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The next battle of "Hardware Wars" begins, as Sears moves to become your neighborhood hardware store! Sears buys Orchard Supply Sears is back. I couldn't believe the headline in the business section of the San Francisco Chronicle: "Sears buys Orchard Supply." Here we go again, head first into the next episode of "Hardware Wars." It's not a George Lucas blockbuster. It's not a Middle East flare-up. "Hardware Wars" is the continuing saga of the fierce battle being fought by our nation's corporations for your next home improvement discretionary dollar. This battle, like the last, promises to once again change the face of hardware retailing. The last major battle, which is still raging in communities across America, surrounds the Home Depot and its wannabees. Their warehouse stores have changed the way in which people shop for products for their home. Warehouse retailing has been responsible for driving nearly 1/3 of all hardware stores and home improvement centers out of business. However, try as they might, Home Depot is not a category killer. Forcing the remaining hardware retailers to become more aggressive and customer focused, they cannot eradicate the local hardware store from its firm footing in the neighborhoods of America. Bernie Marcus, President of Home Depot, acknowledged that fact recently, in a speech to the nation's Ace Hardware dealers. Home Depot and local hardware stores will continue to coexist. Not as far as Sears is concerned, however. They realize, as do we, that the convenience segment of the hardware industry will always be needed. (The "convenience segment" is now what hardware stores are referred to in the industry. We are the For the past few years Sears has been putting up hardware stores all around the Midwest. Their strategy is to locate the strongest Ace® or True Value hardware stores in a market, and then open a large store as close to them as possible. Sears' stated goal is to locate Sears Hardware Stores in neighborhoods across America. They envision themselves and Home Depot as the two major players in the hardware industry. Their recent purchase of Orchard Supply gives them an instant foothold in California. Within the next year, I feel that Orchard Supply will disappear to be replaced by the Sears name. At that time, you'll also see Sears Hardware Stores sprouting up in community after community around the state. This time, however, the independent hardware stores are ready for them. The battles with Home Depot have left the best stores standing and willing to aggressively compete. It is my opinion that the battle will be won or lost solely over the quality of customer service. You can bet that we will be continuing to improve as we strive to meet your needs more effectively. Our creed keeps us running, working to constantly find new and better ways to serve you: "Our commitment to you: Your satisfaction guaranteed. Period."
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