K mart takes aggressive lead in hardware

Discount Store News, Dec 14, 1987

K mart was the most successful of the three retailers in both large and small metro areas where the greatest number of its home care centers are located. Small metro area stores did best in hardware, with 8 percent of shoppers citing hardware as the category in which they mainly spent their money at K mart during the past year. In large metro areas, that percentage fell to 6.6 percent, and to 3.3 percent in non-metro markets.

Despite Target's metropolitan thrust, it did best in hardware sales in the non-metro areas. Nearly 5 percent of Target shoppers in non-metro areas named hardware as the category in which they mainly spent their Target dollars during the past year, compared to 4.1 percent in small metro areas and 4.3 percent in large metro areas.

DSN market visits to Austin, Tex., Memphis, Tenn., St. Louis, and Wichita, Kan., revealed that Wal-Mart offered the lowest everyday prices of the three chains throughout the hardware department. K mart and Target were almost even, offering about the same number of "highest" and "lowest" prices in this category.

On nine hardware products in these markets, Wal-Mart offered the lowest price on more than half the items. Target was lowest on about 20 percent of the items, and K mart was lowest priced on about 17 percent. Target was the highest on about 40 percent of the items. Wal-Mart was highest on only 5 percent, and K mart was highest on 36 percent of the product.

For example, a Stanley Powerlock tape measure, model 33-116, was priced at $7.94 in a St. Louis Wal-Mart. K mart charged its St. Louis customers $11.47 for the same tape measure and Target priced it at $12.49.

These prices do not hold firm in the other markets. In Austin and Memphis, for example, Wal-Mart charged customers $8.86 for the same tape measure. Target's price held firm at $12.49 but K mart was sharper at $8.46 in Memphis and $8.49 in Austin.

On a B&D finishing sander, model 7448, the price fluctuated from a low of $22.76 by K mart in Memphis to a high of $26.97 by K mart in Austin and St. Louis.

Black & Decker's Dustbuster, model 9330, also saw price fluctuations, from a low of Wal-Mart's $21.98 in Memphis to a high of $27.87 by K mart in Austin and St. Louis.

And, a single 9-volt Duracell battery ranged from a low of $1.56 by K mart and Wal-Mart in Memphis to $2.19 by Target in Austin.

Table: K mart Excels in Hardware

Percent of shoppers who mainly spent their money on hardware/tools at the store during the past year

Table: MARKET BASKET: Hardware

Prices on selected hardware products sold at all three chains

Photo: K mart is well ahead of most discount chains in developing a strong presence in the hardware and home improvement categories.

Photo: Wal-Mart's presence in smaller markets often positions the discounter as a destination store for hardware, paint and other home improvement products.

Photo: Despite its soft goods image, Target has been expanding assortments, improving depth and upgrading merchandise in its hardware and home improvement categories.