independents, positions itself as a chain of “convenience” stores.
Great is the choice of taps at all price levels.
To take one example, the company recently closed down a store in Indianapolis when a Lowe’s opened up opposite. Yet in Avon, a rapidly growing suburb, the company started up a new store even though Menards and Lowe’s operate gigantic warehouse outlets there.
A True Value dealer complained elsewhere that his business had gone down by 25 per cent following the opening of a Sears Hardware two blocks away, though his business recovered after a year and is today still where it always was. However, this sorely tried dealer has…