Hardware Retailing

FEB 2019

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

Issue link: http://www.hardwareretailingarchive.com/i/1074585

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Page 50 of 102

HARDWARE RETAILING 44 DISTRIBUTOR PROFILE SERIES EXECUTIVE Q&A Hardware Retailing (HR): What kinds of programs do you offer to customers who want to expand their businesses? Mark Scheer (MS): Unique to Orgill is our Market Driven Retailing program. It is a market-specific approach that allows us to develop analytics for a retailer for their market. It provides measurable data to assist the retailer in focusing on their customer, and what the consumer's expectations are when they shop for home improvement products. The Market Driven Retailing process begins when we provide the retailer with demographics so they can compare their market to similar markets across the U.S. The process also includes collection of data from other businesses within their market. At the conclusion of that data collection, our customer sees the results and knows specifically what it will take to compete with those other stores. I think our Market Driven Retailing study is one of the things that sets us apart from other distributors in the industry. It shows exactly what a retailer needs to do when constructing a new location or updating an existing location—everything from a floor plan to product selection to what categories help make them a destination for the consumer. We look at retail pricing and know exactly what prices a store should be at. We don't want retailers to miss any opportunities for their customers. The Market Driven Retailing study allows our customers to let their market be their compass. HR: How do you address retailers who want to convert to Orgill? MS: The process is a bit different for retailers who want to convert their stores to Orgill. We are dealing with an established retail environment, so we have the benefit of knowing a retailer's purchase history and their place in the market. With a conversion, we go through the business's product selection and convert any products necessary to match up with the SKUs offered through Orgill. The retailer often has some products from a different supplier that are identical to what we offer, and in other categories, there might be more opportunities for them to try new products. Additionally, we evaluate their inventory to identify any missing key assortments. We plan for most conversions to take about a week. We expect the store to stay open; we don't want to have a negative impact on business. During the conversion, we remove any old product, switch bin labels, change out signage and provide the new data to their POS company. Stores often see an enhancement in sales after a conversion, and one reason may be due to the changes in how customers see the store. Products might have moved around, or there might be new products with different packaging. HR: What resources does Orgill provide during these projects? MS: We have a full store planning staff that assists with our Market Driven Retailing program. Our team captures data, and our store analysts study it. We have store planners who put together store layouts. For anyone who wants to convert, we have a complete team of conversion managers. These retail development managers are strategically placed across the country, and their focus is to work through conversions, which have many components. We don't want to impact the retailer's ability to service their regular customers, so our team works with POS providers to compare the retailer's file to the Orgill database. We also encourage retailers to get their POS provider engaged in the process, just to make sure there's a smooth transition. Smart Start is also an integral part of the conversion. This program helps replace tired products with fresh, complete assortments. It's very helpful in determining that we have the right product selection. Retailers understandably want to take a close look at any changes in inventory. We make sure their items, especially the top-selling ones, aren't compromised. Orgill Talks New Stores, Expansions and Conversions Looking for a Change? Mark Scheer Director of Retail Development Scheer leads the conversion team as they set stores for retailers who have converted to Orgill. He also helps retailers look closely at their markets to ensure they are accurately targeting their customer base. " Stores often see an enhancement in sales after a conversion, and one reason may be due to the changes in how customers see the store. "

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