Winning back shoppers

Discount Store News, Jan 4, 1999

The rapid growth of national home improvement chains during the '80s and early '90s forced many general merchandise retailers to pare back their hardware and paint assortments-if not abandon them altogether. However, results from a recent American Express survey show that discounters may have an opportunity to reclaim some of the business they lost in recent years.

A poll of 900 home improvement store shoppers found that home improvement stores have a far weaker hold on customers than department stores, discount stores or specialty outlets, respectively. And discounters came out on top when shoppers were asked to name the format with the most convenient locations and broadest overall product assortment.

High pricing is the most important motivating factor for customers to switch stores, followed by out-of-stocks, disorganized displays and unhelpful employees. Obviously, home centers aren't going to go away. But with hardware customers' loyalty currently up for grabs, general merchants may have an opportunity to selectively expand their hardware assortments.