•   
• 

If You Had A Hammer

The 30-years war for your screwdriver dollars

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.”

Add Comment